Company Overview

H World Group Limited, headquartered in Shanghai and founded in 2005, stands as a key player in the global hotel industry. The company was formerly known as Huazhu Group Limited and officially changed its name to H World Group Limited in June 2022 to reflect its expanded global ambitions. H World trades on the NASDAQ under the ticker HTHT and on the Hong Kong Stock Exchange under code 1179.

Business Overview and Operating Models

As of June 30, 2025, H World operated 12,137 hotels with 1,184,915 hotel rooms in operation across 19 countries. The company operates through a diversified portfolio of business models, including leased and owned properties, manachised, and franchised hotels, catering to multiple market segments.

#### Operating Models

H World's business structure is built around three primary operating models:

- Leased and Owned Hotels: Under this model, H World directly operates hotels, typically situated on leased or owned properties.

- Manachise Model: In this model, H World manages hotels where it appoints on-site hotel managers and collects fees from franchisees.

- Franchise Model: Under the franchise model, H World provides essential services such as training, reservations, and support to franchised hotels, collecting fees from franchisees without appointing on-site managers.

As of June 30, 2025, H World operates approximately 8% of its hotel rooms under the lease and ownership model, while the remaining 92% are managed under the manachise and franchise models. This demonstrates the company's strong commitment to an asset-light strategy.

Hotel Brand Portfolio

H World operates an extensive and diverse portfolio of hotel brands, strategically designed to cater to various market segments, ranging from economy to luxury.

Economy to Luxury Segments

The company's brand portfolio includes: HanTing Hotel, JI Hotel, Orange Hotel, Crystal Orange Hotel, IntercityHotel, Hi Inn, Ni Hao Hotel, Elan Hotel, Zleep Hotels, Starway Hotel, CitiGo, Manxin Hotel, Madison Hotel, MAXX, Blossom House, Joya Hotel, Steigenberger Hotels & Resorts, Jaz in the City, Steigenberger Icon, and Song Hotels.

Strategic Partnerships

Furthermore, H World holds the rights as the master franchisee for Mercure, Ibis, and Ibis Styles within the pan-China region. It also possesses co-development rights for Grand Mercure and Novotel in the same territory. These international brand partnerships significantly strengthen its market position.

Financial Performance

Recent Financial Highlights

In 2024, H World Group reported revenue of RMB 23.89 billion, marking an increase of 9.18% compared to the previous year's RMB 21.88 billion. However, earnings for the year were RMB 3.05 billion, a decrease of -25.39% from the prior year.

The company has consistently demonstrated growth momentum, with its asset-light model playing a key role in sustainable revenue expansion.

Key Financial Metrics (2024 Data)

- Revenue: RMB 23.89 billion (Year-over-year growth: +9.18%)

- Earnings: RMB 3.05 billion (Year-over-year change: -25.39%)

- Total Hotels: 12,137 (as of June 30, 2025)

- Total Rooms: 1,184,915 (as of June 30, 2025)

- Countries of Operation: 19

Market Segments and Operations

The Company organizes its business operations through two primary segments: Legacy Huazhu and Legacy DH. Its brand offerings span across Economy, Midscale, Upper Midscale, Upscale, and Luxury hotel categories.

Geographic Presence

H World primarily conducts its business operations in its domestic market, China, while also expanding its international footprint across 19 countries. This dual focus allows it to leverage its strong foundation in China and grow its presence globally.

Operational Excellence

H World consistently applies standardized operating procedures and platforms across its entire network of hotels. This commitment to standardization ensures brand consistency, quality control, and operational efficiency, which are critical for scaling rapidly.

The company's strategic emphasis on the manachise and franchise models provides significant opportunities for scalable growth with reduced capital requirements, positioning H World for continued expansion both domestically and internationally.

Company Recognition and Future Outlook

2025 marks the 20th anniversary of H World Group Limited, a significant milestone highlighting two decades of sustained growth and establishment as a leading hospitality operator. The company has successfully built a comprehensive ecosystem that spans from economy to luxury segments, adeptly serving diverse customer needs across multiple geographical markets.

H World Group's combination of substantial operational scale, diverse brand portfolio, and an asset-light business model positions it as a significant player in the global hospitality industry, particularly in the Asia-Pacific region where it holds market-leading positions in key segments.