Overview

* H World ( HTHT ) Q3 revenue grows 8.1% yr/yr, surpassing high-end of company guidance

* Net income for Q3 rises 15.4% yr/yr, supported by Legacy-Huazhu growth

* M&F revenue increases 27.2% yr/yr, driven by hotel network expansion

Outlook

* H World expects Q4 2025 revenue growth of 2%-6% compared to Q4 2024

* H World anticipates 3%-7% revenue growth excluding DH for Q4 2025

* Company forecasts Q4 manachised and franchise property (M&F) revenue growth of 17%-21%

Result Drivers

* M&F GROWTH - M&F revenue increased 27.2% yr/yr, driven by hotel network expansion

* ASSET-LIGHT STRATEGY - Co's asset-light strategy contributed to higher revenue and operating profit growth

* OCCUPANCY RATE INCREASE - Legacy-DH segment's occupancy rate increased 4.6 percentage points, boosting RevPAR

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 RMB 6.96

Revenue bln

Q3 RMB 256

RevPAR

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy"

* Wall Street's median 12-month price target for H World Group Ltd ( HTHT ) is $46.70, about 6.2% above its November 14 closing price of $43.80

* The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)