H World Group Limited Reports Second Quarter and Interim of 2025 Unaudited Financial Results

A total of 12,137 hotels or 1,184,915 hotel rooms in operation as of June 30, 2025.Hotel turnover1 increased 15.0% year-over-year to RMB26.9 billion in the second quarter of 2025. Excluding Steigenberger Hotels GmbH and its subsidiaries (“DH”, or “Legacy-DH”), hotel turnover increased 15.6% year-over-year in the second quarter of 2025. Hotel turnover from the Legacy-DH segment increased 8.9% in the second quarter of 2025.Revenue increased 4.5% year-over-year to RMB6.4 billion (US$897 million)2 in the second quarter of 2025, near the high end of the revenue guidance previously announced of a 1% to 5% increase compared to the second quarter of 2024. Manachised and franchised revenue increased 22.8% year-over-year to RMB2.9 billion (US$400 million) in the second quarter of 2025, exceeding the high end of the manachised and franchised revenue guidance previously announced of an 18% to 22% increase compared to the second quarter of 2024. Revenue from the Legacy-Huazhu3 segment in the second quarter of 2025 was RMB5.1 billion, which increased 5.7% year-over-year, above the midpoint of the revenue guidance previously announced of a 3% to 7% increase. Revenue from the Legacy-DH segment in the second quarter of 2025 was RMB1.3 billion, which increased 0.1% year-over-year.Net income attributable to H World Group Limited was RMB1.5 billion (US$215 million) in the second quarter of 2025, compared with RMB1.1 billion in the second quarter of 2024 and RMB894 million in the previous quarter. EBITDA (non-GAAP) in the second quarter of 2025 was RMB2.5 billion (US$344 million), compared with RMB1.9 billion in the second quarter of 2024 and RMB1.6 billion in the previous quarter.Adjusted EBITDA (non-GAAP), which excluded share-based compensation (“SBC”) expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments from EBITDA (non-GAAP), was RMB2.3 billion (US$317 million) in the second quarter of 2025, compared with RMB2.0 billion in the second quarter of 2024 and RMB1.5 billion in the previous quarter. Adjusted EBITDA is our segment measure. Adjusted EBITDA from the Legacy-Huazhu segment was RMB2.1 billion in the second quarter of 2025, compared with RMB1.9 billion in the second quarter of 2024 and RMB1.6 billion in the previous quarter. Adjusted EBITDA from the Legacy-DH segment was RMB180 million in the second quarter of 2025, compared with RMB133 million in the second quarter of 2024 and a loss of RMB77 million in the previous quarter.For the first half of 2025, the board of directors of the Company (the “Board”) declared a cash dividend in the aggregate amount of approximately US$250 million, of US$0.081 per ordinary share, or US$0.81 per American Depositary Share (“ADS”).For the third quarter of 2025, H World expects the Company’s revenue growth to be in the range of 2%-6% compared to the third quarter of 2024 or in the range of 4%-8% excluding DH. H World expects the Company’s manachised and franchised revenue growth in the third quarter of 2025 to be in the range of 20%-24%, compared to the third quarter of 2024. SINGAPORE and SHANGHAI, China, Aug. 20, 2025 (GLOBE NEWSWIRE) -- H World Group Limited (NASDAQ: HTHT and HKEX: 1179) (“H World”, the “Company”, “we” or “our”), a key player in the global hotel industry, today announced its unaudited financial results for the second quarter and the first half ended June 30, 2025. As of June 30, 2025, H World’s worldwide hotel network in operation totaled 12,137 hotels and 1,184,915 rooms, including 12,016 hotels from Legacy-Huazhu and 121 hotels from Legacy-DH. During the second quarter of 2025, our Legacy-Huazhu business opened 595 hotels, including 1 leased and owned hotel, and 594 manachised and franchised hotels, and closed a total of 143 hotels, including 6 leased and owned hotels, and 137 manachised and franchised hotels. As of June 30, 2025, H World had a total of 2,947 unopened hotels in our pipeline, including 2,925 hotels from the Legacy-Huazhu business and 22 hotels from the Legacy-DH business. Legacy-Huazhu – Second Quarter of 2025 Operational Highlights As of June 30, 2025, Legacy-Huazhu had 12,016 hotels in operation, including 547 leased and owned hotels, and 11,469 manachised and franchised hotels. In addition, as of the same date, Legacy-Huazhu had 1,159,086 hotel rooms in operation, including 80,587 rooms under the lease and ownership model, and 1,078,499 rooms under the manachise and franchise models. Legacy-Huazhu also had 2,925 unopened hotels in its pipeline, including 8 leased and owned hotels, and 2,917 manachised and franchised hotels. The following discusses average daily room rate (“ADR”), occupancy rate and revenue per available room (“RevPAR”) for Legacy-Huazhu’s leased and owned hotels as well as manachised and franchised hotels for the periods indicated. The ADR for Legacy-Huazhu was RMB290 in the second quarter of 2025, compared with RMB296 in the second quarter of 2024 and RMB272 in the previous quarter.The occupancy rate for all of the Legacy-Huazhu hotels in operation was 81.0% in the second quarter of 2025, compared with 82.6% in the second quarter of 2024 and 76.2% in the previous quarter.Blended RevPAR for Legacy-Huazhu was RMB235 in the second quarter of 2025, compared with RMB244 in the second quarter of 2024 and RMB208 in the previous quarter.For all of the Legacy-Huazhu hotels which had been in operation for at least 18 months, the same-hotel RevPAR was RMB233 in the second quarter of 2025, representing a 7.9% decrease from RMB253 in the second quarter of 2024, with a 4.6% decrease in same-hotel ADR and a 2.9 percentage-point decrease in same-hotel occupancy rate. Legacy-DH – Second Quarter of 2025 Operational Highlights As of June 30, 2025, Legacy-DH had 121 hotels in operation, including 65 leased hotels, and 56 manachised and franchised hotels. In addition, as of the same date, Legacy-DH had 25,829 hotel rooms in operation, including 13,797 rooms under the lease model, and 12,032 rooms under the manachise and franchise models. Legacy-DH also had 22 unopened hotels in the pipeline, including 9 leased hotels and 13 manachised and franchised hotels. The following discusses ADR, occupancy rate and RevPAR for Legacy-DH’s leased as well as manachised and franchised hotels (excluding hotels temporarily closed) for the periods indicated. The ADR for Legacy-DH was EUR120 in the second quarter of 2025, compared with EUR120 in the second quarter of 2024 and EUR107 in the previous quarter.The occupancy rate for all Legacy-DH hotels in operation was 73.9% in the second quarter of 2025, compared with 68.3% in the second quarter of 2024 and 61.1% in the previous quarter.Blended RevPAR for Legacy-DH was EUR88 in the second quarter of 2025, compared with EUR82 in the second quarter of 2024 and EUR65 in the previous quarter. Jin Hui, CEO of H World, commented: “Supported by our asset-light strategy, we delivered robust operating profit growth in the second quarter driven by network expansion, despite a modest year-over-year RevPAR decline. On the development front, we opened another 595 hotels in the quarter, well on track of achieving our 2,300 gross opening target for the full year of 2025. We remain cautious on the near-term industry outlook given the macro uncertainties, rising supply, and relatively soft corporate travel demand. Nevertheless, we are positive on the long-term growth for China’s travel and hospitality industry. We will continue focusing on building our own core competencies, expanding our high-quality network, upgrading our supply chain, enhancing our brand positioning and 'service excellence', and strengthening our sales capabilities.” “Regarding our business outside China, our Legacy-DH segment achieved an 8.1% year-over-year blended RevPAR increase in the second quarter of 2025, driven primarily by a 5.6 percentage-point increase in occupancy rate. We will continue to enhance our hotel operations, focus on cost reduction and efficiency improvement, and continue developing our asset-light portfolio.” Second Quarter and Interim of 2025 Unaudited Financial Results (RMB in millions)Q2 2024 Q1 2025 Q2 2025 H1 2024 H1 2025Revenue: Leased and owned hotels3,681 2,789 3,401 6,780 6,190Manachised and franchised hotels2,334 2,499 2,865 4,397 5,364Others133 107 160 249 267Total revenue6,148 5,395 6,426 11,426 11,821 Revenue in the second quarter of 2025 was RMB6.4 billion (US$897 million), representing a 4.5% year-over-year increase. Revenue from the Legacy-Huazhu segment in the second quarter of 2025 was RMB5.1 billion, representing a 5.7% year-over-year increase. The 5.7% year-over-year increase was mainly driven by continued manachised and franchised hotel network expansion. Revenue from the Legacy-DH segment in the second quarter of 2025 was RMB1.3 billion, which was largely flattish year-over-year. Revenue in the first half of 2025 was RMB11.8 billion (US$1.7 billion), representing an increase of 3.5% from the first half of 2024. Revenue from Legacy-Huazhu in the first half of 2025 was RMB9.6 billion, representing a 5.6% year-over-year increase. Revenue from Legacy-DH in the first half of 2025 was RMB2.2 billion, which was a 4.9% year-over-year decrease due to the decrease in the number of leased hotels. Revenue from leased and owned hotels in the second quarter of 2025 was RMB3.4 billion (US$475 million), representing a 7.6% year-over-year decrease. Revenue from leased and owned hotels from the Legacy-Huazhu segment in the second quarter of 2025 was RMB2.1 billion, representing an 11.1% year-over-year decrease, as we continue reducing exposure to leased and owned hotels. Revenue from leased and owned hotels from the Legacy-DH segment in the second quarter of 2025 was RMB1.3 billion, representing a 1.2% year-over-year decrease. In the first half of 2025, revenue from our leased and owned hotels was RMB6.2 billion (US$864 million), representing an 8.7% year-over-year decline. Revenue from our Legacy-Huazhu’s leased and owned hotels in the first half of 2025 was RMB4.0 billion, representing a 10.3% year-over-year decrease. Revenue from our Legacy-DH’s leased hotels in the first half of 2025 was RMB2.2 billion, representing a 5.5% year-over-year decrease. Revenue from manachised and franchised hotels in the second quarter of 2025 was RMB2.8 billion (US$400 million), representing a 22.8% year-over-year increase and a 14.6% quarter-over-quarter increase. Revenue from our Legacy-Huazhu segment from manachised and franchised hotels in the second quarter of 2025 was RMB2.8 billion, representing a 22.7% year-over-year increase, driven by strong hotel network expansion. Revenue from manachised and franchised hotels from the Legacy-DH segment in the second quarter of 2025 was RMB41 million, representing a 28.1% year-over-year increase. In the first half of 2025, revenue from manachised and franchised hotels was RMB5.4 billion (US$749 million), representing a 22.0% year-over-year increase. These hotels accounted for 45.4% of revenue in the first half of 2025, compared to 38.5% of revenue in the first half of 2024. Revenue from our Legacy-Huazhu’s manachised and franchised hotels in the first half of 2025 was RMB5.3 billion, representing a 21.9% year-over-year increase. Revenue from our Legacy-DH’s manachised and franchised hotels in the first half of 2025 was RMB72 million, representing a 30.9% year-over-year increase. Other revenue represents revenue generated from businesses other than our hotel operations, which mainly includes revenue from the provision of IT products and services, procurement platform and Huazhu Mall™, and other revenue from the Legacy-DH segment, totaling RMB160 million (US$22 million) in the second quarter of 2025, compared to RMB133 million in the second quarter of 2024. In the first half of 2025, other revenue was RMB267 million (US$37 million), compared to RMB249 million in the first half of 2024. (RMB in millions)Q2 2024 Q1 2025 Q2 2025 H1 2024 H1 2025 Operating costs and expenses: Hotel operating costs(3,731) (3,604) (3,752) (7,296) (7,356)Other operating costs(6) (11) (11) (15) (22)Selling and marketing expenses(317) (243) (309) (577) (552)General and administrative expenses(602) (512) (660) (1,111) (1,172)Pre-opening expenses(19) (3) (12) (27) (15)Total operating costs and expenses(4,675) (4,373) (4,744) (9,026) (9,117) Hotel operating costs in the second quarter of 2025 were RMB3.8 billion (US$523 million), reflecting a slight 0.6% year-over-year increase. As we continue to pursue an asset-light strategy, our hotel operating costs as a percentage of revenue have decreased by 2.3 percentage points year-over-year. In the first half of 2025, hotel operating costs were RMB7.4 billion (US$1.0 billion), which were largely flat compared to RMB7.3 billion in the first half of 2024. Selling, General and administrative expenses (SG&A) in the second quarter of 2025 were RMB969 million (US$135 million), reflecting a 5.4% year-over-year increase due mainly to an increase in SBC. SG&A excluding SBC decreased 1.0% year-over-year. In the first half of 2025, SG&A expenses were RMB1.7 billion (US$241 million), compared to RMB1.7 billion in the first half of 2024. Other operating income, net in the second quarter of 2025 was RMB105 million (US$15 million), compared to RMB99 million in the second quarter of 2024. Other operating income, net in the first half of 2025 was RMB165 million (US$23 million), compared to RMB175 million in the first half of 2024. Income from operations in the second quarter of 2025 was RMB1.8 billion (US$250 million), reflecting a 13.7% year-over-year increase, and driven by an 11.7% year-over-year increase in Legacy-Huazhu and a 52.7% year-over-year increase in Legacy-DH. Income from operations in the first half of 2025 was RMB2.9 billion (US$400 million), compared to income from operations of RMB2.6 billion in the first half of 2024. Operating margin, defined as income from operations as a percentage of revenue, was 27.8% in the second quarter of 2025, which has improved from 25.6% in the second quarter of 2024. The margin improvement was mainly due to a higher revenue contribution from our manachised and franchised business, which was in line with our asset-light expansion strategy. Operating margin in the first half of 2025 was 24.3%, compared with 22.5% in the first half of 2024. Income tax expense in the second quarter of 2025 was RMB565 million (US$79 million), compared to RMB423 million in the second quarter of 2024. The year-over-year increase in income tax expense was due to both rising income and a higher withholding tax related to dividend distributions. In the first half of 2025, income tax expense was RMB942 million (US$131 million), compared to RMB702 million in the first half of 2024. Net income attributable to H World Group Limited in the second quarter of 2025 was RMB1.5 billion (US$215 million), reflecting a 44.7% year-over-year increase, supported by a 40.9% year-over-year increase in Legacy-Huazhu. Net income attributable to H World Group Limited in the first half of 2025 was RMB2.4 billion (US$340 million), compared with RMB1.7 billion in the first half of 2024. EBITDA (non-GAAP) in the second quarter of 2025 was RMB2.5 billion (US$344 million), compared with RMB1.9 billion in the second quarter of 2024 and RMB1.6 billion in the previous quarter. EBITDA (non-GAAP) in the first half of 2025 was RMB4.1 billion (US$569 million), compared with RMB3.2 billion in the first half of 2024. Adjusted EBITDA (non-GAAP), which excluded the following from EBITDA (non-GAAP): SBC expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments, was RMB2.3 billion (US$317 million) in the second quarter of 2025, compared with RMB2.0 billion in the second quarter of 2024 and RMB1.5 billion in the previous quarter. Adjusted EBITDA is our segment measure. Adjusted EBITDA from the Legacy-Huazhu segment was RMB2.1 billion in the second quarter of 2025, compared with RMB1.9 billion in the second quarter of 2024 and RMB1.6 billion in the previous quarter. Adjusted EBITDA from the Legacy-DH segment was RMB180 million in the second quarter of 2025, compared with RMB133 million in the second quarter of 2024 and a loss of RMB77 million in the previous quarter. Adjusted EBITDA (non-GAAP) in the first half of 2025 was RMB3.8 billion (US$525 million), compared with RMB3.5 billion in the first half of 2024. Adjusted EBITDA from Legacy-Huazhu was RMB3.7 billion in the first half of 2025, compared with RMB3.4 billion in the first half of 2024. Adjusted EBITDA from Legacy-DH was RMB103 million in the first half of 2025, compared with RMB67 million in the first half of 2024. Cash flow. Operating cash inflow in the second quarter of 2025 was RMB2.7 billion (US$371 million). Investing cash inflow in the second quarter of 2025 was RMB239 million (US$34 million). Financing cash outflow in the second quarter of 2025 was RMB709 million (US$100 million). Operating cash inflow in the first half of 2025 was RMB3.2 billion (US$452 million), compared to RMB3.1 billion in the first half of 2024. Investing cash inflow in the first half of 2025 was RMB996 million (US$139 million), compared to RMB694 million in the first half of 2024. Financing cash outflow in the first half of 2025 was RMB1.3 billion (US$187 million), compared to RMB3.4 billion in the first half of 2024. Cash, cash equivalents and restricted cash. As of June 30, 2025, the Company had a total balance of cash and cash equivalents of RMB10.1 billion (US$1.4 billion) and restricted cash of RMB370 million (US$52 million). Debt financing. As of June 30, 2025, the Company had a total debt and net cash balance of RMB7.4 billion (US$1.0 billion) and RMB3.1 billion (US$434 million), respectively. Cash DividendThe Board has approved the declaration and payment of an ordinary cash dividend (the “Cash Dividend”) for the first half of 2025 in the aggregate amount of approximately US$250 million, of US$0.081 per ordinary share, or US$0.81 per ADS. Holders of the Company’s ordinary shares or ADSs as of the close of business on September 9, 2025 will be entitled to receive the Cash Dividend. Dividends to holders of the Company’s ordinary shares are expected to be distributed on or about September 19, 2025. Citibank, N.A. (“Citi”), depositary bank for the Company’s ADS program, expects to pay out dividends to ADS holders on or about September 26, 2025. Dividends to be paid to the Company’s ADS holders through Citi will be subject to the terms of the deposit agreement by and among the Company and Citi, and the holders and beneficial owners of ADSs issued thereunder, including the fees and expenses payable thereunder. Guidance For the third quarter of 2025, H World expects the Company’s revenue growth to be in the range of 2%-6% compared to the third quarter of 2024, or in the range of 4%-8% excluding DH. H World expects the Company’s manachised and franchised revenue growth in the third quarter of 2025 to be in the range of 20%-24%, compared to the third quarter of 2024. The above forecast reflects the Company’s current and preliminary view, which is subject to change. Conference CallH World’s management will host a conference call at 8 a.m. (U.S. Eastern time) on Wednesday, August 20, 2025 (or 8 p.m. (Hong Kong time) on Wednesday, August 20, 2025) following the announcement. To join by phone, all participants must pre-register this conference call using the Participant Registration link of https://register-conf.media-server.com/register/BI43be1b1c38d54616b79b4ac227dd1612. Upon registration, each participant will receive details for the conference call, including dial-in numbers, conference call passcode and a unique access PIN. A live webcast of the call can be accessed at https://edge.media-server.com/mmc/p/vht2kbe3 or the Company’s website at https://ir.hworld.com/news-and-events/events-calendar. A replay of the conference call will be available for twelve months from the date of the conference at the Company’s website, https://ir.hworld.com/news-and-events/events-calendar. Use of Non-GAAP Financial MeasuresTo supplement the Company’s unaudited consolidated financial results presented in accordance with U.S. Generally-Accepted Accounting Principles (“GAAP”), the Company uses the following non-GAAP measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission (“SEC”): adjusted net income (loss) attributable to H World Group Limited excluding share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments; adjusted basic and diluted earnings (losses) per share/ADS excluding share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments; EBITDA; adjusted EBITDA excluding share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Unaudited Reconciliation of GAAP and non-GAAP Results” set forth at the end of this release. The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding Company performance by excluding share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments that may not be indicative of Company operating performance. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing Company performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to the Company’s historical performance. The Company believes these non-GAAP financial measures are also useful to investors in allowing for greater transparency with respect to supplemental information used regularly by Company management in financial and operational decision-making. A limitation of using non-GAAP financial measures excluding share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments is that share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments have been and may continue to be significant and recurring in the Company’s business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures. The Company believes that EBITDA is a useful financial metric to assess the operating and financial performance before the impact of investing and financing transactions and income taxes, given the significant investments that the Company has made in leasehold improvements, depreciation and amortization expense that comprise a significant portion of the Company’s cost structure. In addition, the Company believes that EBITDA is widely used by other companies in the lodging industry and may be used by investors as a measure of financial performance. The Company believes that EBITDA information provides investors with a useful tool for comparability between periods because it excludes depreciation and amortization expense attributable to capital expenditures. The Company also uses adjusted EBITDA to assess operating results of its hotels in operation. The Company believes that the exclusion of share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments helps facilitate year-over-year comparisons of the results of operations as the share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments may not be indicative of Company operating performance. Therefore, the Company believes adjusted EBITDA more closely reflects the financial performance capability of our hotels. The presentation of EBITDA and adjusted EBITDA should not be construed as an indication that the Company’s future results will be unaffected by other charges and gains considered to be outside the ordinary course of business. The use of EBITDA and adjusted EBITDA has certain limitations. Depreciation and amortization expense for various long-term assets (including land use rights), income tax, interest expense and interest income have been and will be incurred and are not reflected in the presentation of EBITDA. Share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments have been and will be incurred and are not reflected in the presentation of adjusted EBITDA. Each of these items should also be considered in the overall evaluation of the results. The Company compensates for these limitations by providing the relevant disclosure of depreciation and amortization, interest income, interest expense, income tax expense, share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments all in the reconciliations to the U.S. GAAP financial measures and in the consolidated financial statements, all of which should be considered when evaluating the performance of the Company. The terms EBITDA and adjusted EBITDA are not defined under U.S. GAAP, and neither EBITDA nor adjusted EBITDA is a measure of net income, operating income, operating performance or liquidity presented in accordance with U.S. GAAP. When assessing the operating and financial performance, investors should not consider these data in isolation or as a substitute for the Company’s net income, operating income or any other operating performance measure that is calculated in accordance with U.S. GAAP. In addition, the Company’s EBITDA or adjusted EBITDA may not be comparable to EBITDA or adjusted EBITDA or similarly titled measures utilized by other companies since such other companies may not calculate EBITDA or adjusted EBITDA in the same manner as the Company does. Reconciliations of the Company’s non-GAAP financial measures, including EBITDA and adjusted EBITDA, to the consolidated statement of operations information are included at the end of this press release. About H World Group LimitedOriginated in China, H World Group Limited is a key player in the global hotel industry. As of June 30, 2025, H World operated 12,137 hotels with 1,184,915 hotel rooms in operation in 19 countries. H World’s brands include 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. In addition, H World also has the rights as master franchisee for Mercure, Ibis and Ibis Styles, and co-development rights for Grand Mercure and Novotel, in the pan-China region. H World’s business includes leased and owned, manachised and franchised models. Under the lease and ownership model, H World directly operates hotels typically located on leased or owned properties. Under the manachise model, H World manages manachised hotels through the on-site hotel managers that H World appoints, and H World collects fees from franchisees. Under the franchise model, H World provides training, reservations and support services to the franchised hotels, and collects fees from franchisees but does not appoint on-site hotel managers. H World applies a consistent standard and platform across all of its hotels. As of June 30, 2025, H World operates 8 percent of its hotel rooms under the lease and ownership model, and 92 percent under the manachise and franchise model. For more information, please visit H World’s website: https://ir.hworld.com. Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995: The information in this release contains forward-looking statements which involve risks and uncertainties. Such factors and risks include our anticipated growth strategies; our future results of operations and financial condition; economic conditions; the regulatory environment; our ability to attract and retain customers and leverage our brands; trends and competition in the lodging industry; the expected growth of demand for lodging; and other factors and risks detailed in our filings with the U.S. Securities and Exchange Commission. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements, which may be identified by terminology such as “may,” “should,” “will,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “forecast,” “project” or “continue,” the negative of such terms or other comparable terminology. Readers should not rely on forward-looking statements as predictions of future events or results. H World undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law. —Financial Tables and Operational Data Follow— H World Group Limited Unaudited Condensed Consolidated Balance Sheets December 31, 2024 June 30, 2025 RMB RMB US$4 (in millions)ASSETS Current assets: Cash and cash equivalents7,474 10,145 1,416 Restricted cash50 370 52 Short-term investments3,603 2,305 322 Accounts receivable, net817 846 118 Loan receivables - current, net114 103 14 Amounts due from related parties, current297 255 36 Inventories60 62 9 Other current assets, net800 1,582 220 Total current assets13,215 15,668 2,187 Property and equipment, net5,682 5,524 771 Intangible assets, net4,776 5,113 714 Operating lease right-of-use assets24,992 25,073 3,500 Finance lease right-of-use assets2,272 2,490 348 Land use rights, net174 171 24 Long-term investments2,316 2,301 321 Goodwill5,221 5,476 764 Amounts due from related parties, non-current51 51 7 Loan receivables, net190 145 20 Other assets, net668 716 100 Deferred tax assets1,054 1,068 149 Assets held for sale1,941 983 137 Total assets62,552 64,779 9,042 LIABILITIES AND EQUITY Current liabilities: Short-term debt880 6,633 926 Accounts payable983 841 117 Amounts due to related parties74 86 12 Salary and welfare payables1,201 1,002 140 Deferred revenue1,822 1,885 263 Operating lease liabilities, current3,492 3,375 471 Finance lease liabilities, current50 58 8 Accrued expenses and other current liabilities4,006 4,627 646 Dividends payable0 0 0 Income tax payable813 874 122 Total current liabilities13,321 19,381 2,705 Long-term debt4,546 777 108 Operating lease liabilities, non-current23,634 23,775 3,319 Finance lease liabilities, non-current2,843 3,151 440 Deferred revenue1,351 1,485 207 Other long-term liabilities1,472 1,750 245 Deferred tax liabilities919 961 134 Retirement benefit obligations111 122 17 Liabilities held for sale2,084 1,084 151 Total liabilities50,281 52,486 7,326 Equity: Ordinary shares0 0 0 Treasury shares(274) (630) (88)Additional paid-in capital9,620 9,770 1,364 Retained earnings2,449 2,751 384 Accumulated other comprehensive income382 262 36 Total H World Group Limited shareholders' equity12,177 12,153 1,696 Noncontrolling interest94 140 20 Total equity12,271 12,293 1,716 Total liabilities and equity62,552 64,779 9,042 H World Group LimitedUnaudited Condensed Consolidated Statements of Comprehensive Income Quarter Ended Six Months Ended June 30, 2024 March 31, 2025 June 30, 2025 June 30, 2024 June 30, 2025 RMB RMB RMB US$ RMB RMB US$ (in millions, except shares, per share and per ADS data)Revenue: Leased and owned hotels3,681 2,789 3,401 475 6,780 6,190 864 Manachised and franchised hotels2,334 2,499 2,865 400 4,397 5,364 749 Others133 107 160 22 249 267 37 Total revenue6,148 5,395 6,426 897 11,426 11,821 1,650 Operating costs and expenses: Hotel operating costs: Rents(1,091) (1,027) (1,047) (146) (2,177) (2,074) (290)Utilities(149) (177) (142) (20) (341) (319) (45)Personnel costs(1,337) (1,371) (1,435) (200) (2,562) (2,806) (392)Depreciation and amortization(315) (301) (296) (41) (634) (597) (83)Consumables, food and beverage(327) (269) (301) (42) (620) (570) (80)Others(512) (459) (531) (74) (962) (990) (137)Total hotel operating costs(3,731) (3,604) (3,752) (523) (7,296) (7,356) (1,027)Other operating costs(6) (11) (11) (2) (15) (22) (3)Selling and marketing expenses(317) (243) (309) (43) (577) (552) (77)General and administrative expenses(602) (512) (660) (92) (1,111) (1,172) (164)Pre-opening expenses(19) (3) (12) (2) (27) (15) (2)Total operating costs and expenses(4,675) (4,373) (4,744) (662) (9,026) (9,117) (1,273)Other operating income (expense), net99 60 105 15 175 165 23 Income (loss) from operations1,572 1,082 1,787 250 2,575 2,869 400 Interest income56 49 52 7 107 101 14 Interest expense(84) (74) (91) (13) (167) (165) (23)Other income (expense), net24 22 15 2 64 37 5 Gains (losses) from fair value changes of equity securities(51) (12) (1) (0) (13) (13) (2)Foreign exchange gains (losses)(24) 208 366 51 (116) 574 80 Income (loss) before income taxes1,493 1,275 2,128 297 2,450 3,403 474 Income tax (expense) benefit(423) (377) (565) (79) (702) (942) (131)Income (Loss) from equity method investments12 1 (4) (1) 1 (3) (0)Net income (loss)1,082 899 1,559 217 1,749 2,458 343 Net (income) loss attributable to noncontrolling interest(15) (5) (15) (2) (23) (20) (3)Net income (loss) attributable to H World Group Limited1,067 894 1,544 215 1,726 2,438 340 Gain (loss) arising from defined benefit plan, net of tax- - (0) (0) - (0) (0)Gains(losses) from fair value changes of debt securities, net of tax(25) - 4 1 (25) 4 1 Foreign currency translation adjustments, net of tax1 (58) (66) (9) (30) (124) (17)Comprehensive income (loss)1,058 841 1,497 209 1,694 2,338 327 Comprehensive (income) loss attributable to noncontrolling interest(15) (5) (15) (2) (23) (20) (3)Comprehensive income (loss) attributable to H World Group Limited1,043 836 1,482 207 1,671 2,318 324 Earnings (Losses) per share: Basic0.34 0.29 0.50 0.07 0.55 0.79 0.11 Diluted0.33 0.28 0.48 0.07 0.54 0.77 0.11 Earnings (Losses) per ADS: Basic3.40 2.91 5.03 0.70 5.50 7.94 1.11 Diluted3.32 2.85 4.85 0.68 5.41 7.69 1.07 Weighted average number of shares used in computation: Basic3,137,722,145 3,066,765,293 3,071,789,285 3,071,789,285 3,138,594,148 3,069,285,390 3,069,285,390 Diluted3,303,934,814 3,232,049,635 3,241,412,875 3,241,412,875 3,300,316,153 3,238,797,601 3,238,797,601 H World Group LimitedUnaudited Condensed Consolidated Statements of Cash Flows Quarter Ended Six Months Ended June 30, 2024 March 31, 2025 June 30, 2025 June 30, 2024 June 30, 2025 RMB RMB RMB US$ RMB RMB US$ (in millions)Operating activities: Net income (loss)1,082 899 1,559 217 1,749 2,458 343 Share-based compensation expenses112 77 170 24 170 247 34 Depreciation and amortization,and other337 319 317 44 682 636 89 Impairment loss36 5 33 5 36 38 5 Loss (Income) from equity method investments, net of dividends30 (1) 58 8 41 57 8 Investment (income) loss and foreign exchange (gain) loss41 (228) (435) (61) 70 (663) (93)Changes in operating assets and liabilities750 (288) 924 130 520 636 89 Other(153) (203) 33 4 (147) (170) (23)Net cash provided by (used in) operating activities2,235 580 2,659 371 3,121 3,239 452 Investing activities: Capital expenditures(203) (240) (189) (26) (484) (429) (60)Purchase of investments(632) (2,065) (713) (100) (886) (2,778) (388)Proceeds from maturity/sale and return of investments1,139 3,031 1,099 154 1,981 4,130 576 Loan advances(12) (10) (14) (2) (64) (24) (3)Loan collections53 40 42 6 91 82 12 Other1 1 14 2 56 15 2 Net cash provided by (used in) investing activities346 757 239 34 694 996 139 Financing activities: Payment of share repurchase(132) (430) (13) (2) (676) (443) (62)Proceeds from debt53 - 2,195 306 589 2,195 306 Repayment of debt(292) (166) (757) (106) (429) (923) (129)Dividend paid- - (2,136) (298) (2,091) (2,136) (298)Purchase of prepaid put option(710) - - - (710) - - Other(24) (32) 2 0 (46) (30) (4)Net cash provided by (used in) financing activities(1,105) (628) (709) (100) (3,363) (1,337) (187) Effect of exchange rate changes on cash, cash equivalents and restricted cash10 70 20 4 (7) 90 14 Net increase (decrease) in cash, cash equivalents and restricted cash1,486 779 2,209 309 445 2,988 418 Less: net increase (decrease) in cash and cash equivalents classified within assets held for sale(15) (2) (1) (0) (10) (3) (0)Cash, cash equivalents and restricted cash at the beginning of the period6,664 7,524 8,305 1,159 7,710 7,524 1,050 Cash, cash equivalents and restricted cash at the end of the period8,165 8,305 10,515 1,468 8,165 10,515 1,468 H World Group LimitedUnaudited Reconciliation of GAAP and Non-GAAP Results Quarter Ended Six Months Ended June 30, 2024 March 31, 2025 June 30, 2025 June 30, 2024 June 30, 2025 RMB RMB RMB US$ RMB RMB US$ (in millions, except shares, per share and per ADS data)Net income (loss) attributable to H World Group Limited (GAAP)1,067 894 1,544 215 1,726 2,438 340 Share-based compensation expenses112 77 170 24 170 247 34 (Gain) loss from fair value changes of equity securities51 12 1 0 13 13 2 Foreign exchange (gain) loss, net24 (208) (366) (51) 116 (574) (80)Adjusted net income (loss) attributable to H World Group Limited (non-GAAP)1,254 775 1,349 188 2,025 2,124 296 Adjusted earnings (losses) per share (non-GAAP) Basic0.40 0.25 0.44 0.06 0.65 0.69 0.10 Diluted0.39 0.25 0.42 0.06 0.63 0.67 0.09 Adjusted earnings (losses) per ADS (non-GAAP)Basic3.99 2.53 4.39 0.61 6.45 6.92 0.97 Diluted3.88 2.48 4.24 0.59 6.31 6.72 0.94 Weighted average number of shares used in computation Basic3,137,722,145 3,066,765,293 3,071,789,285 3,071,789,285 3,138,594,148 3,069,285,390 3,069,285,390 Diluted3,303,934,814 3,232,049,635 3,241,412,875 3,241,412,875 3,300,316,153 3,238,797,601 3,238,797,601 Quarter Ended Six Months Ended June 30, 2024 March 31, 2025 June 30, 2025 June 30, 2024 June 30, 2025 RMB RMB RMB US$ RMB RMB US$ (in millions, except per share and per ADS data)Net income (loss) attributable to H World Group Limited (GAAP)1,067 894 1,544 215 1,726 2,438 340 Interest income(56) (49) (52) (7) (107) (101) (14)Interest expense84 74 91 13 167 165 23 Income tax expense423 377 565 79 702 942 131 Depreciation and amortization335 319 317 44 674 636 89 EBITDA (non-GAAP)1,853 1,615 2,465 344 3,162 4,080 569 Share-based compensation expenses112 77 170 24 170 247 34 (Gain) loss from fair value changes of equity securities51 12 1 0 13 13 2 Foreign exchange (gain) loss, net24 (208) (366) (51) 116 (574) (80)Adjusted EBITDA (non-GAAP)2,040 1,496 2,270 317 3,461 3,766 525 H World Group LimitedSegment Financial Summary Quarter Ended June 30, 2024 Quarter Ended March 31, 2025 Quarter Ended June 30, 2025 Legacy- Huazhu Legacy- DH Elimination Legacy- Huazhu Legacy- DH Elimination Legacy- Huazhu Legacy- DH Elimination RMB RMB RMB RMB RMB RMB RMB RMB RMB (in millions) (in millions) (in millions)Leased and owned hotels2,395 1,286 - 1,913 876 - 2,130 1,271 - Manachised and franchised hotels2,305 32 (3) 2,472 31 (4) 2,829 41 (5)Others130 5 (2) 96 11 - 148 12 - Revenue 4,830 1,323 (5) 4,481 918 (4) 5,107 1,324 (5) Depreciation and amortization279 56 (0) 259 60 (0) 255 62 (0)Adjusted EBITDA1,907 133 (0) 1,573 (77) 0 2,090 180 0 From 1Q25, we started to present the segment financial summary before elimination. Accordingly, comparative figures for the prior periods were updated to conform to the current period’s presentation. H World Group LimitedSegment Financial Summary Six Months Ended June 30, 2024 Six Months Ended June 30, 2025 Legacy- Huazhu Legacy- DH Elimination Legacy- Huazhu Legacy- DH Elimination RMB RMB RMB RMB RMB RMB (in millions) (in millions)Leased and owned hotels4,507 2,273 - 4,043 2,147 - Manachised and franchised hotels4,347 55 (5) 5,301 72 (9)Others222 30 (3) 244 23 - Revenue9,076 2,358 (8) 9,588 2,242 (9) Depreciation and amortization559 115 (0) 514 122 - Adjusted EBITDA3,394 67 (0) 3,663 103 0 From 1Q25, we started to present the segment financial summary before elimination. Accordingly, comparative figures for the prior periods were updated to conform to the current period’s presentation. Operating Results: Legacy-Huazhu(1) Number of hotels 　Number of rooms Opened in Q2 2025Closed (2)in Q2 2025Net added in Q2 2025As of June 30, 2025　As of June 30, 2025 　Leased and owned hotels1(6)(5)547 80,587Manachised and franchised hotels594(137)457 11,469 1,078,499Total 595 (143) 452 12,016 1,159,086 (1) Legacy-Huazhu refers to H World and its subsidiaries, excluding DH.(2) The reasons for hotel closures mainly included non-compliance with our brand standards, operating losses, and property-related issues. In Q2 2025, we temporarily closed 13 hotels for brand upgrade and business model change purposes. As of June 30, 2025 Number of hotels Unopened hotels in pipeline Economy hotels5,8421,110Leased and owned hotels2702Manachised and franchised hotels5,5721,108Midscale, upper-midscale hotels and others6,1741,815Leased and owned hotels2776Manachised and franchised hotels5,8971,809Total12,0162,925 For the quarter ended June 30,March 31,June 30,yoy 2024 2025 2025 changeAverage daily room rate (in RMB)　　　Leased and owned hotels375 338 365 -2.7%Manachised and franchised hotels288 267 285 -1.2%Blended296 272 290 -1.9%Occupancy rate (as a percentage) Leased and owned hotels85.6%79.7%83.3%-2.3p.p.Manachised and franchised hotels82.3%75.9%80.8%-1.4p.p.Blended82.6%76.2%81.0%-1.6p.p.RevPAR (in RMB) Leased and owned hotels321 269 304 -5.3%Manachised and franchised hotels237 203 230 -2.9%Blended244 208 235 -3.8% Same-hotel operational data by class Mature hotels in operation for more than 18 months Number of hotelsSame-hotel RevPARSame-hotel ADRSame-hotel Occupancy As ofJune 30,For the quarter yoyFor the quarter yoyFor the quarter yoy ended June 30,changeended June 30,changeended June 30,change 2024202520242025 20242025 2024 2025 (p.p.)Economy hotels3,9583,958194178-8.2%227216-4.8%85.3%82.2%-3.1Leased and owned hotels258258238215-9.8%270253-6.4%88.1%84.9%-3.2Manachised and franchised hotels3,7003,700189174-8.0%222212-4.6%85.0%82.0%-3.0Midscale, upper-midscale hotels and others3,8323,832299275-7.8%359343-4.5%83.1%80.3%-2.8Leased and owned hotels251251391362-7.5%460440-4.4%85.0%82.3%-2.7Manachised and franchised hotels3,5813,581289266-7.9%348332-4.6%82.9%80.0%-2.8Total7,7907,790253233-7.9%300287-4.6%84.1%81.1%-2.9 Operating Results: Legacy-DH(3) Number of hotels　Number of rooms Unopened hotels in pipeline Opened in Q2 2025Closedin Q2 2025Net added in Q2 2025As of June 30, 2025 (4)　As of June 30, 2025As ofJune 30, 2025 Leased hotels1(1)-65 13,797 9Manachised and franchised hotels1(1)-56 12,032 13Total 2 (2) - 121 25,829 22 (3) Legacy-DH refers to DH. (4) As of June 30, 2025, a total of 3 hotels were temporarily closed due to repair and renovation. For the quarter ended June 30,March 31,June 30,yoy 2024 2025 2025 changeAverage daily room rate (in EUR) Leased hotels124 104 118 -5.2%Manachised and franchised hotels112 110 122 8.7%Blended120 107 120 -0.1%Occupancy rate (as a percentage) Leased hotels71.2%61.9%76.3%+5.1 p.p.Manachised and franchised hotels63.8%60.2%71.0%+7.1 p.p.Blended68.3%61.1%73.9%+5.6 p.p.RevPAR (in EUR) Leased hotels88 64 90 1.5%Manachised and franchised hotels72 66 86 20.8%Blended82 65 88 8.1% Hotel Portfolio by Brand As of June 30, 2025 HotelsRoomsUnopened hotels in operationin pipelineEconomy hotels 5,847 476,378 1,118 HanTing Hotel4,401378,569728Ni Hao Hotel47736,316114Hi Inn64133,529260Elan Hotel955,405-Ibis Hotel22821,7278Zleep Hotels58328Midscale hotels 5,055 541,091 1,157 JI Hotel3,253369,328786Orange Hotel968102,854250Starway Hotel72959,264114Ibis Styles Hotel1059,6457Upper midscale hotels 1,050 139,243 552 Crystal Orange Hotel28435,621124IntercityHotel(5)11920,128128CitiGO Hotel345,0563Manxin Hotel18416,93260Madison Hotel17019,872124Mercure Hotel21131,90776Novotel Hotel388,11929MAXX(6)101,6088Upscale hotels 160 23,471 111 Blossom House854,95694Joya Hotel71,234-Grand Mercure Hotel101,891-Steigenberger Hotels & Resorts(7)5514,80316Jaz in the City35871Luxury hotels 18 2,722 4 Steigenberger Icon(8)112,2012Song Hotels75212Others 7 2,010 5 Other hotels(9)72,0105Total 12,137 1,184,915 2,947 (5) As of June 30, 2025, 63 operational hotels and 124 pipeline hotels of IntercityHotel were under Legacy-Huazhu.(6) As of June 30, 2025, 6 operational hotels and 8 pipeline hotels of MAXX were under Legacy-Huazhu.(7) As of June 30, 2025, 12 operational hotels and 10 pipeline hotels of Steigenberger Hotels & Resorts were under Legacy-Huazhu.(8) As of June 30, 2025, 5 operational hotels and 1 pipeline hotels of Steigenberger Icon were under Legacy-Huazhu.(9) Other hotels include other partner hotels and other hotel brands in Yongle Huazhu Hotel & Resort Group (excluding Steigenberger Hotels & Resorts and Blossom House). ___________________________________ 1 Hotel turnover refers to total transaction value of room and non-room revenue from H World hotels (i.e., leased and operated, manachised and franchised hotels).2 The conversion of Renminbi (“RMB”) into United States dollars (“US$”) is based on the exchange rate of US$1.00=RMB7.1636 on June 30, 2025, as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm.3 Legacy-Huazhu refers to H World Group Limited and its subsidiaries, excluding DH.4 The conversion of Renminbi (“RMB”) into United States dollars (“US$”) is based on the exchange rate of US$1.00=RMB7.1636 on June 30, 2025, as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm. Contact InformationInvestor RelationsTel: +86 (21) 6195 9561Email: ir@hworld.comhttps://ir.hworld.com

H World Group Limited Reports Second Quarter and Interim of 2025 Unaudited Financial Results

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