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SINGAPORE - H World Group Limited (NASDAQ:HTHT) reported first quarter 2025 results that fell short of analyst expectations on Tuesday.
The company’s shares were down 2.34% in pre-market trading following the release.
The global hotel operator posted adjusted earnings per share of RMB2.48 ($0.34), missing the analyst consensus estimate of RMB2.60. Revenue for the quarter came in at RMB5.4 billion ($744 million), slightly below expectations of RMB5.41 billion.
Despite the earnings miss, H World saw revenue increase 2.2% YoY, driven by continued hotel network expansion. The company opened 694 new hotels in China during Q1, putting it on track to meet its full-year target of approximately 2,300 gross hotel openings.
"We continued our rapid network expansion with 694 new hotel openings in China, and on track to achieve our full-year target," said Jin Hui, CEO of H World. "However, we maintain an overall cautious stance amid ongoing tariff and macroeconomic uncertainties."
For the Legacy-Huazhu segment, which excludes Steigenberger Hotels, revenue rose 5.5% YoY to RMB4.5 billion. However, RevPAR (revenue per available room) declined 3.9% YoY to RMB208, reflecting ongoing challenges.
Looking ahead, H World expects Q2 revenue growth of 1-5% YoY, or 3-7% excluding its DH segment. The company forecasts manachised and franchised revenue growth of 18-22% for Q2.
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