H World Group Limited Reports First Quarter of 2025 Unaudited Financial Results
Financial Performance: H World Group Limited reported a 2.2% year-over-year revenue growth in Q1 2025, totaling RMB5.4 billion (approximately US$744 million), with significant increases in manachised and franchised operations, while the Legacy-DH segment faced declines. Net income rose to RMB894 million (US$123 million), reflecting a 35.7% increase from the previous year.
Operational Highlights: The company operated 11,685 hotels with over 1.14 million rooms as of March 31, 2025, and opened 694 new hotels in Q1 2025, despite facing challenges such as declining occupancy rates and average daily room rates across various segments. Looking ahead, H World anticipates revenue growth of 1%-5% for Q2 2025.
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- Brand Expansion: H World Group has launched Hanting Inn as a new addition to the Hanting brand family, aimed at addressing evolving travel needs while supporting scalable, asset-light growth, thereby enhancing penetration into lower-tier cities and price-sensitive markets.
- Investment Flexibility: Hanting Inn features a lower investment threshold and simplified construction standards, combining modular renovation standards and flexible room configurations to enable faster rollouts and improve space utilization, thus enhancing revenue efficiency in response to market demand for cost-effective accommodations.
- Operational Support: Hanting Inn is backed by H World Group's centralized supply chain procurement, digital and operational management platforms, and a loyalty ecosystem of over 300 million members, ensuring consistent service standards while enhancing operational efficiency during expansion.
- Market Foundation: As of September 30, 2025, 4,531 Hanting Hotels were in operation, providing a solid scale and operational foundation for the launch of Hanting Inn, demonstrating H World Group's long-term commitment to leadership in the economy hotel segment.
- Brand Expansion: H World Group has launched Hanting Inn to meet evolving travel needs, enabling rapid entry into lower-tier cities and price-sensitive markets by simplifying construction standards and lowering investment thresholds, thereby enhancing the market coverage of the Hanting brand.
- High Adaptability Design: Hanting Inn is designed for the conversion and renovation of existing properties, combining modular renovation standards and efficient processes to reduce investment intensity and shorten lead times, enhancing space utilization and revenue efficiency.
- Centralized Procurement Support: Hanting Inn leverages H World Group's centralized supply chain procurement and digital management platforms to maintain consistent service standards during expansion, while utilizing a loyalty ecosystem of over 300 million members for efficient scaling.
- Strengthened Operational Foundation: As of September 30, 2025, 4,531 Hanting Hotels were in operation, providing a solid operational foundation for the launch of Hanting Inn and further solidifying H World Group's leadership position in the economy hotel segment.

- Investigation Launched: China's State Administration for Market Regulation has initiated an anti-monopoly investigation into Trip.com, focusing on its hotel booking operations, which accounted for 44% of its revenue in Q3, potentially forcing the company to end exclusivity agreements and divest rival investments.
- Market Share Concentration: Trip.com controls over 60% of China's online travel market through a series of acquisitions and investments, maintaining a strong market position despite challenges from Meituan and Alibaba.
- Stock Price Plunge: Following the announcement of the investigation, Trip.com's stock fell 22% over four trading days, wiping out approximately $9 billion in market value, although its share price remains up 54 times since its IPO, indicating investor anxiety about the future.
- Uncertain Future Outlook: The market regulator is expected to impose fines exceeding $1 billion on Trip.com, but the greater concern lies in potential divestitures of key investments, particularly in Tongcheng and Qunar, which could significantly impact its market dominance.
Investor Sentiment in January: January is often seen as a key month for investors to gauge institutional intent in the market.
China's Market Signal: The opening of the market in China this year has sent a significant signal to investors regarding future trends.
- Exit of Option Position: Yiheng Capital fully exited its put option position in Planet Fitness, comprising 270,000 shares with an estimated trade value of $29,443,500 in Q3 2025, indicating a cautious approach to market volatility.
- Change in AUM: This transaction resulted in a 4.342% decrease in Yiheng Capital's 13F reportable assets under management, reflecting a strategic adjustment in its portfolio management.
- Market Reaction: Although Planet Fitness's stock price experienced a modest decline during Q3, it did not reach levels that would make the options profitable, making Yiheng's exit a prudent decision to avoid potential losses.
- Portfolio Diversification: Yiheng Capital held 27 positions in Q3, including four options, demonstrating its ongoing efforts in a diversified investment strategy.
- Options Exit: Yiheng Capital fully sold its 270,000 put options in Planet Fitness during Q3 2025, with a total trade value of approximately $29.44 million, indicating a cautious outlook on the stock's future performance.
- Asset Management Shift: This exit reduced Planet Fitness's position from 2.65% of the fund's AUM to zero, reflecting a strategic adjustment amid a broader 39% decline in total fund AUM.
- Market Performance: As of November 13, 2025, Planet Fitness shares were priced at $107.11, up 10.62% over the past year, outperforming the S&P 500 by 0.52 percentage points, showcasing its competitive strength in the fitness industry.
- Investment Strategy: Yiheng Capital's diversified portfolio indicates a conservative investment approach, as it retains various stocks across industries despite exiting its position in Planet Fitness options, suggesting a strategy to navigate market volatility.









