How Does H World Group Company Work?

The company primarily utilizes leased and owned, alongside manachised and franchised, operational models. An asset-light strategy is central, with 92% of its hotel rooms operating under the manachise and franchise model as of March 31, 2025.

In the manachise model, H World Group manages hotels via appointed on-site managers and earns fees from franchisees. The franchise model provides essential support like training and reservations for a fee, without appointing on-site managers, facilitating rapid expansion.

The company's distinctiveness lies in its multi-brand strategy, offering consumers a wide array of choices. This is complemented by a strong technology platform, including its central reservation system and the 'H Rewards' loyalty program, which had nearly 280 million members as of Q1 2025.

These capabilities translate into seamless booking experiences and consistent service quality for customers. For partners, the company offers market differentiation through brand strength and operational efficiency, contributing to its overall market position.

A major milestone was the 2020 acquisition of Deutsche Hospitality, which significantly boosted H World Group's international presence. This was followed by the rebranding of Deutsche Hospitality to H World International in 2024, signaling a dedicated push for global growth. By the end of 2024, H World operated over 11,147 hotels, surpassing its initial targets by adding more than 2,400 hotels in China alone. As of March 31, 2025, this number grew to 11,685 hotels.

In response to market challenges, H World Group has accelerated its shift towards an asset-light strategy. This involves reducing reliance on leased and owned properties in favor of manachised and franchised hotels. This strategic move is designed to foster continuous margin expansion and generate robust cash flow, thereby increasing resilience.

H World Group's competitive edge stems from its diverse brand portfolio, catering to various market segments from economy to luxury. The company leverages a strong technology platform, including its central reservation system and the 'H Rewards' loyalty program, which boasts nearly 280 million members. This technological infrastructure enhances sales capabilities and customer loyalty.

Operational efficiency is a key differentiator, supported by a rapid expansion pace with a target of approximately 2,300 new hotel openings in 2025. The company also emphasizes sustainable development, as highlighted in its 2024 Sustainability Report and initiatives like the 'Green Living' program, which aims to reduce environmental impact and partner with fintech for measurable results.

H World Group leads major Chinese hotel groups, achieving RMB23.9 billion (approximately US$3.27 billion) in revenue in 2024. Its HanTing Hotel brand was the world's largest single hotel brand by room count in 2024.

Macroeconomic challenges in China, including property market issues and deflation, could dampen travel demand. The international segment faced an operating loss of over 400 million yuan in 2024, and revenue decreased by 11.3% year-over-year in Q1 2025.

The company aims to add approximately 9,000 hotels by 2030, primarily in China's lower-tier cities, focusing on the limited-service segment. For 2025, revenue growth is projected between 2%-6%.

H World Group plans to open around 2,300 hotels in 2025, emphasizing operational enhancements, cost reduction, and efficiency improvements. The company is also developing its asset-light portfolio internationally and focusing on ESG practices.