H World Group Limited: 1Q26 EBITDA of RMB1,858mn beat by 2%; management maintains FY26 guidance

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H World Group Limited: 1Q26 EBITDA of RMB1,858mn beat by 2%; management maintains FY26 guidance

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H World Group Limited

1Q26 EBITDA of RMB1,858mn beat by 2%;

management maintains FY26 guidance

Reiterate Rating: BUY | PO: 62.00 USD | Price: 45.42 USD

1Q26 EBITDA of RMB1,858mn beat by 2% 15 May 2026

HTHT reported 1Q26 adj. EBITDA/adj. profit of RMB1,858mn/RMB1,074mn, which beat Equity

our estimate of RMB1,814mn/RMB1,050mn by 2%/2% on better revenue. 1Q26 revenue

was up 11% YoY to RM5,996mn, which beat our estimate by 3%. 1Q26 domestic blended

Key ChangesRevPAR was up 3.0% YoY, which was in line. 1Q26 domestic same-hotel RevPAR was down

2.3% YoY to RMB208. HTHT had 537 gross openings in 1Q26 (vs. 406/694 in 4Q25/1Q25) (CNY) Previous Current

and 177 closures (vs. 246/155 in 4Q25/1Q25) in China, resulting in net openings of 360. Price Obj. US$65.00 US$62.00

Key takeaways from conference call 2026E2027E EBITDAEBITDA (m)(m) 11,247.99,459.2 11,274.59,253.5

Key takeaways from conference call: i) RevPAR trends: Leisure demand has been solid, 2028E EBITDA (m) 12,856.7 12,912.1

given government policies to stimulate consumption and inbound visitations. Although

leisure traffic is solid, there has been some volatility in overall spending. Mgmt does not Ronald Leung, CFA >>

see any impact of higher fuel cost on travel demand. As such, it maintains its RevPAR Research Analyst

guidance of slight growth for FY26. ii) Openings: Net openings in 1Q26 were slightly Merrill+852 3508Lynch3728(Hong Kong)

impacted by the later spring festival this year. Yet, overall openings/closures in 1Q26 ronald.leung@bofa.com

were in line with mgmt expectations. There is no change to full-year openings/closures Yoyo Pang >>

Research Analyst

guidance.