H World Group has strengthened its position in the global hospitality industry after reporting higher second-quarter revenue, expanding profitability and a hotel network exceeding 13,500 properties.
As of June 30, 2026, the company operated 13,539 hotels containing 1,335,445 rooms across 21 countries. Another 3,089 unopened hotels were in its development pipeline, giving the group substantial capacity for continued expansion.
The growth reflects H World’s increasing reliance on management and franchise partnerships. Only 7% of its rooms were operated under leased and owned models, while 93% were under manachised and franchised structures.
For travellers, hotel owners and destinations, the growing network means a wider supply of branded accommodation across different price segments. It also highlights how large hospitality groups are using scalable operating models to accelerate market penetration.
Revenue growth strengthens hospitality expansion
H World generated RMB7.1 billion in revenue during the second quarter of 2026, representing a 10.8% year-on-year increase.
Net income attributable to the company reached RMB1.6 billion, up 2.1% from a year earlier. Adjusted EBITDA climbed to RMB2.7 billion from RMB2.3 billion in the second quarter of 2025, demonstrating stronger underlying profitability.
The H World China division remained the primary growth engine. Its revenue increased 14.9% year on year to RMB5.9 billion, supported by hotel network expansion and better revenue per available room performance.
Meanwhile, international revenue reached RMB1.3 billion. The international operation faced pressure from Middle East disruption and expansion into developing Southeast Asian markets where hotels remain in ramp-up phases.
Franchise strategy powers rapid hotel growth
H World’s manachised and franchised business produced RMB3.6 billion in second-quarter revenue, rising 25.2% year on year.
During the first half of 2026, this segment generated RMB6.6 billion and accounted for 50.3% of total company revenue, compared with 45.4% one year earlier.
The figures underline the importance of H World’s asset-light strategy. Under franchise and management structures, the group can extend its brands, reservation systems, operational expertise and technology without relying primarily on direct property ownership.
That approach can also accelerate the introduction of branded accommodation into new destinations, increasing hotel choices for business and leisure travellers.
Nearly 500 hotels open across China
Network expansion remained rapid during the quarter.
H World China opened 498 hotels, including 497 operating under manachised or franchised models. By quarter-end, H World China operated 13,417 hotels, while H World International operated another 122 properties.
The company continues to target between 2,200 and 2,300 gross hotel openings during 2026. Its development pipeline increased both year on year and quarter on quarter, supporting further growth beyond the current operating portfolio.
A larger branded hotel network can support tourism development by expanding accommodation availability in established cities and emerging destinations while connecting properties with international and domestic reservation channels.
Room rates support stronger China performance
Operational performance in China also improved during the quarter.
H World China’s blended average daily rate reached RMB298, compared with RMB290 one year earlier, representing growth of about 2.6%. Blended RevPAR increased to RMB238 from RMB235, while occupancy stood at 79.8%.
The company linked the improvement in RevPAR to continued product upgrades and revenue-management optimisation.
Technology remains central to the wider strategy. H World is combining digital systems, hotel product development and its H Rewards membership programme to support customer engagement and network expansion.
Such platforms are increasingly important in hospitality because travellers expect faster booking, personalised offers and consistent service experiences across multiple destinations.
US$2.5 billion shareholder plan signals confidence
H World has also introduced a new three-year shareholder return plan worth up to US$2.5 billion, effective August 17, 2026.
The programme allows the company to distribute ordinary or special dividends and conduct American Depositary Share repurchases. An ordinary cash dividend of approximately US$275 million was also approved.
The initiative follows a period of strong cash generation. At June 30, H World held RMB14.2 billion in cash and cash equivalents and reported a net cash position of RMB10.2 billion.
H World raises 2026 growth outlook
Following the second-quarter performance, H World raised its full-year revenue forecast.
Group revenue is now expected to increase between 4% and 8% in 2026, compared with the previous forecast of 2% to 6%. Manachised and franchised revenue growth is projected at 16% to 20%.
With more than 13,500 operating hotels and over 3,000 properties waiting in the pipeline, H World is entering its next expansion phase with considerable scale.
Its combination of franchising, technology, brand development and operational efficiency could further reshape accommodation supply while giving travellers access to a broader network of branded hotels across China and international markets.
For more travel news like this, keep reading Global Travel Wire
