H World Group Ltd. said second-quarter 2026 earnings per share and revenue exceeded analyst estimates, sending shares higher in pre-market trading.
The Shanghai-based hotel operator reported adjusted net profit of 1.45 billion yuan ($201 million) for the three months ended June 30, 2026, up 12% year-over-year. Revenue rose 8.7% to 4.2 billion yuan, driven by stronger domestic tourism and recovery in business travel.
Analysts polled by Refinitiv had forecast earnings of 1.32 billion yuan and revenue of 4.0 billion yuan for the period. The company’s outperformance follows a string of positive quarterly results as China’s travel sector continues to rebound from pandemic disruptions.
Shares in H World Group, listed on the Nasdaq under the ticker HTHT, were up 3.1% in pre-market trading on Tuesday, extending gains from Monday’s 2% rise. The stock has gained roughly 15% over the past month, outperforming the broader Chinese travel and hospitality sector.
Management attributed the better-than-expected results to robust domestic demand and improved operational efficiency. The company also highlighted a 15% increase in average daily room rates and a 9% rise in occupancy rates compared with the same period last year.
H World Group operates over 8,000 hotels across China under brands including Hanting, Crystal Orange and Joya Hotel. The group has expanded aggressively in recent years, targeting mid-tier and upscale segments as Chinese consumers prioritize domestic travel and higher-quality accommodations.
Analysts at CICC said the results underscore the company’s leading position in China’s fragmented hotel industry, though they cautioned that macroeconomic headwinds and potential regulatory changes remain risks to watch.
The earnings beat adds to a string of positive corporate updates from China’s travel sector, which has benefited from pent-up demand and government support for tourism recovery.
