H World reported second-quarter 2026 revenue of RMB7.12 billion (US$1.10 billion), up 10.8% year-on-year and 18.8% quarter-on-quarter. The gain was driven chiefly by a 25.2% surge in manachised and franchised (M&F) revenue to RMB3.59 billion, which offset a 4.9% decline in leased-and-owned (L&O) revenue to RMB3.23 billion as the group continued its asset-light transition.

Quarterly net income attributable to shareholders rose 2.1% to RMB1.58 billion (US$232 million). EBITDA (non-GAAP) reached RMB2.59 billion, while adjusted EBITDA, the company’s segment measure, advanced 18.5% to RMB2.73 billion, lifting the operating margin to 31.1% from 27.8% a year earlier.

The China operation (HWC) remained the growth engine: revenue climbed 14.9% to RMB5.88 billion on steady RevPAR improvement and the opening of 498 new hotels. International revenue (HWI) fell 5.8% to RMB1.25 billion, weighed by softer Middle East demand and expansion into lower-ADR Southeast Asian markets. As of 30 June 2026, the global network comprised 13,539 hotels and 1,335,445 rooms, with a pipeline of 3,089 properties; M&F models accounted for 93% of rooms in service.

Solid cash generation underpinned a robust balance sheet. Operating cash flow totalled RMB3.41 billion in the quarter, cash and cash equivalents stood at RMB14.25 billion, and net cash (cash minus total debt of RMB4.23 billion) amounted to RMB10.20 billion.

The board approved a three-year shareholder-return plan of up to US$2.50 billion and declared an ordinary cash dividend of US$0.087 per ordinary share (US$0.87 per ADS), aggregating roughly US$275 million. Shareholders of record on 8 September 2026 will receive payment on or about 15 September; ADS holders are slated for distribution through Citibank on or about 22 September.

Management lifted full-year 2026 guidance, projecting group revenue growth of 4%–8% versus the previous 2%–6% range. HWC revenue is now expected to rise 7%–11%, and M&F revenue 16%–20%, reflecting continued network expansion and improving RevPAR trends.