H World Group Surpasses Growth Expectations in Q2 2026, Eyes Long-Term Opportunities
H World Group, a leading player in the Chinese lodging industry, has reported impressive results for the second quarter of 2026. The company's founder and Executive Chairman, Mr. Ji Qi, CEO, Mr. Jin Hui, and CFO, Mr. Arthur Yu, took to a conference call on August 17th to share their insights on the quarter's performance.
The conference call revealed that domestic culture and tourism travel in China maintained steady growth during the first half of 2026, with domestic resident trips reaching 3.5 billion, a 5.4% year-over-year increase according to the Ministry of Culture and Tourism. Inbound tourism also gained strong momentum due to visa-free policies for multiple countries, presenting new opportunities for China's lodging industry.
However, the growth of total domestic travel spending moderated up 2% year-over-year to RMB 3.2 trillion in the first half, reflecting travelers' more prudent spending decisions and a preference for more frequent trips. Despite this moderation, H World Group remains optimistic about the long-term potential of the travel-related industry supply chain.
With a keen eye on the future, H World Group has committed to leveraging its multi-brand portfolio, hotel operation expertise, and digital capabilities to steadily expand its brand network and capture accommodation demand brought by travelers. The company's strategy is centered around building a robust network of hotels in lower-tier cities while securing prime locations in core cities.
In the second quarter, H World Group achieved high-quality network expansion through regional breakthroughs and lower-tier city penetration, backed by a 12.7% year-over-year increase in the number of rooms in operation. This growth translated into impressive hotel GMV, which rose 13.2% year-over-year to RMB30.5 billion. Room nights booked by members also achieved steady growth.
Furthermore, H World Group's assets-light, managed and franchised business delivered robust growth across scale, revenue, and profit, with a significant 25.2% year-over-year increase in add-on income to RMB36 billion. This success highlights the company's ability to adapt to market changes and capitalize on emerging opportunities.
Mr. Jin Hui emphasized that the company remains committed to its long-term vision, prioritizing high-quality development and a focus on the mass-market lodging segment. By doing so, H World Group has positioned itself for sustained growth and success in an evolving industry landscape.
