--- title: "Asset-light Revenue Accounts for Over Half; H World's Q2 Operating Profit Rises 24.1%" type: "News" locale: "en" url: "https://longbridge.com/en/news/296098674.md" description: "Number of hotels increases to 13,500" datetime: "2026-08-17T11:35:35.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296098674.md) - [en](https://longbridge.com/en/news/296098674.md) - [zh-HK](https://longbridge.com/zh-HK/news/296098674.md) --- # Asset-light Revenue Accounts for Over Half; H World's Q2 Operating Profit Rises 24.1% On August 17, H World Group released its unaudited financial results for the second quarter and first half of 2026. Q2 revenue reached RMB 7.121 billion, a year-on-year increase of 10.8%; net profit attributable to H World Group was approximately RMB 1.6 billion, up 2.1% year on year. Revenue for the first half totaled RMB 13.117 billion, an 11.0% year-on-year increase, while net profit attributable to shareholders was around RMB 2.4 billion, basically flat compared to the same period last year. Growth was primarily driven by the China business. In Q2, H World China (HWC) generated revenue of approximately RMB 5.9 billion, a 14.9% year-on-year increase; overseas business HWI recorded revenue of about RMB 1.3 billion, a 5.8% year-on-year decline. The group's hotel turnover amounted to RMB 30.5 billion, up 13.2% year on year, with H World China growing 15.3% and HWI declining 9.4%. Hotel turnover represents the gross transaction value of room rates and non-room revenue across its hotels and is not equivalent to the group's revenue. In Q2, H World China's average daily rate (ADR) was RMB 298, compared to RMB 290 in the same period last year; occupancy rate decreased from 81.0% to 79.8%; comprehensive revenue per available room (RevPAR) rose from RMB 235 to RMB 238, a 1.1% year-on-year increase. However, RevPAR for same-store hotels operating for more than 18 months was RMB 233, a 3.0% year-on-year decline, with ADR remaining largely flat and occupancy dropping by 2.4 percentage points. While overall metrics improved, existing hotels continue to face operational pressures. Expansion continues to rely on the managed franchise and franchising models. In Q2, H World China opened 498 new hotels and closed 176. As of the end of June, the group had a total of 13,539 hotels in operation, including 13,417 in China. Revenue from managed franchises and franchising in Q2 was RMB 3.586 billion, a 25.2% year-on-year increase; revenue from direct-operated and owned hotels was RMB 3.233 billion, a 4.9% year-on-year decrease. In the first half, the proportion of revenue from the former increased from 45.4% to 50.3%. Changes in business structure are also reflected in profit margins. Q2 operating profit was RMB 2.2 billion, a 24.1% year-on-year increase, with the operating profit margin rising from 27.8% to 31.1%; hotel operating costs grew 7.4% year on year, slower than revenue growth. During the same period, income tax expenses increased from RMB 565 million to RMB 687 million, which was one of the factors contributing to the slower growth in net profit attributable to shareholders compared to operating profit. Overseas business faced pressure in Q2. In constant USD terms, HWI's ADR rose from $137 to $139, but occupancy dropped from 74.0% to 70.5%, causing comprehensive RevPAR to fall from $102 to $98. The company attributed this to the conflict in the Middle East and its expansion into Southeast Asian markets, which have lower room rates and are still in the ramp-up phase. HWI's adjusted EBITDA was RMB 131 million, lower than RMB 164 million in the same period last year. H World also raised its full-year guidance, expecting group revenue growth of 4% to 8%, previously projected at 2% to 6%; the expected growth range for managed franchise and franchising revenue was increased from 12%-16% to 16%-20%. While the number of domestic hotels continues to grow, changes in same-store performance and overseas occupancy rates will continue to impact the quality of future growth. ### Related Stocks - [HTHT.US](https://longbridge.com/en/quote/HTHT.US.md) - [01179.HK](https://longbridge.com/en/quote/01179.HK.md) ## Related News & Research - [H World Q2 FY26 net income rises 2.1% y/y to RMB 1.6 billion; revenue increases 10.8% y/y to RMB 7.1 billion](https://longbridge.com/en/news/296087996.md) - [H World Group Limited Reports Second Quarter and Interim of 2026 Unaudited Financial Results | HTHT Stock News](https://longbridge.com/en/news/296090090.md) - [Goldman Sachs Reaffirms Their Buy Rating on H World Group (HTHT)](https://longbridge.com/en/news/296230638.md) - [HCMC hotel tariffs soar by 20% in Q2](https://longbridge.com/en/news/295907708.md) - [08:54 ETThe Lantern's Inclusive Staffing Model Drives Columbia's Top Guest Scores Six Months After Opening](https://longbridge.com/en/news/296231588.md)