H World Group Limited (NASDAQ:HTHT) shares climbed 5.32% in pre-market trading on Monday after the hotel operator delivered second-quarter results above analyst expectations and raised its revenue outlook for 2026.
Adjusted earnings per ADS came in at $0.78, ahead of the consensus forecast of $0.72. Revenue increased 10.8% year-on-year to RMB7.12 billion ($1.05 billion), beating analysts’ estimate of RMB6.78 billion.
H World raises full-year revenue outlook
Following the stronger quarter, H World upgraded its full-year 2026 revenue guidance and now expects growth of between 4% and 8% compared with 2025.
The previous forecast called for an increase of between 2% and 6%. The midpoint of the new range, at 6%, is also above typical analyst expectations for the period.
H World additionally raised its guidance for manachised and franchised revenue growth to between 16% and 20%, compared with its previous forecast of 12% to 16%.
China business drives second-quarter growth
H World China was the main contributor to the group’s performance, with segment revenue rising 14.9% year-on-year to RMB5.9 billion.
Within the division, manachised and franchised revenue increased 25.2% to RMB3.6 billion.
Performance was weaker internationally, with H World International revenue declining 5.8% year-on-year to RMB1.3 billion.
“During the second quarter, we delivered another quarter of RevPAR expansion,” said Jin Hui, CEO of H World. “Our blended HWC ADR rose 2.6% year-on-year, fueling a 1.1% year-over-year lift in blended RevPAR.”
Net income and adjusted EBITDA increase
Net income attributable to H World reached RMB1.6 billion ($232 million), representing an increase of 2.1% compared with the same quarter last year.
Adjusted EBITDA rose to RMB2.7 billion ($401 million), up from RMB2.3 billion in the second quarter of 2025.
The combination of higher revenue, expanding RevPAR and improved adjusted EBITDA provided further evidence of stronger operating momentum in the company’s core Chinese business.
H World unveils $2.5 billion shareholder return plan
Alongside its quarterly results, H World’s board approved a three-year shareholder return programme totalling $2.5 billion.
The company also declared an ordinary cash dividend of $0.87 per ADS, representing an aggregate distribution of approximately $275 million.
As of June 30, 2026, H World operated 13,539 hotels comprising 1,335,445 rooms across 21 countries, giving the group a substantial global footprint as it continues expanding its hotel network.
The earnings beat, higher full-year guidance and sizeable shareholder return programme helped drive the positive pre-market reaction to the results.