Chinese hospitality management firm H World Group Limited has released its financial report for the first quarter of this year today, 21st May.
H World began 2025 with continued momentum in growth, asset-light transformation, and brand loyalty.
The company had 538 net hotel openings in the quarter that ended on 31st March, taking its total number of hotels in operation to 11,685.
The number of rooms worldwide totaled 1,142,158, a 20 percent increase over last year.
The company now covers 1,394 cities across China, with plans to reach 2,000 cities in the future, from major hubs to the most remote and underserved regions.
As of 31st March, H World has a total of 2,888 hotels in its developmental pipeline.
H World chief executive Jin Hui remarked: "We are confident we will achieve our full-year network expansion target of approximately 2,300 gross hotel openings. To achieve sustainable long-term growth, we will continue advancing our asset-light strategy, focusing on high-quality network expansion, enhancing brand positioning and 'service excellence', and strengthening sales capabilities centred around our H Rewards membership program."
Prioritising asset-light transformation
H World continued to advance its asset-light strategy in this quarter, with revenue from manachised and franchised hotels increasing by 21 percent year-over-year to RMB 2.5 billion (US$344 million).
The company's distinct manachise model which combines the scalability of franchising with the operational control of management remains a key enabler of efficient, brand-consistent growth.
With regard to its loyalty programme, H World’s H Rewards membership reached 277 million, making it one of the largest loyalty platforms in the global hospitality industry.
Direct booking from members accounted for over 65 percent of total reservations, a 5.4 percentage point increase year-on-year, reflecting growing digital engagement, improved margins, and greater customer lifetime value.
Ongoing upgrades
H World continued to advance its product upgrade initiatives to enhance consumer experience across core brands including Hanting, JI, and Orange.
As of Q1, 40 percent of Hanting Hotels had reached version 3.5 or above; 78 percent of Ji Hotels had reached Ji 4.0+; while 70 percent of Orange Hotels met the Orange 2.0 standard
The first quarter also marked rapid growth in the upper-midscale segment, which includes brands such as Intercity Hotel, Crystal Orange Hotel, MAXX by Steigenberger, and CitiGo Hotel, with a 36 percent year-on-year increase in operating hotels and a 22 percent expansion of the development pipeline.
