HWORLD-S (01179) The net profit attributable to the parent in the third quarter was 1.5 billion yuan, an increase of 15.4% year-on-year.

HWORLD-S (01179) announced its performance for the third quarter of 2025, with revenue of RMB 7 billion, an increase of 8.1% year-on-year. The net profit attributable to Huazhu Group Limited was RMB 1.5 billion, an increase of 15.4% year-on-year. Basic earnings per share were RMB 0.48. Of this, revenue from the Legacy-Huazhu division was RMB 5.7 billion, a year-on-year increase of 10.8%. The year-on-year growth was mainly driven by the continued expansion of managed and franchised hotel networks. Revenue from Legacy-DH division in the third quarter of 2025 was RMB 1.2 billion, a year-on-year decrease of 3.0%. Huazhu CEO Jin Hui said, "In the third quarter, our strong network expansion achieved through the asset-light model, along with stable year-on-year average revenue per available room, drove revenue beyond the upper guide and led to strong operating profit growth. In the third quarter, we opened 749 new hotels, bringing the total number of new hotels opened this year to over 2,000, steadily moving towards the goal of opening a total of 2,300 hotels by the end of 2025. Looking ahead, the group will continue to focus on building core competencies, pursuing high-quality network growth and market share improvement, and strengthening brand positioning and excellent service. Our confidence in the future of the Chinese hotel industry remains steadfast." "In terms of overseas business in China, our Legacy-DH business recorded a 6.4% year-on-year growth in mixed average revenue per available room in the third quarter of 2025, mainly driven by a 4.6 percentage point increase in occupancy rate. We will continue to enhance hotel operations, focus on cost reduction and efficiency improvement, and continue to develop our asset-light portfolio." In the fourth quarter of 2025, Huazhu expects the company's revenue to increase by 2% to 6% compared to the fourth quarter of 2024, or by 3% to 7% (excluding DH). Huazhu expects the management, franchise, and operation income of the company in the fourth quarter of 2025 to increase by 17% to 21% compared to the fourth quarter of 2024.