HWORLD-S (01179) released its interim results, with total revenue of 13.117 billion yuan, an increase of 10.96% year-on-year.

HWORLD-S (01179) announced its performance for the second quarter and the first half of 2026. In the second quarter of 2026, the group achieved total revenue of RMB 7.121 billion, a year-on-year increase of 10.82%; the net profit attributable to Huazhu Group Limited was RMB 1.577 billion, a year-on-year increase of 2.14%; basic earnings per share were RMB 0.50. In the first half of 2026, the group achieved total revenue of RMB 13.117 billion, a year-on-year increase of 10.96%; the net profit attributable to Huazhu Group Limited was RMB 2.394 billion; basic earnings per share were RMB 0.77; a proposed ordinary cash dividend of USD 0.087 per share was declared. The announcement stated that in the second quarter of 2026, hotel revenue increased by 13.2% year-on-year to RMB 30.5 billion. By segment, the hotel revenue of Huazhu China (HWC) in the second quarter of 2026 increased by 15.3% year-on-year, while hotel revenue from Huazhu International (HWI) decreased by 9.4% year-on-year. As of June 30, 2026, Huazhu's global hotel network comprised 13,539 hotels and 1,335,445 rooms, including 13,417 hotels under HWC and 122 hotels under HWI. In the second quarter of 2026, the HWC business opened 498 hotels, including 1 leased and owned hotel and 497 managed franchise and licensed hotels, and closed a total of 176 hotels, including 19 leased and owned hotels and 157 managed franchise and licensed hotels. As of June 30, 2026, Huazhu had 3,089 hotels under development, including 3,054 hotels under the HWC business and 35 hotels under the HWI business. Huazhu CEO Jin Hui stated, "During the second quarter, we achieved an increase in average revenue per available room again. Our HWC overall average daily rate rose by 2.6% year-on-year, driving a 1.1% increase in overall average revenue per available room during the same period. This performance benefited from ongoing product upgrades and a series of optimized revenue management measures. At the same time, our hotel network continued to expand steadily, with 498 new hotels opened in China; the number of hotels under development has increased year-on-year and quarter-on-quarter. We are still firmly moving towards our target of opening 2,200 to 2,300 new hotels for the full year. Looking ahead, with the support of the Huazhu membership system and technological advancements, we will continue to promote high-quality hotel network expansion led by our brands." "In the second quarter of 2026, the operational performance of the HWI segment was negatively impacted by conflicts in the Middle East and our expansion into developing Southeast Asian countries, where the average daily rate is lower and still in the ramp-up phase. The blended average revenue per available room in the HWI segment decreased by 3.8% year-on-year, with the average daily rate increasing by 0.9% and occupancy rate decreasing by 3.5 percentage points. Despite the ongoing tense situation in the Middle East, given the low risk exposure of the HWI segment in that region and our continuous efficiency enhancements and cost optimizations, we believe that the segment will demonstrate resilience."