Detailed narrative
China Travel Market Trends
Domestic resident trips in China reached 3.5 billion in the first half of 2026, representing a 5.4% year-over-year increase, with inbound tourism also gaining strong momentum. However, total domestic travel spending grew at a more moderated pace of 2% year-over-year to RMB 3.2 trillion, indicating a shift towards more frequent but prudent spending decisions among travelers.
The government's long-term tourism plan targets 8.3 billion annual domestic trips and 190 million inbound tourist arrivals by 2030.
Strategic Expansion & Brand Leadership
H World Group is committed to high-quality network expansion, focusing on lower-tier cities while optimizing prime locations in core cities. The group's hotel GMV grew 13.2% year-over-year to RMB 30.5 billion in Q2, supported by a 12.7% YoY increase in rooms in operation.
Hanting and JI Hotel brands have achieved global recognition, securing the top two spots in single-branded room counts, with Orange Hotel also climbing to 26th globally, underscoring the effectiveness of the multi-brand strategy.
Upper Mid-Scale Segment Growth
The upper mid-scale segment remains a core strategic area for H World, presenting significant development opportunities from consumption upgrades and demand capture from traditional upscale hotels. The company is leveraging its four flagship brands—Intercity, Grand JI, Crystal, and Mercure—to drive market share gains.
As of end June, H World China's upper mid-scale brands had 1,738 hotels in operation and in pipeline, marking a 13.4% year-over-year increase.
Membership Program & Direct Sales
The H Rewards membership program is a key competitive advantage, with steady growth in both membership base and room nights booked by members. The company is actively refining membership benefits, including the recent launch of a family card, and expanding cross-industry partnerships with entities like DB, airlines, and new energy vehicle companies.
Efforts are also underway to accelerate H Reward's international presence and optimize the app to capture inbound travel demand, including deepened cooperation with Accor.
Social Responsibility Initiatives
H World Group is proactively fulfilling its social responsibilities across three key areas. Firstly, it boosts local employment, with the total number of employees exceeding 260,000 as of end June, supported by internal talent development programs. Secondly, the company promotes energy-saving management solutions for its hotels and franchisees.
Thirdly, through its charity foundation, H World engages in public welfare programs, including educational assistance and post-disaster support.
International Business Performance
HWI's blended RevPAR decreased 3.8% year-over-year in Q2, primarily impacted by the Middle East conflict and the ramp-up period of its Southeastern Asia expansion. Despite these challenges, the Europe business delivered a solid performance, with RevPAR growing 1.1% year-over-year. The international business revenue decreased 5.8% year-over-year to RMB 1.3 billion, mainly due to the closure of leased hotels.
The company aims to achieve positive profit for its HWI business for the full year through cost control.