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H World Group upgraded to buy as earnings and hotel growth beat expectations

Analyst Insights
25 Mar 2026
Seeking Alpha
View Source
Bullish
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H World Group has been upgraded to a buy rating due to faster-than-expected earnings growth and positive RevPAR (revenue per available room) trends. The company's asset-light strategy is accelerating, with plans to open 2,444 hotels in FY2025 and a pipeline of 2,906 mostly franchised hotels. Additionally, improvements in the Legacy-DH segment have turned it from a drag into a positive contributor, with Q4 adjusted EBITDA now positive. The current valuation at about 10.6 times forward EBITDA, along with improving margins and strong management and franchise growth, supports a potential share price upside to around $70.

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