v3.26.3
SEGMENT
6 Months Ended
Jun. 30, 2026
SEGMENT  
SEGMENT

13.SEGMENT

The Group’s chief operating decision maker (“CODM”) has been identified as the chief executive officer. As of December 31, 2025, the Group had two operating segments which were Legacy Huazhu and Legacy DH according to the way management intends to evaluate results and allocate resources within the Group. In 2026, the operating segments were relabeled to HWC and HWI, replacing the previous legacy designations. Additionally, a minor realignment between these two segments was made in 2026, and comparative figures for prior periods were updated to conform to the current presentation. In identifying its reportable segments, the Group assesses the nature of operating segments and evaluates the operating results of each reporting segment. Both operating segments meet the quantitative thresholds and should be considered as two reportable segments. The CODM uses revenue and Adjusted EBITDA to evaluate the trends of the segments over time and monitor budget-to-actual variances to assess the performance and determine how to allocate capital resources. Adjusted EBITDA is defined as net income attributable to H World Group Limited excluding income tax expense (benefit), interest expense, interest income, depreciation and amortization, share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss) and gain (loss) on disposal of investments. Significant segment expenses include adjusted hotel operating costs, adjusted selling and marketing expenses, adjusted general and administrative expenses, all of which exclude depreciation and amortization and share-based compensation expenses. The CODM does not use assets by operating segment when assessing performance or making operating segment resource allocations.

The following table provides a summary of the Group’s operating segment results and reconciliation of Adjusted EBITDA to net income attributable to H World Group Limited for the six months ended June 30, 2025 and 2026.

  ​ ​ ​

Six Months Ended June 30,

2025

2026

HWC

HWI

Elimination

Total

HWC

HWI

Elimination

Total

Leased and owned hotels

4,030

2,160

6,190

3,869

2,114

5,983

Manachised and franchised hotels

5,301

72

(9)

5,364

6,529

78

(15)

6,592

Others

257

24

(14)

267

509

33

542

Total revenues

 

9,588

2,256

(23)

 

11,821

 

10,907

2,225

(15)

 

13,117

Adjusted hotel operating costs

(4,988)

(1,762)

(5,375)

(1,739)

Adjusted selling and marketing expenses

(307)

(242)

(370)

(247)

Adjusted general and administrative expenses

(715)

(207)

(784)

(184)

Other segment items (primarily include other operating income, net)

103

40

130

20

Adjusted EBITDA

3,681

85

3,766

4,508

75

4,583

Interest income

 

 

 

101

 

 

 

120

Interest expense

 

 

 

(165)

 

 

 

(139)

Income tax expense

 

 

 

(942)

 

 

 

(1,168)

Depreciation and amortization

 

 

 

(636)

 

 

 

(610)

Share-based compensation

(247)

(265)

Losses from fair value changes of equity securities, net

(13)

(10)

Foreign exchange gain (loss), net

 

 

 

574

 

 

 

(117)

Net income attributable to H World Group Limited

2,438

2,394

The following tables represent revenues and property and equipment, net, intangible assets, net, right-of-use assets, land use rights, net and goodwill by geographical region.

Revenues:

  ​ ​ ​

Six Months Ended June 30,

  ​ ​ ​

2025

  ​ ​ ​

2026

PRC

9,568

10,904

Germany

1,596

1,578

All others

657

635

Total

11,821

13,117

Property and equipment, net, intangible assets, net, right-of-use assets, land use rights, net and goodwill:

  ​ ​ ​

As of

  ​ ​ ​

December 31,

  ​ ​ ​

June 30,

2025

2026

PRC

26,101

25,924

Germany

13,131

12,841

All others

3,986

3,685

Total

43,218

42,450

Other than PRC and Germany, there were no countries that individually represented more than 10% of the total revenue for the six months ended June 30, 2025 and 2026.