# Huazhu Group (HTHT.US)

Canonical: https://gigainvestors.com/s/HTHT

Analysis as of: 2026-10-16T07:29:10.068Z. Financial observations: FY2019–FY2025.

Listing currency: USD. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $45.94 per share; close as of 2026-10-15.

Estimated value: low $27.19 per share, central $29.95 per share, high $33.62 per share. Buy at or below the central value $29.95 per share. Valuation as of 2026-10-16T07:29:10.068Z; scenarios are not confidence intervals.

Expected annual return: 7.1% at the stated quote. About 7.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 7 years

- Years with declining revenue: 1

- Years with a net loss: 3

- Operating margin variation: 1.47×

Chart: Operating margin; fiscal year observations.

- FY2019: 0.19×

- FY2020: -0.17×

- FY2021: 0.01×

- FY2022: -0.02×

- FY2023: 0.22×

- FY2024: 0.22×

- FY2025: 0.25×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 4.2%

- ROIC, second-lowest year: -0.6%

- Typical minus recent gross margin: -4.9 pp

- Typical gross margin (annual median): 34.5%

- Recent gross margin (lower of latest and 3-year median): 39.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 7.6%

- ROIC including acquisitions, ten-year median: 3.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2019: 4.2%

- FY2020: -3.3%

- FY2021: 0.3%

- FY2022: -0.6%

- FY2023: 10.9%

- FY2024: 10.8%

- FY2025: 15.7%

### economics: pass

- Owner earnings / net income, 5-yr: 1.18×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 12B

- Net income, five-year total: CNY 9.8B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 1.6 pp

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 0.78×

- FY2023: 1.13×

- FY2024: 1.14×

- FY2025: 1.09×

### management: pass

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 0.3% vs 10.9%

- Per-share earnings: -0.15 to 1.22 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 2.1%

- Diluted shares, 5-year annual growth: 2.1%

- Per-share value change: CNY 1.37

- Per-share value, starting three-year median: CNY -0.15

- Per-share value, ending three-year median: CNY 1.22

- Buybacks concentrated in cheaper years (correlation): 0.60

- Average buyback yield: 0.1%

- Buyback history: 5 years

- Debt-funded buybacks: No

- ROIC, first three-year median: 0.3%

- ROIC, last three-year median: 10.9%

Chart: Earnings per share; fiscal year observations.

- FY2019: CNY 0.58

- FY2020: CNY -0.71

- FY2021: CNY -0.15

- FY2022: CNY -0.58

- FY2023: CNY 1.22

- FY2024: CNY 0.93

- FY2025: CNY 1.52

### accounting: pass

- Sloan accruals: -5.0%

- Receivables to sales index (DSRI): 0.86×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 5.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.65×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.82×

Chart: Sloan accruals; fiscal year observations.

- FY2019: -2.9%

- FY2020: -4.1%

- FY2021: -2.9%

- FY2022: -5.5%

- FY2023: -5.6%

- FY2024: -7.3%

- FY2025: -5.0%

## Holders

- [Sarah Ketterer](https://gigainvestors.com/CAU): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Robert Vinall](https://gigainvestors.com/RVC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Mason Hawkins](https://gigainvestors.com/SE): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 7.6% a year for ten years · sales +3%

Story as of 2026-10-16T09:58:54.697Z; price observation 2026-10-15.

Price needs cash profits to grow 7.6% a year for ten years

- 2025-08-20: H World Earnings Increase In Q2, Expects Higher Q3 Revenues; Stock Up ([nasdaq.com](https://www.nasdaq.com/articles/h-world-earnings-increase-q2-expects-higher-q3-revenues-stock))

### Sales · FY2024–2025

sales +3%; source https://www.sec.gov/Archives/edgar/data/1483994/000110465926048058/htht-20251231x20f.htm; observed 2026-04-24.

- FY2019: CNY 11B 

- FY2020: CNY 10B 

- FY2021: CNY 13B 

- FY2022: CNY 14B 

- FY2023: CNY 22B 

- FY2024: CNY 24B 

- FY2025: CNY 25B 

### Gross margin · FY2025

gross margin 39.4%; source https://www.sec.gov/Archives/edgar/data/1483994/000110465926048058/htht-20251231x20f.htm; observed 2026-04-24.

- FY2019: 35.9% 

- FY2020: 4.6% 

- FY2021: 11.7% 

- FY2022: 11.6% 

- FY2023: 34.5% 

- FY2024: 41.3% 

- FY2025: 39.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in lodging; annual sales are CNY 24.6 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1483994/000110465926048058/htht-20251231x20f.htm (filed 2026-04-24); FY2025: revenue 24617515000; grossProfit 9696424000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HTHT.US: H World Group Limited develops and operates leased and owned, manachised, and franchised hotels in the People's Republic of China. The company operates hotels under its own brands, such as HanTing Hotel, Ni Hao Hotel, Hi Inn, Elan Hotel, Zleep Hotels, Ibis Hotel, JI Hotel, Orange Hotel, Starway Hotel, Ibis Styles Hotel, Crystal Orange Hotel, IntercityHotel, Grand JI Hotel, Manxin Hotel, Mercure Hotel, Madison Hotel, Novotel Hotel, CitiGO Hotel, MAXX, Joya Hotel, Blossom House, Steigenberger Hotels & Resorts, Jaz in the City, Grand Mercure Hotel, Steigenberger Icons, and Song Hotels. The company was formerly known as Huazhu Group Limited and changed its name to H World Group Limited in June 2022. H World Group Limited was founded in 2005 and is headquartered in Shanghai, the People's Republic of China.

### Why customers stay

Margins ranged from 34.5% to 41.3% during 2023–25; it earns 4.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-24); FY2023: grossProfit / revenue = 34.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-24); FY2024: grossProfit / revenue = 41.3%.

- Source: https://www.sec.gov/Archives/edgar/data/1483994/000110465926048058/htht-20251231x20f.htm (filed 2026-04-24); FY2025: grossProfit / revenue = 39.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-24); 7-year return on capital observations [[2019,0.042081075401783914],[2020,-0.03297452528903523],[2021,0.0030657832465688594],[2022,-0.005523424494649227],[2023,0.1087583265024984],[2024,0.10809265121150295],[2025,0.15700597636408914]]; median 0.042081075401783914. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 6 of 7 years; bought back CNY 761.7 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-24); FY2019: growth capex 0; upkeep 1535000000; cash acquisitions 244000000; owner earnings 1225000000. Growth capex plus acquisitions / owner earnings = 0.19918367346938776.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-24); FY2023: growth capex 0; upkeep 901000000; cash acquisitions 0; owner earnings 4598000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-24); FY2024: growth capex 0; upkeep 895512522; cash acquisitions 0; owner earnings 3484487478. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1483994/000110465926048058/htht-20251231x20f.htm (filed 2026-04-24); FY2025: growth capex 0; upkeep 815168792; owner earnings 5383427208. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-24); Dividend observations: [[2019,658000000],[2020,678000000],[2021,416000000],[2022,416000000],[2023,0],[2024,3529313303],[2025,3800554438]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1483994/000110465926048058/htht-20251231x20f.htm (filed 2026-04-24); FY2025: cash repurchases 761667290 CNY.

### Are managers owners

Insiders own 1.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HTHT.US SharesStats.PercentInsiders = 1.1039999999999999 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 7.6% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-24); Ten-year compound average after fade. Initial solved rate 0.09574784827433624. Price 45.94; FX 0.14944; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $43.01 per share

- 2016-11: $52.38 per share

- 2016-12: $51.84 per share

- 2017-01: $54.03 per share

- 2017-02: $57.97 per share

- 2017-03: $62.05 per share

- 2017-04: $70.98 per share

- 2017-05: $76.40 per share

- 2017-06: $80.68 per share

- 2017-07: $101.73 per share

- 2017-08: $113.51 per share

- 2017-09: $118.82 per share

- 2017-10: $133.89 per share

- 2017-11: $106.71 per share

- 2017-12: $144.43 per share

- 2018-01: $149.49 per share

- 2018-02: $151.90 per share

- 2018-03: $131.71 per share

- 2018-04: $139.66 per share

- 2018-05: $44.01 per share

- 2018-06: $41.99 per share

- 2018-07: $40.01 per share

- 2018-08: $34.42 per share

- 2018-09: $32.30 per share

- 2018-10: $26.16 per share

- 2018-11: $31.54 per share

- 2018-12: $28.63 per share

- 2019-01: $31.75 per share

- 2019-02: $35.07 per share

- 2019-03: $42.14 per share

- 2019-04: $42.40 per share

- 2019-05: $30.60 per share

- 2019-06: $36.25 per share

- 2019-07: $32.76 per share

- 2019-08: $33.03 per share

- 2019-09: $33.02 per share

- 2019-10: $37.86 per share

- 2019-11: $34.21 per share

- 2019-12: $40.07 per share

- 2020-01: $34.50 per share

- 2020-02: $33.75 per share

- 2020-03: $28.73 per share

- 2020-04: $36.01 per share

- 2020-05: $33.82 per share

- 2020-06: $35.05 per share

- 2020-07: $34.33 per share

- 2020-08: $44.73 per share

- 2020-09: $43.24 per share

- 2020-10: $39.63 per share

- 2020-11: $49.78 per share

- 2020-12: $45.03 per share

- 2021-01: $48.50 per share

- 2021-02: $58.14 per share

- 2021-03: $54.90 per share

- 2021-04: $58.96 per share

- 2021-05: $57.17 per share

- 2021-06: $52.81 per share

- 2021-07: $44.98 per share

- 2021-08: $48.29 per share

- 2021-09: $45.86 per share

- 2021-10: $46.36 per share

- 2021-11: $39.52 per share

- 2021-12: $37.34 per share

- 2022-01: $39.52 per share

- 2022-02: $41.36 per share

- 2022-03: $32.99 per share

- 2022-04: $30.24 per share

- 2022-05: $32.50 per share

- 2022-06: $38.10 per share

- 2022-07: $38.35 per share

- 2022-08: $37.63 per share

- 2022-09: $33.54 per share

- 2022-10: $27.08 per share

- 2022-11: $38.28 per share

- 2022-12: $42.42 per share

- 2023-01: $47.48 per share

- 2023-02: $47.37 per share

- 2023-03: $48.98 per share

- 2023-04: $46.90 per share

- 2023-05: $36.62 per share

- 2023-06: $38.78 per share

- 2023-07: $48.04 per share

- 2023-08: $40.28 per share

- 2023-09: $39.43 per share

- 2023-10: $37.66 per share

- 2023-11: $36.58 per share

- 2023-12: $33.44 per share

- 2024-01: $31.77 per share

- 2024-02: $36.56 per share

- 2024-03: $38.70 per share

- 2024-04: $36.71 per share

- 2024-05: $37.23 per share

- 2024-06: $33.32 per share

- 2024-07: $30.00 per share

- 2024-08: $30.44 per share

- 2024-09: $37.20 per share

- 2024-10: $36.69 per share

- 2024-11: $32.17 per share

- 2024-12: $33.03 per share

- 2025-01: $32.14 per share

- 2025-02: $35.89 per share

- 2025-03: $37.01 per share

- 2025-04: $34.24 per share

- 2025-05: $35.27 per share

- 2025-06: $33.92 per share

- 2025-07: $31.22 per share

- 2025-08: $36.85 per share

- 2025-09: $39.11 per share

- 2025-10: $38.60 per share

- 2025-11: $46.10 per share

- 2025-12: $47.05 per share

- 2026-01: $47.51 per share

- 2026-02: $54.80 per share

- 2026-03: $50.29 per share

- 2026-04: $51.64 per share

- 2026-05: $44.89 per share

- 2026-06: $41.72 per share

- 2026-07: $42.69 per share

- 2026-08: $47.32 per share

- 2026-09: $42.80 per share

- 2026-10: $45.94 per share

## Annual estimated value (USD per share)

- FY2025: low $2.49 per share, central $2.74 per share, high $3.07 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 20-F filing](https://www.sec.gov/Archives/edgar/data/1483994/000110465926048058/htht-20251231x20f.htm); period 2025-12-31, filed 2026-04-24.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.