• H World Group Limited (NASDAQ:HTHT) reported an EPS of $0.66, beating estimates and marking a 4.69% earnings surprise.
• The company's revenue for the quarter was $977.7 million, exceeding expectations with a 3.50% revenue surprise.
• HTHT's asset-light expansion strategy has led to a 27.2% year-over-year increase in revenue from manachised and franchised hotels.

H World Group Limited, trading as (NASDAQ:HTHT), is a key player in the global hotel industry. Known for its asset-light expansion strategy, the company operates over 12,700 hotels, offering more than 1.2 million rooms. HTHT competes in the Zacks Hotels and Motels industry, focusing on manachised and franchised hotels, which have shown significant growth.

On November 17, 2025, HTHT reported earnings per share (EPS) of $0.66, surpassing the estimated $0.64. This marks a 4.69% earnings surprise, as highlighted by Zacks. The company has consistently exceeded EPS estimates, achieving this feat twice in the past four quarters. In the previous quarter, HTHT reported an EPS of $0.59, beating expectations by 5.36%.

HTHT's revenue for the quarter ending September 2025 was approximately $977.7 million, exceeding the estimated $882 million. This represents a 3.50% revenue surprise, as noted by Zacks. The company has surpassed consensus revenue estimates three times in the last four quarters, demonstrating strong financial performance.

The company's asset-light model has been effective, with revenue from manachised and franchised hotels increasing by 27.2% year-over-year to RMB 3.3 billion. This growth highlights the strong demand for HTHT's franchises and improved operating efficiency. Adjusted EBITDA also rose significantly, reaching RMB 2.5 billion from RMB 2.1 billion last year.

HTHT's financial metrics provide insight into its market valuation. The price-to-earnings (P/E) ratio is approximately 25.39, while the price-to-sales ratio is about 3.94. The enterprise value to sales ratio stands at 5.08, and the enterprise value to operating cash flow ratio is around 16.16. The debt-to-equity ratio is approximately 3.11, and the current ratio is around 0.81, indicating potential liquidity challenges.