The Year with the Most Store Openings, Huazhu Group's RevPAR Rebounds from Bottom

Ask AI · What are the key drivers behind the rebound in RevPAR at Huazhu?

Huazhu Group management openly states that 2025 will be the year with the most new openings, with over 2,400 hotels opening throughout the year. The expected number of openings in 2026 is between 2,200 and 2,300.

Recently, Huazhu Group released its 2025 financial report, showing total revenue of approximately 25.3 billion yuan, a 5.9% year-over-year increase; net profit attributable to shareholders of 5.08 billion yuan, a 66.67% increase; and adjusted EBITDA of about 8.473 billion yuan, up from around 6.82 billion yuan last year. In the fourth quarter alone, revenue grew 8.3% year-over-year to 6.5 billion yuan, with net profit attributable to shareholders of approximately 1.173 billion yuan.

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The China division contributed over 80% of Huazhu’s revenue.

During the reporting period, Huazhu Group’s revenue from Huazhu China was about 20.5 billion yuan, a 7.9% increase; revenue from Huazhu International (formerly Deutsche Hospitality) was 4.8 billion yuan, down 1.8% year-over-year.

Hotel deployment aligns with this growth. By the end of 2025, Huazhu Group operated 12,858 hotels worldwide, with approximately 1.2644 million rooms, including 118 hotels under Huazhu International; 2,906 hotels are pending opening, including 2,887 from Huazhu China and 19 from Huazhu International.

In 2025, Huazhu opened 2,444 new hotels. CEO Jin Hui stated that this was a year of rapid network expansion. More importantly, driven by continuous product upgrades and a series of revenue management optimization measures, the group’s average room revenue started to improve from the third quarter and returned to positive growth in the fourth quarter.

Data shows that in 2025, Huazhu China’s hotels had an average daily rate (ADR) of 290 yuan, a 0.2% increase; occupancy rate (OCC) was 80%, down 1.2 percentage points; RevPAR (average revenue per available room) was 232 yuan, down 1.3%.

In the fourth quarter, Huazhu China’s hotels had an ADR of 288 yuan, up 4.1%; occupancy rate was 78.4%, down 1.6 percentage points; RevPAR was 226 yuan, up 2%.

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For Huazhu International, in 2025, the ADR was 116 euros, up 1.4%; occupancy rate was 70.5%, up 4.4 percentage points; RevPAR was 82 euros, up 8.2%.

Regarding the overall supply and demand in the market in 2026, Huazhu management said that the recovery trend in China’s hotel industry has become clear over the past three months. On the demand side, leisure travel has steadily increased over the past one or two years, inbound tourism is gradually recovering, and overall demand continues to rise, with leisure demand growth being particularly notable. Business travel demand has bottomed out and is rebounding, especially in first- and second-tier cities.

Based on this, management is cautiously optimistic about overall performance in 2026, with the goal of slightly increasing revenue for the year.

Financial data indicates that in 2026, Huazhu expects to open 2,200 to 2,300 new hotels and close 600 to 700. The total revenue is projected to grow by 2% to 6% compared to 2025; excluding DH, growth is expected to be 5% to 9%. Revenue from management, franchise, and licensing is expected to increase by 12% to 16%.

In 2025, revenue from management, franchise, and licensing hotels was 11.7 billion yuan, up 23.1%; revenue from leased and owned hotels was 12.9 billion yuan, down 6.5%.

Regarding mid-to-high-end hotel development, management stated that this segment remains a key focus of Huazhu’s current strategy and a core market the group has been deeply cultivating over the past two years and will continue to do so. Huazhu’s mid-to-high-end business mainly targets first- and second-tier cities, adopting a multi-brand collaborative development model, which differs from other industry players.

Currently, Huazhu has launched several core brands such as Ji Hotel, Orange Crystal, and others. Each brand features differentiated characteristics, including lifestyle brands representing Eastern aesthetics and Western lifestyle brands originating from Germany and France.

Management openly states that Huazhu aims to use its multi-brand strategy to catch up and surpass the Chinese mid-to-high-end hotel market, with a goal to become the leading brand management company in this segment by 2030.

Additionally, regarding Huazhu International’s asset-light transformation plan and pace, management said that the business has improved thanks to ongoing restructuring and efficiency improvements, with cost control becoming a routine part of management. They are also pushing for portfolio restructuring, exploring feasible options such as reducing rent, optimizing property conditions, and renegotiating partnerships.

Currently, Huazhu International has begun expanding its hotel network. The group believes that service hotels have significant growth potential overseas and plans to explore diversified business models, focusing on urban core areas.

In the international market, Europe remains the core market, with further exploration of the Middle East and Africa regions on the horizon.

Reporter Wu Dian

Copyeditor Sun Wanqiu