International hotel group H World has made plans to return USD2.5 billion to shareholders over the coming three years, following a strong first half performance in 2026 that led the company to raise its full year guidance.
The company now expects its full year 2026 revenues to grow by between four and eight per cent. The company achieved an average occupancy of 79.8% in the second quarter, marginally down on the 81% delivered in the second quarter of 2025. Revpar was modestly ahead, though, thanks to higher room rates.
A Solid Quarter of Operational Delivery
“This performance was underpinned by ongoing product upgrades and a suite of revenue-management optimization initiatives,” reported CEO Jin Hui. “Meanwhile, our hotel network kept expanding at a solid pace, with 498 newly-opened hotels across China; and the number of hotels in our pipeline grew both year-over-year and quarter-over quarter.”
Management noted a negative impact from hostilities in the Middle East. In addition, group brands are now expanding strategically into new south east Asian countries, and new properties in these markets are still in their ramp-up phase, when lower room rates and sub-optimal occupancy levels are to be expected.
H World’s core business has been in economy hotels, notably in China with the HanTing brand. In midscale, it leads with JI Hotel, and Orange Hotel. The business has been shifting upscale, with its upper midscale brands Crystal Orange and IntercityHotel now featuring strongly in new signings. In the upscale segment, it is growing Blossom House, which has 112 pipeline properties against 88 currently open.
The group finished the half year with 13,539 hotels operating in its portfolio. A further 3,089 have been signed into the development pipeline, for opening within the next few years.
H World continues to look for opportunities to expand its brands internationally. From Europe, the luxury Steigenberger brand is growing across Asia, for example. In Cambodia, Steigenberger Phnom Penh is now in its pre-opening phase, located on the upper floors of the landmark Morgan Tower.
Soon to open in Egypt is the expanded Steigenberger Hotel Saint Catherine. This expansive project will feature 139 rooms and suites, plus a further 248 new eco-lodges, ideal for a stay out in Egypt’s countryside, with the mountains as a backdrop. Also in Egypt, Steigenberger Resort Byoum Lakeside is undergoing a refurbishment of its rooms, overlooking Qarun Lake.
European Brands Expand East
In Fujian, China, Steigenberger Yongning is planned, with dramatic modern architecture in the core of Golden Coast. This is the first of what will likely be several additional Steigenberger hotels across China in the coming years.
The Intercity Hotel brand is also expanding strongly across China. Imported from Europe, where the Deutsche Hospitality business developed the brand, it now has sites under construction in Foshan and Shenzhen. Next to open will be the 123 room InterCity Wenzhou.
The brand has also made a move into Laos. There, Intercity Hotel Vientiane will shortly open, followed by Intercity Hotel Luang Prabang.
