(HTHT) Huazhu - Overview
Sector: Consumer Cyclical | Industry: Lodging | Exchange: NASDAQ (USA) | Market Cap: 14.254m USD | Total Return: 30.9% in 12m
Avg Turnover: 89.4M
EPS Trend: 69.4%
Qual. Beats: 0
Rev. Trend: 92.9%
Qual. Beats: 0
Warnings
Altman Z'' 0.80 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
Confidence
H World Group Limited (HTHT), formerly Huazhu Group Limited, is a Shanghai-based hospitality company that manages a multi-tier portfolio of hotel brands across China and international markets. The company utilizes a mix of asset-heavy leased and owned models alongside asset-light franchised and manachised (managed-and-franchised) structures to scale its operations.
The company’s brand architecture spans the economy, midscale, and upscale segments, featuring proprietary names like HanTing and JI Hotel as well as international labels such as Steigenberger and Mercure. In the Chinese hospitality sector, the manachised model is a primary growth driver, allowing operators to generate recurring management fees while property owners retain the majority of capital expenditures.
Investors can evaluate the company’s long-term unit growth and margin stability by exploring the detailed financial visualizations available on ValueRay. This strategic positioning in both domestic budget travel and premium international lodging reflects the broader consolidation trend within the fragmented Chinese hotel industry.
- Domestic tourism recovery in China drives RevPAR and occupancy rate growth
- Rapid expansion of asset-light manachised model boosts long-term operating margins
- Rising middle-class demand for midscale and upscale brands increases average daily rates
- Economic slowdown in China reduces corporate travel budgets and discretionary consumer spending
- Regulatory shifts in Chinese real estate and hospitality sectors impact expansion velocity
| Net Income: 4.98b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA 0.97 > 1.0 |
| NWC/Revenue: -4.91% < 20% (prev -7.48%; Δ 2.57% < -1%) |
| CFO/TA 0.12 > 3% & CFO 7.94b > Net Income 4.98b |
| Net Debt (49.4b) to EBITDA (8.78b): 5.63 < 3 |
| Current Ratio: 0.93 > 1.5 & < 3 |
| Outstanding Shares: last quarter (327.1m) vs 12m ago 1.19% < -2% |
| Gross Margin: 40.54% > 18% (prev 0.37%; Δ 4.02k% > 0.5%) |
| Asset Turnover: 41.09% > 50% (prev 39.00%; Δ 2.09% > 0%) |
| Interest Coverage Ratio: 22.43 > 6 (EBITDA TTM 8.78b / Interest Expense TTM 337.4m) |
| A: -0.02 (Total Current Assets 17.7b - Total Current Liabilities 19.0b) / Total Assets 63.9b |
| B: 0.03 (Retained Earnings 1.67b / Total Assets 63.9b) |
| C: 0.12 (EBIT TTM 7.57b / Avg Total Assets 62.7b) |
| D: 0.04 (Book Value of Equity 1.86b / Total Liabilities 52.9b) |
| Altman-Z'' = 0.80 = B |
| DSRI: 0.81 (Receivables 1.10b/1.26b, Revenue 25.8b/24.0b) |
| GMI: 0.92 (GM 40.54% / 37.44%) |
| AQI: 0.89 (AQ_t 0.23 / AQ_t-1 0.26) |
| SGI: 1.07 (Revenue 25.8b / 24.0b) |
| TATA: -0.05 (NI 4.98b - CFO 7.94b) / TA 63.9b) |
| Beneish M = -3.31 (Cap -4..+1) = AA |
As of May 26, 2026, the stock is trading at USD 44.79 with a total of 2,666,200 shares traded.
Over the past week, the price has changed by -2.74%,
over one month by -7.82%,
over three months by -15.69% and
over the past year by +30.91%.
Huazhu has received a consensus analysts rating of 4.53. Therefore, it is recommended to buy HTHT.
- StrongBuy: 10
- Buy: 6
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 59.9 | 33.7% |
Market Cap CNY = 96.9b (14.3b USD * 6.7948 USD.CNY)
P/E Trailing = 19.9784
P/E Forward = 35.3357
P/S = 0.5502
P/B = 8.8742
P/EG = 0.2711
Revenue TTM = 25.8b CNY
EBIT TTM = 7.57b CNY
EBITDA TTM = 8.78b CNY
Long Term Debt = 2.44b CNY (from longTermDebt, last quarter)
Short Term Debt = 7.25b CNY (from shortTermDebt, last quarter)
Debt = 65.2b CNY (from shortLongTermDebtTotal, last quarter) + Leases 29.6b
Net Debt = 49.4b CNY (calculated: Debt 65.2b - CCE 15.8b)
Enterprise Value = 146b CNY (96.9b + Debt 65.2b - CCE 15.8b)
Interest Coverage Ratio = 22.43 (Ebit TTM 7.57b / Interest Expense TTM 337.4m)
EV/FCF = 20.41x (Enterprise Value 146b / FCF TTM 7.17b)
FCF Yield = 4.90% (FCF TTM 7.17b / Enterprise Value 146b)
FCF Margin = 27.80% (FCF TTM 7.17b / Revenue TTM 25.8b)
Net Margin = 19.32% (Net Income TTM 4.98b / Revenue TTM 25.8b)
Gross Margin = 40.54% ((Revenue TTM 25.8b - Cost of Revenue TTM 15.3b) / Revenue TTM)
Gross Margin QoQ = 38.76% (prev 39.91%)
Tobins Q-Ratio = 2.29 (Enterprise Value 146b / Total Assets 63.9b)
Interest Expense / Debt = 0.52% (Interest Expense 337.4m / Debt 65.2b)
Taxrate = 37.00% (478.1m / 1.29b)
NOPAT = 4.77b (EBIT 7.57b * (1 - 37.00%))
Current Ratio = 0.93 (Total Current Assets 17.7b / Total Current Liabilities 19.0b)
Debt / Equity = 5.98 (Debt 65.2b / totalStockholderEquity, last quarter 10.9b)
Debt / EBITDA = 5.63 (Net Debt 49.4b / EBITDA 8.78b)
Debt / FCF = 6.90 (Net Debt 49.4b / FCF TTM 7.17b)
Total Stockholder Equity = 11.9b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.94% (Net Income 4.98b / Total Assets 63.9b)
RoE = 41.73% (Net Income TTM 4.98b / Total Stockholder Equity 11.9b)
RoCE = 52.64% (EBIT 7.57b / Capital Employed (Equity 11.9b + L.T.Debt 2.44b))
RoIC = 9.15% (NOPAT 4.77b / Invested Capital 52.1b)
WACC = 4.73% (E(96.9b)/V(162b) * Re(7.70%) + D(65.2b)/V(162b) * Rd(0.52%) * (1-Tc(0.37)))
Discount Rate = 7.70% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 52.29 | Cagr: 1.36%
[DCF] Terminal Value 77.77% ; FCFF base≈6.82b ; Y1≈7.73b ; Y5≈11.1b
[DCF] Fair Price = 382.1 (EV 167b - Net Debt 49.4b = Equity 118b / Shares 307.5m; r=8.35% [WACC [floored]]; 5y FCF grow 13.71% → 2.50% )
EPS Correlation: 69.37 | EPS CAGR: 28.73% | SUE: -0.38 | # QB: 0
Revenue Correlation: 92.92 | Revenue CAGR: 10.74% | SUE: 0.02 | # QB: 0
EPS current Quarter (2026-06-30): EPS=5.07 | Chg30d=+5.68% | Revisions=+20% | Analysts=1
EPS next Quarter (2026-09-30): EPS=6.11 | Chg30d=+21.98% | Revisions=+20% | Analysts=1
EPS current Year (2026-12-31): EPS=18.53 | Chg30d=+3.08% | Revisions=+33% | GrowthEPS=+19.2% | GrowthRev=+6.5%
EPS next Year (2027-12-31): EPS=21.20 | Chg30d=-0.16% | Revisions=+0% | GrowthEPS=+14.4% | GrowthRev=+6.2%
[Analyst] Revisions Ratio: +33%