Kathrin Ziegler/DigitalVision via Getty Images Summary I downgraded to a hold rating for H World Group ( HTHT ) in my last update because valuation was no longer attractive. Unlike my previous update, I am now upgrading to buy, as HTHT's earnings are now scaling much faster than I expected. RevPAR in Legacy-Huazhu has also turned positive, hotel openings remain very strong, and Legacy-DH is no lon...
Kathrin Ziegler/DigitalVision via Getty Images Summary I downgraded to a hold rating for H World Group ( HTHT ) in my last update because valuation was no longer attractive. Unlike my previous update, I am now upgrading to buy, as HTHT's earnings are now scaling much faster than I expected. RevPAR in Legacy-Huazhu has also turned positive, hotel openings remain very strong, and Legacy-DH is no longer just a drag. Earnings results update In the latest quarter ( 4Q25 ), HTHT grew total revenue by 8.3% y/y, beating management guidance of 2% to 6% y/y growth. Total revenue saw RMB6.5 billion, with leased and owned hotel revenue contributing RMB3.3 billion, M&F contributing RMB3 billion, and other revenue with RMB236 million. Revenue growth was rather broad-based across segments. Legacy-Huazhu [HZ] was up 9.1% y/y, while Legacy-DH revenue was up 5.3% y/y. In Legacy-HZ, ADR was RMB288 vs. RMB277 last year, occupancy was slightly lower at 78.4% vs. 80%, and blended RevPAR was higher at RMB226 vs. RMB222. In Legacy-DH, ADR was EUR120 vs. EUR115 last year, occupancy was higher by 210 bps y/y at 72.6%, and blended RevPAR was also higher at EUR87 vs. EUR81. The flow through from the topline to earnings was solid this quarter. HTHT had an EBIT margin of 29.1% in Q4 2025 versus 15% in Q4 2024, and that drove adj. EBITDA to RMB2.2 billion (almost double the RMB1.2 billion a year ago). RevPAR has turned Bloomberg One of the most important developments here is that RevPAR growth has turned positive for Legacy-HZ. This negative RevPAR growth has been a drag on the stock narrative as it implies demand is not as strong. But with HTHT's reported RevPAR in Legacy-HZ turning positive, with blended RevPAR growing to RMB226, it shows that HTHT can actually drive organic RevPAR growth with self-help measures. Some of the measures include better revenue management, stronger sales and marketing execution, and upgrades in products and services. Broadly, the key takeaway I got was that if the i...
Zipair Tokyo Incoming President & CEO Yasuhiro Fukada says the low-cost airline may have to raise fares after April due to rising fuel costs. The carrier is a wholly-owned subsidiary of Japan Airlines. He speaks with Danny Lee from the sidelines of 'Aviation Festival 2026.' (Source: Bloomberg)
Zipair Tokyo Incoming President & CEO Yasuhiro Fukada says the low-cost airline may have to raise fares after April due to rising fuel costs. The carrier is a wholly-owned subsidiary of Japan Airlines. He speaks with Danny Lee from the sidelines of 'Aviation Festival 2026.' (Source: Bloomberg)
Asos Plc ’s shares rose the most in four months after the online fast-fashion chain reported a 50% increase in underlying profits, driven by customer growth and strong performance in womenswear. The British retailer, which has revamped its app to help shoppers find items as part of a turnaround plan, kept its full-year outlook unchanged in a trading update Wednesday. The shares rose as much as 16%...
Asos Plc ’s shares rose the most in four months after the online fast-fashion chain reported a 50% increase in underlying profits, driven by customer growth and strong performance in womenswear. The British retailer, which has revamped its app to help shoppers find items as part of a turnaround plan, kept its full-year outlook unchanged in a trading update Wednesday. The shares rose as much as 16% in early London trading, the most since Nov. 13. They were down 25% this year through Tuesday’s close. Read More: ASOS Jumps as 1H Earnings, Margin Beat Estimates: Street Wrap The update follows a bigger-than-expected revenue drop in November which disappointed investors and raised doubts about the progress of the overhaul under Chief Executive Officer Jose Antonio Ramos Calamonte . Amid competition from Chinese fast-fashion giant Shein, Asos’s turnaround is taking longer than expected as the company focuses on reducing costs. The company closed its Atlanta distribution center and instead serves US customers from its warehouse in Barnsley, England to cut costs.