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    How Hanting Inn’s Asset-Light Push Into Lower-Tier Cities At H World Group (HTHT) Has Changed Its Investment Story

    Simply Wall St·02/15/2026 18:18:44
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    • In February 2026, H World Group Limited launched Hanting Inn, a new economy hotel brand with lower investment thresholds, simplified construction, and flexible property formats to accelerate an asset-light rollout into lower-tier Chinese cities and price-sensitive markets.
    • By targeting conversions of existing properties and leveraging its more than 300 million-member loyalty ecosystem, H World Group is using Hanting Inn to extend the Hanting family’s reach while keeping capital intensity low and operational standards consistent.
    • Next, we’ll examine how Hanting Inn’s asset-light, conversion-focused model influences H World Group’s existing investment narrative and long-term growth drivers.

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    H World Group Investment Narrative Recap

    To own H World Group today, you need to believe in its ability to grow an asset light, branded hotel network while managing RevPAR pressure and intense competition. The launch of Hanting Inn reinforces the core catalyst of franchise and manachise driven expansion, but it also amplifies the key near term risk of overexpansion and cannibalization in lower tier cities if demand or spending stays soft.

    Among recent updates, the company’s guidance that manachised and franchised revenue could grow 18% to 22% in 2025 feels especially relevant. Hanting Inn plugs directly into this fee based engine by emphasizing conversions, modular builds and low upfront investment, potentially enlarging the fee pool that supports earnings quality even as older HanTing formats face pressure from newer openings.

    Yet against this expansion story, investors should also be aware that...

    Read the full narrative on H World Group (it's free!)

    H World Group's narrative projects CN¥28.8 billion revenue and CN¥5.9 billion earnings by 2028. This requires 5.9% yearly revenue growth and an earnings increase of about CN¥2.1 billion from CN¥3.8 billion today.

    Uncover how H World Group's forecasts yield a $52.60 fair value, in line with its current price.

    Exploring Other Perspectives

    HTHT Earnings & Revenue Growth as at Feb 2026
    HTHT Earnings & Revenue Growth as at Feb 2026

    Some of the most optimistic analysts were already assuming revenue could reach about CN¥31.9 billion and earnings CN¥8.1 billion by 2029, so Hanting Inn’s launch may either reinforce that bullish asset light expansion story or highlight the risk that rapid network growth and potential cannibalization do not translate into the earnings trajectory those forecasts relied on.

    Explore 4 other fair value estimates on H World Group - why the stock might be a potential multi-bagger!

    Build Your Own H World Group Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.