Bank of China International: Reiterates Huazhu Group-S (01179) “Buy” Rating Capital Return Plan Supports Valuation

The Zhitong Finance App learned that Bank of China International released a research report saying that Huazhu Group-S (01179) performed steadily in the second quarter of 2026. The adjusted EBITDA increased 20% year-on-year to 2.7 billion yuan, mainly driven by continued expansion of the hotel network, improvements in RevPAR, and increased contributions to the asset-light franchise business. Encouragingly, despite being affected by bad weather during the quarter, China's business RevPAR increased 1.1% year over year. The bank is also encouraged by management's increased confidence in its operating prospects. The company raised its 2026 revenue guidance, while reaffirming that RevPAR is expected to achieve low single-digit year-on-year growth throughout the year. In addition, the company announced a new three-year shareholder return plan totaling 2.5 billion US dollars, which will further enhance capital returns and support valuations. Reiterate the “buy” rating.