H World Earnings: ‘Challenges’ in China, Gains in Europe – 14 Takeaways

H World Group reported mixed second-quarter results on Wednesday as its aggressive expansion strategy helped offset declining room rates in China.

RevPAR dropped 3.8% in its home market as the Shanghai-based giant grappled with what CEO Jin Hui called a "rapid increase in supply" colliding with weakening business travel and consumer spending.

While H World had gone abroad pre-pandemic to acquire some upscale European brands, the company's near-term focus is on adding economy and limited-service properties in China, where it also acts as Accor's master franchisee.

Here were 14 things that stood out in its earnings report on Wednesday.

1. Big picture

CEO Jin Hui said during an investor call, via a translator, that "the hotel industry is still facing some challenges" in China. Jin cited "rapid increase in the supply over the past two years, coupled with the negative impacts of various macro factor