12 Best Hotel Stocks To Buy According to Analysts

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5. H World Group Limited (NASDAQ:HTHT)

Analyst Upside Potential: 35.03%

Number of Hedge Fund Holders: 28

H World Group Limited (NASDAQ:HTHT) operates multi-brand hotels. Its business operations are divided into two segments: Legacy DH and Legacy Huazhu. Its brand portfolio includes Midscale Hotels, Economy Hotels, Upscale Hotels, and others. The company operates its hotels under three models: owned, leased, and franchised. Huazhu Group Limited (NASDAQ:HTHT) owns Joya Hotel, Ni Hao Hotel, JI Hotel, Orange Hotel, and various others.

As of September 30, 2024, it has a total of 10,845 hotels or 1,062,546 hotel rooms in operation. The company reported a 10.7% year-over-year growth in its hotel turnover in fiscal Q3 2024. Hotel turnover from the Legacy Huazhu segment grew by 11.0% year-over-year, and that from the Legacy DH segment rose 7.8% year-over-year. This highlights H World Group Limited’s (NASDAQ:HTHT) strong operational model across both its segments. The company’s revenues also grew by 2.4% year-over-year, landing within its revenue increase guidance.

H World Group Limited (NASDAQ:HTHT) is focusing on expanding its business with new hotel openings. In fiscal Q3 2024, the company’s Legacy Huazhu segment opened 774 hotels, including 3 leased and owned hotels, and 771 manachised and franchised hotels. As of September 30, 2024, H World Group Limited (NASDAQ:HTHT) has a total of 2,925 unopened hotels in the pipeline. This includes 2,899 hotels from the Legacy Huazhu business and 26 from the Legacy DH business.

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