How important is South-east Asia for H World Group’s global expansion and what strategy does the company have to establish a portfolio presence in this region?
Global expansion is a necessary path for H World. Our global expansion uses a dual approach combining M&A with organic growth. Our first major step toward internationalisation was the acquisition of Deutsche Hospitality – now operating as H World International. Our international footprint today spans Europe, South-east Asia, the Middle East, and North Africa. These regions form the core of the company’s global strategy.
As a company rooted in China, building a strong presence across Asia is essential. South-east Asia represents a critical move in H World’s overall global expansion. We have begun exploring organic growth in the region by opening hotels and developing a regional network. The goal is to make South-east Asia a key pillar of H World’s international development.
There are many hotel brands – both international and regional – that are already present in key South-east Asian cities. How will H World Group build its brand presence in this competitive landscape?
Although H World has only 20 years of history, it has already become the fourth-largest hotel group globally, which reflects the strength of the company’s development momentum.
H World is a brand-driven company that is supported by technology, loyalty membership programme (H Rewards), and a strong supply chain. These are H World’s overall competitive advantage.
Technology and product capabilities empower our H Rewards members. A unified app, smart check-in/out system, and service automation tools help H World deliver a seamless and highly consistent experience across thousands of hotels.
While most of our members are currently Chinese, our sales channels and management systems provide clear advantages. As we bring Chinese guests to new markets, we also introduce our technological strengths and management approach.
South-east Asia and the Middle East remain fast-growing markets. In these dynamic environments, H World’s model is particularly competitive, as it enables the company to replicate its success efficiently.
At the same time, our Asian roots allow us to understand local consumers and investors well, including many of our South-east Asia franchise partners who are Chinese or local Chinese entrepreneurs familiar with our brands. This gives us additional momentum to grow in the region.
How does H World engage with stakeholders in South-east Asia to ensure success in its development here?
Our South-east Asia strategy is anchored in Singapore. We established our regional holding company here, and all our international entities including Deutsche Hospitality, are held through this Singapore structure. Using Singapore as our base, we plan to expand progressively into surrounding markets.
Singapore plays a pivotal role in H World’s globalisation journey. We maintain active and constructive engagement with the Singapore government, including the Economic Development Board . Singapore welcomes our presence and recognises that our growth in the city can help reinforce its strategic position in the region’s hospitality sector.
Economic exchanges between China and South-east Asian countries are intensifying. Does this bring tailwind to H World’s development in South-east Asia?
Our global expansion naturally follows the movement of our guests. More Chinese travellers are visiting South-east Asia for tourism, business, and investment. H World has already built strong brand recognition in China, and this influences their accommodation choices when travelling abroad. They are familiar with our service standards and consistent brand experience.
At the same time, no hotel group can rely on guests from a single market. In South-east Asia, our hotels serve both Chinese travellers and local customers, while international guests are also an important focus.
Let’s talk about your Deutsche Hospitality acquisition, which introduced the IntercityHotel brand into the H World portfolio. How is IntercityHotel benefitting from H World’s operating capability?
When we acquired Deutsche Hospitality, our objective was not only to expand in Europe but also to bring these established German brands into China and Asia. We saw strong development potential for them here, especially in the Chinese market.
Today, these original German brands, such as Steigenberger and IntercityHotel, have achieved strong performance in China. We believe they can successfully take root and scale further in Asia. By combining these world-renowned brands with H World’s operating philosophy, we can accelerate their growth in Asia and help them achieve renewed expansion.