UBS Group released a report pointing out that h world group (01179.HK) second-quarter revenue and profit growth are mainly driven by the faster-than-expected hotel opening speed. The bank expects h world group to continue to lead the industry in hotel network expansion with the support of strong brand recognition among consumers and franchisees.

However, the bank believes that the acceleration of h world group's hotel openings cannot completely offset the pressure on average revenue per available room (RevPar) due to weakened consumer spending and business travel demand. In addition, the pressure on RevPar may also erode gross margin. The bank has lowered its earnings forecast for h world group for 2024 to 2026 by 8%, 12%, and 15% respectively, and lowered the target price of h world group (HTHT.US) from $56.9 to $51.6, citing macro headwinds affecting the company's performance in the second half of the year.