H World Group (NASDAQ:HTHT) shares tumbled 5.39% in pre-market trading on Thursday following the release of its fourth quarter 2024 earnings report and disappointing guidance for 2025. The Chinese hotel operator's results and outlook fell short of analyst expectations, triggering a sell-off among investors.

The company reported adjusted earnings per share of $0.14 for Q4 2024, significantly missing the analyst consensus estimate of $0.27. This represents a 51.72% decrease compared to the same period last year. Although quarterly revenue rose 4.96% year-over-year to $825 million, beating estimates of $798.17 million, the bottom-line miss overshadowed the top-line growth.

Adding to investor concerns, H World Group provided weaker-than-expected guidance for the first quarter and full year of 2025. The company expects Q1 2025 revenue growth to be in the range of 0%-4%, while full-year 2025 revenue growth is projected at 2%-6%. These figures suggest a significant slowdown compared to the 9.2% revenue growth achieved in 2024.

Furthermore, the company reported a decline in RevPAR (Revenue Per Available Room) for its Legacy-Huazhu segment, a key metric in the hotel industry. The blended RevPAR for Q4 2024 decreased by 3.1% year-over-year, indicating challenges in room pricing and occupancy rates.

While H World Group continues to expand its hotel network, with plans to open around 2,300 hotels and close approximately 600 in 2025, the market appears focused on the near-term headwinds facing the company. The combination of missed earnings, conservative guidance, and declining RevPAR has led investors to reassess their outlook on the stock, resulting in the pre-market plunge.