H World Group (FRA:CL4) Moat Score: 5/10 (As of Jun. 25, 2026)


FRA:CL4 H World Group Ltd FRA:CL4
83 GF Score
Price €3.62
GF Value €3.92
Valuation Fairly Valued
! 1 Warning Sign
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What is H World Group Moat Score?

H World Group FRA:CL4 +1.69% 83 Moat Score is 5 as of Jun. 25, 2026. GuruFocus rates FRA:CL4 with a GF Score™ of 83/100 and a GF Value™ of €3.92 (Fairly Valued). The stock has 1 warning sign investors should review. Among 879 Travel & Leisure companies, H World Group ranks better than 93.86% on this metric.

H World Group has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

H World Group has Narrow Moat: H World Group Ltd has a solid narrow moat due to its strong brand presence in the hospitality industry and customer loyalty. However, it lacks significant network effects and regulatory barriers, and its pricing power is moderate, limiting its moat to a narrow classification.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes H World Group might have Narrow Moat - Solid narrow moat.

H World Group  (FRA:CL4) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

H World Group Moat Score Related Terms

FRA:CL4 vs H, WH, CHH: Moat Score Comparison

For the Lodging subindustry, H World Group's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

H World Group Moat Score vs Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, H World Group's Moat Score distribution charts can be found below:

* The bar in red indicates where H World Group's Moat Score falls into.


FRA:CL4
83GF Score
H World Group Ltd FRA:CL4
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 5 mean?
H World Group (FRA:CL4) has a Moat Score of 5 as of Jun. 25, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, H World Group ranks #54 out of 879 companies in the Travel & Leisure industry, placing it in the top 6.1%.
Is H World Group's Moat Score too high?
H World Group's current Moat Score is 5. Based on the distribution chart, H World Group ranks #54 out of 879 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, H World Group has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does H World Group's Moat Score compare to H and WH?
According to the Travel & Leisure industry distribution chart, H World Group ranks #54 out of 879 companies for Moat Score. This places H World Group in the top 6% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Travel & Leisure company?
A good Moat Score depends on the Travel & Leisure industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. H World Group's current Moat Score is 5. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is H World Group stock overvalued right now?
Based on GuruFocus' analysis, H World Group (FRA:CL4) is currently considered Fairly Valued. The stock's GF Value™ is €3.92, compared to a current price of €3.62 — trading 7.7% below its estimated fair value. The current Moat Score is 5. H World Group's overall GF Score™ is 83/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For H World Group (FRA:CL4), the current Moat Score is 5 as of Jun. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is H World Group (FRA:CL4) Overvalued in 2026?

Based on GuruFocus' analysis, H World Group stock appears to be undervalued. The current stock price of €3.62 is trading 7.7% below its estimated GF Value™ of €3.92. GuruFocus considers H World Group to be Fairly Valued.

Key valuation signals for FRA:CL4:

  • Moat Score: 5
  • GF Value™: €3.92 vs. price of €3.62 (7.7% below fair value)
  • GF Score™: 83/100 with 1 warning sign

No single metric tells the full story. See the FRA:CL4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

H World Group Business Description

Address No. 1299 Fenghua Road, Jiading District, Shanghai, CHN, 201803
H World Group Ltd a foremost, fast-growing multi-brand hotel group with international operations. The principal business activities of the Company are to develop and operate leased and owned, manachised and franchised hotels mainly in the PRC or PRC Mainland. The Group has two operating segments which are legacy Huazhu and legacy DH according to the way management intends to evaluate results and allocate resources within the Group. The majority of revenue comes from legacy Huazhu. The company has presence in Greater China and also Outside Greater China.
83GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€3.62
Price
€3.92
GF Value