H World Group shares surged Tuesday after the hotel chain raised full-year guidance and unveiled a new shareholder-return plan following a strong second-quarter showing.

The stock climbed as much as 12% to 36.44 Hong Kong dollars, equivalent to US$4.65, before paring gains to last trade 11% higher. The Hong Kong-listed shares were on track for their largest one-day percentage gain since 2024, while depository receipts listed in the U.S. closed 11% higher overnight.

Second-quarter net income rose 2.1% from a year earlier to 1.58 billion yuan, equivalent to US$234.4 million, H World said late Monday.

This was supported by gains in its China hotel segment and a "meaningful year-over-year improvement" in its international business, said H World, one of the world's biggest hotel chains.

Quarterly revenue rose 11%, while adjusted net income rose 27%.

H World raised its 2026 revenue guidance, forecasting top-line growth to range between 4%-8%, compared with previous guidance of 2%-6%. It also disclosed a new three-year US$2.50 billion shareholder return plan.

Analysts appeared encouraged by the results. Deutsche Bank's Sammi Xu said the second quarter's performance beat low market expectations amid macroeconomic concerns, supported by stronger-than-expected growth in the segment comprising franchised hotels and "manachised" hotels, or franchised locations managed by H World-appointed management.

"This suggests H World has additional levers to monetize its asset-light business model even in a softer travel-demand environment," Xu said in a note.

Xu also noted that the hotel raised its guidance rather than cut its forecasts in response to macro headwinds, which indicates its confidence in delivering stronger revenue growth.

Meanwhile, H World's new dividend plan is higher than its previous US$2.0 billion plan from 2024, which was completed ahead of schedule, Citi analysts said in a note.