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New innovations in the field of advanced high strength steels (AHSS) have led to the development of steels with improved stretch-flangeability known as hot-rolled multi-phase (HR) steels. To understand the performance of HR steels, hole expansion tests were conducted on five prototype HR steels and compared with their commercial dual-phase (DP) steel equivalent. A variety of hole edge conditions were considered to study the influence of the shear-affected-zone (SAZ), the surface roughness at the sheared edge and the shear burr orientation. The microstructure of each material was characterized and discussed in relation to its formability for the different edge conditions. It was observed that the bainitic-ferrite microstructure of the HR steels showed superior formability during sheared edge stretching compared to commercial dual-phase steels.