GreenTree Hospitality Group Ltd. Reports Second Quarter of 2026 Financial Results

Rhea-AI Summary

GreenTree Hospitality Group (NYSE: GHG) reported unaudited results for the second quarter of 2026 with total revenues of RMB235.1 million (US$34.7 million), down 18.7% year over year. Hotel revenues fell 16.2% to RMB204.6 million and restaurant revenues declined 33.5% to RMB30.5 million, reflecting weaker RevPAR and ADS and net closures of leased-and-operated locations.

Operating costs decreased 20.0% to RMB146.5 million and G&A expenses fell 35.0%, helping maintain income from operations at RMB48.2 million (vs. RMB49.2 million). Net income dropped to RMB21.3 million from RMB160.0 million, while core net income (non-GAAP) rose 4.4% to RMB47.2 million. Gross margin improved to 37.7% from 36.7% despite lower revenues.

Positive

• Core net income (non-GAAP) +4.4% YoY to RMB47.2 million
• Income from operations nearly flat at RMB48.2 million with 20.5% margin
• Gross profit RMB88.6 million, margin improved to 37.7%
• Operating costs -20.0% YoY to RMB146.5 million
• G&A expenses -35.0% YoY to RMB28.1 million
• Six‑month operating costs -17.6% to RMB305.3 million

Negative

• Total revenues -18.7% YoY to RMB235.1 million
• Hotel revenues -16.2% YoY; restaurant revenues -33.5% YoY
• RevPAR -9.1% YoY to RMB103; occupancy down to 65.2%
• Restaurant ADS -20.3% YoY to RMB2,893
• Leased-and-operated revenues -28.5% YoY to RMB95.9 million
• Net income down to RMB21.3 million from RMB160.0 million

News Explained

The June 30 footprint included 4,615 hotels and 198 restaurants, while 1,278 more hotels were contracted or under development.

As of June 30, 2026, GreenTree had 4,615 hotels and 198 restaurants in operation, plus a pipeline of 1,278 hotels contracted for or under development.

The revenue structure distinguishes leased-and-operated activities from franchised-and-managed activities: in the quarter, those categories generated RMB95.9 million and RMB126.8 million, respectively.

Since the second quarter of 2025, the company had a net closure of 13 leased-and-operated hotels and 2 leased-and-operated restaurants; quarterly hotel RevPAR fell 9.1% and restaurant ADS fell 20.3%.

For the first six months of 2026, income from operations was RMB76.9 million versus RMB60.5 million a year earlier, while adjusted EBITDA was RMB122.1 million, up 3.5% year over year.

Market Context

Tag-specific earnings reactions ranged from -3.91% to 3.47%, adding a mixed historical benchmark to ...

Analysis

Tag-specific earnings reactions ranged from -3.91% to 3.47%, adding a mixed historical benchmark to this report. Core profitability improved, but revenue and RevPAR declines remained key risks; short positioning was low.

Key Figures

Total Revenue: RMB235.1 million (US$34.7 million) Income from Operations: RMB48.2 million (US$7.1 million) Net Income: RMB21.3 million (US$3.1 million) +5 more

8 metrics

Total Revenue RMB235.1 million (US$34.7 million) Q2 2026; down 18.7% year over year

Income from Operations RMB48.2 million (US$7.1 million) Q2 2026; compared with RMB49.2 million in Q2 2025

Net Income RMB21.3 million (US$3.1 million) Q2 2026; compared with RMB160.0 million in Q2 2025

Core Net Income RMB47.2 million (US$7.0 million) Q2 2026; non-GAAP, up 4.4% year over year

Hotels in Operation 4,615 hotels with 330,029 hotel rooms As of June 30, 2026

RevPAR RMB103 Q2 2026; down 9.1% year over year

Occupancy Rate 65.2% Q2 2026; compared with 67.9% in Q2 2025

Adjusted EBITDA RMB68.9 million (US$10.2 million) Q2 2026; non-GAAP, down 12.1% year over year

Previous Earnings Reports

5 past events · Latest: Jun 30 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 30	1Q26 earnings	Positive	-1.7%	Profitability improved despite lower revenue, but the stock reaction was negative.
Apr 29	4Q25 earnings	Negative	-3.9%	Revenue declined and quarterly losses persisted amid restaurant impairments.
Dec 23	3Q25 earnings	Positive	+3.5%	Net income and operating cash flow rose despite revenue and EBITDA declines.
Sep 30	1H25 earnings	Positive	+0.2%	Net income increased and a cash dividend was approved despite lower revenue.
Apr 30	Annual report filing	Neutral	+6.9%	The annual report filing was followed by a positive price reaction.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Tag-specific earnings reactions were mixed despite recurring revenue declines, with three of five comparable events diverging from the reported results.

Key Terms

revpar, adjusted ebitda, non-gaap, leased-and-operated, +1 more

5 terms

revpar financial

"Revenue per available room, or RevPAR, was RMB103"

RevPAR, or revenue per available room, is a measure used in the hotel industry to show how much money a hotel earns from each of its rooms over a certain period. It helps investors understand how well a hotel is performing financially, similar to how a store's sales per square foot reveal its profitability. Higher RevPAR indicates better use of resources and stronger financial health.

adjusted ebitda financial

"Adjusted EBITDA (non-GAAP) in the second quarter of 2026 was RMB68.9 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-gaap financial

"Core net income (non-GAAP) increased 4.4% year over year"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

leased-and-operated technical

"Total revenues from leased-and-operated, or L&O, hotels and restaurants"

Leased-and-operated describes an asset or facility that a company rents from another party but also runs day-to-day itself — like leasing a storefront and staffing it under your own brand. For investors, this matters because the company gains operational control and revenue potential without the capital outlay of ownership, but also takes on operating costs and certain liabilities, affecting cash flow, margins and risk profile.

franchised-and-managed technical

"Total revenues from franchised-and-managed, or F&M, hotels and restaurants"

A franchised-and-managed business runs some locations by licensing the brand to independent owners (franchises) while also operating other locations itself (managed). For investors this mix matters because franchised outlets typically provide steady fee-based income with lower capital needs, while company-managed sites drive higher direct sales but require more investment and expose the company to day-to-day operating risk — like a restaurant chain that both licenses its name and runs its own restaurants.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

• Total revenues decreased by 18.7% year over year to RMB235.1 million (US$34.7 million)^[1].
• Income from operations was RMB48.2 million (US$7.1 million)^[1] compared to RMB49.2 million for the second quarter of 2025.
• Net income was RMB21.3 million (US$3.1 million)^[1] compared to RMB160.0 million for the second quarter of 2025.
• Core net income (non-GAAP)^[3] increased 4.4% year over year to RMB47.2 million (US$7.0 million)^[1]

SHANGHAI, Aug. 24, 2026 /PRNewswire/ -- GreenTree Hospitality Group Ltd. (NYSE: GHG) ("GreenTree", the "Company", "we", "us" and "our"), a leading hospitality and restaurant management group in China, today announced its unaudited financial results for the second quarter of 2026.

Second Quarter of 2026 Operational Highlights

Hotels

• A total of 4,615 hotels with 330,029 hotel rooms were in operation as of June 30, 2026.
• The Company opened 18 hotels in the second quarter of 2026 and had a pipeline of 1,278 hotels contracted for or under development as of June 30, 2026. 
• The average daily room rate was RMB157, a decrease of 5.3% from RMB166 in the second quarter of 2025.
• The occupancy rate was 65.2%, decreased from 67.9% in the second quarter of 2025. 
• Revenue per available room, or RevPAR, was RMB103, a 9.1% year-over-year decrease.

Restaurants

• A total of 198 restaurants were in operation as of June 30, 2026.
• The AC (average check) was RMB36, a 15.5% year-over-year decrease.
• The ADT (average daily tickets) was 81, decreased from 85 in the second quarter of 2025.
• The ADS (average daily sales per store) was RMB2,893, a decrease of 20.3% from RMB3,629 in the second quarter of 2025.

[1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of 6.7851 on June 30, 2026 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at https://www.federalreserve.gov/releases/h10/20260706/. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate or at any other rate. [2] Adjusted EBITDA (non-GAAP) is calculated as net income plus other operating expenses, income tax expense, share of loss in equity investees, net of tax, interest expense, depreciation and amortization, losses from investment in equity securities, other general expenses, and other expense, net, but excludes other operating income, interest income and other, net, gains from investment in equity securities, share of gains in equity investees (net of tax), and other income, net. The calculation of Adjusted EBITDA (non-GAAP) included in this report has been aligned according to the above mentioned definition. [3] Core net income (non-GAAP) is calculated as net income plus share-based compensation, losses from investments in equity securities (net of 25% tax), other expense (net of 25% tax), one-time fees and expense, income tax expenses related to dividend distribution, and other general expenses but excludes subsidies (net of 25% tax), gains from investment in equity securities (net of 25% tax), and other income (net of 25% tax). [4] Each ADS represents one ordinary share.

 

Second Quarter of 2026 Financial Results

		Quarter Ended
		June   30, 2025		June  30, 2025		June 30, 2025		June  30, 2025
		RMB		RMB		RMB		RMB
		Hotel		Restaurant		Elimination		Total
Revenues
Leased-and-operated revenues		105,970,283		28,389,854		(207,413)		134,152,724
Franchised-and-managed revenues		137,496,914		1,421,688		-		138,918,602
Wholesales and others		561,244		16,076,011		(443,807)		16,193,448
Total revenues		244,028,441		45,887,553		(651,220)		289,264,774

 

		Quarter Ended
		June 30, 2026		June 30, 2026		June 30, 2026		June 30, 2026		June 30, 2026
		RMB		RMB		RMB		RMB		US$
		Hotel		Restaurant		Elimination		Total		Total
Revenues
Leased-and-operated revenues		77,613,926		18,246,301		-		95,860,227		14,128,049
Franchised-and-managed revenues		126,253,871		505,479		-		126,759,350		18,682,016
Wholesales and others		717,195		11,771,620		-		12,488,815		1,840,624
Total revenues		204,584,992		30,523,400		-		235,108,392		34,650,689

 

		Six Months Ended
		June 30, 2025		June 30, 2025		June 30, 2025		June 30, 2025
		RMB		RMB		RMB		RMB
		Hotel		Restaurant		Elimination		Total
Revenues
Leased-and-operated revenues		194,165,718		59,058,453		(207,413)		253,016,758
Franchised-and-managed revenues		261,353,522		3,176,474		-		264,529,996
Wholesales and others		1,478,298		35,511,759		(443,807)		36,546,250
Total revenues		456,997,538		97,746,686		(651,220)		554,093,004

 

		Six Months Ended
		June 30, 2026		June 30, 2026		June 30, 2026		June 30, 2026		June 30, 2026
		RMB		RMB		RMB		RMB		US$
		Hotel		Restaurant		Elimination		Total		Total
Revenues
Leased-and-operated revenues		152,151,688		38,268,277		-		190,419,965		28,064,430
Franchised-and-managed revenues		239,620,481		2,438,634		-		242,059,115		35,675,099
Wholesales and others		1,508,083		28,897,131		(39,176)		30,366,038		4,475,400
Total revenues		393,280,252		69,604,042		(39,176)		462,845,118		68,214,929

 

Total revenues were RMB235.1 million (US$34.7 million)^[1], an 18.7% year-over-year decrease.  

Hotel revenues were RMB204.6 million (US$30.2 million)^[1], a 16.2% year-over-year decrease due to a 9.1% year-over-year decrease in RevPAR and a net closure of 13 L&O hotels since the second quarter of 2025 due to lease expiration and strategic reviews. The decrease was partially offset by revenues from new openings.

Restaurant revenues were RMB30.5 million (US$4.5 million)^[1], a 33.5% year-over-year decrease, mainly due to a 20.3% decrease in ADS and a net closure of 2 L&O stores since the second quarter of 2025 due to strategic reviews, offset by revenues from new F&M store openings.

Total revenues for the first six months of 2026 were RMB462.8 million (US$68.2 million)^[1], a 16.5% year-over-year decrease.

Total revenues from leased-and-operated, or L&O, hotels and restaurants were RMB95.9 million (US$14.1 million)^[1], a 28.5% year-over-year decrease.

Total revenues from L&O hotels were RMB77.6 million (US$11.4 million)^[1], a 26.8% year-over-year decrease. The decrease was primarily attributable to a 15.3% year-over-year decrease in the second quarter RevPAR of L&O hotels, a net closure of 13 L&O hotels since the second quarter of 2025, and the reduction in sublease revenues resulting from the closure of L&O hotels.

Total revenues from L&O restaurants were RMB18.2 million (US$2.7 million)^[1], a 35.7% year-over-year decrease, mainly due to a net closure of 2 L&O stores and the year-over-year decrease of 15.1% in L&O store's ADS.

Total revenues from L&O hotels and restaurants for the first six months of 2026 were RMB190.4 million (US$28.1 million)^[1], a 24.7% year-over-year decrease.

Total revenues from franchised-and-managed, or F&M, hotels and restaurants were RMB126.8 million (US$18.7 million)^[1], an 8.8% year-over-year decrease.

Total revenues from F&M hotels were RMB126.3 million (US$18.6 million)^[1], an 8.2% year-over-year decrease, primarily due to an 8.8% decrease in F&M hotels' RevPAR, an exemption of management fees for hotels facing business difficulties, and a decline of RMB3.0 million in membership revenues. For comparability, the year-over-year change is presented on a basis that applies the same fee-exemption treatment to the corresponding period of 2025. The decrease in membership revenues was partially due to the amortization cycle started from the pandemic period three years ago, in which the sales of membership cards were historically under-performed.

Total revenues from F&M restaurants were RMB0.5 million (US$74,498.4)^[1], a 64.4% year-over-year decrease, mainly due to a decrease of 12.8% in the ADS of F&M stores and an exemption of management fees.

Total revenues from F&M hotels and restaurants for the first six months of 2026 were RMB242.1 million (US$35.7 million)^[1], an 8.5% year-over-year decrease.

Total revenues from wholesale and others were RMB12.5 million (US$1.8 million)^[1], a 22.9% year-over-year decrease, mainly due to the decline in the wholesale segment of the restaurant business.

Total revenues from wholesale and others for the first six months of 2026 were RMB30.4 million (US$4.5 million)^[1], a 16.9% year-over-year decrease.

Total operating costs and expenses

		Quarter Ended
		June 30, 2025		June 30, 2025		June 30, 2025		June 30, 2025
		RMB		RMB		RMB		RMB
		Hotel		Restaurant		Elimination		Total
Operating costs and expenses
Operating costs		144,150,447		39,588,702		(651,220)		183,087,929
Selling and marketing expenses		8,424,702		2,062,702		-		10,487,404
General and administrative expenses		38,032,276		5,186,679		-		43,218,955
Other operating expenses		4,241,044		221,149		-		4,462,193
Other general expenses		5,805,656		-		-		5,805,656
Total operating costs and expenses		200,654,125		47,059,232		(651,220)		247,062,137

 

		Quarter Ended
		June 30, 2026		June 30, 2026		June  30, 2026		June 30, 2026		June 30, 2026
		RMB		RMB		RMB		RMB		US$
		Hotel		Restaurant		Elimination		Total		Total
Operating costs and expenses
Operating costs		120,581,608		25,958,440		-		146,540,048		21,597,331
Selling and marketing expenses		8,896,407		1,308,420		-		10,204,827		1,504,005
General and administrative expenses		25,084,172		3,026,966		-		28,111,138		4,143,069
Other operating expenses		182,467		9,112		-		191,579		28,235
Other general expenses		4,607,450		-		-		4,607,450		679,054
Total operating costs and expenses		159,352,104		30,302,938		-		189,655,042		27,951,694

 

		Six Months Ended
		June 30, 2025		June 30, 2025		June 30, 2025		June 30, 2025
		RMB		RMB		RMB		RMB
		Hotel		Restaurant		Elimination		Total
Operating costs and expenses
Operating costs		286,868,622		84,128,367		(651,220)		370,345,769
Selling and marketing expenses		22,964,944		4,564,490		-		27,529,434
General and administrative expenses		79,683,638		10,475,363		-		90,159,001
Other operating expenses		4,290,239		442,297		-		4,732,536
Other general expenses		11,611,311		-		-		11,611,311
Total operating costs and expenses		405,418,755		99,610,517		(651,220)		504,378,052

 

		Six Months Ended
		June 30, 2026		June 30, 2026		June 30, 2026		June 30, 2026		June 30, 2026
		RMB		RMB		RMB		RMB		US$
		Hotel		Restaurant		Elimination		Total		Total
Operating costs and expenses
Operating costs		245,589,032		59,783,354		(39,176)		305,333,210		45,000,547
Selling and marketing expenses		18,109,839		3,511,634		-		21,621,473		3,186,611
General and administrative expenses		49,169,114		5,954,747		-		55,123,861		8,124,252
Other operating expenses		3,354,535		42,437		-		3,396,972		500,652
Other general expenses		9,718,569		-		-		9,718,569		1,432,340
Total operating costs and expenses		325,941,089		69,292,172		(39,176)		395,194,085		58,244,402

 

Operating costs were RMB146.5 million (US$21.6 million)^[1], a 20.0% year-over-year decrease.

Operating costs of the hotel business were RMB120.6 million (US$17.8 million)^[1], a 16.4% year-over-year decrease. The decrease was mainly attributable to lower staff related costs, lower depreciation and amortization, and lower rental costs caused by the net closure of 13 L&O hotels since the second quarter of 2025.

Operating costs of the restaurant business in the second quarter of 2026 were RMB26.0 million (US$3.8 million)^[1], a 34.4% year-over-year decrease, due to the closure of L&O stores.

For the first six months of 2026, operating costs were RMB305.3 million (US$45.0 million)^[1], a 17.6% decrease.

Selling and marketing expenses were RMB10.2 million (US$1.5 million)^[1], a 2.7% year-over-year decrease.

Selling and marketing expenses of the hotel business were RMB8.9 million (US$1.3 million)^[1], a 5.6% year-over-year increase. The increase was mainly due to higher advertising and commission expenses.

Selling and marketing expenses of the restaurant business were RMB1.3 million (US$0.2 million)^[1], a 36.6% year-over-year decrease, mainly attributable to lower advertising expenses and lower sales-channel commissions.

For the first six months of 2026, selling and marketing expenses were RMB21.6 million (US$3.2 million)^[1], a 21.5% decrease.

General and administrative, or G&A expenses were RMB28.1 million (US$4.1 million)^[1], a 35.0% year-over-year decrease.

G&A expenses of the hotel business were RMB25.1 million (US$3.7 million)^[1], a 34.0% year-over-year decrease. The decrease was mainly due to lower G&A staff related expenses, lower credit losses for accounts receivable and lower consulting fees.

G&A expenses of the restaurant business were RMB3.0 million (US$0.4 million)^[1], a 41.6% year-over-year decrease, mainly due to lower G&A staff related expenses and lower credit losses for accounts receivable.

General and administrative expenses for the first six months of 2026 were RMB55.1 million (US$8.1 million)^[1], a 38.9% year-over-year decrease.

Other operating expenses were RMB0.2 million (US$28,235.0)^[1].
Other operating expenses for the first six months of 2026 were RMB3.4 million (US$0.5 million)^[1], decreased from RMB4.7 million one year ago.

Other general expenses were RMB4.6 million (US$0.7 million)^[1], mainly attributable to provisions for franchisee loans.

Other general expenses for the first six months of 2026 were RMB9.7 million (US$1.4 million)^[1], a decrease from RMB11.6 million one year ago.

Gross profit was RMB88.6 million (US$13.1 million)^[1], a year-over-year decrease of 16.6%. Gross margin was 37.7%, compared to 36.7% a year ago. The gross profit of the hotel business was RMB84.0 million (US$12.4 million)^[1], a 15.9% year-over-year decrease. The gross profit of the restaurant business was RMB4.6 million (US$0.7 million)^[1], a 27.5% year-over-year decrease.

Income from operations in the second quarter of 2026 was RMB48.2 million (US$7.1 million)^[1], compared to income from operations of RMB49.2 million in the second quarter of 2025, with a margin of 20.5%. The stable profitability was mainly attributable to lower operating costs and expenses, despite the decline in revenue.

Income from operations of the hotel business was RMB46.7 million (US$6.9 million)^[1], compared to an income from operations of RMB50.2 million in the second quarter of 2025, with a margin of 22.8%.

Income from operations of the restaurant business in the second quarter of 2026 was RMB1.6 million (US$0.2 million)^[1], compared to loss from operations of RMB1.0 million in the second quarter of 2025, with a margin of 5.2%.

Income from operations for the first six months of 2026 was RMB76.9 million (US$11.3 million)^[1] compared to income from operations of RMB60.5 million in 2025, with a margin of 16.6%.

Net income in the second quarter of 2026 was RMB21.3 million (US$3.1 million)^[1], compared to a net income of RMB160.0 million in the second quarter of 2025, and net margin was 9.0%.

Net income of the hotel business was RMB19.7 million (US$2.9 million)^[1], compared to a net income of RMB161.2 million in the second quarter of 2025, and net margin was 9.7%. Hotel net income in the second quarter of 2025 was impacted by the one-time divestment of our ownership in Argyle and fair value fluctuation in securities. Besides, hotel net income was also impacted by foreign exchange losses, bad debt expenses driven by accounts receivables, and withholding tax due to dividends distributions.

Net income of the restaurant business in the second quarter of 2026 was RMB1.5 million (US$0.2 million)^[1], compared to a net loss of RMB1.2 million in the second quarter of 2025, and net margin was 4.9%.

Net income for the first six months of 2026 was RMB35.3 million (US$5.2 million)^[1], compared to a net income of RMB167.8 million in 2025, and net margin was 7.6%.

Adjusted EBITDA (non-GAAP)^[2] in the second quarter of 2026 was RMB68.9 million (US$10.2 million)^[1], a year-over-year decrease of 12.1%. Adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP)^[2] as a percentage of total revenues, was 29.3%, compared to 27.1% a year ago.

Adjusted EBITDA (non-GAAP)^[2] for the first six months of 2026 was RMB122.1 million (US$18.0 million)^[1], a year-over-year increase of 3.5%.

Core net income (non-GAAP)^[3] in the second quarter of 2026 was RMB47.2 million (US$7.0 million)^[1], a year-over-year increase of 4.4%. The core net margin, defined as core net income (non-GAAP)^[3] as a percentage of total revenues, was 20.1%, compared to 15.6% one year ago.

Core net income (non-GAAP)^[3] for the first six months of 2026 was RMB71.1 million (US$10.5 million)^[1], a year-over-year increase of 16.2%.

Earnings per American Depositary Share, or ADS^[4] (basic and diluted) were RMB0.21 (US$0.03)^[1], decreased from RMB1.59 one year ago.

Earnings per American Depositary Share, or ADS^[4] (basic and diluted) for the first six months of 2026 were RMB0.36 (US$0.05)^[1], decreased from RMB1.68 one year ago. 

Core net income per ADS^[4] (basic and diluted) (non-GAAP) was RMB0.47 (US$0.07)^[1], increased from RMB0.45 a year ago.

Core net income per ADS^[4] (basic and diluted) (non-GAAP) was RMB0.70 (US$0.10)^[1] for the first six months of 2026, an increase from RMB0.60 a year ago.

Cash Flow. Operating cash inflow in the second quarter of 2026 was RMB23.3 million (US$3.4 million)^[1] as a result of income from operations. The amount decreased by RMB23.3 million compared with the second quarter of 2025, primarily due to a net decline of approximately RMB31.0 million in accounts payable to franchisees. Investing cash outflow was RMB25.0 million (US$3.7 million)^[1], which was primarily due to purchase of equipment for newly opened L&O hotels and loans for the renovation of newly opened resort hotels from strategic reviews. Financing cash outflow was RMB0.2 million (US$29,476.0)^[1], mainly due to repayment of bank borrowings.

Cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits. As of June 30, 2026, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB2,000.3 million (US$294.8 million)^[1], compared to RMB2,010.2 million as of March 31, 2026. The decrease was mainly due to investment on purchase of equipment for newly opened L&O hotels and loans for the renovation of newly opened resort hotels from strategic reviews, partially offset by cash from operating activities.

Guidance

Based on our performance in the first half year, we maintain our previous revenue guidance for the hotel business, that we expect revenue to decrease by 10% to 15% year over year for the year of 2026. The guidance set forth above reflects the Company's current and preliminary views based on its recovery and may not be indicative of the final financial results for any future periods or the full year.

Recent Development

In 2025, we entered into an agreement to acquire a hotel property located opposite the Twin Towers in Malaysia for strategic purposes. This property was handed over in July 2026 and will serve as our flagship asset to scale our hotel network across Malaysia and the broader Southeast Asian market.

In 2025, we entered into a letter of intent to acquire a landmark property along the Huangpu River waterfront in Yangpu District, Shanghai, and subsequently won the bid for the property through a competitive bidding process. The property is planned to be developed into the Company's signature flagship hotel in Shanghai, anchoring our mid-to-up-scale strategy at one of the city's prime riverfront locations. Beyond hotel operations, the property will feature a curated regional lifestyle center with food-and-beverage and other amenities designed to complement the hotel, enhance the guest experience and generate additional recurring revenue streams, while one floor will house the Company's corporate offices. The remaining closing procedures are expected to be completed before the end of the third quarter of 2026, subject to customary closing conditions.

Share Repurchase Program

The Board of Directors has approved a share repurchase program authorizing the Company to repurchase up to US$5 million of its Class A ordinary shares over a two-year period, effective from the date of approval. Repurchases may be conducted through open market transactions at prevailing market prices, privately negotiated transactions, block trades or other legally permitted methods, at the Company's discretion, subject to market conditions, applicable securities laws and regulations, and the trading price of the Company's ADSs. The program may be suspended, modified or terminated at any time at the Board's discretion without prior notice. 

Use of Non-GAAP Financial Measures

We believe that Adjusted EBITDA and core net income, as we present them, are useful financial metrics to assess our operating and financial performance before the impact of investing and financing transactions, income taxes and certain non-core and non-recurring items in our financial statements.

The presentation of Adjusted EBITDA and core net income should not be construed as an indication that our future results will be unaffected by other charges and gains we consider to be outside the ordinary course of our business.

The use of Adjusted EBITDA and core net income has certain limitations because it does not reflect all items of income and expenses that affect our operations. Items excluded from Adjusted EBITDA and core net income are significant components in understanding and assessing our operating and financial performance. Depreciation and amortization expense for various long-term assets, income tax and share-based compensation have been and will be incurred and are not reflected in the presentation of Adjusted EBITDA. Each of these items should also be considered in the overall evaluation of our results. Additionally, Adjusted EBITDA and core net income do not consider capital expenditures and other investing activities and should not be considered as a measure of our liquidity. We compensate for these limitations by providing the relevant disclosure of our depreciation and amortization, interest expense/income, gains/losses from investments in equity securities, income tax expenses, share-based compensation, share of loss in equity investees, subsidies and other relevant items both in our reconciliations to the corresponding U.S. GAAP financial measures and in our consolidated financial statements, all of which should be considered when evaluating our performance.

The terms Adjusted EBITDA and core net income are not defined under U.S. GAAP, and Adjusted EBITDA and core net income are not measures of net income, operating income, operating performance or liquidity presented in accordance with U.S. GAAP. When assessing our operating and financial performance, you should not consider this data in isolation or as a substitute for our net income, operating income or any other operating performance measure that is calculated in accordance with U.S. GAAP. In addition, our Adjusted EBITDA and core net income may not be comparable to Adjusted EBITDA and core net income or similarly titled measures utilized by other companies since such other companies may not calculate Adjusted EBITDA and core net income in the same manner as we do.

Reconciliations of the Company's non-GAAP financial measures, including Adjusted EBITDA and core net income, to the consolidated statement of operations information are included at the end of this press release.

About GreenTree Hospitality Group Ltd.

GreenTree Hospitality Group Ltd. ("GreenTree" or the "Company") (NYSE: GHG) is a leading hospitality and restaurant management group in China. As of June 30, 2026, GreenTree had a total number of 4,615 hotels and 198 restaurants. GreenTree was the fourth largest hospitality company in China in 2025 according to the China Hospitality Association. In 2025, HOTELS magazine ranked GreenTree 12th among the 225 largest global hotel groups in terms of number of hotels in its annual HOTELS' 225.

GreenTree has a broad portfolio of diverse brands spanning from the economy to mid-scale, mid-to-up-scale and luxury segments of the hospitality industry mainly in China. Through its strong membership base, expansive booking network, and efficient system, GreenTree aims to keep closer relationships with all of its clients and partners by providing a diverse brand portfolio that features comfort, style and value.

For more information on GreenTree, please visit http://ir.998.com

Safe Harbor Statements

This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. In some cases, these forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," "confident," "future," or other similar expressions. GreenTree may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about or based on GreenTree's current beliefs, expectations, assumptions, estimates and projections about us and our industry, are forward-looking statements that involve known and unknown factors, risks and uncertainties that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Such factors and risks include, but not limited to the following: GreenTree's goals and growth strategies; its future business development, financial condition and results of operations; trends in the hospitality industry in China and globally; competition in our industry; fluctuations in general economic and business conditions in China and other regions where we operate; the regulatory environment in which we and our franchisees operate; and assumptions underlying or related to any of the foregoing. You should not place undue reliance on these forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided, including the forward-looking statements made, in this press release are current as of the date of the press release. Except as required by law, GreenTree undertakes no obligation to update any such information or forward-looking statements to reflect events or circumstances after the date on which the information is provided or statements are made, or to reflect the occurrence of unanticipated events.

 

Financial Tables and Operational Data Follow

GreenTree Hospitality Group Ltd.
Unaudited Condensed Consolidated Balance Sheets
	December 31		June 30		June 30
	2025		2026		2026
	RMB		RMB		US$
ASSETS
Current assets:
Cash and cash equivalents	1,652,179,474		1,689,632,928		249,021,080
Restricted cash	7,389,650		6,209,434		915,157
Short-term investments	-		285,570,000		42,087,810
Accounts receivable, net of allowance	81,335,494		67,987,065		10,020,053
Amounts due from related parties	18,843,062		18,889,143		2,783,915
Inventories	4,922,160		5,140,534		757,621
Other current assets	92,557,400		100,329,837		14,786,788
Loans receivable, net	38,798,333		44,431,478		6,548,390
Total current assets	1,896,025,573		2,218,190,419		326,920,814
Non-current assets:
Amounts due from a related party	110,000,000		110,000,000		16,211,994
Restricted cash	18,869,900		18,870,700		2,781,197
Long-term time deposits	285,570,000		-		-
Loans receivable, net	12,034,825		12,880,353		1,898,329
Property and equipment, net	559,918,957		531,254,248		78,297,188
Intangible assets, net	56,403,818		54,609,365		8,048,424
Goodwill	25,721,262		25,650,746		3,780,452
Long-term investments	156,929,090		154,751,060		22,807,484
Operating lease right-of-use assets	1,130,088,595		1,110,322,494		163,641,287
Other assets	297,560,050		325,549,861		47,980,112
Deferred tax assets	237,098,634		233,667,462		34,438,323
TOTAL ASSETS	4,786,220,704		4,795,746,708		706,805,604
LIABILITIES AND EQUITY
Current liabilities:
Long-term bank loans, current portion	56,800,000		256,000,000		37,729,731
Accounts payable	44,687,183		44,670,517		6,583,620
Advance from customers	21,946,599		20,056,437		2,955,953
Amounts due to related parties	17,518,102		16,190,050		2,386,118
Salary and welfare payable	73,657,641		75,502,874		11,127,747
Deferred revenue	169,139,889		166,024,779		24,469,025
Accrued expenses and other current liabilities	539,836,968		523,274,741		77,121,154
Income tax payable	72,129,824		36,878,708		5,435,249
Operating lease liabilities, current	184,665,265		163,899,705		24,155,827
Total current liabilities	1,180,381,471		1,302,497,811		191,964,424
Long-term bank loans	199,400,000		45,597,470		6,720,236
Deferred revenue	134,414,010		115,474,940		17,018,900
Other long-term liabilities	117,513,512		110,137,975		16,232,329
Operating lease liabilities, non-current	1,032,472,822		1,047,898,560		154,441,137
Deferred tax liabilities	55,941,338		50,682,606		7,469,692
Unrecognized tax benefits	457,930,743		468,007,303		68,975,741
TOTAL LIABILITIES	3,178,053,896		3,140,296,665		462,822,459
Shareholders' equity:
Class A ordinary shares	222,587,070		222,587,070		32,805,275
Class B ordinary shares	115,534,210		115,534,210		17,027,636
Treasury Stock	(48,054,863)		(48,054,863)		(7,082,410)
Additional paid-in capital	1,566,949,877		1,566,949,877		230,939,835
Retained earnings (Accumulated losses)	(291,545,545)		(255,247,242)		(37,618,789)
Accumulated other comprehensive income	11,093,099		23,087,047		3,402,610
Total GreenTree Hospitality Group Ltd.shareholders'  equity	1,576,563,848		1,624,856,099		239,474,157
Non-controlling interests	31,602,960		30,593,944		4,508,988
Total shareholders' equity	1,608,166,808		1,655,450,043		243,983,145
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	4,786,220,704		4,795,746,708		706,805,604

 

 

 

GreenTree Hospitality Group Ltd.
Unaudited Condensed Consolidated Statements of Comprehensive Income
	Quarter Ended						Six Months Ended
	June 30, 2025		June 30, 2026		June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2026
	RMB		RMB		US$		RMB		RMB		US$
Revenues
Leased-and-operated revenues	134,152,724		95,860,227		14,128,049		253,016,758		190,419,964		28,064,430
Franchised-and-managed revenues	138,918,602		126,759,349		18,682,016		264,529,997		242,059,115		35,675,099
Wholesales and others	16,193,449		12,488,815		1,840,624		36,546,250		30,366,038		4,475,400
Total revenues	289,264,774		235,108,391		34,650,689		554,093,005		462,845,118		68,214,929
Operating costs and expenses
Operating costs	(183,087,930)		(146,540,048)		(21,597,331)		(370,345,769)		(305,333,210)		(45,000,547)
Selling and marketing expenses	(10,487,404)		(10,204,827)		(1,504,005)		(27,529,434)		(21,621,473)		(3,186,611)
General and administrative expenses	(43,218,955)		(28,111,138)		(4,143,069)		(90,159,001)		(55,123,861)		(8,124,252)
Other operating expenses	(4,462,193)		(191,579)		(28,235)		(4,732,536)		(3,396,972)		(500,652)
Other general expenses	(5,805,656)		(4,607,450)		(679,054)		(11,611,311)		(9,718,569)		(1,432,339)
Total operating costs and expenses	(247,062,137)		(189,655,042)		(27,951,694)		(504,378,052)		(395,194,085)		(58,244,401)
Other operating income	6,961,716		2,787,310		410,799		10,762,348		9,259,293		1,364,651
Income from operations	49,164,353		48,240,659		7,109,794		60,477,301		76,910,325		11,335,179
Interest income and other, net	7,941,224		8,260,486		1,217,445		18,563,426		17,093,664		2,519,294
Interest expense	(1,940,043)		(1,818,422)		(268,002)		(3,817,915)		(3,678,202)		(542,100)
Gains (losses) from investment in equity securities	24,800,795		-		-		24,800,795		-		-
Other income, net	105,686,128		(22,673,585)		(3,341,673)		97,329,451		(33,327,474)		(4,911,861)
Income before income taxes	185,652,457		32,009,138		4,717,564		197,353,058		56,998,313		8,400,512
Income tax expense	(25,969,005)		(9,829,293)		(1,448,659)		(30,183,730)		(19,530,999)		(2,878,513)
Income (loss) before share of gains in equity investees	159,683,452		22,179,845		3,268,905		167,169,328		37,467,314		5,521,999
Share of income/(loss) in equity investees, net of tax	301,937		(921,953)		(135,879)		603,873		(2,178,030)		(321,002)
Net income (loss)	159,985,388		21,257,892		3,133,026		167,773,201		35,289,284		5,200,997
Net income/(loss) attributable to non-controlling interests	1,650,876		(464,173)		(68,411)		2,695,208		1,009,019		148,711
Net income attributable to ordinary shareholders	161,636,264		20,793,719		3,064,615		170,468,409		36,298,303		5,349,708
Net earnings per share
Class A ordinary share-basic and diluted	1.59		0.21		0.03		1.68		0.36		0.05
Class B ordinary share-basic and diluted	1.59		0.21		0.03		1.68		0.36		0.05
Net earnings per ADS[4]
Class A ordinary share-basic and diluted	1.59		0.21		0.03		1.68		0.36		0.05
Class B ordinary share-basic and diluted	1.59		0.21		0.03		1.68		0.36		0.05
Weighted average shares outstanding
Class A ordinary share-basic and diluted	66,636,925		66,134,416		66,134,416		66,636,925		66,134,416		66,134,416
Class B ordinary share-basic and diluted	34,762,909		34,762,909		34,762,909		34,762,909		34,762,909		34,762,909
Other comprehensive income, net of tax
Foreign currency translation adjustments	4,831,702		8,024,096		1,182,605		9,663,403		11,993,948		1,767,689
Comprehensive income, net of tax	164,817,090		29,281,988		4,315,631		177,436,604		47,283,232		6,968,686
Comprehensive income/(loss) attributable to non-controlling interests	1,650,876		(464,173)		(68,411)		2,695,208		1,009,019		148,711
Comprehensive income (loss) attributable to ordinary shareholders	166,467,965		28,817,815		4,247,220		180,131,812		48,292,251		7,117,397

 

 

 

GreenTree Hospitality Group Ltd.
Unaudited Hotel Business Results
	Quarter Ended						Six Months Ended
	June 30, 2025		June 30, 2026		June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2026
	RMB		RMB		US$		RMB		RMB		US$
Revenues
Leased-and-operated revenues	105,970,283		77,613,926		11,438,877		194,165,718		152,151,688		22,424,384
Franchised-and-managed revenues	137,496,914		126,253,871		18,607,518		261,353,522		239,620,481		35,315,689
Others	561,244		717,195		105,701		1,478,298		1,508,083		222,264
Total revenues	244,028,441		204,584,992		30,152,097		456,997,538		393,280,252		57,962,337
Operating costs and expenses
Hotel operating costs	(144,150,447)		(120,581,608)		(17,771,530)		(286,868,622)		(245,589,032)		(36,195,345)
Selling and marketing expenses	(8,424,702)		(8,896,407)		(1,311,168)		(22,964,944)		(18,109,839)		(2,669,060)
General and administrative expenses	(38,032,276)		(25,084,172)		(3,696,949)		(79,683,638)		(49,169,114)		(7,246,631)
Other operating expenses	(4,241,044)		(182,467)		(26,892)		(4,290,239)		(3,354,535)		(494,397)
Other general expenses	(5,805,656)		(4,607,450)		(679,054)		(11,611,311)		(9,718,569)		(1,432,340)
Total operating costs and expenses	(200,654,125)		(159,352,104)		(23,485,594)		(405,418,755)		(325,941,089)		(48,037,773)
Other operating income	6,826,954		1,434,752		211,456		10,391,669		7,867,615		1,159,543
Income from operations	50,201,269		46,667,640		6,877,959		61,970,453		75,206,778		11,084,107
Interest income and other, net	7,910,974		8,255,562		1,216,719		18,502,925		17,085,059		2,518,026
Interest expense	(1,891,327)		(1,818,422)		(268,002)		(3,769,199)		(3,678,202)		(542,100)
Gains (losses) from investment in equity securities	24,800,795		-		-		24,800,795		-		-
Other income, net	105,697,809		(22,629,180)		(3,335,128)		97,352,813		(33,234,724)		(4,898,191)
Income before income taxes	186,719,520		30,475,600		4,491,548		198,857,787		55,378,911		8,161,842
Income tax expense	(25,869,423)		(9,804,376)		(1,444,986)		(29,850,815)		(19,102,201)		(2,815,316)
Income (loss) before share of gains in equity investees	160,850,097		20,671,224		3,046,561		169,006,972		36,276,710		5,346,526
Share of income/(loss) in equity investees, net of tax	301,937		(921,953)		(135,879)		603,873		(2,178,030)		(321,002)
Net income (loss)	161,152,033		19,749,271		2,910,682		169,610,845		34,098,680		5,025,524

 

 

 

GreenTree Hospitality Group Ltd.
Unaudited Restaurant Business Results
	Quarter Ended						Six Months Ended
	June 30, 2025		June 30, 2026		June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2026
	RMB		RMB		US$		RMB		RMB		US$
Revenues
Leased-and-operated revenues	28,389,854		18,246,301		2,689,172		59,058,453		38,268,277		5,640,046
Franchised-and-managed revenues	1,421,688		505,479		74,498		3,176,474		2,438,634		359,410
Wholesales and others	16,076,011		11,771,620		1,734,922		35,511,759		28,897,131		4,258,910
Total revenues	45,887,553		30,523,400		4,498,593		97,746,686		69,604,042		10,258,366
Operating costs and expenses
Restaurant operating costs	(39,588,702)		(25,958,440)		(3,825,801)		(84,128,367)		(59,783,354)		(8,810,976)
Selling and marketing expenses	(2,062,703)		(1,308,420)		(192,837)		(4,564,490)		(3,511,634)		(517,551)
General and administrative expenses	(5,186,679)		(3,026,966)		(446,120)		(10,475,363)		(5,954,747)		(877,621)
Other operating expenses	(221,149)		(9,112)		(1,343)		(442,297)		(42,437)		(6,254)
Total operating costs and expenses	(47,059,232)		(30,302,938)		(4,466,100)		(99,610,517)		(69,292,172)		(10,212,402)
Other operating income	134,762		1,352,558		199,342		370,679		1,391,678		205,108
Income from operations	(1,036,917)		1,573,020		231,834		(1,493,152)		1,703,548		251,072
Interest income and other, net	30,251		4,924		726		60,501		8,605		1,268
Interest expense	(48,716)		-		-		(48,716)		-		-
Other income, net	(11,681)		(44,405)		(6,544)		(23,362)		(92,750)		(13,670)
Income before income taxes	(1,067,063)		1,533,539		226,016		(1,504,729)		1,619,403		238,670
Income tax expense	(99,582)		(24,917)		(3,672)		(332,915)		(428,798)		(63,197)
Income (loss) before share of gains in equity investees	(1,166,645)		1,508,622		222,343		(1,837,644)		1,190,605		175,473
Share of income/(loss) in equity investees, net of tax	-		-		-		-		-		-
Net income (loss)	(1,166,645)		1,508,622		222,343		(1,837,644)		1,190,605		175,473

 

GreenTree Hospitality Group Ltd.
Unaudited Condensed Consolidated Statements of Cash Flows
	Quarter Ended			Six Months Ended
	June	June	June	June	June	June
	30, 2025	30, 2026	30, 2026	30, 2025	30, 2026	30, 2026
	RMB	RMB	US$	RMB	RMB	US$
Operating activities:
Net cash provided by operating activities	46,586,703	23,305,470	3,434,800	104,813,193	81,452,750	12,004,649
Investing activities:
Prepayments and purchases of property, plant and equipment	(18,911,621)	(12,689,579)	(1,870,213)	(44,392,506)	(64,326,633)	(9,480,573)
Purchases of intangible assets	-	-	-	-	(101,463)	(14,954)
Proceeds from disposal of property, plant and equipment	215,871	605,022	89,169	237,334	605,022	89,169
Proceeds from disposal of long-term investments	109,036,386	100,000	14,738	109,036,386	600,000	88,429
Purchases of short-term investments	(23,147)	-	-	(23,147)	-	-
Loan to related parties	(625,000)	-	-	(625,000)	-	-
Repayment from related parties	118,982	-	-	118,982	-	-
Loan to third parties	-	(16,167,100)	(2,382,736)	-	(16,167,100)	(2,382,736)
Loan to fanchisees	-	(215,659)	(31,784)	(2,010,000)	(1,604,559)	(236,483)
Repayment from franchisees	8,624,735	3,343,480	492,769	14,684,093	5,713,396	842,052
Net cash (used in) provided by investing activities	98,436,206	(25,023,836)	(3,688,057)	77,026,142	(75,281,337)	(11,095,096)
Financing activities:
Repayment of bank loans	(200,000)	(200,000)	(29,476)	(200,000)	(200,000)	(29,476)
Proceeds from bank loans	-	-	-	-	46,754,778	6,890,801
Net cash provided by (used in) financing activities	(200,000)	(200,000)	(29,476)	(200,000)	46,554,778	6,861,325
Effect of exchange rate changes on cash and cash equivalents and restricted cash	(4,979,489)	(7,949,613)	(1,171,627)	(9,958,977)	(16,452,153)	(2,424,746)
Net (decrease) increase in cash and cash equivalents and restricted cash	139,843,421	(9,867,979)	(1,454,360)	171,680,358	36,274,038	5,346,132
Cash and cash equivalents and restricted cash at the beginning of the period	1,557,038,875	1,724,581,041	254,171,794	1,525,201,938	1,678,439,024	247,371,302
Cash and cash equivalents and restricted cash at the end of the period	1,696,882,296	1,714,713,062	252,717,434	1,696,882,296	1,714,713,062	252,717,434

 

 

GreenTree Hospitality Group Ltd.
Unaudited Reconciliation of GAAP and Non-GAAP Results
	Quarter Ended						Six Months Ended
	June 30, 2025		June 30, 2026		June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2026
	RMB		RMB		US$		RMB		RMB		US$
Net income	159,985,388		21,257,892		3,133,026		167,773,201		35,289,284		5,200,997
Deduct:
Other operating income	6,961,716		2,787,310		410,799		10,762,348		9,259,293		1,364,651
Interest income and other, net	7,941,224		8,260,486		1,217,445		18,563,426		17,093,664		2,519,294
Gains from investment in equity securities	24,800,795		-		-		24,800,795		-		-
Share of gain in equity investees, net of tax	301,937		-		-		603,873		-		-
Other income, net	105,686,128		-		-		97,329,451		-		-
Add:
Other operating expenses	4,462,193		191,579		28,235		4,732,536		3,396,972		500,652
Other general expenses	5,805,656		4,607,450		679,054		11,611,311		9,718,569		1,432,340
Income tax expenses (benefits)	25,969,005		9,829,293		1,448,659		30,183,730		19,530,999		2,878,513
Share of loss in equity investees, net of tax	-		921,953		135,879		-		2,178,030		321,002
Interest expenses	1,940,043		1,818,422		268,002		3,817,915		3,678,202		542,100
Depreciation and amortization	25,875,796		18,625,227		2,745,019		51,900,949		41,298,721		6,086,678
Other expense, net	-		22,673,585		3,341,673		-		33,327,474		4,911,861
Adjusted EBITDA (Non-GAAP)[2]	78,346,281		68,877,605		10,151,303		117,959,749		122,065,294		17,990,198

 

 

 

	Quarter Ended			Six Months Ended
	June  30, 2025	June 30, 2026	June 30, 2026	June 30, 2025	June 30, 2026	June 30, 2026
	RMB	RMB	US$	RMB	RMB	US$
Net income	159,985,388	21,257,892	3,133,026	167,773,201	35,289,284	5,200,997
Deduct:
Subsidies (net of 25% tax)	1,527,866	12,024	1,772	5,447,641	3,252,866	479,413
Gains from investment in equity securities (net of 25% tax)	18,600,596	-	-	18,600,596	-	-
Other income (net of 25% tax)	107,775,298	-	-	101,507,790	-	-
Add:
Other expense (net of 25% tax)	-	17,005,189	2,506,255	-	24,995,606	3,683,896
Other general expenses	5,805,656	4,607,450	679,053	11,611,311	9,718,569	1,432,340
Income tax expenses related to dividend distribution	7,299,300	4,307,627	634,866	7,299,300	4,307,627	634,866
Core net income (Non-GAAP)[3]	45,186,584	47,166,135	6,951,428	61,127,785	71,058,221	10,472,686
Core net income per ADS[4] (Non-GAAP)
Class A ordinary share-basic and diluted	0.45	0.47	0.07	0.60	0.70	0.10
Class B ordinary share-basic and diluted	0.45	0.47	0.07	0.60	0.70	0.10

 

 

Hotel Operational Data  

	June 30, 2025	June 30,  2026
Total hotels in operation:	4,509	4,615
Leased-and-owned hotels	55	42
Franchised hotels	4,454	4,573
Total hotel rooms in operation	321,977	330,029
Leased-and-owned hotels	6,262	4,902
Franchised hotels	315,715	325,127
Number of cities	357	347
	Quarter Ended
	June 30,  2025	June 30,  2026
Occupancy rate (as a percentage)
Leased-and-owned hotels	72.30 %	63.50 %
Franchised hotels	67.80 %	65.20 %
Blended	67.90 %	65.20 %
Average daily rate (in RMB)
Leased-and-owned hotels	245	236
Franchised hotels	164	155
Blended	166	157
RevPAR (in RMB)
Leased-and-owned hotels	177	150
Franchised hotels	111	101
Blended	113	103

 

 

	Number of Hotels in Operation		Number of Hotel Rooms in Operation
	June 30, 2025	June 30, 2026	June 30, 2025	June 30, 2026
Mid-to-up-scale	569	596	52,773	56,448
GreenTree Eastern	236	252	25,107	28,316
Deep Sleep Hotel	8	9	610	710
Gem	119	118	10,781	10,726
Gya	72	79	6,012	6,676
Vx	108	110	9,024	9,117
Others	26	28	1,239	903
Mid-scale	3,005	3,040	226,336	228,537
GreenTree Inn	2,366	2,343	184,561	185,694
GT Alliance	408	392	25,930	24,936
GreenTree Apartment	24	30	1,545	1,860
Vatica	107	102	7,481	7,111
Others	100	173	6,819	8,936
Economy hotels	935	979	42,868	45,044
Shell	935	979	42,868	45,044
Others	-	-	-	-
Total	4,509	4,615	321,977	330,029

 

Restaurant Operational Data

	June 30,  2025	June 30,  2026
Total restaurants in operation:	183	198
Leased-and-owned restaurants	15	13
Franchised restaurants	168	185
Number of cities	53	53
Da Niang Dumplings	164	180
Bellagio	19	18
	Quarter Ended
	2025 Q2	2026 Q2
ADT
Leased-and-owned restaurants	215	194
Franchised restaurants	74	74
Blended	85	81
AC (in RMB)
Leased-and-owned restaurants	88	83
Franchised restaurants	32	28
Blended	43	36
ADS (in RMB)
Leased-and-owned restaurants	18,931	16,081
Franchised restaurants	2,363	2,062
Blended	3,629	2,893

 

 

For more information, please contact:

GreenTree

Ms. Selina Yang
Phone: +86-158-2166-6251
E-mail: ir@998.com

Ms. Hannah Zhang
Phone: +86-182-2560-8592
E-mail: ir@998.com     

Christensen

In Shanghai
Mr. Jerry Xu
Phone: +86-138-1680-0706
E-mail: jerry.xu@christensencomms.com

In Hong Kong 
Ms. Karen Hui
Phone: +852-9266-4140
E-mail: karen.hui@christensencomms.com 

In the US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
E-mail: linda.bergkamp@christensencomms.com

 

 

View original content:https://www.prnewswire.com/news-releases/greentree-hospitality-group-ltd-reports-second-quarter-of-2026-financial-results-302858931.html

SOURCE GreenTree Hospitality Group Ltd.

FAQ

How did GreenTree Hospitality Group (NYSE: GHG) perform financially in Q2 2026?

GreenTree reported Q2 2026 revenues of RMB235.1 million, down 18.7% year over year. According to GreenTree, income from operations was RMB48.2 million, while net income declined to RMB21.3 million compared with RMB160.0 million in the second quarter of 2025.

What were GreenTree Hospitality Group’s hotel operating metrics in Q2 2026?

GreenTree’s Q2 2026 average daily room rate was RMB157, down 5.3% year over year. According to GreenTree, occupancy was 65.2% versus 67.9%, and RevPAR fell 9.1% year over year to RMB103, contributing to a 16.2% decline in hotel revenues.

How did GreenTree Hospitality Group’s restaurant segment (GHG) perform in Q2 2026?

GreenTree’s restaurant revenues were RMB30.5 million in Q2 2026, a 33.5% year-over-year decrease. According to GreenTree, average check fell 15.5% to RMB36, ADS dropped 20.3% to RMB2,893, and two leased-and-operated stores had a net closure since Q2 2025.

What cost controls did GreenTree Hospitality Group implement in Q2 2026?

Operating costs declined 20.0% year over year to RMB146.5 million in Q2 2026. According to GreenTree, reductions came mainly from lower staff-related costs, depreciation, amortization, and rental expenses following net closures of 13 leased-and-operated hotels and some restaurant stores.

Why did GreenTree Hospitality Group’s net income fall in Q2 2026 despite stable operating income?

Net income decreased to RMB21.3 million from RMB160.0 million, while operating income stayed near RMB48 million. According to GreenTree, the release highlights lower revenues and various non-GAAP adjustments, with core net income (non-GAAP) rising 4.4% to RMB47.2 million.

How many hotels and restaurants did GreenTree Hospitality Group operate as of June 30, 2026?

As of June 30, 2026, GreenTree operated 4,615 hotels with 330,029 rooms and 198 restaurants. According to GreenTree, it also had a pipeline of 1,278 hotels contracted for or under development, supporting future network expansion despite recent selective closures.

What were GreenTree Hospitality Group’s six-month 2026 revenues and cost trends?

For the first six months of 2026, revenues were RMB462.8 million, down 16.5% year over year. According to GreenTree, operating costs fell 17.6% to RMB305.3 million, and G&A expenses decreased 38.9% to RMB55.1 million, reflecting ongoing cost optimization across hotel and restaurant operations.