GreenTree (NYSE: GHG) 2025 revenue falls 18% while net income rises on non-core gains

Rhea-AI Filing Summary

GreenTree Hospitality Group Ltd. reported weaker top-line results for the fourth quarter and full year 2025, while bottom-line profitability improved on a full-year basis. Fourth-quarter total revenue was RMB228.7 million (US$32.7 million), down 24.9% year over year, as hotel RevPAR fell 9.5% and the company closed 15 leased-and-operated hotels and 6 stores. Full-year 2025 revenue was RMB1,097.4 million (US$156.9 million), an 18.3% decline.

Despite lower revenue, full-year net income rose to RMB163.4 million (US$23.4 million) from RMB107.3 million, helped by other income and gains. However, fourth-quarter net loss was RMB55.7 million (US$8.0 million), narrowed from RMB72.8 million, reflecting significant impairments in the restaurant business and provisions on franchisee loans.

Non-GAAP metrics were mixed. Fourth-quarter adjusted EBITDA fell 41.3% to RMB41.9 million (US$6.0 million), but core net income grew 9.2% to RMB63.2 million (US$9.0 million) with margin improving to 27.6%. For 2025, adjusted EBITDA declined 25.8% to RMB286.6 million (US$41.0 million) and core net income decreased 23.9% to RMB211.2 million (US$30.2 million). The company ended 2025 with 4,580 hotels and 191 restaurants and expects 2026 organic hotel revenue to be roughly flat versus 2025.

Positive

• None.

Negative

• Total revenues declined 24.9% year over year in Q4 2025 and 18.3% for full-year 2025, while adjusted EBITDA fell 41.3% in Q4 and 25.8% for the year, indicating weaker underlying earnings despite cost reductions.

Insights

Hospitality earnings analyst

Revenue contracted sharply in 2025 while profits relied on non-core items and cost cuts.

GreenTree saw total revenue fall 24.9% in Q4 2025 to RMB228.7 million and 18.3% for the full year to RMB1,097.4 million. The drop was driven by lower RevPAR, fee waivers for struggling franchisees, and closures of leased-and-operated hotels and restaurants.

Operating metrics show pressure: blended hotel RevPAR declined and restaurant ADS weakened, while the restaurant segment recorded large goodwill and trademark impairments of RMB66.5 million and RMB17.3 million in Q4. Adjusted EBITDA fell 41.3% in Q4 and 25.8% for 2025, indicating weaker underlying cash earnings despite lower costs.

Full-year net income rose to RMB163.4 million, supported by other income, equity investment gains, and disposal-related items. Core net income declined 23.9%, suggesting recurring profitability softened. Management guides 2026 organic hotel revenue to remain roughly flat versus 2025, implying a cautious demand outlook and ongoing dependence on cost discipline and portfolio optimization.

Key Figures

Q4 2025 total revenue: RMB228.7 million (US$32.7 million) FY 2025 total revenue: RMB1,097.4 million (US$156.9 million) FY 2025 net income: RMB163.4 million (US$23.4 million) +5 more

8 metrics

Q4 2025 total revenue RMB228.7 million (US$32.7 million) Down 24.9% year over year

FY 2025 total revenue RMB1,097.4 million (US$156.9 million) 18.3% year-over-year decrease

FY 2025 net income RMB163.4 million (US$23.4 million) Up from RMB107.3 million in 2024

Q4 2025 net income (loss) RMB-55.7 million (US$-8.0 million) Narrowed from RMB-72.8 million in Q4 2024

Q4 2025 adjusted EBITDA RMB41.9 million (US$6.0 million) 41.3% year-over-year decrease

FY 2025 adjusted EBITDA RMB286.6 million (US$41.0 million) 25.8% year-over-year decrease

Q4 2025 core net income RMB63.2 million (US$9.0 million) 9.2% year-over-year increase; 27.6% margin

Cash and investments at 12/31/2025 RMB1,964.0 million (US$280.8 million) Cash, restricted cash, short-term investments, equity securities and time deposits

Key Terms

RevPAR, Adjusted EBITDA (non-GAAP), core net income (non-GAAP), impairment loss of goodwill, +2 more

6 terms

RevPAR financial

"due to a 9.5% year-over-year decrease in RevPAR, the closure of 15 L&O hotels"

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 (non-GAAP) financial

"Adjusted EBITDA (non-GAAP)3 in the fourth quarter of 2025 was RMB41.9 million"

Adjusted EBITDA (non-GAAP) is a company’s measure of operating cash profitability that starts with earnings before interest, taxes, depreciation and amortization and then removes or adds back one-time items or other costs management deems unrelated to ongoing operations. Investors use it like a cleaned-up snapshot of how the core business is performing—similar to judging a car’s fuel efficiency after excluding costs that don’t affect how it runs—but should compare the specific adjustments to understand what’s been excluded.

core net income (non-GAAP) financial

"Core net income (non-GAAP)4 in the fourth quarter of 2025 was RMB63.2 million"

Core net income (non-GAAP) is an adjusted measure of a company’s profit that removes one-time, unusual or accounting-driven items so investors can see the business’s recurring earnings, like looking at a household budget but ignoring a rare home repair. It matters because it aims to reveal the company’s underlying cash-generating performance, but it is not governed by standardized rules and can be shaped by which items management chooses to exclude, so investors should compare how it’s calculated across periods and peers.

impairment loss of goodwill financial

"Impairment loss of goodwill was RMB66.5million (US$9.5 million)1 , a 17.9% decrease"

An impairment loss of goodwill is an accounting write-down taken when the premium a company paid for acquisitions — the expected extra value from reputation, customer relationships or brand — is judged to be worth less than what’s recorded on the books. Think of it like paying more than a car is now worth and recognizing that loss; it reduces reported profit and shareholder equity, can signal overpayment or weakening business prospects, and may influence investor confidence and credit terms.

leased-and-operated financial

"Total revenues from leased-and-operated, or L&O, hotels and restaurants were RMB106.2million"

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 financial

"Total revenues from franchised-and-managed, or F&M, hotels and restaurants were RMB105.1 million"

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.

Earnings Snapshot

Q4 2025 total revenue: RMB228.7 million · Guidance included

Q4 2025 and FY 2025

Q4 2025 total revenue RMB228.7 million -24.9% year over year

FY 2025 total revenue RMB1,097.4 million -18.3% year over year

FY 2025 net income RMB163.4 million up from RMB107.3 million in 2024

Q4 2025 adjusted EBITDA RMB41.9 million -41.3% year over year

FY 2025 adjusted EBITDA RMB286.6 million -25.8% year over year

Guidance

The company expects the decline of total revenues of its organic hotel business for full-year 2026 to be flat compared to 2025 levels.

Form 6-K: How Foreign Companies Report to the SEC →

UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION 

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER 

PURSUANT TO RULE 13a-16 OR 15d-16 

UNDER THE SECURITIES EXCHANGE ACT OF 1934

May 2026

Commission File Number: 001-38425

GreenTree Hospitality Group Ltd. 

(Registrant’s name)

3F, No. 1058 Yangshupu Road, Yangpu District, Shanghai, China.200082

People’s Republic of China 

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  x            Form 40-F ¨

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	GREENTREE HOSPITALITY GROUP LTD.
	By:	/s/ Alex S. Xu
	Name:	Alex S. Xu
	Title:	Chairman and Chief Executive Officer

Date: May 6, 2026 

1 

EXHIBIT INDEX

Exhibit No.		Description
99.1		GreenTree Hospitality Group Ltd. Reports Fourth Quarter 2025 Financial Results

2 

Exhibit 99.1

GreenTree Hospitality Group Ltd. Reports Fourth Quarter and Fiscal Year 2025 Financial Results

● Total revenues for the fourth quarter decreased by 24.9% year over year to RMB 228.7 million (US$32.7 million)¹.

● Net income was RMB-55.7million (US$-8.0 million)¹ compared to RMB-72.8 million for the fourth quarter of 2024.

● Core net income⁴ was RMB63.2 million (US$9.0 million)¹ compared to RMB57.8 million for the fourth quarter of 2024.

SHANGHAI, April 28, 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 fourth quarter and fiscal year of 2025.

Fourth Quarter of 2025 Operational Highlights

Hotels

● A total of 4,580 hotels with 327,060 hotel rooms were in operation as of December 31, 2025.

● The Company opened 76 hotels and had a pipeline of 1,260 hotels contracted for or under development as of December 31, 2025.

● The average daily room rate was RMB162, a decrease of 4.0% from RMB169 in the fourth quarter of 2024.

● The occupancy rate was 64.7%, down from 68.6% in the fourth quarter of 2024.

● Revenue per available room, or RevPAR, was RMB105, a 9.5% year-over-year decrease.

1 The conversion of Renminbi (“RMB”) into United States dollars (“US$”) is based on the exchange rate of US$1.00=RMB 6.9931 on December 31, 2025 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at https://www.federalreserve.gov/releases/h10/20260105/.

	2.	Adjusted net income is defined as net income excluding the impact by the exemption of fees from franchisees, impact from disposal of L&O hotel assets, impairment of goodwill and trademarks of restaurant business, impairment of assets, provisions for loan to franchisee loans, foreign exchange losses., and earnings from the disposal of investment.
	3.	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.
	4.	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 government subsidies (net of 25% tax), gains from investment in equity securities (net of 25% tax), and other income (net of 25% tax).
	5.	Each ADS represents one ordinary share.

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Restaurants

● A total of 191 restaurants were in operation as of December 31, 2025.

● The AC (average check) was RMB38, a 17.8% year-over-year decrease.

● The ADT (average daily tickets) was 88, down from 93 in the fourth quarter of 2024.

● The ADS (average daily sales per store) was RMB3,312, a decrease of 21.8% from RMB4,234 in the fourth quarter of 2024.

		Quarter Ended
		December 31, 2024				December 31, 2024				December 31, 2024				December 31, 2024
		RMB				RMB				RMB				RMB
		Hotel				Restaurant				Elimination				Total
Revenues
Leased-and-operated revenues			90,969,160				28,534,041				(207,412	)			119,295,789
Franchised-and-managed revenues			148,174,447				4,759,771				-				152,934,218
Wholesales and others			1,026,363				31,759,229				(495,936	)			32,289,656
Total revenues			240,169,970				65,053,041				(703,348	)			304,519,663

		Quarter Ended
		December 31, 2025				December 31, 2025				December 31, 2025				December 31, 2025				December 31, 2025
		RMB				RMB				RMB				RMB				US$
		Hotel				Restaurant				Elimination				Total				Total
Revenues
Leased-and-operated revenues			85,005,220				21,237,340				-				106,242,560				15,192,484
Franchised-and-managed revenues			104,151,920				954,557				-				105,106,477				15,030,026
Wholesales and others			724,362				16,926,284				(338,210	)			17,312,436				2,475,646
Total revenues			189,881,502				39,118,181				(338,210	)			228,661,473				32,698,156

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2025 Financial Results

		Year Ended
		December 31, 2024				December 31, 2024				December 31, 2024				December 31, 2024
		RMB				RMB				RMB				RMB
		Hotel				Restaurant				Elimination				Total
Revenues
Leased-and-operated revenues			437,521,898				159,326,153				-207,411				596,640,640
Franchised-and-managed revenues			625,072,856				10,287,457				-				635,360,313
Wholesales and others			3,908,057				109,031,616				-1,500,428				111,439,245
Total revenues			1,066,502,811				278,645,226				-1,707,839				1,343,440,198

		Year Ended
		December 31, 2025				December 31, 2025				December 31, 2025				December 31, 2025				December 31, 2025
		RMB				RMB				RMB				RMB				US$
		Hotel				Restaurant				Elimination				Total				Total
Revenues
Leased-and-operated revenues			381,361,912				106,812,441				(241,982	)			487,932,371				69,773,401
Franchised-and-managed revenues			528,472,018				5,979,850				-				534,451,868				76,425,601
Wholesales and others			2,514,491				73,456,665				(1,002,001	)			74,969,155				10,720,446
Total revenues			912,348,421				186,248,956				(1,243,983	)			1,097,353,394				156,919,448

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Total revenue

Total revenues were RMB228.7 million (US$32.7 million¹，a 24.9% year-over-year decrease.

Hotel revenues were RMB189.9 million (US$27.2 million)¹, a 20.9% year-over-year decrease due to a 9.5% year-over-year decrease in RevPAR, the closure of 15 L&O hotels since the first quarter of 2025 due to lease expirations and strategic reviews. The decrease was partially offset by revenues from new openings.

Restaurant revenues were RMB39.1 million (US$5.6 million¹, a 39.9% year-over-year decrease, mainly due to a 21.8% decrease in ADS and the decrease in the number of L&O stores.

Total revenues for the year ended December 31, 2025 were RMB1,097.4 million (US$156.9 million)¹, an 18.3% year-over-year decrease.

Total revenues from leased-and-operated, or L&O, hotels and restaurants were RMB106.2million (US$15.2 million)¹, a 10.9% year-over-year decrease.

Total revenues from L&O hotels were RMB85.0 million (US$12.2 million)¹, a 6.6% year-over-year decrease. The decrease was primarily attributable to a 4.6% year-over-year decrease in L&O hotels’ RevPAR, the closure of 15 L&O hotels since the first quarter of 2025, and the reduction in sublease income resulting from the closure of L&O hotels, offset by revenues from the opening of 5 L&O hotels during 2025.

Total revenues from L&O restaurants were RMB21.2 million (US$3.0 million)¹, a 25.6 % year-over-year decrease. The decrease was mainly due to the closure of 6 L&O stores since the first quarter of 2025 and a 14.1% year-over-year decrease in L&O stores’ ADS. Same L&O store revenues in the fourth quarter of 2025 decreased by 10.4% year over year.

Total revenues from L&O hotels and restaurants for the year ended December 31, 2025 were RMB487.9 million (US$69.8 million)¹, an 18.2% year-over-year decrease.

Total revenues from franchised-and-managed, or F&M, hotels and restaurants were RMB105.1 million (US$15.0 million)¹, a 31.3% year-over-year decrease.

Total revenues from F&M hotels were RMB104.2 million (US$14.9 million)¹, a 29.7% year-over-year decrease, primarily attributable to a temporary waiver of RMB21.0 million of management fees for hotels facing business difficulties, and a decline of RMB6.9 million in membership revenues. The decrease was partially due to the amortization cycle started from the pandemic period three years ago, in which the sales of membership cards were historically underperformed. Excluding these impacts, revenues from F&M hotels decreased 10.9% year over year, due to a 9.6% decrease in F&M hotels’ RevPAR.

4 / 19

Total revenues from F&M restaurants were RMB1.0 million (US$0.1 million)¹, a 79.9% year-over-year decrease. The decrease was mainly due to a 10.9% decrease in ADS.

Total revenues from F&M hotels and restaurants for the year were RMB534.5million (US$76.4million)¹, a 15.9% year-over-year decrease.

Total revenues from wholesale and others were RMB17.3 million (US$2.5 million)¹, a 46.4% year-over-year decrease.

Total revenues from wholesale and others for the year were RMB75.0 million (US$10.7 million)¹, a 32.7% year-over-year decrease.

Total operating costs and expenses

		Quarter Ended
		December 31, 2024				December 31, 2024				December 31, 2024				December 31, 2024
		RMB				RMB				RMB				RMB
		Hotel				Restaurant				Elimination				Total
Operating costs and expenses
Operating costs			139,910,728				59,854,076				(791,324	)			198,973,480
Selling and marketing expenses			13,451,271				4,083,785				87,975				17,623,031
General and administrative expenses			39,695,498				3,347,191				-				43,042,689
Other operating expenses			2,635,870				16,422				-				2,652,292
Impairment loss of goodwill			-				81,008,000				-				81,008,000
Impairment of indefinite-lived intangible asset			-				39,072,000				-				39,072,000
Other general expenses			30,012,799				-				-				30,012,799
Total operating costs and expenses			225,706,166				187,381,474				(703,349	)			412,384,291

		Quarter Ended
		December 31, 2025				December 31, 2025				December 31, 2025				December 31, 2025				December 31, 2025
		RMB				RMB				RMB				RMB				US$
		Hotel				Restaurant				Elimination				Total				Total
Operating costs and expenses
Operating costs			123,262,562				35,625,047				(338,210	)			158,549,399				22,672,263
Selling and marketing expenses			11,805,604				2,001,482				-				13,807,086				1,974,387
General and administrative expenses			18,578,972				5,933,471				-				24,512,443				3,505,233
Other operating expenses			40,245,786				(57,902	)			-				40,187,884				5,746,791
Impairment loss of goodwill			-				66,491,000				-				66,491,000				9,508,087
Impairment of indefinite-lived intangible asset			-				17,331,000				-				17,331,000				2,478,300
Other general expenses			31,779,622				-				-				31,779,622				4,544,424
Total operating costs and expenses			225,672,546				127,324,098				(338,210	)			352,658,434				50,429,485

		Year Ended
		December 31, 2024				December 31, 2024				December 31, 2024				December 31, 2024
		RMB				RMB				RMB				RMB
		Hotel				Restaurant				Elimination				Total
Operating costs and expenses
Operating costs			593,798,806				230,496,349				(1,707,841	)			822,587,314
Selling and marketing expenses			55,028,196				12,556,863				-				67,585,059
General and administrative expenses			156,401,775				26,149,319				-				182,551,094
Other operating expenses			4,937,315				2,153,148				-				7,090,463
Impairment loss of goodwill			-				81,008,000				-				81,008,000
Impairment of indefinite-lived intangible asset			-				39,072,000				-				39,072,000
Other general expenses			41,769,330				-				-				41,769,330
Total operating costs and expenses			851,935,422				391,435,679				(1,707,841	)			1,241,663,260

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		Year Ended
		December 31, 2025				December 31, 2025				December 31, 2025				December 31, 2025				December 31, 2025
		RMB				RMB				RMB				RMB				US$
		Hotel				Restaurant				Elimination				Total				Total
Operating costs and expenses
Operating costs			552,869,547				162,768,869				(1,243,984	)			714,394,432				102,157,045
Selling and marketing expenses			46,084,781				8,699,788				-				54,784,569				7,834,089
General and administrative expenses			111,872,466				18,589,380				-				130,461,846				18,655,796
Other operating expenses			50,188,458				1,543,018				-				51,731,476				7,397,503
Impairment loss of goodwill			-				66,491,000				-				66,491,000				9,508,087
Impairment of indefinite-lived intangible asset			-				17,331,000				-				17,331,000				2,478,300
Other general expenses			82,874,509				-				-				82,874,509				11,850,897
Total operating costs and expenses			843,889,761				275,423,055				(1,243,984	)			1,118,068,832				159,881,717

Operating costs were RMB158.5 million (US$22.7 million)¹, a 20.3% year-over-year decrease.

Operating costs of the hotel business were RMB123.3 million (US$17.6million)¹, an 11.9% year-over-year decrease. The decrease was mainly attributable to lower depreciation and amortization, lower staff related costs, and lower consumable, food and beverage caused by the closing of 15 L&O hotels, partially offset by the rental increase caused by 5 new L&O hotels and the renewal of certain lease agreements.

Operating costs of the restaurant business were RMB35.6million (US$5.1 million¹, a 40.5% year-over-year decrease. The decrease was mainly due to the closure of L&O stores.

For the year, operating costs were RMB714.4 million (US$102.2 million) ¹, representing a 13.2% decrease.

Selling and marketing expenses in the fourth quarter of 2025 was RMB13.8 million (US$2.0 million)¹, a 21.7% year-over-year decrease.

Selling and marketing expenses of the hotel business were RMB11.8 million (US$1.7 million)¹, a 12.2% year-over-year decrease. The decrease was mainly due to lower staff related costs, and lower traveling and meal expenses.

Selling and marketing expenses of the restaurant business were RMB2.0 million (US$0.3 million)^1., a 51.0% year-over-year decrease. The decrease was mainly due to lower staff related expenses, and lower sales-channel commissions.

For the year, selling and marketing expenses were RMB54.8 million (US$7.8million)¹, an 18.9% decrease.

General and administrative, or G&A expenses were RMB24.5 million (US$3.5 million)¹, a 43.1% year-over-year decrease.

G&A expenses of the hotel business were RMB18.6 million (US$2.7 million)¹, a 53.2% year-over-year decrease. The decrease was mainly due to lower staff G&A staff related expenses, lower traveling and meal expenses, and lower consulting fees.

G&A expenses of the restaurant business were RMB5.9 million (US$0.8 million)¹, a 77.3 % year-over-year increase. The increase was mainly due to higher bad debt provisions for long-aged account receivables.

For the year, G&A expenses were RMB130.5 million (US$18.7 million)¹, a 28.5% year-over-year decrease.

Other operating expenses were RMB40.2 million (US$5.7 million)¹, mainly due to the disposal of L&O hotel assets. For the year, other operating expenses were RMB51.7 million, (US$7.4 million)¹, increased from RMB7.1 million in 2024.

Impairment loss of goodwill was RMB66.5million (US$9.5 million)¹ , a 17.9% decrease year over year. Impairment of indefinite-lived intangible asset was RMB17.3 million(US$2.5 million), a 55.6% decrease year over year. These expenses were impairment of goodwill and trademarks related to the restaurant business.

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Other general expenses were RMB31.8million (US$4.5 million)¹, a 5.9% year-over-year increase. These expenses include provisions for loan receivables related to franchisee loans, and impairment of assets.

For the year, other general expenses were RMB82.9 million (US$11.9 million)¹.

Gross profit, defined as total revenues deducted by hotel and restaurant costs, was RMB70.1 million (US$10.0 million)¹, a year-over-year decrease of 33.6%. Gross margin was 30.7%, compared to 34.7% a year ago. The gross profit of the hotel business was RMB66.6 million (US$9.5 million)¹, a 33.6% year-over-year decrease. The gross profit of the restaurant business was RMB3.5 million (US$0.5 million)¹, a 32.8% year-over-year decrease. Gross profit for the year was RMB383.0 million (US$54.8 million) ¹, a 26.5% year-over-year decrease.

Income from operations was RMB-64.9 million (US$-9.3 million)^{1 ,} compared to income from operations of RMB-95.0million in the fourth quarter of 2024, with a margin of -28.4%. The loss was due to certain one-time or non-operation impacts, including impairment loss of goodwill and trademarks related to restaurant business, provisions for loan receivables related to franchisee loans, impairment of assets, while offset by impact from disposal of L&O hotel assets. Excluding these, the adjusted income from operations decreased 8.3% year over year, mainly due to the year-over-year 9.6% decrease in Revpar. The margin for the adjusted income from operations was 24.3%, up from 19.9% one year ago, thanks to lower operating costs and expenses.

Income from operations of the hotel business was RMB23.2 million (US$3.3 million)¹, compared to an income from operations of RMB26.1 million in the fourth quarter of 2024. Excluding the impact of the above-mentioned items on hotels, adjusted income from operations of the hotel business decreased 2.8% year over year, and the margin for the third quarter of 2025 was 22.1%, up from 21.6% one year ago, due to lower operating costs and expenses.

Loss from operations of the restaurant business was RMB88.1 million (US$12.6 million)¹, compared to loss from operations of RMB121.1 million in the fourth quarter of 2024. Excluding impairment loss of goodwill, and impairment of indefinite-lived intangible asset, loss from operations of the restaurant business was RMB4.3 million(US$0.6million) with a negative margin of 11.0%.

Income from operations for the year was RMB56.7 million (US$8.1 million) ¹ compared to income from operations of RMB161.9 million in 2024.

Net income in the fourth quarter of 2025 was RMB-55.7million (US$-8.0 million)¹, compared to a net income of RMB-72.8 million in the fourth quarter of 2024, and net margin was -24.4%. The loss was impacted by certain one-time or non-operation impacts, including impairment loss of goodwill and trademarks related to restaurant business, provisions for loan receivables related to franchisee loans, impairment of assets, and foreign exchange losses, while offset by earnings from the disposal of investment in equity securities and disposal of L&O hotel assets. Excluding the impact of the above-mentioned items on hotels, adjusted net income ² was RMB60.5 million, an increase of 6.7%, with a margin of 26.5%.

Net income of the hotel business was RMB29.5 million (US$4.2 million)¹, compared to a net income of RMB28.4million in the fourth quarter of 2024, and net margin was15.5%. Excluding the impact of the above-mentioned items on hotels, adjusted net income² of the hotel business increased 63.9% to RMB61.9million (US$8.9 million)¹ with a margin of 32.6%.

Net loss of the restaurant business was RMB85.2million (US$12.2million)¹, compared to a net loss of RMB101.2million in the fourth quarter of 2024. Excluding the impairment of trademarks and goodwill, adjusted net loss of the restaurant business was RMB1.4 million(US$0.2 million)¹ with a margin of -3.6%.

Net income for the year was RMB163.4 million (US$23.4 million) ¹ compared to net income of RMB107.3 million in 2024, with a margin of 14.9%.

Adjusted EBITDA (non-GAAP)³ in the fourth quarter of 2025 was RMB41.9 million (US$6.0 million)¹, a year-over-year decrease of 41.3%. Adjusted EBITDA³ margin, defined as adjusted EBITDA (non-GAAP)³ as a percentage of total revenues, was 18.3%, compared to 23.5% a year ago. Adjusted EBITDA (non-GAAP)³ for the year was RMB286.6 million (US$41.0 million)¹, a year-over-year decrease of 25.8%.

7 / 19

Core net income (non-GAAP)⁴ in the fourth quarter of 2025 was RMB63.2 million (US$9.0 million)¹, a year-over-year increase of 9.2%. The core net margin, defined as core net income (non-GAAP)⁴ as a percentage of total revenues, was 27.6%, up from 19.0% one year ago. Core net income (non-GAAP)⁴ for the year was RMB211.2 million (US$30.2million)¹, a year-over-year decrease of 23.9%.

Earnings per American Depositary Share, or ADS, (basic and diluted) in the fourth quarter of 2025 was RMB-0.55(US$-0.08)¹, down from RMB-0.70 one year ago. Core net income per ADS (basic and diluted) (non-GAAP)⁴ was RMB0.63 (US$0.09)¹, increase from RMB0.57 a year ago.

Earnings per ADS (basic and diluted) for the hotel business were RMB 0.29 (US$0.04)¹, as stable as one year ago. Core net income per ADS (basic and diluted) (non-GAAP)⁴ for the hotel business were RMB0.63 (US$0.09)¹, increase from RMB0.45 a year ago.

Earnings per ADS (basic and diluted) for the year of 2025 was RMB1.65 (US$0.24)¹ increased from RMB1.08 one year ago. Core net income per ADS (basic and diluted) (non-GAAP)⁴ was RMB2.09 (US$0.30)¹ for the year, a decrease from RMB2.73 a year ago.

Cash flow Operating cash inflow in the fourth quarter of 2025 was RMB32.5 million (US$4.6 million)¹ as a result of income from operations. Investing cash inflow for the fourth quarter 2025 was RMB27.6 million (US$3.9million)¹, which was primarily attributable to proceeds from disposal of long-term investments，offset by an advance payment for the purchase of strategic assets. Financing cash outflow in the fourth quarter of 2025 was RMB43.2 million (US$6.2 million)¹, mainly attributable to dividends distributed to the shareholders.

Cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits. As of December 31, 2025, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB1,964.0 million (US$280.8 million)¹, compared to RMB2,014.6million as of September 30, 2025. The decrease was primarily due to dividends distributed to the shareholders, an advance payment for the purchase of strategic assets, partially offset by cash from operating activities, and disposal of investment on equity securities.

Guidance

Taking into account the recovery in long-term trends and short-term industry fluctuations, we expect the decline of total revenues of our organic hotel business for the full year of 2026 to be flat compared to their 2025 levels.

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.

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, government 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.

8 / 19

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 December 31, 2025, GreenTree had a total number of 4,580 hotels and 191 restaurants. In 2024, HOTELS magazine ranked GreenTree 13th among the 225 largest global hotel groups in terms of number of hotels in its annual HOTELS’ 225. GreenTree was the fourth largest hospitality company in China in 2024 according to the China Hospitality Association.

GreenTree has a broad portfolio of diverse brands spanning from the economy to mid-scale, up-scale and luxury segments of the hospitality industry mainly in China. Through its strong membership base, expansive booking network, superior system management with moderate charges, and fully supported by its operating departments including Decoration, Engineering, Purchasing, Operation, IT and Finance, 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.

9 / 19

Financial Tables and Operational Data Follow

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Balance Sheets

		December 31				December 31				December 31
		2024				2025				2025
		RMB				RMB				US$
ASSETS
Current assets:
Cash and cash equivalents			1,490,235,562				1,652,179,474				236,258,523
Restricted cash			16,096,476				7,389,650				1,056,706
Short-term investments			10,475				-				-
Accounts receivable, net of allowance			99,688,034				81,335,494				11,630,821
Amounts due from related parties			21,839,929				18,843,062				2,694,522
Inventories			6,881,470				4,922,160				703,860
Other current assets			114,898,590				92,557,400				13,235,532
Loans receivable, net			85,463,467				38,798,333				5,548,088
Total current assets			1,835,114,003				1,896,025,573				271,128,052
Non-current assets:
Amounts due from a related party			110,000,000				110,000,000				15,729,791
Restricted cash			18,869,900				18,869,900				2,698,360
Long-term time deposits			285,570,000				285,570,000				40,835,967
Loans receivable, net			15,372,238				12,034,825				1,720,957
Property and equipment, net			649,528,210				559,918,957				80,067,346
Intangible assets, net			75,677,551				56,403,818				8,065,639
Goodwill			96,074,468				25,721,262				3,678,092
Long-term investments			184,024,217				156,929,090				22,440,561
Operating lease right-of-use assets			1,328,582,419				1,130,088,595				161,600,520
Other assets			102,545,848				297,560,050				42,550,519
Deferred tax assets			245,760,095				237,098,634				33,904,654
TOTAL ASSETS			4,947,118,949				4,786,220,704				684,420,458
LIABSLITIES AND EQUITY
Current liabilities:
Long-term bank loans, current portion			400,000				56,800,000				8,122,292
Accounts payable			56,488,405				44,687,183				6,390,182
Advance from customers			25,684,437				21,946,599				3,138,322
Amounts due to related parties			17,462,176				17,518,102				2,505,055
Salary and welfare payable			78,234,585				73,657,641				10,532,903
Deferred revenue			175,046,178				169,139,889				24,186,682
Accrued expenses and other current liabilities			481,910,291				539,836,968				77,195,660
Income tax payable			88,876,497				72,129,824				10,314,428
Operating lease liabilities, current			241,363,244				184,665,265				26,406,782
Total current liabilities			1,165,465,813				1,180,381,471				168,792,306
Long-term bank loans			256,200,000				199,400,000				28,513,821
Deferred revenue			176,353,919				134,414,010				19,220,948
Other long-term liabilities			120,975,955				117,513,512				16,804,208
Operating lease liabilities, non-current			1,215,776,075				1,032,472,822				147,641,650
Deferred tax liabilities			79,670,908				55,941,338				7,999,505
Unrecognized tax benefits			440,072,214				457,930,743				65,483,225
Total liabilities			3,454,514,884				3,178,053,896				454,455,663
Shareholders’ equity:
Class A ordinary shares			222,587,070				222,587,070				31,829,528
Class B ordinary shares			115,534,210				115,534,210				16,521,172
Treasury Stock			(37,043,116	)			(48,054,863	)			(6,871,754	)
Additional paid-in capital			1,609,972,272				1,566,949,877				224,070,852
Retained earnings (Accumulated losses)			(458,337,571	)			(291,545,545	)			(41,690,458	)
Accumulated other comprehensive income			6,033,263				11,093,099				1,586,292
Total GreenTree Hospitality Group Ltd. shareholders’ equity			1,458,746,128				1,576,563,848				225,445,632
Non-controlling interests			33,857,937				31,602,960				4,519,163
Total shareholders’ equity			1,492,604,065				1,608,166,808				229,964,795
TOTAL LIABSLITIES AND SHAREHOLDERS’ EQUITY			4,947,118,949				4,786,220,704				684,420,458

10 / 19

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements of Comprehensive Income

		Quarter Ended												Year Ended
		December 31, 2024				December 31, 2025				December 31, 2025				December 31, 2024				December 31, 2025				December 31, 2025
		RMB				RMB				US$				RMB				RMB				US$
Revenues
Leased-and-operated revenues			119,295,789				106,242,560				15,192,484				596,640,640				487,932,371				69,773,401
Franchised-and-managed revenues			152,934,218				105,106,477				15,030,026				635,360,313				534,451,868				76,425,601
Wholesales and others			32,289,656				17,312,436				2,475,646				111,439,245				74,969,155				10,720,446
Total revenues			304,519,663				228,661,473				32,698,156				1,343,440,198				1,097,353,394				156,919,448
Operating costs and expenses
Operating costs			(198,973,480	)			(158,549,399	)			(22,672,263	)			(822,587,314	)			(714,394,432	)			(102,157,045	)
Selling and marketing expenses			(17,623,031	)			(13,807,086	)			(1,974,387	)			(67,585,059	)			(54,784,569	)			(7,834,089	)
General and administrative expenses			(43,042,689	)			(24,512,443	)			(3,505,233	)			(182,551,094	)			(130,461,846	)			(18,655,796	)
Other operating expenses			(2,652,292	)			(40,187,884	)			(5,746,791	)			(7,090,463	)			(51,731,476	)			(7,397,503	)
Impairment loss of goodwill			(81,008,000	)			(66,491,000	)			(9,508,087	)			(81,008,000	)			(66,491,000	)			(9,508,087	)
Impairment of indefinite-lived intangible asset			(39,072,000	)			(17,331,000	)			(2,478,300	)			(39,072,000	)			(17,331,000	)			(2,478,300	)
Other general expenses			(30,012,799	)			(31,779,622	)			(4,544,424	)			(41,769,330	)			(82,874,509	)			(11,850,897	)
Total operating costs and expenses			(412,384,291	)			(352,658,434	)			(50,429,485	)			(1,241,663,260	)			(1,118,068,832	)			(159,881,717	)
Other operating income			12,898,817				59,110,768				8,452,727				60,147,558				77,371,723				11,064,010
Income from operations			(94,965,811	)			(64,886,193	)			(9,278,602	)			161,924,496				56,656,285				8,101,741
Interest income and other, net			12,633,535				9,393,209				1,343,211				40,072,068				37,806,975				5,406,326
Interest expense			(1,824,933	)			(2,095,890	)			(299,708	)			(6,310,152	)			(7,644,628	)			(1,093,167	)
Gains (losses) from investment in equity securities			(9,544,253	)			(24,444,565	)			(3,495,526	)			(14,953,679	)			5,000,000				714,990
Other income, net			34,336,161				22,218,586				3,177,215				16,474,064				113,255,005				16,195,250
Income before income taxes			(59,365,301	)			(59,814,853	)			(8,553,410	)			197,206,797				205,073,637				29,325,140
Income tax expense			(12,758,025	)			3,254,084				465,328				(88,726,969	)			(45,880,022	)			(6,560,756	)
Income (loss) before share of gains in equity investees			(72,123,326	)			(56,560,769	)			(8,088,082	)			108,479,828				159,193,615				22,764,384
Share of loss/(income) in equity investees, net of tax			(700,781	)			818,603				117,058				(1,165,474	)			4,163,620				595,390
Net income(loss)			(72,824,107	)			(55,742,166	)			(7,971,024	)			107,314,354				163,357,235				23,359,774
Net loss/(income) attributable to non-controlling interests			1,368,731				258,970				37,032				2,687,878				3,434,790				491,168
Net income attributable to ordinary shareholders			(71,455,377	)			(55,483,196	)			(7,933,992	)			110,002,232				166,792,025				23,850,942
Net earnings per share
Class A ordinary share-basic and diluted			(0.70	)			(0.55	)			(0.08	)			1.08				1.65				0.24
Class B ordinary share-basic and diluted			(0.70	)			(0.55	)			(0.08	)			1.08				1.65				0.24
Net earnings per ADS
Class A ordinary share-basic and diluted			(0.70	)			(0.55	)			(0.08	)			1.08				1.65				0.24
Class B ordinary share-basic and diluted			(0.70	)			(0.55	)			(0.08	)			1.08				1.65				0.24
Weighted average shares outstanding
Class A ordinary share-basic and diluted			66,765,032				66,134,813				66,134,813				66,776,243				66,366,641				66,366,641
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			(20,725,862	)			7,667,013				1,096,369				(22,368,019	)			5,059,836				723,547
Comprehensive income, net of tax			(93,549,969	)			(48,075,153	)			(6,874,655	)			84,946,335				168,417,071				24,083,321
Comprehensive loss/(income) attributable to non-controlling interests			1,368,731				258,970				37,032				2,687,878				3,434,790				491,168
Comprehensive income (loss) attributable to ordinary shareholders			(92,181,238	)			(47,816,183	)			(6,837,623	)			87,634,213				171,851,861				24,574,489

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GreenTree Hospitality Group Ltd.

Unaudited Condensed Hotel Statements of Comprehensive Income

		Quarter Ended												Year Ended
		December 31, 2024				December 31, 2025				December 31, 2025				December 31, 2024				December 31, 2025				December 31, 2025
		RMB				RMB				US$				RMB				RMB				US$
Revenues
Leased-and-operated revenues			90,969,160				85,005,220				12,155,585				437,521,898				381,361,912				54,534,028
Franchised-and-managed revenues			148,174,447				104,151,920				14,893,526				625,072,856				528,472,018				75,570,493
Wholesales and others			1,026,363				724,362				103,583				3,908,057				2,514,491				359,567
Total revenues			240,169,970				189,881,502				27,152,694				1,066,502,811				912,348,421				130,464,088
Operating costs and expenses
Operating costs			(139,910,728	)			(123,262,562	)			(17,626,312	)			(593,798,806	)			(552,869,547	)			(79,059,294	)
Selling and marketing expenses			(13,451,271	)			(11,805,604	)			(1,688,179	)			(55,028,196	)			(46,084,781	)			(6,590,036	)
General and administrative expenses			(39,695,498	)			(18,578,972	)			(2,656,758	)			(156,401,775	)			(111,872,466	)			(15,997,550	)
Other operating expenses			(2,635,870	)			(40,245,786	)			(5,755,071	)			(4,937,315	)			(50,188,458	)			(7,176,854	)
Other general expenses			(30,012,799	)			(31,779,622	)			(4,544,425	)			(41,769,330	)			(82,874,509	)			(11,850,897	)
Total operating costs and expenses			(225,706,166	)			(225,672,546	)			(32,270,745	)			(851,935,422	)			(843,889,761	)			(120,674,631	)
Other operating income			11,644,397				59,024,549				8,440,398				56,818,174				76,874,333				10,992,883
Income from operations			26,108,201				23,233,505				3,322,347				271,385,563				145,332,993				20,782,340
Interest income and other, net			12,606,174				9,365,397				1,339,234				39,982,179				37,684,201				5,388,769
Interest expense			(1,825,243	)			(2,168,449	)			(310,084	)			(6,310,152	)			(7,644,628	)			(1,093,167	)
Gains (losses) from investment in equity securities			(9,544,253	)			(24,444,565	)			(3,495,526	)			(10,314,000	)			5,000,000				714,990
Other income, net			34,321,711				22,941,763				3,280,628				16,383,657				114,001,612				16,302,016
Income before income taxes			61,666,590				28,927,651				4,136,599				311,127,247				294,374,178				42,094,948
Income tax expense			(32,610,806	)			(261,788	)			(37,435	)			(107,223,277	)			(48,997,177	)			(7,006,503	)
Income (loss) before share of gains in equity investees			29,055,784				28,665,863				4,099,164				203,903,970				245,377,001				35,088,445
Share of loss/(income) in equity investees, net of tax			(700,781	)			818,603				117,059				(1,165,474	)			4,163,620				595,390
Net income(loss)			28,355,003				29,484,466				4,216,223				202,738,496				249,540,621				35,683,835

12 / 19

GreenTree Hospitality Group Ltd.

Unaudited Condensed Restaurnt Statements of Comprehensive Income

		Quarter Ended												Year Ended
		December 31, 2024				December 31, 2025				December 31, 2025				December 31, 2024				December 31, 2025				December 31, 2025
		RMB				RMB				US$				RMB				RMB				US$
Revenues
Leased-and-operated revenues			28,534,041				21,237,340				3,036,899				159,326,153				106,812,441				15,273,976
Franchised-and-managed revenues			4,759,771				954,557				136,500				10,287,457				5,979,850				855,107
Wholesales and others			31,759,229				16,926,284				2,420,426				109,031,616				73,456,665				10,504,163
Total revenues			65,053,041				39,118,181				5,593,825				278,645,226				186,248,956				26,633,246
Operating costs and expenses
Operating costs			(59,854,076	)			(35,625,047	)			(5,094,314	)			(230,496,349	)			(162,768,869	)			(23,275,639	)
Selling and marketing expenses			(4,083,785	)			(2,001,482	)			(286,208	)			(12,556,863	)			(8,699,788	)			(1,244,053	)
General and administrative expenses			(3,347,191	)			(5,933,471	)			(848,475	)			(26,149,319	)			(18,589,380	)			(2,658,246	)
Other operating expenses			(16,422	)			57,902				8,280				(2,153,148	)			(1,543,018	)			(220,649	)
Impairment loss of goodwill			(81,008,000	)			(66,491,000	)			(9,508,087	)			(81,008,000	)			(66,491,000	)			(9,508,087	)
Impairment of indefinite-lived intangible asset			(39,072,000	)			(17,331,000	)			(2,478,300	)			(39,072,000	)			(17,331,000	)			(2,478,300	)
Total operating costs and expenses			(187,381,474	)			(127,324,098	)			(18,207,104	)			(391,435,679	)			(275,423,055	)			(39,384,974	)
Other operating income			1,254,420				86,219				12,330				3,329,384				497,391				71,127
Income from operations			(121,074,013	)			(88,119,698	)			(12,600,949	)			(109,461,069	)			(88,676,708	)			(12,680,601	)
Interest income and other, net			27,361				27,812				3,977				89,889				122,774				17,556
Interest expense			310				72,559				10,376				-				-				-
Other income, net			14,450				(723,176	)			(103,413	)			(18,672	)			(746,607	)			(106,763	)
Income before income taxes			(121,031,894	)			(88,742,503	)			(12,690,009	)			(109,389,852	)			(89,300,541	)			(12,769,808	)
Income tax expense			19,852,781				3,515,872				502,763				18,496,308				3,117,155				445,748
Income (loss) before share of gains in equity investees			(101,179,113	)			(85,226,631	)			(12,187,246	)			(90,893,544	)			(86,183,386	)			(12,324,060	)
Net income(loss)			(101,179,113	)			(85,226,631	)			(12,187,246	)			(90,893,544	)			(86,183,386	)			(12,324,060	)

13 / 19

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements

		Quarter Ended				Quarter Ended				Quarter Ended				Quarter Ended
		December 31, 2024				December 31, 2024				December 31, 2024				December 31, 2024
		Hotel				Restaurant				Elimination				Total
		RMB				RMB				RMB				RMB
Revenues
Leased-and-operated revenues			90,969,160				28,534,041				(207,412	)			119,295,789
Franchised-and-managed revenues			148,174,447				4,759,771				-				152,934,218
Wholesales and others			1,026,363				31,759,229				(495,936	)			32,289,656
Total revenues			240,169,970				65,053,041				(703,348	)			304,519,663
Operating costs and expenses
Operating costs			(139,910,728	)			(59,854,076	)			791,324				(198,973,480	)
Selling and marketing expenses			(13,451,271	)			(4,083,785	)			(87,975	)			(17,623,031	)
General and administrative expenses			(39,695,498	)			(3,347,191	)			-				(43,042,689	)
Other operating expenses			(2,635,870	)			(16,422	)			-				(2,652,292	)
Impairment loss of goodwill			-				(81,008,000	)							(81,008,000	)
Impairment of indefinite-lived intangible asset			-				(39,072,000	)			-				(39,072,000	)
Other general expenses			(30,012,799	)			-				-				(30,012,799	)
Total operating costs and expenses			(225,706,166	)			(187,381,474	)			703,349				(412,384,291	)
Other operating income			11,644,397				1,254,420				-				12,898,817
Income from operations			26,108,201				(121,074,012	)			-				(94,965,811	)

14 / 19

 GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements  

		Quarter Ended				Quarter Ended				Quarter Ended				Quarter Ended
		December 31, 2025				December 31, 2025				December 31, 2025				December 31, 2025
		Hotel				Restaurant				Elimination				Total
		RMB				RMB				RMB				RMB
Revenues
Leased-and-operated revenues			85,005,220				21,237,340				-				106,242,560
Franchised-and-managed revenues			104,151,920				954,557				-				105,106,477
Wholesales and others			724,362				16,926,284				(338,210	)			17,312,436
Total revenues			189,881,502				39,118,181				(338,210	)			228,661,473
Operating costs and expenses
Operating costs			(123,262,562	)			(35,625,047	)			338,210				(158,549,399	)
Selling and marketing expenses			(11,805,604	)			(2,001,482	)			-				(13,807,086	)
General and administrative expenses			(18,578,972	)			(5,933,471	)			-				(24,512,443	)
Other operating expenses			(40,245,786	)			57,902				-				(40,187,884	)
Impairment loss of goodwill			-				(66,491,000	)			-				(66,491,000	)
Impairment of indefinite-lived intangible asset			-				(17,331,000	)			-				(17,331,000	)
Other general expenses			(31,779,622	)			-				-				(31,779,622	)
Total operating costs and expenses			(225,672,546	)			(127,324,098	)			338,210				(352,658,434	)
Other operating income			59,024,549				86,219				-				59,110,768
Income from operations			23,233,505				(88,119,698	)			-				(64,886,193	)

15 / 19

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements of Cash Flows

		Quarter Ended												Year Ended
		December 31, 2024				December 31, 2025				December 31, 2025				December 31, 2024				December 31, 2025				December 31, 2025
		RMB				RMB				US$				RMB				RMB				US$
Operating activities:
Net (loss) income			(72,824,109	)			(55,742,166	)			(7,971,024	)			107,314,353				163,357,235				23,359,774
Depreciation and amortization			26,575,903				10,137,484				1,449,641				115,746,538				88,932,782				12,717,219
Impairment of long lived assets			51,672,000				893,149				127,719				51,672,000				20,893,149				2,987,681
Impairment of indefinite-lived intangible assets			-				17,331,001				2,478,300				-				17,331,001				2,478,300
Impairment of goodwill			81,008,000				66,491,000				9,508,087				81,008,000				66,491,000				9,508,087
Gains from disposal of a long-term investment			-				(49,964,806	)			(7,144,872	)			-				(164,007,612	)			(23,452,777	)
Others non-cash expense(income)			7,070,827				(818,603	)			(117,059	)			1,166,397				(4,163,620	)			(595,390	)
Noncash lease expense			58,283,373				65,943,269				9,429,762				263,911,503				246,116,498				35,194,191
Losses (gain) from disposal of subsidiaries			-				4,623,539				661,157				(488,227	)			5,399,022				772,050
Allowances for credit losses			21,857,669				36,473,346				5,215,619				56,241,392				81,698,368				11,682,711
Losses (gain) on disposal of property, plant and equipment			(555,551	)			35,098,580				5,019,030				(25,338,789	)			35,565,640				5,085,819
(Losses and impairment) gains on equity securities held			9,544,253				24,444,565				3,495,527				14,953,679				(5,000,000	)			(714,990	)
Gains from early termination of operating leases			-				(52,949,738	)			(7,571,712	)			-				(52,949,738	)			(7,571,712	)
Foreign exchange (gains)losses			(26,182,753	)			21,188,452				3,029,908				(27,497,301	)			31,315,924				4,478,118
Accounts receivable			9,076,784				23,849,190				3,410,389				(4,015,520	)			3,471,625				496,436
Inventories			(493,764	)			1,852,379				264,887				14,618,912				1,959,310				280,178
Amounts due from related parties			(3,904,741	)			459,253				65,672				(1,416,495	)			1,032,243				147,609
Other current assets			(1,821,998	)			(6,964,809	)			(995,954	)			(3,067,256	)			1,901,317				271,885
Other assets			5,200,506				4,030,567				576,363				3,725,971				8,481,614				1,212,855
Accounts payable			17,296,435				(9,060,433	)			(1,295,625	)			(3,021,869	)			(18,962,750	)			(2,711,637	)
Amounts due to related parties			1,767,567				(608,572	)			(87,025	)			1,151,882				55,926				7,997
Salary and welfare payable			3,672,156				(758,915	)			(108,523	)			(7,916,485	)			(4,452,881	)			(636,754	)
Deferred revenue			(28,977,865	)			(13,816,880	)			(1,975,788	)			(42,787,510	)			(47,846,198	)			(6,841,915	)
Advance from customers			4,428,730				(5,089,423	)			(727,778	)			3,305,355				(3,664,385	)			(524,000	)
Accrued expenses and other current liabilities			(29,307,543	)			7,400,025				1,058,190				3,161,614				60,924,816				8,712,133
Income tax payable			(34,457,583	)			(19,261,683	)			(2,754,384	)			(23,195,720	)			(16,746,673	)			(2,394,742	)
Unrecognized tax benefits			68,986,879				16,061,992				2,296,834				57,946,428				17,858,529				2,553,736
Operating lease liabilities			(57,896,801	)			(74,496,586	)			(10,652,870	)			(247,702,691	)			(234,674,168	)			(33,557,960	)
Other long-term liabilities			3,262,911				(5,613,384	)			(802,703	)			1,264,213				(3,462,443	)			(495,123	)
Deferred taxes			(39,040,264	)			(8,662,368	)			(1,238,702	)			(17,362,607	)			(15,068,109	)			(2,154,711	)
Net cash provided by operating activities			74,241,021				32,469,425				4,643,066				373,377,767				281,787,422				40,295,068
Investing activities:
Prepayments and purchases of property, plant and equipment			(50,616,409	)			(51,990,595	)			(7,434,556	)			(79,582,039	)			(261,153,578	)			(37,344,465	)
Purchases of intangible assets			(37,057	)			-				-				(37,057	)			-				-
Proceeds from disposal of property and equipment			(283,895	)			187,693				26,840				139,900,865				429,141				61,366
Purchases of a long-term investment			(3,600,000	)			-				-				(10,400,000	)			-				-
Purchases of short-term investments			-				15,272				2,184				-				-				-
Proceeds from short-term investments			(1,660,895	)			10,475				1,498				417,701,142				10,475				1,498
Increase of long-term time deposits			-				-				-				(222,230,000	)			-				-
Proceeds from disposal of equity securities			21,812,329				79,023,553				11,300,218				21,812,329				188,059,939				26,892,214
Proceeds from disposal of subsidiaries			-				-				-				2,807,500				-				-
Loan to related parties			(588,000	)			265,000				37,894				(858,000	)			-				-
Repayment from related parties			363,347				1,845,642				263,923				363,347				1,964,624				280,937
Loan to third parties			1,200,000				-				-				-				-				-
Repayment of loan from third parties			-				-				-				5,900,000				-				-
Loans to franchisees			(8,673,811	)			(6,143,481	)			(878,506	)			(14,323,812	)			(15,275,441	)			(2,184,359	)
Repayment from franchisees			16,870,520				4,370,466				624,968				84,337,321				23,188,484				3,315,909
Net cash (used in) provided by investing activities			(25,213,871	)			27,584,025				3,944,463				345,391,596				(62,776,356	)			(8,976,900	)
Financing activities:
Distribution to the shareholders			(70,241,162	)			(43,027,722	)			(6,152,883	)			(71,301,605	)			(43,027,722	)			(6,152,883	)
Repayment of bank loans			(200,000	)			(200,000	)			(28,600	)			(117,200,000	)			(400,000	)			(57,199	)
Proceeds from bank loans			-				-				-				200,000,000				-				-
Capital contribution from noncontrolling interest holders			-				-				-				(966,000	)			-				-
Net cash used in financing activities			(70,441,162	)			(43,227,722	)			(6,181,483	)			10,532,395				(43,427,722	)			(6,210,082	)
Effect of exchange rate changes on cash and cash equivalents and restricted cash			6,957,333				(10,685,429	)			(1,527,994	)			4,299,468				(22,346,256	)			(3,195,471	)
Net increase in cash, cash equivalents and restricted cash			(14,456,679	)			6,140,299				878,052				733,601,226				153,237,088				21,912,615
Cash, cash equivalents and restricted cash at the beginning of the year			1,539,658,617				1,672,298,727				239,135,537				791,600,712				1,525,201,938				218,100,976
Cash, cash equivalents and restricted cash at the end of the year			1,525,201,938				1,678,439,026				240,013,589				1,525,201,938				1,678,439,026				240,013,591

16 / 19

GreenTree Hospitality Group Ltd.
Unaudited Reconciliation of GAAP and Non-GAAP Results
		Quarter Ended												Year Ended
		December 31, 2024				December 31, 2025				December 31, 2025				December 31, 2024				December 31, 2025				December 31, 2025
		RMB				RMB				US$				RMB				RMB				US$
Net income			(72,824,109	)			(55,742,166	)			(7,971,024	)			107,314,353				163,357,235				23,359,774
Deduct:
Other operating income			12,898,817				59,110,768				8,452,727				60,147,558				77,371,724				11,064,009
Interest income and other, net			12,633,535				9,393,209				1,343,211				40,072,068				37,806,975				5,406,326
Gains from investment in equity securities			-				-				-				-				5,000,000				714,990
Share of gain in equity investees, net of tax			-				818,603				117,059				-				4,163,620				595,390
Other income, net			34,336,161				22,218,587				3,177,216				16,474,064				113,255,005				16,195,250
Add:
Other operating expenses			2,652,292				40,187,884				5,746,791				7,090,463				51,731,476				7,397,503
Impairment loss of goodwill			81,008,000				66,491,000				9,508,087				81,008,000				66,491,000				9,508,087
Other general expenses			69,084,799				49,110,622				7,022,726				80,841,330				100,205,509				14,329,197
Income tax expenses (benefits)			12,758,025				(3,254,084	)			(465,328	)			88,726,969				45,880,022				6,560,756
Share of loss in equity investees, net of tax			700,781				-				-				1,165,474				-				-
Interest expenses			1,824,933				2,095,890				299,708				6,310,152				7,644,628				1,093,167
Depreciation and amortization			26,575,903				10,137,484				1,449,641				115,746,538				88,932,782				12,717,219
Losses from investment in equity securities			9,544,253				24,444,565				3,495,526				14,953,679				-				-
Adjusted EBITDA (Non-GAAP)			71,456,364				41,930,028				5,995,914				386,463,268				286,645,328				40,989,738

		Quarter Ended												Year Ended
		December 31, 2024				December 31, 2025				December 31, 2025				December 31, 2024				December 31, 2025				December 31, 2025
		RMB				RMB				US$				RMB				RMB				US$
Net income			(72,824,109	)			(55,742,166	)			(7,971,024	)			107,314,353				163,357,235				23,359,774
Deduct:
Government subsidies (net of 25% tax)			7,122,585				1,800,113				257,413				11,967,221				11,105,111				1,588,010
Gains from investment in equity securities (net of 25% tax)			-				-				-				-				5,000,000				714,990
Other income (net of 25% tax)			25,752,121				16,663,940				2,382,912				12,355,548				113,451,955				16,223,414
Add:
Share-based compensation			(46,986	)			-				-				-				-				-
Losses from investments in equity securities (net of 25% tax)			7,158,190				18,333,424				2,621,645				11,215,259				-				-
One-time fees and expenses			621,172				3,439,673				491,867				2,335,161				3,439,673				491,867
Impairment loss of goodwill			81,008,000				66,491,000				9,508,087				81,008,000				66,491,000				9,508,087
Other general expenses			69,084,799				49,110,622				7,022,726				80,841,330				100,205,509				14,329,197
Income tax expenses related to dividend distribution			5,698,810				-				-				19,195,050				7,299,300				1,043,786
Core net income (Non-GAAP)			57,825,169				63,168,500				9,032,976				277,586,384				211,235,651				30,206,297
Core net income per ADS (Non-GAAP)
Class A ordinary share-basic and diluted			0.57				0.63				0.09				2.73				2.09				0.30
Class B ordinary share-basic and diluted			0.57				0.63				0.09				2.73				2.09				0.30

17 / 19

Hotel Operational Data

		December 31, 2024				December 31, 2025
Total hotels in operation:			4,425				4,580
Leased and owned hotels			55				45
Franchised hotels			4,370				4,535
Total hotel rooms in operation			321,282				327,060
Leased and owned hotels			6,264				5,130
Franchised hotels			315,018				321,930
Number of cities			352				355

		Quarter Ended
		2024 Q4				2025 Q4
Occupancy rate (as a percentage)
Leased-and-owned hotels			65.5	%			63.9	%
Franchised hotels			68.6	%			64.7	%
Blended			68.6	%			64.7	%
Average daily rate (in RMB)
Leased-and-owned hotels			241				239
Franchised hotels			167				160
Blended			169				162
RevPAR (in RMB)
Leased-and-owned hotels			158				153
Franchised hotels			115				104
Blended			116				105

		Number of Hotels in Operation								Number of Hotel Rooms in Operation
		December 31, 2024				December 31, 2025				December 31, 2024				December 31, 2025
Mid-to-up-scale			553				585				51,649				54,980
GreenTree Eastern			239				245				25,683				26,761
Deepsleep Hotel			8				9				610				710
Gem			105				118				9,386				10,746
Gya			74				76				6,155				6,360
Vx			105				110				9,093				9,127
others			22				27				722				1276
Mid-scale			2,978				3,026				230,298				227,573
GreenTree Inn			2,340				2,394				183,439				186,185
GT Alliance			505				498				37,631				32,285
GreenTree Apartment			24				29				1,545				1,760
Vatica			109				105				7,683				7,343
Economy hotels			894				969				39,335				44,507
Shell			894				969				39,335				44,507
Total			4,425				4,580				321,282				327,060

18 / 19

Restaurant Operational Data

		December 31, 2024				December 31, 2025
Total restaurants in operation:			182				191
Leased and owned restaurants			18				15
Franchised restaurants			164				176
Number of cities			53				53
Da Niang Dumplings			161				172
Bellagio			21				19
Total restaurants in operation:			182				191

		Quarter Ended
		2024 Q4				2025 Q4
ADT
Leased-and-owned restaurants			186				199
Franchised restaurants			78				79
Blended			93				88
AC (in RMB)
Leased-and-owned restaurants			99				79
Franchised restaurants			33				29
Blended			46				37
ADS (in RMB)
Leased-and-owned restaurants			18,384				15,790
Franchised restaurants			2,605				2,321
Blended			4,234				3,312

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     

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FAQ

How did GreenTree (GHG) perform financially in Q4 2025?

GreenTree posted lower revenue but a narrower net loss in Q4 2025. Total revenue was RMB228.7 million, down 24.9% year over year, and net loss was RMB55.7 million versus RMB72.8 million a year earlier, reflecting impairments and hotel and restaurant closures.

What were GreenTree (GHG) full-year 2025 revenues and profit?

For 2025, GreenTree’s revenue and profit moved in opposite directions. Total revenue declined 18.3% to RMB1,097.4 million, while net income increased to RMB163.4 million from RMB107.3 million, helped by other income, investment-related gains and cost control measures.

How did GreenTree’s non-GAAP metrics change in 2025?

Non-GAAP profitability weakened overall in 2025. Adjusted EBITDA fell 25.8% to RMB286.6 million, and core net income decreased 23.9% to RMB211.2 million, even though Q4 2025 core net income grew 9.2% year over year with a higher margin.

What drove GreenTree (GHG) revenue declines in 2025?

Revenue declines were driven by weaker hotel and restaurant performance. Hotel RevPAR fell, management temporarily waived RMB21.0 million of fees for challenged franchisees, membership revenues declined, and the company closed 15 leased-and-operated hotels and 6 leased-and-operated stores.

What impairments did GreenTree record in its restaurant business?

GreenTree recognized sizable restaurant-related impairments in 2025. In Q4 2025 it booked a goodwill impairment of RMB66.5 million and an indefinite-lived intangible impairment of RMB17.3 million, both tied to restaurant trademarks and goodwill, reducing reported operating and net results.

What guidance did GreenTree give for its 2026 hotel business?

Management expects flat organic hotel revenue in 2026. The company anticipates the decline of total revenues from its organic hotel business for full-year 2026 will be flat compared with 2025 levels, reflecting recovery trends balanced against short-term industry fluctuations.

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• EX-99.1 GREENTREE HOSPITALITY GROUP LTD. REPORTS FOURTH QUARTER 2025 FINANCIAL RESULTS 1.3 MB