If You Invested in GreenTree Hospitality Group Ltd. (GHG)

GreenTree Hospitality Group Ltd. (NYSE: GHG) is a hospitality and restaurant management group in China. The company is described in its public communications as a leading operator in the Chinese market, with a large network of hotels and restaurants and a focus on brand diversification across the hospitality spectrum.

According to company disclosures, GreenTree manages a broad portfolio of brands that span from the economy segment to mid-scale, up-scale and luxury hospitality offerings mainly in China. The group works with both leased-and-operated ("L&O") and franchised-and-managed ("F&M") models in its hotel and restaurant businesses, and it also reports wholesale and other revenues related to these activities.

Hotel network and hospitality operations

GreenTree’s hotel business forms the core of its operations. Company reports state that, as of various reporting dates, the group operated several thousand hotels and hundreds of thousands of rooms across China. For example, GreenTree reported 4,336 hotels in operation as of September 30, 2024, 4,425 hotels as of December 31, 2024, 4,509 hotels as of June 30, 2025, and 4,533 hotels as of September 30, 2025. These figures illustrate a large-scale hotel network that continues to open new locations while also closing certain leased-and-operated properties following lease expirations and strategic reviews.

The company reports performance indicators commonly used in the hotel industry, including average daily room rate, occupancy rate and revenue per available room (RevPAR). Its filings and press releases explain that changes in hotel revenues are influenced by RevPAR trends, the number of L&O hotels, and the contribution from newly opened properties. GreenTree also distinguishes between revenues from L&O hotels and revenues from F&M hotels, reflecting different economic characteristics under its management and franchise arrangements.

Restaurant management business

In addition to hotels, GreenTree operates a restaurant management business in China. Company communications describe this as including both L&O restaurants and F&M restaurants, as well as a wholesale segment related to the restaurant business. As of December 31, 2024, GreenTree reported 182 restaurants in operation; as of June 30, 2025 it reported 183 restaurants, and as of September 30, 2025 it reported 185 restaurants.

The restaurant segment is tracked using metrics such as average check (AC), average daily tickets (ADT) and average daily sales per store (ADS). GreenTree attributes changes in restaurant revenues to factors such as the number of L&O stores, ADS trends, and the mix between leased-and-operated and franchised-and-managed formats. Company disclosures also discuss a strategic transformation of the restaurant business, including the closure of certain L&O stores and an increased emphasis on franchised and managed stores and locations with more stable consumer traffic.

Business model and revenue composition

GreenTree’s reported revenues are organized into three primary categories for both hotels and restaurants: leased-and-operated revenues, franchised-and-managed revenues, and wholesale and other revenues. The company’s financial releases provide separate line items for hotel and restaurant revenues and then aggregate them into total revenues for each period.

For the hotel business, GreenTree explains that L&O hotel revenues are affected by RevPAR, the number of leased properties, and sublease arrangements, while F&M hotel revenues are influenced by management fees and franchise fees. For the restaurant business, L&O restaurant revenues depend on store count and ADS, while F&M restaurant revenues reflect the number of franchised stores and their performance. Wholesale and other revenues are linked mainly to the wholesale segment of the restaurant business, and company disclosures note that declines in this wholesale segment can reduce total revenues in that category.

Scale, rankings and market recognition

GreenTree’s own public statements highlight its scale in both the Chinese and global hospitality markets. In its description of the business, the company notes that HOTELS magazine ranked GreenTree 11th among the 225 largest global hotel groups in terms of number of hotels in its annual HOTELS’ 225 for 2023, and 13th in a subsequent ranking. It also states that it was the fourth largest hospitality company in China in 2022 and 2023 according to the China Hospitality Association, based on number of hotels.

These rankings emphasize the breadth of GreenTree’s hotel network relative to other hotel groups worldwide and within China. The company also points out that it completed the acquisition of Da Niang Dumplings and Bellagio, which it describes as two leading restaurant chain businesses in China, and that these restaurant brands have been consolidated into its financial reporting as businesses under common control.

Geographic focus and listing

GreenTree describes itself as a hospitality and restaurant management group in China, with its hotel and restaurant networks located mainly in the Chinese market. The company’s American depositary shares (ADSs), each representing one ordinary share, trade on the New York Stock Exchange under the ticker symbol GHG. GreenTree files annual reports on Form 20-F and interim reports on Form 6-K with the U.S. Securities and Exchange Commission as a foreign private issuer.

Operational metrics and strategic themes

Across its public financial disclosures, GreenTree emphasizes several recurring operational themes:

• Hotel performance metrics: Average daily room rate, occupancy rate and RevPAR are used to analyze hotel revenue trends.
• Store and hotel counts: The company regularly reports the number of hotels and restaurants in operation, the number of openings, closures of L&O properties, and the size of its contracted pipeline of hotels under development.
• Business mix: Management distinguishes between leased-and-operated and franchised-and-managed models in both hotels and restaurants, and it has discussed the gradual shift in the restaurant segment toward a higher proportion of franchised and managed stores.
• Non-GAAP measures: GreenTree reports non-GAAP metrics such as Adjusted EBITDA and core net income, and provides definitions that reconcile these measures to net income by adding or excluding items such as other operating expenses, income tax expense, share of loss or gains in equity investees, interest expense, depreciation and amortization, gains or losses from investment in equity securities, government subsidies, and other income or expenses.

These recurring disclosures show how the company evaluates its performance and communicates its operating priorities, including cost control, portfolio optimization and the balance between leased and franchised assets.

Dividend and capital allocation

In 2025, GreenTree announced that its board of directors approved a cash dividend of US$0.06 per ordinary share, or US$0.06 per ADS. The company also indicated that it would continue a share buyback program. These actions, as described in its press releases, reflect the company’s approach to distributing cash to shareholders alongside its ongoing operations and investments.

Regulatory reporting and transparency

GreenTree files periodic reports with the SEC, including Form 20-F annual reports and Form 6-K current reports that furnish financial results for specific periods. For example, the company reported filing its Form 20-F for the fiscal year ended December 31, 2024, and furnished 6-K reports covering first half and third quarter 2025 financial results. These filings provide detailed financial statements, segment information and explanations of operating trends for both the hotel and restaurant businesses.