GreenTree Hospitality reports lower revenue but improved net income, operating income, and adjusted EBITDA.
Stock Earnings Results
June 30, 2026
Table of Contents
June 30, 2026
GreenTree Hospitality Group Ltd. (NYSE: GHG) reported first-quarter 2026 results with lower revenue, higher operating income, improved net income, stronger adjusted EBITDA, and stable operating cash flow.
GreenTree is a hospitality and restaurant management group in China, operating hotels and restaurants across economy, mid-scale, upscale, and other hospitality categories.
The company reported total revenue of RMB227.7 million, or $33.0 million, down 14.0% from the prior-year quarter. Net income increased to RMB14.0 million, or $2.0 million, compared with RMB7.8 million a year earlier.
No analyst estimate data was provided in the supplied release.
Total revenue decreased 14.0% to RMB227.7 million.
Hotel revenue declined 11.4% to RMB188.7 million, mainly due to lower RevPAR and the net closure of 13 leased-and-operated hotels following lease expirations and strategic reviews.
Restaurant revenue declined 24.6% to RMB39.1 million, mainly due to lower average daily sales and the net closure of three leased-and-operated restaurants.
Despite the lower revenue, operating income increased to RMB28.7 million from RMB11.3 million a year earlier. Operating margin was 12.6%.
Net income increased to RMB14.0 million from RMB7.8 million, while net margin improved to 6.2%.
Adjusted EBITDA increased 34.3% to RMB53.2 million. Adjusted EBITDA margin improved to 23.4% from 15.0% a year earlier.
Core net income increased 31.7% to RMB23.9 million.
GreenTree had 4,605 hotels with 328,646 rooms in operation as of March 31, 2026.
The company opened 43 hotels during the quarter and had 1,268 hotels contracted for or under development.
Average daily room rate declined to RMB152 from RMB157 a year earlier. Occupancy declined to 62.5% from 64.0%. RevPAR fell 5.7% to RMB95.
GreenTree also operated 192 restaurants as of March 31, 2026.
Restaurant average check declined 7.6% to RMB45, while average daily tickets fell to 73 from 83. Average daily sales per store declined 18.8% to RMB3,270.
Operating cash inflow was RMB58.1 million, nearly stable from the prior year.
As of March 31, 2026, GreenTree had total cash and cash equivalents, restricted cash, short-term investments, investments in equity securities, and time deposits of RMB2.01 billion, or $291.4 million.
For its organic hotel business, GreenTree expects total revenue to decline 10% to 15% year-over-year, reflecting strategic reviews that led to leased-and-operated hotel closures and a standardization process that slowed hotel openings.
GreenTree’s quarter was a cost control and profitability story.
Revenue declined across both hotels and restaurants, but the company improved operating income, net income, adjusted EBITDA, and core net income. That suggests management reduced costs fast enough to offset weaker demand and lower operating metrics.
The key question is whether GreenTree can stabilize revenue while maintaining better margins. Its large hotel pipeline gives the company room to grow, but weaker RevPAR and restaurant sales show that demand remains uneven.
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