GreenTree Hospitality Group (GHG) Q1 2025 earnings summary

Executive summary

• Total revenues for the first half of 2025 declined 14.2% year-over-year to RMB 585.1M, with hotel revenues at RMB 488.0M, down 9.5% year-over-year.

• Net income was RMB 84.7M, down 41.6% year-over-year, while adjusted net income was RMB 149.8M, down 22.2% year-over-year.

• Adjusted EBITDA reached RMB 198.8M, up 66.3% year-over-year, with a margin of 34.0%.

• Cash and equivalents stood at RMB 2,034.9M as of June 30, 2025.

• Net income increased to RMB 198.8M from RMB 119.6M in the prior year period.

Financial highlights

• RevPAR for hotels was RMB 107, down 11.0% year-over-year; restaurant average daily sales per store were RMB 3,746, down 24.7%.

• Group net income per ADS was RMB 1.40, down 29.5% year-over-year; core net income per ADS was RMB 1.99, up 67.0%.

• Gross profit was RMB 214.7M, down 22.1% year-over-year; gross margin was 36.7% versus 40.4% last year.

• Income from operations was RMB 91.5M, down from RMB 156.7M; margin was 15.6%.

• Restaurant segment posted a net loss of RMB 1.8M, compared to a net income of RMB 3.7M last year.

Outlook and guidance

• Revenue guidance for the hotel business was revised to -10% to -13% year-over-year, reflecting closures of certain L&O hotels due to lease expirations and strategic adjustments.

• Board approved a cash dividend of US$0.06 per ordinary share/ADS, payable to holders as of October 31, 2025.