GreenTree Hospitality Group (GHG) Q1 2026 earnings summary

Executive summary

• Total revenues for Q1 2026 were RMB 227.7 million, down 14.0% year-over-year, with hotel revenues at RMB 188.7 million (down 11.4%) and restaurant revenues at RMB 39.1 million (down 24.6%).

• Net income rose 80.2% year-over-year to RMB 14.0 million, with a margin of 6.2%. Core net income (non-GAAP) increased 31.7% to RMB 23.9 million.

• Adjusted EBITDA increased 34.3% year-over-year to RMB 53.2 million, with margin expanding to 23.4%.

• Cash from operations remained stable at RMB 58.1 million.

Financial highlights

• Hotel RevPAR was RMB 95, down 5.7% year-over-year; occupancy rate declined to 62.5% from 64.0%.

• Restaurant average daily sales per store dropped 18.8% to RMB 3,270; average check declined 7.6%.

• Adjusted EBITDA for hotels increased 35.7% to RMB 51.4 million, with margin improving to 27.2%.

• Restaurant segment reported a net loss of RMB 0.7 million, with negative margins.

• Gross profit was RMB 68.9 million, down 11.1% year-over-year, but gross margin improved to 30.3%.

Outlook and guidance

• Guidance for organic hotel business revenue is a year-over-year decline of 10% to 15%, reflecting closures of L&O hotels and slower new openings.