GreenTree Hospitality Group (GHG) Q2 2026 earnings summary

Executive summary

• Total revenues for Q2 2026 were RMB 235.1 million, down 18.7% year-over-year, with hotel revenues at RMB 204.6 million (down 16.2%) and restaurant revenues down 33.5%.

• Net income for the quarter was RMB 21.3 million, a decrease of 86.7% year-over-year, mainly due to the absence of prior-year one-time gains, with a margin of 9.0%.

• Core net income (Non-GAAP) rose 4.4% year-over-year to RMB 47.2 million.

• Adjusted EBITDA was RMB 68.9 million, down 12.1% year-over-year, but margin improved to 29.3%.

• Restaurant segment revenues and profitability declined sharply, with ADS down 20.3% and net income negative.

Financial highlights

• Gross profit was RMB 88.6 million, down 16.6% year-over-year; gross margin improved to 37.7%.

• Hotel gross profit margin increased by 0.1 pts to 41.1%; overall gross profit margin up 1.0 pts to 37.7%.

• Hotel RevPAR was RMB 103, down 9.1% year-over-year; occupancy rate dropped to 65.2%.

• Restaurant ADS dropped to RMB 2,893, down 20.3% year-over-year; average check fell 15.5%.

• Adjusted EBITDA for hotels was RMB 46.7 million, down 7.0% year-over-year.

• Cash and equivalents plus investments totaled RMB 2,000.3 million as of June 30, 2026.

Outlook and guidance

• Revenue guidance for the hotel business in 2026 maintained at a 10% to 15% year-over-year decrease.