GreenTree Hospitality Group (GHG) Q3 2025 earnings summary

Executive summary

• Total revenues for Q3 2025 were RMB 303.6 million, down 15.0% year-over-year, with hotel revenues at RMB 254.5 million (down 11.3%) and restaurant revenues at RMB 49.4 million (down 30.1%).

• Net income for Q3 2025 was RMB 60.3 million, down 7.5% year-over-year, with a net margin of 19.9%.

• Adjusted net income rose 5.7% to RMB 90.5 million, with a margin of 28.4%.

• Adjusted EBITDA for the quarter was RMB 115.0 million, down 6.1% year-over-year, with a margin of 37.9%.

• Cash from operations increased 3.8% year-over-year to RMB 144.5 million.

Financial highlights

• Hotel RevPAR was RMB 124, down 8.4% year-over-year; occupancy rate decreased to 71.3% from 74.6%.

• Restaurant average daily sales per store dropped 24.1% to RMB 3,714; average check fell 19.3% to RMB 37.

• Hotel income from operations was RMB 69.1 million, down 30.5% year-over-year; adjusted income from operations was RMB 109.3 million, up 3.6%.

• Core net income (non-GAAP) for Q3 2025 was RMB 78.0 million, down 16.5% year-over-year.

• Gross profit for Q3 2025 was RMB 126.5 million, with a gross margin of 41.7%.

Outlook and guidance

• Revenue guidance for the hotel business is maintained at a year-over-year decline of 10% to 13%, reflecting closures of certain leased-and-owned hotels due to lease expirations and strategic adjustments.