- Total revenues decreased by 18.7% year over year to RMB235.1 million (US$34.7 million)[1].
- Income from operations was RMB48.2 million (US$7.1 million)[1] compared to RMB49.2 million for the second quarter of 2025.
- Net income was RMB21.3 million (US$3.1 million)[1] compared to RMB160.0 million for the second quarter of 2025.
- Core net income (non-GAAP)[3]increased 4.4% year over year to RMB47.2 million (US$7.0 million)[1]
SHANGHAI, Aug. 24, 2026 /PRNewswire/ -- GreenTree Hospitality Group Ltd. (NYSE: GHG) ("GreenTree", the "Company", "we", "us" and "our"), a leading hospitality and restaurant management group in China, today announced its unaudited financial results for the second quarter of 2026.
Second Quarter of 2026 Operational Highlights
Hotels
- A total of 4,615 hotels with 330,029 hotel rooms were in operation as of June 30, 2026.
- The Company opened 18 hotels in the second quarter of 2026 and had a pipeline of 1,278 hotels contracted for or under development as of June 30, 2026.
- The average daily room rate was RMB157, a decrease of 5.3% from RMB166 in the second quarter of 2025.
- The occupancy rate was 65.2%, decreased from 67.9% in the second quarter of 2025.
- Revenue per available room, or RevPAR, was RMB103, a 9.1% year-over-year decrease.
Restaurants
- A total of 198 restaurants were in operation as of June 30, 2026.
- The AC (average check) was RMB36, a 15.5% year-over-year decrease.
- The ADT (average daily tickets) was 81, decreased from 85 in the second quarter of 2025.
- The ADS (average daily sales per store) was RMB2,893, a decrease of 20.3% from RMB3,629 in the second quarter of 2025.
[1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of 6.7851 on June 30, 2026 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at
https://www.federalreserve.gov/releases/h10/20260706/. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate or at any other rate.
[2] Adjusted EBITDA (non-GAAP) is calculated as net income plus other operating expenses, income tax expense, share of loss in equity investees, net of tax, interest expense, depreciation and amortization, losses from
investment in equity securities, other general expenses, and other expense, net, but excludes other operating income, interest income and other, net, gains from investment in equity securities, share of gains in equity
investees (net of tax), and other income, net. The calculation of Adjusted EBITDA (non-GAAP) included in this report has been aligned according to the above mentioned definition.
[3] Core net income (non-GAAP) is calculated as net income plus share-based compensation, losses from investments in equity securities (net of 25% tax), other expense (net of 25% tax), one-time fees and expense, income tax
expenses related to dividend distribution, and other general expenses but excludes subsidies (net of 25% tax), gains from investment in equity securities (net of 25% tax), and other income (net of 25% tax).
[4] Each ADS represents one ordinary share.
Second Quarter of 2026 Financial Results
Quarter Ended
June June June June
30, 2025 30, 2025 30, 2025 30, 2025
RMB RMB RMB RMB
Hotel Restaurant Elimination Total
Revenues
Leased-and-operated revenues 105,970,283 28,389,854 (207,413) 134,152,724
Franchised-and-managed revenues 137,496,914 1,421,688 138,918,602
Wholesales and others 561,244 16,076,011 (443,807) 16,193,448
Total revenues 244,028,441 45,887,553 (651,220) 289,264,774
Quarter Ended
June June June June June
30, 202
6 30, 2026 30, 2026 30, 2026 30, 2026
RMB RMB RMB RMB US$
Hotel Restaurant Elimination Total Total
Revenues
Leased-and-operated revenues 77,613,926 18,246,301 95,860,227 14,128,049
Franchised-and-managed revenues 126,253,871 505,479 126,759,350 18,682,016
Wholesales and others 717,195 11,771,620 12,488,815 1,840,624
Total revenues 204,584,992 30,523,400 235,108,392 34,650,689
Six Months Ended
June June June June
30, 2025 30, 2025 30, 2025 30, 2025
RMB RMB RMB RMB
Hotel Restaurant Elimination Total
Revenues
Leased-and-operated revenues 194,165,718 59,058,453 (207,413) 253,016,758
Franchised-and-managed revenues 261,353,522 3,176,474 264,529,996
Wholesales and others 1,478,298 35,511,759 (443,807) 36,546,250
Total revenues 456,997,538 97,746,686 (651,220) 554,093,004
Six Months Ended
June June June June June
30, 2026 30, 2026 30, 2026 30, 2026 30, 2026
RMB RMB RMB RMB US$
Hotel Restaurant Elimination Total Total
Revenues
Leased-and-operated revenues 152,151,688 38,268,277 190,419,965 28,064,430
Franchised-and-managed revenues 239,620,481 2,438,634 242,059,115 35,675,099
Wholesales and others 1,508,083 28,897,131 (39,176) 30,366,038 4,475,400
Total revenues 393,280,252 69,604,042 (39,176) 462,845,118 68,214,929
Total revenues were RMB235.1 million (US$34.7 million)[1], an 18.7% year-over-year decrease.
Hotel revenues were RMB204.6 million (US$30.2 million)[1], a 16.2% year-over-year decrease due to a 9.1% year-over-year decrease in RevPAR and a net closure of 13 L&O hotels since the second quarter of 2025 due to lease expiration and strategic reviews. The decrease was partially offset by revenues from new openings.
Restaurant revenues were RMB30.5 million (US$4.5 million)[1], a 33.5% year-over-year decrease, mainly due to a 20.3% decrease in ADS and a net closure of 2 L&O stores since the second quarter of 2025 due to strategic reviews, offset by revenues from new F&M store openings.
Total revenues for the first six months of 2026 were RMB462.8 million (US$68.2 million)[1], a 16.5% year-over-year decrease.
Total revenues from leased-and-operated, or L&O, hotels and restaurants were RMB95.9 million (US$14.1 million)[1], a 28.5% year-over-year decrease.
Total revenues from L&O hotels were RMB77.6 million (US$11.4 million)[1], a 26.8% year-over-year decrease. The decrease was primarily attributable to a 15.3% year-over-year decrease in the second quarter RevPAR of L&O hotels, a net closure of 13 L&O hotels since the second quarter of 2025, and the reduction in sublease revenues resulting from the closure of L&O hotels.
Total revenues from L&O restaurants were RMB18.2 million (US$2.7 million)[1], a 35.7% year-over-year decrease, mainly due to a net closure of 2 L&O stores and the year-over-year decrease of 15.1% in L&O store's ADS.
Total revenues from L&O hotels and restaurants for the first six months of 2026 were RMB190.4 million (US$28.1 million)[1], a 24.7% year-over-year decrease.
Total revenues from franchised-and-managed, or F&M, hotels and restaurants were RMB126.8 million (US$18.7 million)[1], an 8.8% year-over-year decrease.
Total revenues from F&M hotels were RMB126.3 million (US$18.6 million)[1], an 8.2% year-over-year decrease, primarily due to an 8.8% decrease in F&M hotels' RevPAR, an exemption of management fees for hotels facing business difficulties, and a decline of RMB3.0 million in membership revenues. For comparability, the year-over-year change is presented on a basis that applies the same fee-exemption treatment to the corresponding period of 2025. The decrease in membership revenues was partially due to the amortization cycle started from the pandemic period three years ago, in which the sales of membership cards were historically under-performed.
Total revenues from F&M restaurants were RMB0.5 million (US$74,498.4)[1], a 64.4% year-over-year decrease, mainly due to a decrease of 12.8% in the ADS of F&M stores and an exemption of management fees.
Total revenues from F&M hotels and restaurants for the first six months of 2026 were RMB242.1 million (US$35.7 million)[1], an 8.5% year-over-year decrease.
Total revenues from wholesale and others were RMB12.5 million (US$1.8 million)[1], a 22.9% year-over-year decrease, mainly due to the decline in the wholesale segment of the restaurant business.
Total revenues from wholesale and others for the first six months of 2026 were RMB30.4 million (US$4.5 million)[1], a 16.9% year-over-year decrease.
Total operating costs and expenses
Quarter Ended
June June June June
30, 2025 30, 202
5 30, 2025 30, 2025
RMB RMB RMB RMB
Hotel Restaurant Elimination Total
Operating costs and expenses
Operating costs 144,150,447 39,588,702 (651,220) 183,087,929
Selling and marketing expenses 8,424,702 2,062,702 10,487,404
General and administrative expenses 38,032,276 5,186,679 43,218,955
Other operating expenses 4,241,044 221,149 4,462,193
Other general expenses 5,805,656 5,805,656
Total operating costs and expenses 200,654,125 47,059,232 (651,220) 247,062,137
Quarter Ended
June June June June June
30, 202
6 30, 2026 30, 2026 30, 2026 30, 2026
RMB RMB RMB RMB US$
Hotel Restaurant Elimination Total Total
Operating costs and expenses
Operating costs 120,581,608 25,958,440 146,540,048 21,597,331
Selling and marketing expenses 8,896,407 1,308,420 10,204,827 1,504,005
General and administrative expenses 25,084,172 3,026,966 28,111,138 4,143,069
Other operating expenses 182,467 9,112 191,579 28,235
Other general expenses 4,607,450 4,607,450 679,054
Total operating costs and expenses 159,352,104 30,302,938 189,655,042 27,951,694
Six Months Ended
June June June June
30, 202
5 30, 2025 30, 2025 30, 2025
RMB RMB RMB RMB
Hotel Restaurant Elimination Total
Operating costs and expenses
Operating costs 286,868,622 84,128,367 (651,220) 370,345,769
Selling and marketing expenses 22,964,944 4,564,490 27,529,434
General and administrative expenses 79,683,638 10,475,363 90,159,001
Other operating expenses 4,290,239 442,297 4,732,536
Other general expenses 11,611,311 11,611,311
Total operating costs and expenses 405,418,755 99,610,517 (651,220) 504,378,052
Six Months Ended
June June June June June
30, 202
6 30, 2026 30, 2026 30, 2026 30, 2026
RMB RMB RMB RMB US$
Hotel Restaurant Elimination Total Total
Operating costs and expenses
Operating costs 245,589,032 59,783,354 (39,176) 305,333,210 45,000,547
Selling and marketing expenses 18,109,839 3,511,634 21,621,473 3,186,611
General and administrative expenses 49,169,114 5,954,747 55,123,861 8,124,252
Other operating expenses 3,354,535 42,437 3,396,972 500,652
Other general expenses 9,718,569 9,718,569 1,432,340
Total operating costs and expenses 325,941,089 69,292,172 (39,176) 395,194,085 58,244,402
Operating costs were RMB146.5 million (US$21.6 million)[1], a 20.0% year-over-year decrease.
Operating costs of the hotel business were RMB120.6 million (US$17.8 million)[1], a 16.4% year-over-year decrease. The decrease was mainly attributable to lower staff related costs, lower depreciation and amortization, and lower rental costs caused by the net closure of 13 L&O hotels since the second quarter of 2025.
Operating costs of the restaurant business in the second quarter of 2026 were RMB26.0 million (US$3.8 million)[1], a 34.4% year-over-year decrease, due to the closure of L&O stores.
For the first six months of 2026, operating costs were RMB305.3 million (US$45.0 million)[1], a 17.6% decrease.
Selling and marketing expenses were RMB10.2 million (US$1.5 million)[1], a 2.7% year-over-year decrease.
Selling and marketing expenses of the hotel business were RMB8.9 million (US$1.3 million)[1], a 5.6% year-over-year increase. The increase was mainly due to higher advertising and commission expenses.
Selling and marketing expenses of the restaurant business were RMB1.3 million (US$0.2 million)[1], a 36.6% year-over-year decrease, mainly attributable to lower advertising expenses and lower sales-channel commissions.
For the first six months of 2026, selling and marketing expenses were RMB21.6 million (US$3.2 million)[1], a 21.5% decrease.
General and administrative, or G&A expenses were RMB28.1 million (US$4.1 million)[1], a 35.0% year-over-year decrease.
G&A expenses of the hotel business were RMB25.1 million (US$3.7 million)[1], a 34.0% year-over-year decrease. The decrease was mainly due to lower G&A staff related expenses, lower credit losses for accounts receivable and lower consulting fees.
G&A expenses of the restaurant business were RMB3.0 million (US$0.4 million)[1], a 41.6% year-over-year decrease, mainly due to lower G&A staff related expenses and lower credit losses for accounts receivable.
General and administrative expenses for the first six months of 2026 were RMB55.1 million (US$8.1 million)[1], a 38.9% year-over-year decrease.
Other operating expenses were RMB0.2 million (US$28,235.0)[1].
Other operating expenses for the first six months of 2026 were RMB3.4 million (US$0.5 million)[1], decreased from RMB4.7 million one year ago.
Other general expenses were RMB4.6 million (US$0.7 million)[1], mainly attributable to provisions for franchisee loans.
Other general expenses for the first six months of 2026 were RMB9.7 million (US$1.4 million)[1], a decrease from RMB11.6 million one year ago.
Gross profit was RMB88.6 million (US$13.1 million)[1], a year-over-year decrease of 16.6%. Gross margin was 37.7%, compared to 36.7% a year ago. The gross profit of the hotel business was RMB84.0 million (US$12.4 million)[1], a 15.9% year-over-year decrease. The gross profit of the restaurant business was RMB4.6 million (US$0.7 million)[1], a 27.5% year-over-year decrease.
Income from operations in the second quarter of 2026 was RMB48.2 million (US$7.1 million)[1], compared to income from operations of RMB49.2 million in the second quarter of 2025, with a margin of 20.5%. The stable profitability was mainly attributable to lower operating costs and expenses, despite the decline in revenue.
Income from operations of the hotel business was RMB46.7 million (US$6.9 million)[1], compared to an income from operations of RMB50.2 million in the second quarter of 2025, with a margin of 22.8%.
Income from operations of the restaurant business in the second quarter of 2026 was RMB1.6 million (US$0.2 million)[1], compared to loss from operations of RMB1.0 million in the second quarter of 2025, with a margin of 5.2%.
Income from operations for the first six months of 2026 was RMB76.9 million (US$11.3 million)[1] compared to income from operations of RMB60.5 million in 2025, with a margin of 16.6%.
Net income in the second quarter of 2026 was RMB21.3 million (US$3.1 million)[1], compared to a net income of RMB160.0 million in the second quarter of 2025, and net margin was 9.0%.
Net income of the hotel business was RMB19.7 million (US$2.9 million)[1], compared to a net income of RMB161.2 million in the second quarter of 2025, and net margin was 9.7%. Hotel net income in the second quarter of 2025 was impacted by the one-time divestment of our ownership in Argyle and fair value fluctuation in securities. Besides, hotel net income was also impacted by foreign exchange losses, bad debt expenses driven by accounts receivables, and withholding tax due to dividends distributions.
Net income of the restaurant business in the second quarter of 2026 was RMB1.5 million (US$0.2 million)[1], compared to a net loss of RMB1.2 million in the second quarter of 2025, and net margin was 4.9%.
Net income for the first six months of 2026 was RMB35.3 million (US$5.2 million)[1], compared to a net income of RMB167.8 million in 2025, and net margin was 7.6%.
Adjusted EBITDA (non-GAAP)[2] in the second quarter of 2026 was RMB68.9 million (US$10.2 million)[1], a year-over-year decrease of 12.1%. Adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP)[2] as a percentage of total revenues, was 29.3%, compared to 27.1% a year ago.
Adjusted EBITDA (non-GAAP)[2] for the first six months of 2026 was RMB122.1 million (US$18.0 million)[1], a year-over-year increase of 3.5%.
Core net income (non-GAAP)[3] in the second quarter of 2026 was RMB47.2 million (US$7.0 million)[1], a year-over-year increase of 4.4%. The core net margin, defined as core net income (non-GAAP)[3] as a percentage of total revenues, was 20.1%, compared to 15.6% one year ago.
Core net income (non-GAAP)[3] for the first six months of 2026 was RMB71.1 million (US$10.5 million)[1], a year-over-year increase of 16.2%.
Earnings per American Depositary Share, or ADS[4] (basic and diluted) were RMB0.21 (US$0.03)[1], decreased from RMB1.59 one year ago.
Earnings per American Depositary Share, or ADS[4] (basic and diluted) for the first six months of 2026 were RMB0.36 (US$0.05)[1], decreased from RMB1.68 one year ago.
Core net income per ADS[4] (basic and diluted) (non-GAAP) was RMB0.47 (US$0.07)[1], increased from RMB0.45 a year ago.
Core net income per ADS[4] (basic and diluted) (non-GAAP) was RMB0.70 (US$0.10)[1] for the first six months of 2026, an increase from RMB0.60 a year ago.
Cash Flow. Operating cash inflow in the second quarter of 2026 was RMB23.3 million (US$3.4 million)[1] as a result of income from operations. The amount decreased by RMB23.3 million compared with the second quarter of 2025, primarily due to a net decline of approximately RMB31.0 million in accounts payable to franchisees. Investing cash outflow was RMB25.0 million (US$3.7 million)[1], which was primarily due to purchase of equipment for newly opened L&O hotels and loans for the renovation of newly opened resort hotels from strategic reviews. Financing cash outflow was RMB0.2 million (US$29,476.0)[1], mainly due to repayment of bank borrowings.
Cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits. As of June 30, 2026, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB2,000.3 million (US$294.8 million)[1], compared to RMB2,010.2 million as of March 31, 2026. The decrease was mainly due to investment on purchase of equipment for newly opened L&O hotels and loans for the renovation of newly opened resort hotels from strategic reviews, partially offset by cash from operating activities.
Guidance
Based on our performance in the first half year, we maintain our previous revenue guidance for the hotel business, that we expect revenue to decrease by 10% to 15% year over year for the year of 2026. The guidance set forth above reflects the Company's current and preliminary views based on its recovery and may not be indicative of the final financial results for any future periods or the full year.
Recent Development
In 2025, we entered into an agreement to acquire a hotel property located opposite the Twin Towers in Malaysia for strategic purposes. This property was handed over in July 2026 and will serve as our flagship asset to scale our hotel network across Malaysia and the broader Southeast Asian market.
In 2025, we entered into a letter of intent to acquire a landmark property along the Huangpu River waterfront in Yangpu District, Shanghai, and subsequently won the bid for the property through a competitive bidding process. The property is planned to be developed into the Company's signature flagship hotel in Shanghai, anchoring our mid-to-up-scale strategy at one of the city's prime riverfront locations. Beyond hotel operations, the property will feature a curated regional lifestyle center with food-and-beverage and other amenities designed to complement the hotel, enhance the guest experience and generate additional recurring revenue streams, while one floor will house the Company's corporate offices. The remaining closing procedures are expected to be completed before the end of the third quarter of 2026, subject to customary closing conditions.
Share Repurchase Program
The Board of Directors has approved a share repurchase program authorizing the Company to repurchase up to US$5 million of its Class A ordinary shares over a two-year period, effective from the date of approval. Repurchases may be conducted through open market transactions at prevailing market prices, privately negotiated transactions, block trades or other legally permitted methods, at the Company's discretion, subject to market conditions, applicable securities laws and regulations, and the trading price of the Company's ADSs. The program may be suspended, modified or terminated at any time at the Board's discretion without prior notice.
Use of Non-GAAP Financial Measures
We believe that Adjusted EBITDA and core net income, as we present them, are useful financial metrics to assess our operating and financial performance before the impact of investing and financing transactions, income taxes and certain non-core and non-recurring items in our financial statements.
The presentation of Adjusted EBITDA and core net income should not be construed as an indication that our future results will be unaffected by other charges and gains we consider to be outside the ordinary course of our business.
The use of Adjusted EBITDA and core net income has certain limitations because it does not reflect all items of income and expenses that affect our operations. Items excluded from Adjusted EBITDA and core net income are significant components in understanding and assessing our operating and financial performance. Depreciation and amortization expense for various long-term assets, income tax and share-based compensation have been and will be incurred and are not reflected in the presentation of Adjusted EBITDA. Each of these items should also be considered in the overall evaluation of our results. Additionally, Adjusted EBITDA and core net income do not consider capital expenditures and other investing activities and should not be considered as a measure of our liquidity. We compensate for these limitations by providing the relevant disclosure of our depreciation and amortization, interest expense/income, gains/losses from investments in equity securities, income tax expenses, share-based compensation, share of loss in equity investees, subsidies and other relevant items both in our reconciliations to the corresponding U.S. GAAP financial measures and in our consolidated financial statements, all of which should be considered when evaluating our performance.
The terms Adjusted EBITDA and core net income are not defined under U.S. GAAP, and Adjusted EBITDA and core net income are not measures of net income, operating income, operating performance or liquidity presented in accordance with U.S. GAAP. When assessing our operating and financial performance, you should not consider this data in isolation or as a substitute for our net income, operating income or any other operating performance measure that is calculated in accordance with U.S. GAAP. In addition, our Adjusted EBITDA and core net income may not be comparable to Adjusted EBITDA and core net income or similarly titled measures utilized by other companies since such other companies may not calculate Adjusted EBITDA and core net income in the same manner as we do.
Reconciliations of the Company's non-GAAP financial measures, including Adjusted EBITDA and core net income, to the consolidated statement of operations information are included at the end of this press release.
About GreenTree Hospitality Group Ltd.
GreenTree Hospitality Group Ltd. ("GreenTree" or the "Company") (NYSE: GHG) is a leading hospitality and restaurant management group in China. As of June 30, 2026, GreenTree had a total number of 4,615 hotels and 198 restaurants. GreenTree was the fourth largest hospitality company in China in 2025 according to the China Hospitality Association. In 2025, HOTELS magazine ranked GreenTree 12th among the 225 largest global hotel groups in terms of number of hotels in its annual HOTELS' 225.
GreenTree has a broad portfolio of diverse brands spanning from the economy to mid-scale, mid-to-up-scale and luxury segments of the hospitality industry mainly in China. Through its strong membership base, expansive booking network, and efficient system, GreenTree aims to keep closer relationships with all of its clients and partners by providing a diverse brand portfolio that features comfort, style and value.
For more information on GreenTree, please visit http://ir.998.com
Safe Harbor Statements
This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. In some cases, these forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," "confident," "future," or other similar expressions. GreenTree may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about or based on GreenTree's current beliefs, expectations, assumptions, estimates and projections about us and our industry, are forward-looking statements that involve known and unknown factors, risks and uncertainties that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Such factors and risks include, but not limited to the following: GreenTree's goals and growth strategies; its future business development, financial condition and results of operations; trends in the hospitality industry in China and globally; competition in our industry; fluctuations in general economic and business conditions in China and other regions where we operate; the regulatory environment in which we and our franchisees operate; and assumptions underlying or related to any of the foregoing. You should not place undue reliance on these forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided, including the forward-looking statements made, in this press release are current as of the date of the press release. Except as required by law, GreenTree undertakes no obligation to update any such information or forward-looking statements to reflect events or circumstances after the date on which the information is provided or statements are made, or to reflect the occurrence of unanticipated events.
Financial Tables and Operational Data Follow
GreenTree Hospitality Group Ltd.
Unaudited Condensed Consolidated Balance Sheets
December 31 June 30 June 30
2025 2026 2026
RMB RMB US$
ASSETS
Current assets:
Cash and cash equivalents 1,652,179,474 1,689,632,928 249,021,080
Restricted cash 7,389,650 6,209,434 915,157
Short-term investments - 285,570,000 42,087,810
Accounts receivable, net of allowance 81,335,494 67,987,065 10,020,053
Amounts due from related parties 18,843,062 18,889,143 2,783,915
Inventories 4,922,160 5,140,534 757,621
Other current assets 92,557,400 100,329,837 14,786,788
Loans receivable, net 38,798,333 44,431,478 6,548,390
Total current assets 1,896,025,573 2,218,190,419 326,920,814
Non-current assets:
Amounts due from a related party 110,000,000 110,000,000 16,211,994
Restricted cash 18,869,900 18,870,700 2,781,197
Long-term time deposits 285,570,000
Loans receivable, net 12,034,825 12,880,353 1,898,329
Property and equipment, net 559,918,957 531,254,248 78,297,188
Intangible assets, net 56,403,818 54,609,365 8,048,424
Goodwill 25,721,262 25,650,746 3,780,452
Long-term investments 156,929,090 154,751,060 22,807,484
Operating lease right-of-use assets 1,130,088,595 1,110,322,494 163,641,287
Other assets 297,560,050 325,549,861 47,980,112
Deferred tax assets 237,098,634 233,667,462 34,438,323
TOTAL ASSETS 4,786,220,704 4,795,746,708 706,805,604
LIABILITIES AND EQUITY
Current liabilities:
Long-term bank loans, current portion 56,800,000 256,000,000 37,729,731
Accounts payable 44,687,183 44,670,517 6,583,620
Advance from customers 21,946,599 20,056,437 2,955,953
Amounts due to related parties 17,518,102 16,190,050 2,386,118
Salary and welfare payable 73,657,641 75,502,874 11,127,747
Deferred revenue 169,139,889 166,024,779 24,469,025
Accrued expenses and other current liabilities 539,836,968 523,274,741 77,121,154
Income tax payable 72,129,824 36,878,708 5,435,249
Operating lease liabilities, current 184,665,265 163,899,705 24,155,827
Total current liabilities 1,180,381,471 1,302,497,811 191,964,424
Long-term bank loans 199,400,000 45,597,470 6,720,236
Deferred revenue 134,414,010 115,474,940 17,018,900
Other long-term liabilities 117,513,512 110,137,975 16,232,329
Operating lease liabilities, non-current 1,032,472,822 1,047,898,560 154,441,137
Deferred tax liabilities 55,941,338 50,682,606 7,469,692
Unrecognized tax benefits 457,930,743 468,007,303 68,975,741
TOTAL LIABILITIES 3,178,053,896 3,140,296,665 462,822,459
Shareholders' equity:
Class A ordinary shares 222,587,070 222,587,070 32,805,275
Class B ordinary shares 115,534,210 115,534,210 17,027,636
Treasury Stock (48,054,863) (48,054,863) (7,082,410)
Additional paid-in capital 1,566,949,877 1,566,949,877 230,939,835
Retained earnings (Accumulated losses) (291,545,545) (255,247,242) (37,618,789)
Accumulated other comprehensive income 11,093,099 23,087,047 3,402,610
Total GreenTree Hospitality Group Ltd.shareholders' 1,576,563,848 1,624,856,099 239,474,157
equity
Non-controlling interests 31,602,960 30,593,944 4,508,988
Total shareholders' equity 1,608,166,808 1,655,450,043 243,983,145
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 4,786,220,704 4,795,746,708 706,805,604
GreenTree Hospitality Group Ltd.
Unaudited Condensed Consolidated Statements of Comprehensive Income
Quarter Ended Six Months Ended
June June June June June June
30, 2025 30, 2026 30, 2026 30, 2025 30, 2026 30, 2026
RMB RMB US$ RMB RMB US$
Revenues
Leased-and-operated revenues 134,152,724 95,860,227 14,128,049 253,016,758 190,419,964 28,064,430
Franchised-and-managed revenues 138,918,602 126,759,349 18,682,016 264,529,997 242,059,115 35,675,099
Wholesales and others 16,193,449 12,488,815 1,840,624 36,546,250 30,366,038 4,475,400
Total revenues 289,264,774 235,108,391 34,650,689 554,093,005 462,845,118 68,214,929
Operating costs and expenses
Operating costs (183,087,930) (146,540,048) (21,597,331) (370,345,769) (305,333,210) (45,000,547)
Selling and marketing expenses (10,487,404) (10,204,827) (1,504,005) (27,529,434) (21,621,473) (3,186,611)
General and administrative expenses (43,218,955) (28,111,138) (4,143,069) (90,159,001) (55,123,861) (8,124,252)
Other operating expenses (4,462,193) (191,579) (28,235) (4,732,536) (3,396,972) (500,652)
Other general expenses (5,805,656) (4,607,450) (679,054) (11,611,311) (9,718,569) (1,432,339)
Total operating costs and expenses (247,062,137) (189,655,042) (27,951,694) (504,378,052) (395,194,085) (58,244,401)
Other operating income 6,961,716 2,787,310 410,799 10,762,348 9,259,293 1,364,651
Income from operations 49,164,353 48,240,659 7,109,794 60,477,301 76,910,325 11,335,179
Interest income and other, net 7,941,224 8,260,486 1,217,445 18,563,426 17,093,664 2,519,294
Interest expense (1,940,043) (1,818,422) (268,002) (3,817,915) (3,678,202) (542,100)
Gains (losses) from investment in equity 24,800,795 24,800,795
securities
Other income, net 105,686,128 (22,673,585) (3,341,673) 97,329,451 (33,327,474) (4,911,861)
Income before income taxes 185,652,457 32,009,138 4,717,564 197,353,058 56,998,313 8,400,512
Income tax expense (25,969,005) (9,829,293) (1,448,659) (30,183,730) (19,530,999) (2,878,513)
Income (loss) before share of gains in equity 159,683,452 22,179,845 3,268,905 167,169,328 37,467,314 5,521,999
investees
Share of income/(loss) in equity investees, net of tax 301,937 (921,953) (135,879) 603,873 (2,178,030) (321,002)
Net income (loss) 159,985,388 21,257,892 3,133,026 167,773,201 35,289,284 5,200,997
Net income/(loss) attributable to non-controlling interests 1,650,876 (464,173) (68,411) 2,695,208 1,009,019 148,711
Net income attributable to ordinary 161,636,264 20,793,719 3,064,615 170,468,409 36,298,303 5,349,708
shareholders
Net earnings per share
Class A ordinary share-basic and diluted 1.59 0.21 0.03 1.68 0.36 0.05
Class B ordinary share-basic and diluted 1.59 0.21 0.03 1.68 0.36 0.05
Net earnings per ADS[4]
Class A ordinary share-basic and diluted 1.59 0.21 0.03 1.68 0.36 0.05
Class B ordinary share-basic and diluted 1.59 0.21 0.03 1.68 0.36 0.05
Weighted average shares outstanding
Class A ordinary share-basic and diluted 66,636,925 66,134,416 66,134,416 66,636,925 66,134,416 66,134,416
Class B ordinary share-basic and diluted 34,762,909 34,762,909 34,762,909 34,762,909 34,762,909 34,762,909
Other comprehensive income, net of tax
Foreign currency translation adjustments 4,831,702 8,024,096 1,182,605 9,663,403 11,993,948 1,767,689
Comprehensive income, net of tax 164,817,090 29,281,988 4,315,631 177,436,604 47,283,232 6,968,686
Comprehensive income/(loss) attributable to 1,650,876 (464,173) (68,411) 2,695,208 1,009,019 148,711
non-controlling interests
Comprehensive income (loss) attributable to 166,467,965 28,817,815 4,247,220 180,131,812 48,292,251 7,117,397
ordinary shareholders
GreenTree Hospitality Group Ltd.
Unaudited Hotel Business Results
Quarter Ended Six Months Ended
June June June June June June
30, 2025 30, 2026 30, 2026 30, 2025 30, 2026 30, 2026
RMB RMB US$ RMB RMB US$
Revenues
Leased-and-operated revenues 105,970,283 77,613,926 11,438,877 194,165,718 152,151,688 22,424,384
Franchised-and-managed revenues 137,496,914 126,253,871 18,607,518 261,353,522 239,620,481 35,315,689
Others 561,244 717,195 105,701 1,478,298 1,508,083 222,264
Total revenues 244,028,441 204,584,992 30,152,097 456,997,538 393,280,252 57,962,337
Operating costs and expenses
Hotel operating costs (144,150,447) (120,581,608) (17,771,530) (286,868,622) (245,589,032) (36,195,345)
Selling and marketing expenses (8,424,702) (8,896,407) (1,311,168) (22,964,944) (18,109,839) (2,669,060)
General and administrative expenses (38,032,276) (25,084,172) (3,696,949) (79,683,638) (49,169,114) (7,246,631)
Other operating expenses (4,241,044) (182,467) (26,892) (4,290,239) (3,354,535) (494,397)
Other general expenses (5,805,656) (4,607,450) (679,054) (11,611,311) (9,718,569) (1,432,340)
Total operating costs and expenses (200,654,125) (159,352,104) (23,485,594) (405,418,755) (325,941,089) (48,037,773)
Other operating income 6,826,954 1,434,752 211,456 10,391,669 7,867,615 1,159,543
Income from operations 50,201,269 46,667,640 6,877,959 61,970,453 75,206,778 11,084,107
Interest income and other, net 7,910,974 8,255,562 1,216,719 18,502,925 17,085,059 2,518,026
Interest expense (1,891,327) (1,818,422) (268,002) (3,769,199) (3,678,202) (542,100)
Gains (losses) from investment in equity 24,800,795 24,800,795
securities
Other income, net 105,697,809 (22,629,180) (3,335,128) 97,352,813 (33,234,724) (4,898,191)
Income before income taxes 186,719,520 30,475,600 4,491,548 198,857,787 55,378,911 8,161,842
Income tax expense (25,869,423) (9,804,376) (1,444,986) (29,850,815) (19,102,201) (2,815,316)
Income (loss) before share of gains in 160,850,097 20,671,224 3,046,561 169,006,972 36,276,710 5,346,526
equity investees
Share of income/(loss) in equity investees, net of tax 301,937 (921,953) (135,879) 603,873 (2,178,030) (321,002)
Net income (loss) 161,152,033 19,749,271 2,910,682 169,610,845 34,098,680 5,025,524
GreenTree Hospitality Group Ltd.
Unaudited Restaurant Business Results
Quarter Ended Six Months Ended
June June June June June June
30, 2025 30, 2026 30, 2026 30, 2025 30, 2026 30, 2026
RMB RMB US$ RMB RMB US$
Revenues
Leased-and-operated revenues 28,389,854 18,246,301 2,689,172 59,058,453 38,268,277 5,640,046
Franchised-and-managed revenues 1,421,688 505,479 74,498 3,176,474 2,438,634 359,410
Wholesales and others 16,076,011 11,771,620 1,734,922 35,511,759 28,897,131 4,258,910
Total revenues 45,887,553 30,523,400 4,498,593 97,746,686 69,604,042 10,258,366
Operating costs and expenses
Restaurant operating costs (39,588,702) (25,958,440) (3,825,801) (84,128,367) (59,783,354) (8,810,976)
Selling and marketing expenses (2,062,703) (1,308,420) (192,837) (4,564,490) (3,511,634) (517,551)
General and administrative expenses (5,186,679) (3,026,966) (446,120) (10,475,363) (5,954,747) (877,621)
Other operating expenses (221,149) (9,112) (1,343) (442,297) (42,437) (6,254)
Total operating costs and expenses (47,059,232) (30,302,938) (4,466,100) (99,610,517) (69,292,172) (10,212,402)
Other operating income 134,762 1,352,558 199,342 370,679 1,391,678 205,108
Income from operations (1,036,917) 1,573,020 231,834 (1,493,152) 1,703,548 251,072
Interest income and other, net 30,251 4,924 726 60,501 8,605 1,268
Interest expense (48,716) (48,716)
Other income, net (11,681) (44,405) (6,544) (23,362) (92,750) (13,670)
Income before income taxes (1,067,063) 1,533,539 226,016 (1,504,729) 1,619,403 238,670
Income tax expense (99,582) (24,917) (3,672) (332,915) (428,798) (63,197)
Income (loss) before share of gains in (1,166,645) 1,508,622 222,343 (1,837,644) 1,190,605 175,473
equity investees
Share of income/(loss) in equity investees, net of tax -
Net income (loss) (1,166,645) 1,508,622 222,343 (1,837,644) 1,190,605 175,473
GreenTree Hospitality Group Ltd.
Unaudited Condensed Consolidated Statements of Cash Flows
Quarter Ended
Six Months Ended
June June June June June June
30, 2025 30, 2026 30, 2026 30, 2025 30, 2026 30, 2026
RMB RMB US$ RMB RMB US$
Operating activities:
Net cash provided by operating activities 46,586,703 23,305,470 3,434,800 104,813,193 81,452,750 12,004,649
Investing activities:
Prepayments and purchases of property, plant and equipment (18,911,621) (12,689,579) (1,870,213) (44,392,506) (64,326,633) (9,480,573)
Purchases of intangible assets - (101,463) (14,954)
Proceeds from disposal of property, plant and equipment 215,871 605,022 89,169 237,334 605,022 89,169
Proceeds from disposal of long-term investments 109,036,386 100,000 14,738 109,036,386 600,000 88,429
Purchases of short-term investments (23,147) (23,147)
Loan to related parties (625,000) (625,000)
Repayment from related parties 118,982 118,982
Loan to third parties - (16,167,100) (2,382,736) (16,167,100) (2,382,736)
Loan to fanchisees - (215,659) (31,784) (2,010,000) (1,604,559) (236,483)
Repayment from franchisees 8,624,735 3,343,480 492,769 14,684,093 5,713,396 842,052
Net cash (used in) provided by investing activities 98,436,206 (25,023,836) (3,688,057) 77,026,142 (75,281,337) (11,095,096)
Financing activities:
Repayment of bank loans (200,000) (200,000) (29,476) (200,000) (200,000) (29,476)
Proceeds from bank loans - 46,754,778 6,890,801
Net cash provided by (used in) financing activities (200,000) (200,000) (29,476) (200,000) 46,554,778 6,861,325
Effect of exchange rate changes on cash and cash equivalents and restricted cash (4,979,489) (7,949,613) (1,171,627) (9,958,977) (16,452,153) (2,424,746)
Net (decrease) increase in cash and cash equivalents and restricted cash 139,843,421 (9,867,979) (1,454,360) 171,680,358 36,274,038 5,346,132
Cash and cash equivalents and restricted cash at the beginning of the period 1,557,038,875 1,724,581,041 254,171,794 1,525,201,938 1,678,439,024 247,371,302
Cash and cash equivalents and restricted cash at the end of the period 1,696,882,296 1,714,713,062 252,717,434 1,696,882,296 1,714,713,062 252,717,434
GreenTree Hospitality Group Ltd.
Unaudited Reconciliation of GAAP and Non-GAAP Results
Quarter Ended Six Months Ended
June June June June June June
30, 2025 30, 2026 30, 2026 30, 2025 30, 2026 30, 2026
RMB RMB US$ RMB RMB US$
Net income 159,985,388 21,257,892 3,133,026 167,773,201 35,289,284 5,200,997
Deduct:
Other operating income 6,961,716 2,787,310 410,799 10,762,348 9,259,293 1,364,651
Interest income and other, net 7,941,224 8,260,486 1,217,445 18,563,426 17,093,664 2,519,294
Gains from investment in equity securities 24,800,795 24,800,795
Share of gain in equity investees, net of tax 301,937 603,873
Other income, net 105,686,128 97,329,451
Add:
Other operating expenses 4,462,193 191,579 28,235 4,732,536 3,396,972 500,652
Other general expenses 5,805,656 4,607,450 679,054 11,611,311 9,718,569 1,432,340
Income tax expenses (benefits) 25,969,005 9,829,293 1,448,659 30,183,730 19,530,999 2,878,513
Share of loss in equity investees, net of tax - 921,953 135,879 2,178,030 321,002
Interest expenses 1,940,043 1,818,422 268,002 3,817,915 3,678,202 542,100
Depreciation and amortization 25,875,796 18,625,227 2,745,019 51,900,949 41,298,721 6,086,678
Other expense, net - 22,673,585 3,341,673 33,327,474 4,911,861
Adjusted EBITDA (Non-GAAP)[2] 78,346,281 68,877,605 10,151,303 117,959,749 122,065,294 17,990,198
Quarter Ended Six Months Ended
June June June June June June
30, 2025 30, 2026 30, 2026 30, 2025 30, 2026 30, 2026
RMB RMB US$ RMB RMB US$
Net income 159,985,388 21,257,892 3,133,026 167,773,201 35,289,284 5,200,997
Deduct:
Subsidies (net of 25% tax) 1,527,866 12,024 1,772 5,447,641 3,252,866 479,413
Gains from investment in equity securities (net 18,600,596 18,600,596
of 25% tax)
Other income (net of 25% tax) 107,775,298 101,507,790
Add:
Other expense (net of 25% tax) 17,005,189 2,506,255 24,995,606 3,683,896
Other general expenses 5,805,656 4,607,450 679,053 11,611,311 9,718,569 1,432,340
Income tax expenses related to dividend distribution 7,299,300 4,307,627 634,866 7,299,300 4,307,627 634,866
Core net income (Non-GAAP)[3] 45,186,584 47,166,135 6,951,428 61,127,785 71,058,221 10,472,686
Core net income per ADS[4] (Non-GAAP)
Class A ordinary share-basic and diluted 0.45 0.47 0.07 0.60 0.70 0.10
Class B ordinary share-basic and diluted 0.45 0.47 0.07 0.60 0.70 0.10
Hotel Operational Data
June 30, June 30,
202
5 2026
Total hotels in operation: 4,509 4,615
Leased-and-owned hotels 55 42
Franchised hotels 4,454 4,573
Total hotel rooms in operation 321,977 330,029
Leased-and-owned hotels 6,262 4,902
Franchised hotels 315,715 325,127
Number of cities 357 347
Quarter Ended
June 30, June 30,
2025 2026
Occupancy rate (as a percentage)
Leased-and-owned hotels 72.30 % 63.50 %
Franchised hotels 67.80 % 65.20 %
Blended 67.90 % 65.20 %
Average daily rate (in RMB)
Leased-and-owned hotels 245 236
Franchised hotels 164 155
Blended 166 157
RevPAR (in RMB)
Leased-and-owned hotels 177 150
Franchised hotels 111 101
Blended 113 103
Number of Hotels in Number of Hotel Rooms in
Operation Operation
June June June June
30, 202 30, 202
5 6 30, 2025 30, 2026
Mid-to-up-scale 569 596 52,773 56,448
GreenTree Eastern 236 252 25,107 28,316
Deep Sleep Hotel 8 9 610 710
Gem 119 118 10,781 10,726
Gya 72 79 6,012 6,676
Vx 108 110 9,024 9,117
Others 26 28 1,239 903
Mid-scale 3,005 3,040 226,336 228,537
GreenTree Inn 2,366 2,343 184,561 185,694
GT Alliance 408 392 25,930 24,936
GreenTree Apartment 24 30 1,545 1,860
Vatica 107 102 7,481 7,111
Others 100 173 6,819 8,936
Economy hotels 935 979 42,868 45,044
Shell 935 979 42,868 45,044
Others
Total 4,509 4,615 321,977 330,029
Restaurant Operational Data
June 30, June 30,
2025 2026
Total restaurants in operation: 183 198
Leased-and-owned restaurants 15 13
Franchised restaurants 168 185
Number of cities 53 53
Da Niang Dumplings 164 180
Bellagio 19 18
Quarter Ended
2025 Q2 2026 Q2
ADT
Leased-and-owned restaurants 215 194
Franchised restaurants 74 74
Blended 85 81
AC (in RMB)
Leased-and-owned restaurants 88 83
Franchised restaurants 32 28
Blended 43 36
ADS (in RMB)
Leased-and-owned restaurants 18,931 16,081
Franchised restaurants 2,363 2,062
Blended 3,629 2,893
For more information, please contact:
GreenTree
Ms. Selina Yang
Phone: +86-158-2166-6251
E-mail: ir@998.com
Ms. Hannah Zhang
Phone: +86-182-2560-8592
E-mail: ir@998.com
Christensen
In Shanghai
Mr. Jerry Xu
Phone: +86-138-1680-0706
E-mail: jerry.xu@christensencomms.com
In Hong Kong
Ms. Karen Hui
Phone: +852-9266-4140
E-mail: karen.hui@christensencomms.com
In the US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
E-mail: linda.bergkamp@christensencomms.com
View original content:https://www.prnewswire.com/news-releases/greentree-hospitality-group-ltd-reports-second-quarter-of-2026-financial-results-302858931.html
SOURCE GreenTree Hospitality Group Ltd.
