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GreenTree Hospitality Group Reports Second Quarter Financial Results for 2026

On August 24, 2026, GreenTree Hospitality Group Ltd., publicly traded on NYSE as GHG, announced its unaudited financial results for the second quarter of 2026. The results highlight significant changes in both their hospitality and restaurant sectors compared to the previous year.

Revenue Overview

The total revenues achieved by GreenTree during this period amounted to RMB 235.1 million (approximately USD 34.7 million). This figure represents a substantial decrease of 18.7% from the same quarter last year. Within this context, hotel revenues were reported at RMB 204.6 million (USD 30.2 million), reflecting a 16.2% decline year-over-year. Similarly, restaurant revenues were recorded at RMB 30.5 million (USD 4.5 million), which translates to a staggering 33.5% decrease compared to the previous year.

Hotel Operations

As of June 30, 2026, GreenTree operated a total of 4,615 hotels, boasting 330,029 rooms. In the second quarter, the company opened 18 new hotels, reflecting its ongoing expansion despite challenging market conditions. Nevertheless, key operational metrics showed a decline: the average daily room rate (ADR) decreased by 5.3% to RMB 157, and occupancy rates dropped to 65.2%, down from 67.9% in Q2 2025. Revenue per available room (RevPAR) also faced a significant reduction, dropping to RMB 103, marking a 9.1% decrease year-over-year.

Restaurant Segment Declines

The restaurant division of GreenTree reported a total of 198 operational establishments. However, the average check (AC) decreased significantly by 15.5% to RMB 36, and average daily ticket sales (ADT) fell from 85 to 81. Each location's average daily sales (ADS) plummeted by 20.3% to RMB 2,893 compared to RMB 3,629 in the previous year.

Market Dynamics and Strategic Reviews

The decline in revenues across both hotels and restaurants can be largely attributed to intense market competition and operational adjustments, including the closures of underperforming locations. A net closure of 13 leased-and-operated hotels and 2 restaurants since the same quarter of the previous year has further influenced the figures presented.

Despite these challenges, GreenTree remains focused on strategic growth initiatives, including entering new markets and enhancing existing operations. They are currently developing 1,278 hotels, which will support future revenue generation as part of their expansion strategy.

Profitability and Financial Metrics

Income from operations for the second quarter was reported at RMB 48.2 million (USD 7.1 million) compared to RMB 49.2 million in Q2 2025. The net income for the quarter stood at RMB 21.3 million (USD 3.1 million), a notable decrease from RMB 160 million during the same period in 2025, heavily influenced by prior-year nonrecurring gains from divestments. However, core net income showed a slight increase, rising 4.4% to RMB 47.2 million (USD 7.0 million).

In conclusion, GreenTree Hospitality Group faces challenges amidst a shifting market landscape, but continues to implement strategies aimed at consolidating their position and enhancing operational efficiency. As they navigate these financial results, future growth prospects remain reliant on their ongoing expansion plans and market responsiveness in both hospitality and dining sectors.