GreenTree Hospitality Announces H1 2025 Financial Results

Jam • • Markets • 36 views

GreenTree Hospitality Group reported its unaudited H1 2025 financial results, revealing a mixed performance. Total revenues decreased 14.2% year-over-year to RMB 585.1 million, while net income increased to RMB 198.8 million due to strategic investments. Adjusted EBITDA decreased by 22.2%. The company operated 4,509 hotels as of June 30, 2025, and opened 138 hotels during the period. Hotel RevPAR declined while restaurant ADS also decreased significantly.

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Shanghai, Sept. 30, 2025 – GreenTree Hospitality Group Ltd. (NYSE: GHG), a leading hospitality and restaurant management group in China, today announced its unaudited financial results for the first half of 2025, revealing a mixed performance across its hotel and restaurant divisions in a challenging market landscape.

The company’s report highlights key metrics and strategic adjustments as it navigates evolving consumer preferences and economic realities within China’s dynamic hospitality sector. Analysts are watching closely to see how GreenTree’s adaptable business model and diverse brand portfolio will allow it to capitalize on emerging opportunities.

By the Numbers: Key Financial Highlights

  • Total revenues decreased by 14.2% year-over-year to RMB 585.1 million (US$ 81.7 million)[1], reflecting the combined impact of decreased RevPAR and strategic store closures.
  • Income from operations amounted to RMB 91.5 million (US$ 12.8 million)[1], down from RMB 156.7 million in the first half of 2024. Despite the dip, analysts note that GreenTree’s focus on cost optimization helped maintain a positive margin.
  • Net income increased significantly to RMB 198.8 million (US$ 27.7 million)[1], compared to RMB 119.6 million for the first half of 2024, bolstered by strategic investments and divestments.
  • Adjusted EBITDA (non-GAAP) [2] decreased by 22.2% year-over-year to RMB 149.7 million (US$ 20.9 million)[1], impacted by factors such as decreased RevPAR and wholesale revenues.
  • Core net income (non-GAAP) [3] decreased by 29.6% year-over-year to RMB 92.1 million (US$ 12.9 million)[1], indicating underlying operational headwinds despite net income’s gain.

First Half 2025: Operational Deep Dive

Hotels:

  • As of June 30, 2025, GreenTree operated a total of 4,509 hotels with 321,977 rooms. This expansion demonstrates continued growth in a competitive market, with a strategic focus on both urban and emerging destinations.
  • The company opened 138 hotels and has a pipeline of 1,245 hotels contracted for or under development, showcasing GreenTree’s strategic focus on geographic expansion and market penetration.
  • Average Daily Room Rate (ADR) was RMB 157 in Q1 2025, down 6.9% from RMB 169 in Q1 2024, and RMB 166 in Q2 2025, a 3.9% year-over-year decrease, reflecting competitive pricing pressures and demand fluctuations .
  • Occupancy rates decreased, with Q1 2025 at 64.0% (vs. 67.8% in Q1 2024) and Q2 2025 at 67.9% (vs. 72.5% in Q2 2024). Industry observers point to shifting consumer preferences and increased competition as potentially driving this change.
  • Revenue per Available Room (RevPAR) showed double-digit declines, with Q1 2025 at RMB 100 (down 12.1% year-over-year) and Q2 2025 at RMB 113 (down 10.0% year-over-year). This decrease is attributed to a combination of lower ADR and occupancy rates.

The conversion of Renminbi (“RMB”) into United States dollars (“US$”) is based on the exchange rate of US$1.00=RMB 7.1636 on June 30, 2025 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at https://www.federalreserve.gov/releases/h10/20250707/.

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 and other general expenses, 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 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, and other general expenses but excludes government subsidies (net of 25% tax), gains from investment in equity securities (net of 25% tax), and other income (net of 25% tax).

Restaurants:

  • GreenTree operated 183 restaurants as of June 30, 2025, indicating a stable presence in China’s competitive food and beverage market.
  • Average Check (AC) was RMB 48 in Q1 2025, a 21.5% year-over-year decrease, and RMB 43 in Q2 2025, a 23.8% year-over-year decrease. The report attributes this to pricing adjustments and promotional activities in a bid to attract and retain customers.
  • Average Daily Tickets (ADT) decreased from 94 to 83 in Q1 and from 90 to 85 in Q2, signaling a decrease in foot traffic and customer visits, reflecting shifting consumer dining habits.
  • Average Daily Sales per Store (ADS) were RMB 4,029 in Q1 2025, a decrease of 37.1% from RMB 5,525 in Q1 2024, and RMB 3,629 in Q2 2025, a 30.5% year-over-year decrease, highlighting the impact of decreased check averages and ticket volumes.

Financial Performance Breakdown

Six months Ended

June 30, 2024

June 30, 2024

June 30, 2024

June 30, 2024

RMB

RMB

RMB

RMB

Hotel

Restaurant

Elimination

Total

Revenues

Leased-and-operated revenues

228,393,612

89,674,836

–

318,068,448

Franchised-and-managed revenues

308,970,282

3,769,753

–

312,740,035

Wholesales and others

2,085,205

49,505,598

-460,202

51,130,601

Total revenues

539,449,099

142,950,187

-460,202

681,939,084

 

Six months Ended

June 30, 2025

June 30, 2025

  June 30, 2025

June 30, 2025

June 30, 2025

RMB

RMB

RMB

RMB

US$

Hotel

Restaurant

Elimination

Total

Total

Revenues

Leased-and-operated revenues

194,759,527

59,058,453

-207,413

253,610,567

35,402,670

Franchised-and-managed revenues

291,753,194

3,176,474

–

294,929,668

41,170,594

Wholesales and others

1,478,298

35,511,759

-443,807

36,546,250

5,101,660

Total revenues

487,991,019

97,746,686

-651,220

585,086,485

81,674,924

Analysis of Revenue Streams:

* Total revenues for the first half of 2025 decreased by 14.2% year-over-year to RMB 585.1 million (US$ 81.7 million)[1].
* Hotel revenues were RMB 488.0 million (US$ 68.1 million), a 9.5% year-over-year decrease. This drop was due to an 11% year-over-year decrease in blended RevPAR across the first half of the year and the closure of 9 L&O hotels since the third quarter of last year, partially offset by new openings. Analysts suggest the decline reflects both broad economic trends and GreenTree’s strategic repositioning.
* Restaurant revenues were RMB 97.7 million (US$ 13.6 million), a 31.6% year-over-year decrease, mainly due to the decrease in the number of L&O stores and lower ADS in the second quarter low season.

Examining Leased-and-Operated (L&O) Performance:

* Total revenues from L&O hotels and restaurants were RMB 253.6 million (US$ 35.4 million)[1], representing a 20.3% year-over-year decrease.
* Total revenues from L&O hotels were RMB 194.8 million (US$ 27.2 million)[1], a 14.7% year-over-year decrease. The decrease was primarily attributable to the closing of 9 L&O hotels since the third quarter of last year, a 3.4% year-over-year decrease in RevPAR, and a reduction in sublease revenues mainly due to lease expiration.
* Total revenues from L&O restaurants were RMB 59.1 million (US$ 8.2 million)[1], a 34.1% year-over-year decrease, reflecting the closure of 13 L&O restaurants since the third quarter of 2024 and the year-over-year decrease in ADS.

Analyzing Franchised-and-Managed (F&M) Operations:

* Total revenues from F&M hotels and restaurants were RMB 294.9 million (US$ 41.2 million), a 5.7% year-over-year decrease.
* Total revenues from F&M hotels amounted to RMB 291.8 million (US$ 40.7 million)[1], a 5.6% year-over-year decrease, primarily due to an 11% decrease in F&M hotels blended RevPAR across the first half year and partially offset by new openings.
* Total revenues from F&M restaurants were RMB 3.2 million (US$ 0.4 million)[1], a 15.7% year-over-year decrease, mainly due to decreased ADS, partially offset by new openings.

Wholesale and Other Revenue Trends:

* Total revenues from wholesale and others were RMB 36.5 million (US$ 5.1 million)[1], a 28.5% year-over-year decrease, attributed to the decline in the wholesale segment of the restaurant business.

Expense Management and Profitability:

Six Months Ended

  June 30, 2024

  June 30, 2024

  June 30, 2024

  June 30, 2024

RMB

RMB

RMB

RMB

Hotel

Restaurant

Elimination

Total

Operating costs and expenses

Operating costs

295,609,282

117,276,623

-440,869

412,445,036

Selling and marketing expenses

28,677,514

5,591,136

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Jam

Jam

Jan, a seasoned journalist, specializes in major corporations' stock industry and the IT tech internet field. With years of experience, she's known for dissecting global tech giants' stock moves, analyzing financial impacts and industry trends. Jan excels at simplifying complex data and tech concepts, and her work appears in renowned financial and tech publications.
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