GreenTree Hospitality’s Q1 Revenue Drops 14% While Core Net Income Jumps 31.7%
GHG•GreenTree Hospitality posted Q1 revenue of RMB227.7 million, down 14.0% year-over-year, while core net income rose 31.7% to RMB23.9 million. The company opened 43 hotels, reaching 4,605 properties with 328,646 rooms, but RevPAR fell 5.7% to RMB95 and occupancy slid to 62.5%.
1. Revenue and Profit Trends
Total revenues decreased 14.0% year over year to RMB227.7 million (US$33.0 million) in Q1 2026, while income from operations rose to RMB28.7 million and net income doubled to RMB14.0 million. Core net income (non-GAAP) increased 31.7% to RMB23.9 million, supported by stable cash from operations of RMB58.1 million.
2. Hotel Operations
As of March 31, 2026, GreenTree operated 4,605 hotels with 328,646 rooms, adding 43 new hotels and contracting 1,268 in its development pipeline. Average daily room rate declined 3.4% to RMB152, occupancy fell to 62.5%, and RevPAR dropped 5.7% to RMB95, partly due to lease expirations and strategic closures.
3. Restaurant Business
Restaurant segment revenues fell 24.6% to RMB39.1 million (US$5.7 million) driven by an 18.8% drop in average daily sales per store to RMB3,270 and a net closure of three leased-and-operated outlets. Average check dropped 7.6% to RMB45 and daily tickets fell to 73, reflecting ongoing market pressures.
