GreenTree Hospitality Reports Mixed First Half 2025 Results

Greentree Hospitality ( (GHG) ) has released its Q2 earnings. Here is a breakdown of the information Greentree Hospitality presented to its investors.

GreenTree Hospitality Group Ltd., a prominent hospitality and restaurant management company in China, operates a diverse portfolio of hotels and restaurants across various market segments, from economy to luxury. As of June 30, 2025, the company managed 4,509 hotels and 183 restaurants, making it one of the largest hotel groups globally.

In its financial report for the first half of 2025, GreenTree Hospitality reported a decrease in total revenues by 14.2% year-over-year, amounting to RMB 585.1 million (US$81.7 million). Despite the revenue decline, the company saw an increase in net income to RMB 198.8 million (US$27.7 million), compared to RMB 119.6 million in the same period last year.

Key financial metrics revealed a mixed performance. Adjusted EBITDA decreased by 22.2% to RMB 149.7 million (US$20.9 million), and core net income fell by 29.6% to RMB 92.1 million (US$12.9 million). The company faced challenges in its hotel and restaurant operations, with a notable decrease in occupancy rates and average daily rates, contributing to a drop in revenue per available room (RevPAR) and average daily sales per store (ADS).

The company continues to expand its footprint, opening 138 new hotels in the first half of the year, with a pipeline of 1,245 hotels contracted or under development. However, the closure of several leased-and-operated hotels and restaurants impacted overall revenue.

Looking ahead, GreenTree Hospitality remains cautiously optimistic, adjusting its revenue guidance for the hotel business to reflect a potential year-over-year decline of 10% to 13%. The company is focused on strategic adjustments and leveraging its diverse brand portfolio to navigate the current market challenges.