Income from operations was RMB70.1 million (US$9.8 million)[1] compared to RMB106.4 million for the third quarter of 2024.
Net income was RMB60.3 million (US$8.5 million)[1] compared to RMB65.2 million for the third quarter of 2024.
Adjusted EBITDA (non-GAAP) [2] decreased 6.1% year over year to RMB115.0 million (US$16.1 million)[1]
Cash from operations increased 3.8% year over year to RMB144.5 million (US$20.3 million) [1]
SHANGHAI, Dec. 23, 2025 /PRNewswire/ -- GreenTree Hospitality Group Ltd. (NYSE:GHG) ("GreenTree", the "Company", "we", "us" and "our"), a leading hospitality and restaurant management group in China, today announced its unaudited financial results for the third quarter of 2025.
Third Quarter of 2025 Operational Highlights
Hotels
A total of 4,533 hotels with 323,510 hotel rooms were in operation as of September 30, 2025.
The Company opened 41 hotels and had a pipeline of 1,248 hotels contracted for or under development as of September 30, 2025.
The average daily room rate was RMB173, a decrease of 4.1% from RMB181 in the third quarter of 2024.
The occupancy rate was 71.3%, decreased from 74.6% in the third quarter of 2024.
Revenue per available room, or RevPAR, was RMB124, an 8.4% year-over-year decrease.
[1]. The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB 7.1190 on September 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/h10/20251006/.
[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 government 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.
Restaurants
A total of 185 restaurants were in operation as of September 30, 2025.
The AC (average check) was RMB37, a 19.3% year-over-year decrease.
The ADT (average daily tickets) was 100, down from 106 in the third quarter of 2024.
The ADS (average daily sales per store) was RMB3,714, a decrease of 24.1% from RMB4,891 in the third quarter of 2024.
Third Quarter of 2025 Financial Results
Quarter Ended
September 30, 2024
RMB
RMB
RMB
RMB
Hotel
Restaurant
Elimination
Total
Revenues
Leased-and-operated revenues
118,159,125
41,117,277
159,276,402
Franchised-and-managed
revenues
167,928,127
1,757,933
169,686,060
Wholesales and others
796,488
27,766,790
-544,290
28,018,988
Total revenues
286,883,740
70,642,000
-544,290
356,981,450
Quarter Ended
September 30, 2025
RMB
RMB
RMB
RMB
US$
Hotel
Restaurant
Elimination
Total
Total
Revenues
Leased-and-operated revenues
115,597,165
26,516,648
-34,568
142,079,245
19,957,753
Franchised-and-managed
revenues
138,566,905
1,848,818
140,415,723
19,724,080
Wholesales and others
311,831
21,018,623
-219,986
21,110,468
2,965,370
Total revenues
254,475,901
49,384,089
-254,554
303,605,436
42,647,203
Nine Month Ended
September 30, 2024
RMB
RMB
RMB
RMB
Hotel
Restaurant
Elimination
Total
Revenues
Leased-and-operated revenues
346,552,738
130,792,112
477,344,850
Franchised-and-managed
revenues
476,898,409
5,527,686
482,426,095
Wholesales and others
2,881,694
77,272,388
-1,004,493
79,149,589
Total revenues
826,332,841
213,592,186
-1,004,493
1,038,920,534
Nine Month Ended
September 30, 2025
RMB
RMB
RMB
RMB
US$
Hotel
Restaurant
Elimination
Total
Total
Revenues
Leased-and-operated revenues
310,356,692
85,575,101
-241,982
395,689,811
55,582,218
Franchised-and-managed
revenues
424,320,098
5,025,292
429,345,390
60,309,789
Wholesales and others
1,790,129
56,530,382
-663,791
57,656,720
8,098,991
Total revenues
736,466,919
147,130,775
-905,773
882,691,921
123,990,998
Total revenues were RMB303.6 million (US$42.6 million)[1]，a 15.0% year-over-year decrease.
Hotel revenues were RMB254.5 million (US$35.7 million)[1], a 11.3% year-over-year decrease due to an 8.4% year-over-year decrease in RevPAR and the closure of 7 L&O hotels since the fourth quarter of 2024 due to lease expirations and strategic reviews. The decrease was partially offset by revenues from new openings.
Restaurant revenues were RMB49.4 million (US$6.9 million)[1], a 30.1% year-over-year decrease, mainly due to lower ADS and the decrease in the number of L&O stores.
Total revenues for the first nine months of 2025 were RMB882.7 million (US$124.0 million)[1], a 15.0% year-over-year decrease.
Total revenues from leased-and-operated, or L&O, hotels and restaurants were RMB142.1 million (US$20.0 million)[1], a 10.8% year-over-year decrease.
Total revenues from L&O hotels were RMB115.6 million (US$16.2 million)[1], a 2.2% year-over-year decrease. The decrease was primarily attributable to a 7.9% year-over-year decrease in L&O hotels' RevPAR, the closure of 7 L&O hotels since the fourth quarter of 2024, offset by revenues from the opening of 4 L&O hotels since the fourth quarter of 2024.
Total revenues from L&O restaurants were RMB26.5 million (US$3.7 million)[1], a 35.5% year-over-year decrease, mainly due to the closure of 8 L&O restaurants since the fourth quarter of 2024 and the year-over-year decrease in ADS.
Total revenues from L&O hotels and restaurants for the first nine months of 2025 were RMB395.7 million (US$55.6 million)[1], a 17.1% year-over-year decrease.
Total revenues from franchised-and-managed, or F&M, hotels and restaurants were RMB140.4 million (US$19.7 million)[1], a 17.2% year-over-year decrease.
Total revenues from F&M hotels were RMB138.6 million (US$19.5 million)[1], a 17.5% year-over-year decrease, primarily due to a temporary waiver of RMB15 million of management fees for hotels facing business difficulties. Excluding this temporary fee waiver, revenues from F&M hotels decreased 8.6% year over year, due to an 8.3% decrease in F&M hotels' RevPAR.
Total revenues from F&M restaurants were RMB1.8 million (US$0.3 million)[1], a 5.2% year-over-year increase, mainly due to the opening of 28 franchised restaurants since the fourth quarter of 2024.
Total revenues from F&M hotels and restaurants for the first nine months of 2025 were RMB429.3 million (US$60.3 million)[1], a 11.0% year-over-year decrease.
Total revenues from wholesale and others were RMB21.1 million (US$3.0 million)[1], a 24.7% 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 nine months of 2025 were RMB57.7 million (US$8.1 million)[1], a 27.2% year-over-year decrease.
Total operating costs and expenses
Quarter Ended
September 30, 2024
RMB
RMB
RMB
RMB
Hotel
Restaurant
Elimination
Total
Operating costs and expenses
Operating costs
155,278,796
53,365,650
-475,648
208,168,798
Selling and marketing expenses
12,899,411
2,881,942
-68,642
15,712,711
General and administrative expenses
32,309,079
7,023,449
39,332,528
Other operating expenses
1,363,201
654,777
2,017,978
Other general expenses
Total operating costs and expenses
201,850,487
63,925,818
-544,290
265,232,015
Quarter Ended
September 30, 2025
RMB
RMB
RMB
RMB
US$
Hotel
Restaurant
Elimination
Total
Total
Operating costs and expenses
Operating costs
134,346,844
43,015,455
-254,554
177,107,745
24,878,178
Selling and marketing expenses
11,314,233
2,133,816
13,448,049
1,889,036
General and administrative expenses
22,001,373
2,180,546
24,181,919
3,396,814
Other operating expenses
5,652,433
1,158,623
6,811,056
956,743
Other general expenses
19,483,576
19,483,576
2,736,842
Total operating costs and expenses
192,798,459
48,488,440
-254,554
241,032,345
33,857,613
Nine Month Ended
September 30, 2024
RMB
RMB
RMB
RMB
Hotel
Restaurant
Elimination
Total
Operating costs and expenses
Operating costs
450,888,078
170,642,273
-916,517
620,613,834
Selling and marketing expenses
41,576,925
8,473,078
-87,975
49,962,028
General and administrative expenses
119,706,277
22,802,128
142,508,405
Other operating expenses
2,301,445
2,136,726
4,438,171
Other general expenses
11,756,531
11,756,531
Total operating costs and expenses
626,229,256
204,054,205
-1,004,492
829,278,969
Nine Month Ended
September 30, 2025
RMB
RMB
RMB
RMB
US$
Hotel
Restaurant
Elimination
Total
Total
Operating costs and expenses
Operating costs
429,606,985
127,143,822
-905,774
555,845,033
78,079,089
Selling and marketing expenses
34,279,177
6,698,306
40,977,483
5,756,073
General and administrative expenses
93,293,494
12,655,909
105,949,403
14,882,624
Other operating expenses
9,942,672
1,600,920
11,543,592
1,621,519
Other general expenses
31,094,887
31,094,887
4,367,873
Total operating costs and expenses
598,217,215
148,098,957
-905,774
745,410,398
104,707,178
Operating costs were RMB177.1 million (US$24.9 million)[1], a 14.9% year-over-year decrease.
Operating costs of the hotel business were RMB134.3 million (US$18.9 million)[1], a 13.5% year-over-year decrease. The decrease was mainly attributable to lower rental resulting from the closure of L&O hotels.
Operating costs of the restaurant business in the third quarter of 2025 were RMB43.0 million (US$6.0 million)[1], a 19.4% year-over-year decrease, due to the closure of L&O stores.
For the first nine months of 2025, operating costs were RMB555.8 million (US$78.1 million)[1], a 10.4% year-over-year decrease.
Selling and marketing expenses were RMB13.4 million (US$1.9 million)[1], a 14.4% year-over-year decrease.
Selling and marketing expenses of the hotel business were RMB11.3 million (US$1.6 million)[1], a 12.3% year-over-year decrease. The decrease was mainly due to lower staff related costs.
Selling and marketing expenses of the restaurant business were RMB2.1 million (US$0.3 million)[1], a 26.0% year-over-year decrease, mainly attributable to lower travelling expenses and lower sales-channel commissions.
For the first nine months of 2025, selling and marketing expenses were RMB41.0 million (US$5.8 million)[1], a 18.0% year-over-year decrease.
General and administrative, or G&A expenses were RMB24.2 million (US$3.4 million)[1], a 38.5% year-over-year decrease.
G&A expenses of the hotel business were RMB22.0 million (US$3.1 million)[1], a 31.9% year-over-year decrease. The decrease was mainly attributable to lower bad debt provisions for long-aged account receivables, lower staff related expenses, and lower consulting fees.
G&A expenses of the restaurant business were RMB2.2 million (US$0.3 million)[1], a 69.0% year-over-year decrease, mainly due to lower staff related expenses, lower office expenses, and a decrease in depreciation and amortization and bad debt provisions for long-aged account receivables.
General and administrative expenses for the first nine months of 2025 were RMB105.9 million (US$14.9 million)[1], a 25.7% year-over-year decrease.
Other general expenses were RMB19.5 million (US$2.7 million)[1], entirely attributable to provisions for loan receivables related to franchisee loans.
Other general expenses for the first nine months of 2025 were RMB31.1 million (US$4.4 million)[1], up from RMB11.8 million one year ago.
Gross profit was RMB126.5 million (US$17.8 million)[1], a year-over-year decrease of 15.0%. Gross margin was 41.7%, the same as the third quarter of 2024. Gross profit of the hotel business was RMB120.1 million (US$16.9 million)[1], an 8.7% year-over-year decrease. Gross profit of the restaurant business was RMB6.4 million (US$0.9 million)[1], a 63.1% year-over-year decrease.
Income from operations in the third quarter of 2025 was RMB70.1 million (US$9.8 million)[1], compared to income from operations of RMB106.4 million in the third quarter of 2024, with a margin of 23.1%. The lower profitability was due to the exemption of fees from franchisees, the loss from disposal of L&O hotels, and bad debt provisions. Excluding these, the adjusted income from operations decreased 1.9% year over year, and the margin for the third quarter of 2025 was 34.6%, up from 31.5% one year ago, thanks to lower operating costs and expenses.
Income from operations of the hotel business was RMB69.1 million (US$9.7 million)[1], compared to income from operations of RMB99.5 million in the third quarter of 2024, with a margin of 27.2%. Excluding the impact of the above-mentioned items on hotels, adjusted income from operations of the hotel business increased 3.6% year over year, and the margin for the third quarter of 2025 was 40.5%, up from 36.8% one year ago, due to lower operating costs and expenses.
Income from operations of the restaurant business in the third quarter of 2025 was RMB0.9 million (US$0.1 million)[1], compared to income from operations of RMB6.9 million in the third quarter of 2024, with a margin of 1.9%.
Income from operations for the first nine months of 2025 was RMB155.5 million (US$21.8 million)[1] compared to income from operations of RMB263.1 million in 2024, with a margin of 17.6%.
Net income in the third quarter of 2025 was RMB60.3 million (US$8.5 million)[1], compared to a net income of RMB65.2 million in the third quarter of 2024, and net margin was 19.9%. The decrease was mainly due to the decline in income from operations, which were negatively impacted by the above-mentioned items, and foreign exchange losses. Excluding these one-time or non-operation impacts, adjusted net income was RMB90.5 million, an increase of 5.7%, with a margin of 28.4%.
Net income of the hotel business was RMB59.5 million (US$8.4 million)[1], up from net income of RMB58.6 million in the third quarter of 2024, and net margin was 23.4%. Excluding the impact of the above-mentioned items, which were composed of impacts by exemption of fees from franchisees in 2025Q3, the disposal of L&O hotels, the bad debt provisions, as well as foreign exchange losses, the adjusted net income of hotel business was RMB89.6 million, an increase of 13.4% year over year, with a margin of 33.3%.
Net income of the restaurant business in the third quarter of 2025 was RMB0.9 million (US$0.1 million)[1], compared to a net income of RMB6.6 million in the third quarter of 2024, and net margin was 1.8%.
Net income for the first nine months of 2025 was RMB253.1 million (US$35.6 million)[1], compared to a net income of RMB184.8 million in 2024, and net margin was 28.7%.
Adjusted EBITDA (non-GAAP)[2] in the third quarter of 2025 was RMB115.0 million (US$16.1 million)[1], a year-over-year decrease of 6.1%. Adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP)[2] as a percentage of total revenues, was 37.9%, compared to 34.3% a year ago, primarily due to lower operating costs and disciplined expense management.
Adjusted EBITDA (non-GAAP)[2] of the hotel business in the third quarter of 2025 was RMB110.2 million (US$15.5 million)[1], a year-over-year decrease of 0.3%, with a margin of 43.3%, up from 38.5% one year ago.
Adjusted EBITDA (non-GAAP)[2] of the restaurant business in the third quarter of 2025 was RMB4.8 million (US$0.7 million)[1], a year-over-year decrease of 52.5%.
Adjusted EBITDA (non-GAAP)[2] for the first nine months of 2025 was RMB258.7 million (US$36.3 million)[1], a year-over-year decrease of 17.9%.
Core net income (non-GAAP)[3] in the third quarter of 2025 was RMB78.0 million (US$11.0 million)[1], a year-over-year decrease of 16.5%. The core net margin, defined as core net income (non-GAAP)[3] as a percentage of total revenues, was 25.7%, compared to 26.2% one year ago.
Core net income (non-GAAP)[3] of the hotel business in the third quarter of 2025 was RMB77.2 million (US$10.8 million)[1], a year-over-year decrease of 11.2%, with a margin of 30.3%, the same as one year ago.
Core net income (non-GAAP)[3] of the restaurant business in the third quarter of 2025 was RMB0.9 million (US$0.1 million)[1], a year-over-year decrease of 86.7%.
Core net income (non-GAAP)[3] for the first nine months of 2025 was RMB158.0 million (US$22.2 million)[1], a year-over-year decrease of 29.6%.
Earnings per American Depositary Share, or ADS[4], (basic and diluted) were RMB0.60 (US$0.08)[1], decreased from RMB0.65 one year ago.
Earnings per American Depositary Share, or ADS[4], (basic and diluted) for the first nine months of 2025 were RMB2.53 (US$0.36)[1], decreased from RMB1.83 one year ago.
Core net income per ADS[4] (basic and diluted) (non-GAAP) was RMB0.77 (US$0.11)[1], decreased from RMB0.92 a year ago.
Core net income per ADS[4] (basic and diluted) (non-GAAP) was RMB1.56 (US$0.22)[1] for the first nine months of 2025, a decrease from RMB2.21 a year ago.
Cash flow: Operating Cash inflow was RMB144.5 million (US$20.3 million)[1], as a result of income from operations. Investing cash outflow for the third quarter of 2025 was RMB167.4 million (US$23.5 million)[1], primarily due to an advance payment for the purchase of strategic assets. Financing cash outflow was nil (US$0.0 million)[1] in the third quarter.
Cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits. As of September 30, 2025, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB2,014.6 million (US$283.0 million)[1],compared to RMB2,034.9 million as of June 30, 2025. The decrease of RMB20.3 million was mainly due to an advance payment for the purchase of strategic assets, and was offset by cash from operating activities.
Guidance
Based on our performance in the first nine months of this year and considering the impact from the closure of certain L&O hotels due to lease expirations and business strategy adjustments, we maintain our previous revenue guidance for the hotel business to be in the range of -10% to -13% year-over-year.
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, government 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 September 30, 2025, GreenTree had a total number of 4,533 hotels and 185 restaurants. In 2024, HOTELS magazine ranked GreenTree 13th among the 225 largest global hotel groups in terms of number of hotels in its annual HOTELS' 225. GreenTree was the fourth largest hospitality company in China in 2024 according to the China Hospitality Association.
GreenTree has a broad portfolio of diverse brands spanning from the economy to mid-scale, 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
September 30
September 30
2,024
2,025
2,025
RMB
RMB
US$
ASSETS
Current assets:
Cash and cash equivalents
1,490,235,562
1,638,695,772
230,186,230
Restricted cash
16,096,476
14,733,054
2,069,540
Short-term investments
10,475
25,747
3,617
Accounts receivable, net of allowance
99,688,034
105,663,744
14,842,498
Amounts due from related parties
21,839,929
21,184,099
2,975,713
Inventories
6,881,470
6,774,539
951,614
Other current assets
