1. GHG's revenues dropped 15% year-over-year to RMB303.6 million. 2. Net income decreased to RMB60.3 million, despite an increase in cash from operations. 3. Hotel segment revenue decreased by 11.3%, affected by RevPAR decline. 4. Restaurant revenue fell 30.1% due to lower average daily sales. 5. Adjusted EBITDA decreased by 6.1%, but margins improved due to cost management.
FAQ
Why Bearish?
The significant year-over-year declines in revenue and net income suggest weakened financial health, similar to previous downturns impacting stock performance.
How important is it?
The reported financial declines directly relate to GreenTree's operational strategy, impacting stock performance and investor decisions.
Why Short Term?
Immediate financial results may negatively affect investor sentiment, while operational adjustments could take time to manifest positively.
GreenTree Hospitality Group Ltd. Reports Third Quarter 2025 Financial Results
GreenTree Hospitality Group Ltd. (NYSE: GHG), a prominent leader in the hospitality and restaurant management sector in China, has disclosed its unaudited financial performance for the third quarter of 2025. The results reflect significant challenges faced by the company, including a decrease in total revenues and operational metrics compared to the previous year.
Financial Highlights for Q3 2025
- Total revenues decreased by 15.0% year-over-year to RMB303.6 million (approximately US$42.6 million).
- Income from operations stood at RMB70.1 million (US$9.8 million), down from RMB106.4 million in Q3 2024.
- Net income reached RMB60.3 million (US$8.5 million), a decrease from RMB65.2 million year-over-year.
- Adjusted EBITDA (non-GAAP) fell by 6.1% year-over-year to RMB115.0 million (US$16.1 million).
- Cash from operations increased by 3.8% to RMB144.5 million (US$20.3 million).
Operational Metrics
Hotels
- Total of 4,533 hotels with 323,510 hotel rooms operational as of September 30, 2025.
- Opened 41 new hotels in the quarter, with a pipeline of 1,248 hotels under development.
- Average daily room rate (ADR) was RMB173, reflecting a 4.1% decline from RMB181 the previous year.
- Occupancy rate decreased to 71.3%, down from 74.6% in Q3 2024.
- Revenue per available room (RevPAR) dropped by 8.4% year-over-year to RMB124.
Restaurants
- Operated a total of 185 restaurants as of September 30, 2025.
- Average check (AC) was RMB37, a 19.3% decrease compared to last year.
- Average daily tickets (ADT) decreased to 100, down from 106 in Q3 2024.
- Average daily sales per store (ADS) fell by 24.1% to RMB3,714.
Year-to-Date Financial Performance
Through the first nine months of 2025, GreenTree's total revenues amounted to RMB882.7 million (US$124.0 million), reflecting a 15.0% decline on a year-over-year basis. Total revenues from leased-and-operated hotels and restaurants were RMB142.1 million (US$20.0 million), experiencing a 10.8% dip from the previous year.
Revenues from hotels reached RMB115.6 million (US$16.2 million), marking a 2.2% year-over-year decrease. This decline was primarily due to a 7.9% decrease in RevPAR, alongside the closure of seven hotels since the fourth quarter of 2024. Conversely, new hotel openings provided some revenue support.
Leadership Commentary
The management team at GreenTree expressed concerns over the current business climate while emphasizing the strategic adjustments being implemented. The decrease in hotel occupancy and average daily rates reflects broader market challenges, necessitating continuous adaptation and innovation from the company.