China's GreenTree Hospitality Q1 revenue falls on restaurant and hotel closures

GreenTree Hospitality

30/06/2026 12:45

Overview
China hotel and restaurant operator's Q1 revenue fell 14% yr/yr on lower RevPAR, net closures
Net income and core net income rose yr/yr, helped by lower operating costs and expenses
Company guides for 10-15% yr/yr revenue decline in organic hotel business for 2026

Outlook
Company expects organic hotel business revenue to decline 10% to 15% year over year
GreenTree cites closures of leased-and-operated hotels and slower new openings as drivers of revenue decline

Result Drivers
REVPAR AND STORE CLOSURES - Revenue decline was mainly due to a 5.7% drop in RevPAR and net closures of 13 L&O hotels and 3 L&O restaurants, per company
COST REDUCTIONS - Profitability improved due to lower operating costs, selling and marketing expenses, and G&A expenses, mainly from reduced staff costs, depreciation, and rental costs after closures

Company press release: ID:nPnrh70ha

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
 
RMB 227.70 mln
 
Q1 Core Net Income
 
RMB 23.90 mln
 
Q1 Net Income
 
RMB 14 mln
 
Q1 Gross Margin
 
30.30%
 
Q1 Income from Operations
 
RMB 28.70 mln

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)