China's GreenTree Q2 revenue hit by weak hotel demand; sets $5 bln buyback plan

GreenTree Hospitality

25/08/2026 04:57

Overview
China hospitality and restaurant group's Q2 revenue fell 18.7% yr/yr
Core (non-GAAP) net income rose 4.4% yr/yr as costs declined; net income declined to RMB 21.3 mln from RMB 160 mln
Company approved up to $5 mln share repurchase program

Outlook
GreenTree still expects 2026 hotel revenue to decrease by 10% to 15% year over year

Result Drivers
HOTEL REVENUE DECLINE - Co said hotel revenue fell due to a 9.1% drop in RevPAR and net closure of 13 leased-and-operated hotels since Q2 2025
RESTAURANT REVENUE DROP - Restaurant revenue fell 33.5% yr/yr, mainly due to a 20.3% decrease in average daily sales and net closure of 2 leased-and-operated stores
COST REDUCTIONS - Lower staff, depreciation, and rental costs from hotel and restaurant closures helped offset revenue decline and support profitability

Company press release: ID:nPnc1fCfVa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
RMB 462.8 mln
 
Q2 Revenue
 
RMB 235.1 mln
 
Q2 Core Non-GAAP Net Income
 
RMB 47.2 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.)