GreenTree Hospitality Group Ltd. (NYSE: GHG) reported unaudited Q3 2025 results on 23 December 2025, showing total revenue of RMB 303.6 million (≈US$42.5 million) – a 15.0 % year‑over‑year decline. Hotel revenue was RMB 254.5 million (≈US$35.6 million), down 11.3 % YoY, while restaurant revenue fell 30.1 % to RMB 49.4 million (≈US$6.9 million). Net income for the quarter was RMB 60.3 million (≈US$8.4 million), a 7.4 % drop from RMB 65.2 million in Q3 2024. Adjusted EBITDA was RMB 115.0 million (≈US$16.1 million), a 6.1 % decline YoY, but the margin rose to 37.9 % from 34.3 % in the prior year, reflecting tighter cost control amid portfolio rationalization.
Hotel performance was weighed by the company’s strategic shift from leased‑and‑operated (L&O) to franchised‑and‑managed (F&M) models. The hotel segment’s RevPAR fell to RMB 124 (≈US$17.4) – an 8.4 % decline – and the closure of seven L&O hotels since Q4 2024 further reduced top‑line contribution. Restaurant revenue decline was largely driven by the transition to a franchised model, which reduces capital intensity but temporarily lowers revenue as the company phases out legacy operations.
The improved EBITDA margin demonstrates that cost discipline is offsetting revenue erosion. Management’s focus on asset‑light expansion has allowed the company to maintain profitability while trimming legacy assets. The margin lift from 34.3 % to 37.9 % indicates that the higher‑margin franchised operations are beginning to deliver, even as the company continues to close underperforming L&O properties.
GreenTree’s pipeline remains robust, with 1,248 hotels contracted or under development as of 30 September 2025, primarily in second‑ and third‑tier Chinese cities. The company’s membership base of over 102 million members supports direct bookings and provides a steady fee‑income stream for franchisees, reinforcing the long‑term viability of the asset‑light model.
Market reaction to the earnings was muted: the stock closed at US$1.71 on 23 December 2025, down 1.15 % from the previous day. Investors focused on the 15 % revenue decline, even as margin improvement and the company’s strategic shift to franchising were noted as positive signs for future profitability.
No new forward guidance was issued in the release; management reiterated its commitment to the asset‑light transformation and the expansion of its franchised portfolio.
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