GreenTree Hospitality Group Ltd. Reports First Quarter of 2026 Financial Results

SHANGHAI, June 30, 2026 /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 first quarter of 2026.

First Quarter of 2026 Operational Highlights

Hotels

[1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of 6.8980 on March 31, 2026 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at https://www.federalreserve.gov/releases/h10/20260406/.

[2] Adjusted net income is defined as net income excluding the impact by the exemption of fees from franchisees, impact from disposal of L&O hotel assets, impairment of goodwill and trademarks of restaurant business, impairment of assets, provisions for loan to franchisee loans, foreign exchange losses, and earnings from the disposal of investment.

[3] 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.

[4] 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).

[5] Each ADS represents one ordinary share.

Restaurants

First Quarter Of 2026 Financial Results

Quarter Ended

March 31, 2025

RMB

Hotel

Restaurant

Elimination

Total

Revenues

Leased-and-operated revenues

88,195,435

30,668,599

118,864,034

Franchised-and-managed revenues

123,856,609

1,754,786

125,611,395

Wholesales and others

917,053

19,435,748

20,352,801

Total revenues

212,969,097

51,859,133

264,828,230

Quarter Ended

March 31, 2026

RMB

US$

Hotel

Restaurant

Elimination

Total

Revenues

Leased-and-operated revenues

74,537,762

20,021,976

94,559,738

13,708,283

Franchised-and-managed revenues

113,366,610

1,933,155

115,299,765

16,714,956

Wholesales and others

790,888

17,125,511

(39,176)

17,877,223

2,591,653

Total revenues

188,695,260

39,080,642

(39,176)

227,736,726

33,014,892

Total revenues were RMB227.7 million (US$33.0 million) [1]，a 14.0% year-over-year decrease.

Hotel revenues were RMB188.7 million (US$27.4 million) [1], an 11.4% year-over-year decrease due to a 5.7% year-over-year decrease in Revpar and a net closure of 13 L&O hotels since the first quarter of 2025 due to lease expiration and strategic reviews. The decrease was partially offset by revenues from new openings.

Restaurant revenues were RMB39.1 million (US$5.7 million) [1], a 24.6% year-over-year decrease, mainly due to an 18.8% decrease in ADS and a net closure of 3 L&O stores since the first quarter of 2025 due to strategic reviews, offset by revenues from new F&M store openings.

Total revenues from leased-and-operated, or L&O, hotels and restaurants were RMB94.5 million (US$13.7 million) [1], a 20.4% year-over-year decrease.

Total revenues from L&O hotels were RMB74.5 million (US$10.8 million) [1], a 15.5% year-over-year decrease. The decrease was primarily attributable to an 8.2% year-over-year decrease in the first quarter RevPAR of L&O hotels, a net closure of 13 L&O hotels since the first quarter of 2025, and the reduction in sublease revenues resulting from the closure of L&O hotels.

Total revenues from L&O restaurants were RMB20.0 million (US$2.9 million) [1], a 34.7% year-over-year decrease, mainly due to a net closure of 3 L&O stores and the year-over-year decrease of 18.1% in L&O store's ADS.

Total revenues from franchised-and-managed, or F&M, hotels and restaurants were RMB115.3 million (US$16.7 million) [1], an 8.2% year-over-year decrease.

Total revenues from F&M hotels were RMB113.4 million (US$16.4 million) [1], an 8.5% year-over-year decrease, primary due to a 5.6% decrease in F&M hotels' Revpar, an exemption of management fees for hotels facing business difficulties, and a decline of RMB1.5 million in membership revenues. Considering the ongoing impact from exemptions, we have assessed this impact since the first quarter of 2026 and adjusted the corresponding data of 2025 on a comparable basis. The decrease in membership revenues was partially due to the amortization cycle started from the pandemic period three years ago, in which the sales of membership cards were historically underperformed.

Total revenues from F&M restaurants were RMB1.9 million (US$0.3 million) [1], a 10.2% year-over-year increase, mainly due to an increase of 6.6% in the number of F&M stores.

Total revenues from wholesale and others were RMB17.9 million (US$2.6 million) [1], a 12.2% year-over-year decrease, mainly due to the decline in the wholesale segment of the restaurant business.

Total operating costs and expenses

Quarter Ended

March 31, 2025

RMB

Hotel

Restaurant

Elimination

Total

Operating costs and expenses

Operating costs

142,718,174

44,539,665

187,257,839

Selling and marketing expenses

14,540,243

2,501,787

17,042,030

General and administrative expenses

41,651,362

5,288,684

46,940,046

Other operating expenses

49,194

221,149

270,343

Other general expenses

5,805,656

Total operating costs and expenses

204,764,629

52,551,285

257,315,914

Quarter Ended

March 31, 2026

RMB

US$

Hotel

Restaurant

Elimination

Total

Operating costs and expenses

Operating costs

125,007,424

33,824,914

(39,176)

158,793,162

23,020,174

Selling and marketing expenses

9,213,432

2,203,214

11,416,646

1,655,066

General and administrative expenses

24,084,942

2,927,781

27,012,723

3,916,022

Other operating expenses

3,172,068

33,325

3,205,393

464,684

Other general expenses

5,111,119

740,957

Total operating costs and expenses

166,588,985

38,989,234

(39,176)

205,539,043

29,796,903

Operating costs were RMB158.8 million (US$23.0 million) [1], a 15.2% year-over-year decrease.

Operating costs of the hotel business were RMB125.0 million (US$18.1 million) [1], a 12.4% year-over-year decrease. The decrease was mainly attributable to lower depreciation and amortization, lower staff related costs, and lower rental costs caused by the net closure of 13 L&O hotels since the first quarter of 2025.

Operating costs of the restaurant business in the first quarter of 2026 were RMB33.8 million (US$ 4.9 million) [1], a 24.1% year-over-year decrease, due to the closure of L&O stores.

Selling and marketing expenses were RMB11.4 million (US$1.7 million) [1], a 33.0% year-over-year decrease.

Selling and marketing expenses of the hotel business were RMB9.2 million (US$1.3 million) [1], a 36.6% year-over-year decrease. The decrease was mainly due to lower staff related expenses.

Selling and marketing expenses of the restaurant business were RMB2.2 million (US$0.3 million) [1], an 11.9% year-over-year decrease, mainly attributable to lower sales staff related expenses and lower sales-channel commissions.

General and administrative, or G&A expenses were RMB27.0 million (US$3.9 million) [1], a 42.5% year-over-year decrease.

G&A expenses of the hotel business were RMB24.1 million (US$3.5 million) [1], a 42.2% year-over-year decrease. The decrease was mainly due to lower staff G&A staff related expenses, lower credit losses for accounts receivable and lower consulting fees.

G&A expenses of the restaurant business were RMB2.9 million (US$0.4 million) [1], a 44.6% year-over-year decrease, mainly due to lower G&A staff related expenses and lower credit losses for accounts receivable.

Other operating expenses were RMB3.2 million (US$0.5 million) [1], mainly due to the disposal of L&O hotel assets.

Other general expenses were RMB5.1 million (US$0.7 million) [1], mainly due to provisions for loan receivables related to franchisee loans.

Gross profit was RMB68.9 million (US$10.0 million) [1], a year-over-year decrease of 11.1%. Gross margin was 30.3%, compared to 29.3% a year ago. The gross profit of the hotel business was RMB63.7 million (US$9.2 million) [1], a 9.3% year-over-year decrease. The gross profit of the restaurant business was RMB5.3 million (US$0.8 million) [1], a 28.2% year-over-year decrease.

Income from operations in the first quarter of 2026 was RMB28.7 million (US$4.2 million) [1], compared to income from operations of RMB11.3 million in the first quarter of 2025, with a margin of 12.6%. The increased profitability was mainly attributable to lower operating costs and expenses, despite the decline in revenue.

Income from operations of the hotel business was RMB28.5 million (US$4.1 million) [1], compared to an income from operations of RMB11.8 million in the first quarter of 2025, with a margin of 15.1%.

Income from operations of the restaurant business in the first quarter of 2026 was RMB0.1 million (US$18.9 k) [1], compared to loss from operations of RMB0.5 million in the first quarter of 2025, with a margin of 0.3%.

Net income in the first quarter of 2026 was RMB14.0 million (US$2.0 million) [1], compared to a net income of RMB7.8 million in the first quarter of 2025, and net margin was 6.2%.

Net income of the hotel business was RMB14.3 million (US$2.1 million) [1], compared to a net income of RMB8.5 million in the first quarter of 2025, and net margin was 7.6%.

Net loss of the restaurant business in the first quarter of 2026 was RMB0.3 million (US$46.1 k) [1], compared to a net loss of RMB0.7 million in the first quarter of 2025, and net margin was -0.8%.

Adjusted EBITDA (non-GAAP) [2] in the first quarter of 2026 was RMB53.2 million (US$7.7 million) [1], a year-over-year increase of 34.3%. Adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP) as a percentage of total revenues, was 23.4%, compared to 15.0% a year ago.

Core net income (non-GAAP) in the first quarter of 2026 was RMB23.9 million (US$3.5 million) [1], a year-over-year increase of 31.7%. The core net margin, defined as core net income (non-GAAP) as a percentage of total revenues, was 10.5%, compared to 6.8% one year ago.

Earnings per American Depositary Share, or ADS, (basic and diluted) were RMB0.15 (US$0.02) [1], increased from RMB0.09 one year ago.

Core net income per ADS (basic and diluted) (non-GAAP) was RMB0.24 (US$0.03) [1], increased from RMB0.18 a year ago.

Cash flow Operating cash inflow in the first quarter of 2026 was RMB58.1 million (US$8.4 million) as a result of income from operations. Investing cash outflow was RMB50.3 million (US$7.3 million) [1], which was primarily due to advance payment for the purchase of strategic assets. Financing cash inflow was RMB46.8 million (US$6.8 million) [1],mainly due to proceeds from bank borrowings for the purpose of purchase of strategic assets.

Cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits. As of March 31, 2026, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB2,010.2 million (US$291.4 million) [1],compared to RMB1,964.0 million as of December 31, 2025. The increase was mainly attributable to cash from operating activities and proceeds from bank borrowings. The bank borrowings were simultaneously paid for the purchase of strategic assets.

Guidance

Taking into account the strategic reviews leading to the closure of L&O hotels and the standardization process resulting in a slowdown in hotel openings, we expect the total revenues of our organic hotel business to -10% ~ -15% year over year.

The guidance set forth above reflects the Company's current and preliminary views based on its recovery and may not be indicative of the final financial results for any future periods or the full 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 March 31, 2026, GreenTree had a total number of 4,605 hotels and 192 restaurants. GreenTree was the fourth largest hospitality company in China in 2025 according to the China Hospitality Association. 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 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

March 31

2025

2026

RMB

US$

ASSETS

Current assets:

Cash and cash equivalents

1,652,179,474

1,701,459,446

246,659,821

Restricted cash

7,389,650

4,250,895

616,250

Short-term investments

285,570,000

41,398,956

Accounts receivable, net of allowance

81,335,494

77,650,325

11,256,933

Amounts due from related parties

18,843,062

18,998,527

2,754,208

Inventories

4,922,160

5,049,662

732,047

Other current assets

92,557,400

114,037,520

16,531,969

Loans receivable, net

38,798,333

33,688,685

4,883,834

Total current assets

1,896,025,573

2,240,705,060

324,834,018

Non-current assets:

Amounts due from a related party

110,000,000

15,946,651

Restricted cash

18,869,900

18,870,700

2,735,677

Long-term time deposits

285,570,000

Loans receivable, net

12,034,825

11,148,275

1,616,160

Property and equipment, net

559,918,957

542,978,635

78,715,372

Intangible assets, net

56,403,818

54,998,062

7,973,045

Goodwill

25,721,262

25,650,746

3,718,577

Long-term investments

156,929,090

155,673,013

22,567,848

Operating lease right-of-use assets

1,130,088,595

1,127,368,064

163,434,048

Other assets

297,560,050

330,240,039

47,874,753

Deferred tax assets

237,098,634

237,177,055

34,383,452

TOTAL ASSETS

4,786,220,704

4,854,809,649

703,799,601

LIABILITIES AND EQUITY

Current liabilities:

Long-term bank loans, current portion

56,800,000

256,200,000

37,141,200

Accounts payable

44,687,183

48,331,315

7,006,569

Advance from customers

21,946,599

20,046,314

2,906,105

Amounts due to related parties

17,518,102

17,098,480

2,478,759

Salary and welfare payable

73,657,641

74,807,853

10,844,861

Deferred revenue

169,139,889

169,342,137

24,549,454

Accrued expenses and other current liabilities

539,836,968

549,584,247

79,672,984

Income tax payable

72,129,824

65,867,123

9,548,728

Operating lease liabilities, current

184,665,265

186,330,517

27,012,252

Total current liabilities

1,180,381,471

1,387,607,986

201,160,912

Long-term bank loans

199,400,000

46,755,101

6,778,066

Deferred revenue

134,414,010

124,044,979

17,982,746

Other long-term liabilities

117,513,512

115,810,949

16,789,062

Operating lease liabilities, non-current

1,032,472,822

1,032,936,722

149,744,381

Deferred tax liabilities

55,941,338

53,577,679

7,767,132

Unrecognized tax benefits

457,930,743

467,908,180

67,832,441

TOTAL LIABILITIES

3,178,053,896

3,228,641,596

468,054,740

Shareholders' equity:

Class A ordinary shares

222,587,070

32,268,349

Class B ordinary shares

115,534,210

16,748,943

Treasury Stock

(48,054,863)

(6,966,492)

Additional paid-in capital

1,566,949,877

227,160,029

Retained earnings (Accumulated losses)

(291,545,545)

(276,040,960)

(40,017,536)

Accumulated other comprehensive income

11,093,099

15,062,951

2,183,669

Total GreenTree Hospitality Group Ltd. shareholders'

equity

1,576,563,848

1,596,038,285

231,376,962

Non-controlling interests

31,602,960

30,129,768

4,367,899

Total shareholders' equity

1,608,166,808

1,626,168,053

235,744,861

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

4,786,220,704

4,854,809,649

703,799,601

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements of Comprehensive Income

Quarter Ended

March 31,

2025

March 31,

2026

March 31,

2026

RMB

US$

Revenues

Leased-and-operated revenues

118,864,034

94,559,738

13,708,283

Franchised-and-managed revenues

125,611,395

115,299,765

16,714,956

Wholesales and others

20,352,801

17,877,223

2,591,653

Total revenues

264,828,230

227,736,726

33,014,892

Operating costs and expenses

Operating costs

(187,257,839)

(158,793,162)

(23,020,174)

Selling and marketing expenses

(17,042,030)

(11,416,646)

(1,655,066)

General and administrative expenses

(46,940,046)

(27,012,723)

(3,916,022)

Other operating expenses

(270,343)

(3,205,393)

(464,684)

Other general expenses

(5,805,656)

(5,111,119)

(740,957)

Total operating costs and expenses

(257,315,914)

(205,539,043)

(29,796,903)

Other operating income

3,800,632

6,471,983

938,240

Income from operations

11,312,948

28,669,666

4,156,229

Interest income and other, net

10,622,202

8,833,178

1,280,542

Interest expense

(1,877,872)

(1,859,780)

(269,611)

Other income, net

(8,356,677)

(10,653,889)

(1,544,490)

Income before income taxes

11,700,601

24,989,175

3,622,670

Income tax expense

(4,214,725)

(9,701,706)

(1,406,452)

Income (loss) before share of gains in equity

investees

7,485,876

15,287,469

2,216,218

Share of loss/(income) in equity investees, net of tax

301,937

(1,256,077)

(182,093)

Net income(loss)

7,787,813

14,031,392

2,034,125

Net loss/(income) attributable to non-controlling

interests

1,044,332

1,473,192

213,568

Net income attributable to ordinary shareholders

8,832,145

15,504,584

2,247,693

Net earnings per share

Class A ordinary share-basic and diluted

0.09

0.15

0.02

Class B ordinary share-basic and diluted

0.09

0.15

0.02

Net earnings per ADS

Class A ordinary share-basic and diluted

0.09

0.15

0.02

Class B ordinary share-basic and diluted

0.09

0.15

0.02

Weighted average shares outstanding

Class A ordinary share-basic and diluted

66,761,582

66,134,416

Class B ordinary share-basic and diluted

34,762,909

Other comprehensive income, net of tax

Foreign currency translation adjustments

4,831,702

3,969,852

575,507

Comprehensive income, net of tax

12,619,515

18,001,244

2,609,632

Comprehensive loss/(income) attributable to non-

controlling interests

1,044,332

1,473,192

213,568

Comprehensive income (loss) attributable to

ordinary shareholders

13,663,847

19,474,436

2,823,200

GreenTree Hospitality Group Ltd.

Unaudited Hotel Business Results

Quarter Ended

March 31, 2025

March 31, 2026

RMB

US$

Revenues

Leased-and-operated revenues

88,195,435

74,537,762

10,805,706

Franchised-and-managed revenues

123,856,609

113,366,610

16,434,707

Others

917,053

790,888

114,655

Total revenues

212,969,097

188,695,260

27,355,068

Operating costs and expenses

Hotel operating costs

(142,718,174)

(125,007,424)

(18,122,271)

Selling and marketing expenses

(14,540,243)

(9,213,432)

(1,335,667)

General and administrative expenses

(41,651,362)

(24,084,942)

(3,491,583)

Other operating expenses

(49,194)

(3,172,068)

(459,853)

Other general expenses

(5,805,656)

(5,111,119)

(740,957)

Total operating costs and expenses

(204,764,629)

(166,588,985)

(24,150,331)

Other operating income

3,564,716

6,432,863

932,569

Income from operations

11,769,184

28,539,138

4,137,306

Interest income and other, net

10,591,951

8,829,497

1,280,008

Interest expense

(1,877,872)

(1,859,780)

(269,611)

Other income, net

(8,344,996)

(10,605,544)

(1,537,481)

Income before income taxes

12,138,267

24,903,311

3,610,222

Income tax expense

(3,981,392)

(9,297,825)

(1,347,902)

Income (loss) before share of gains in equity

investees

8,156,875

15,605,486

2,262,320

Share of loss/(income) in equity investees, net of

tax

301,937

(1,256,077)

(182,093)

Net income(loss)

8,458,812

14,349,409

2,080,227

GreenTree Hospitality Group Ltd.

Unaudited Restaurant Business Results

Quarter Ended

March 31, 2025

March 31, 2026

RMB

US$

Revenues

Leased-and-operated revenues

30,668,599

20,021,976

2,902,577

Franchised-and-managed revenues

1,754,786

1,933,155

280,249

Wholesales and others

19,435,748

17,125,511

2,482,678

Total revenues

51,859,133

39,080,642

5,665,504

Operating costs and expenses

Restaurant operating costs

(44,539,665)

(33,824,914)

(4,903,583)

Selling and marketing expenses

(2,501,787)

(2,203,214)

(319,399)

General and administrative expenses

(5,288,684)

(2,927,781)

(424,439)

Other operating expenses

(221,149)

(33,325)

(4,831)

Total operating costs and expenses

(52,551,285)

(38,989,234)

(5,652,252)

Other operating income

235,917

39,120

5,671

Income from operations

(456,235)

130,528

18,923

Interest income and other, net

30,251

3,681

534

Other income, net

(11,682)

(48,345)

(7,009)

Income before income taxes

(437,666)

85,864

12,448

Income tax expense

(233,333)

(403,881)

(58,551)

Income (loss) before share of gains in equity

investees

(670,999)

(318,017)

(46,103)

Net income(loss)

(670,999)

(318,017)

(46,103)

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements

Quarter Ended

March 31, 2025

Hotel

Restaurant

Elimination

Total

RMB

Revenues

Leased-and-operated revenues

88,195,435

30,668,599

118,864,034

Franchised-and-managed revenues

123,856,609

1,754,786

125,611,395

Wholesales and Others

917,053

19,435,748

20,352,801

Total revenues

212,969,097

51,859,133

264,828,230

Operating costs and expenses

Operating costs

(142,718,174)

(44,539,665)

(187,257,839)

Selling and marketing expenses

(14,540,243)

(2,501,787)

(17,042,030)

General and administrative expenses

(41,651,362)

(5,288,684)

(46,940,046)

Other operating expenses

(49,194)

(221,149)

(270,343)

Other general expenses

(5,805,656)

Total operating costs and expenses

(204,764,629)

(52,551,285)

(257,315,914)

Other operating income

3,564,715

235,917

3,800,632

Income from operations

11,769,183

(456,235)

11,312,948

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements

Quarter Ended

March 31, 2026

Hotel

Restaurant

Elimination

Total

RMB

Revenues

Leased-and-operated revenues

74,537,762

20,021,976

94,559,738

Franchised-and-managed revenues

113,366,610

1,933,155

115,299,765

Wholesales and Others

790,888

17,125,511

(39,176)

17,877,223

Total revenues

188,695,260

39,080,642

(39,176)

227,736,726

Operating costs and expenses

Operating costs

(125,007,424)

(33,824,914)

39,176

(158,793,162)

Selling and marketing expenses

(9,213,432)

(2,203,214)

(11,416,646)

General and administrative expenses

(24,084,942)

(2,927,781)

(27,012,723)

Other operating expenses

(3,172,068)

(33,325)

(3,205,393)

Other general expenses

(5,111,119)

Total operating costs and expenses

(166,588,985)

(38,989,234)

39,176

(205,539,043)

Other operating income

6,432,863

39,120

6,471,983

Income from operations

28,539,138

130,528

28,669,666

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements of Cash Flows

Quarter Ended

March 31, 2025

March 31, 2026

RMB

US$

Operating activities:

Net (loss) income

7,787,813

14,031,392

2,034,125

Net cash provided by operating activities

58,226,489

58,147,280

8,429,587

Investing activities:

Purchases of property, plant and equipment

(25,480,885)

(51,637,054)

(7,485,801)

Purchases of intangible assets

(101,463)

(14,709)

Proceeds from disposal of property, plant and equipment

21,463

Proceeds from disposal of long-term investments

500,000

72,485

Loan to fanchisees

(2,010,000)

(1,388,900)

(201,348)

Repayment from franchisees

6,059,358

2,369,916

343,566

Net cash (used in) provided by investing activities

(21,410,064)

(50,257,501)

(7,285,807)

Financing activities:

Proceeds from bank loans

46,754,778

6,778,019

Net cash provided by (used in) financing activities

46,754,778

6,778,019

Effect of exchange rate changes on cash and cash equivalents and restricted cash

(4,979,488)

(8,502,540)

(1,232,609)

Net (decrease) increase in cash and cash equivalents

31,836,937

46,142,017

6,689,190

Cash and cash equivalents at the beginning of the period

1,525,201,938

1,678,439,024

243,322,561

Cash and cash equivalents at the end of the period

1,557,038,875

1,724,581,041

250,011,751

GreenTree Hospitality Group Ltd.

Unaudited Reconciliation of GAAP and Non-GAAP Results

Quarter Ended

March 31,

2025

March 31,

2026

March 31,

2026

RMB

US$

Net income

7,787,813

14,031,392

2,034,125

Deduct:

Other operating income

3,800,632

6,471,983

938,241

Interest income and other, net

10,622,202

8,833,178

1,280,542

Share of gain in equity investees, net of tax

301,937

Add:

Other operating expenses

270,343

3,205,393

464,684

Other general expenses

5,805,656

5,111,119

740,957

Income tax expenses (benefits)

4,214,725

9,701,706

1,406,452

Share of loss in equity investees, net of tax

1,256,077

182,093

Interest expenses

1,877,872

1,859,780

269,611

Depreciation and amortization

26,025,153

22,673,494

3,286,966

Other expense, net

8,356,677

10,653,889

1,544,490

Adjusted EBITDA (Non-GAAP)

39,613,468

53,187,689

7,710,595

Quarter Ended

March 31,

2025

March 31,

2026

March 31,

2026

RMB

US$

Net income

7,787,813

14,031,392

2,034,125

Deduct:

Government subsidies (net of 25% tax)

1,725,000

3,240,842

469,823

Add:

Other expense (net of 25% tax)

6,267,508

7,990,417

1,158,367

Other general expenses

5,805,656

5,111,119

740,957

Core net income (Non-GAAP)

18,135,977

23,892,086

3,463,626

Core net income per ADS (Non-GAAP)

Class A ordinary share-basic and diluted

0.18

0.24

0.03

Class B ordinary share-basic and diluted

0.18

0.24

0.03

Hotel Operational Data

March 31, 2025

March 31, 2026

Total hotels in operation:

4,459

4,605

Leased and owned hotels

Franchised hotels

4,404

4,563

Total hotel rooms in operation

319,262

328,646

Leased and owned hotels

6,262

4,922

Franchised hotels

313,000

323,724

Number of cities

359

347

Quarter Ended

March 31, 2025

March 31, 2026

Occupancy rate (as a percentage)

Leased-and-owned hotels

61.00 %

57.60 %

Franchised hotels

64.10 %

62.60 %

Blended

64.00 %

62.50 %

Average daily rate (in RMB)

Leased-and-owned hotels

236

229

Franchised hotels

155

150

Blended

157

152

RevPAR (in RMB)

Leased-and-owned hotels

144

132

Franchised hotels

Blended

100

Number of Hotels in Operation

Number of Hotel Rooms in

Operation

March 31, 2025

March 31, 2026

March 31, 2025

March 31, 2026

Mid-to-up-scale

564

596

52,365

55,565

GreenTree Eastern

242

251

25,843

27,343

Deepsleep Hotel

610

710

Gem

111

119

10,080

10,846

Gya

6,171

6,546

107

111

8,939

9,217

Others

722

903

Mid-scale

2,988

3,034

225,372

228,244

GreenTree Inn

2,349

2,403

183,606

186,880

GT Alliance

507

500

32,656

32,493

GreenTree Apartment

1,545

1,760

Vatica

108

102

7,565

7,111

Others

Economy hotels

907

975

41,525

44,837

Shell

907

975

41,525

44,837

Others

Total

4,459

4,605

319,262

328,646

Restaurant Operational Data

March

31, 2025

March

31, 2026

Total restaurants in operation:

184

192

Leased and owned

restaurants

Franchised restaurants

167

178

Number of cities

Da Niang Dumplings

163

173

Bellagio

Quarter Ended

2025 Q1

2026 Q1

ADT

Leased-and-owned restaurants

210

204

Franchised restaurants

Blended

AC (in RMB)

Leased-and-owned

restaurants

Franchised restaurants

Blended

ADS (in RMB)

Leased-and-owned

restaurants

20,545

16,836

Franchised restaurants

2,459

2,356

Blended

4,029

3,270

For more information, please contact:

GreenTree

Ms. Selina Yang

Phone: +86-158-2166-6251

E-mail: [email protected]

Ms. Hannah Zhang

Phone: +86-182-2560-8592

E-mail: [email protected]

SOURCE GreenTree Hospitality Group Ltd.