Press Release: GreenTree Hospitality Group Ltd. Reports Fourth Quarter and Fiscal Year 2025 Financial Results

Dow Jones04-29 21:31
   -- Total revenues for the fourth quarter decreased by 24.9% year over year 
      to RMB 228.7 million (US$32.7 million)[1]. 
 
   -- Net income was RMB-55.7million (US$-8.0 million)[1] compared to RMB-72.8 
      million for the fourth quarter of 2024. 
 
   -- Core net income[4] was RMB63.2 million (US$9.0 million)[1] compared to 
      RMB57.8 million for the fourth quarter of 2024. 

SHANGHAI, April 29, 2026 /PRNewswire/ -- GreenTree Hospitality Group Ltd. $(GHG)$ ("GreenTree", the "Company", "we", "us" and "our"), a leading hospitality and restaurant management group in China, today announced its unaudited financial results for the fourth quarter and fiscal year of 2025.

Fourth Quarter of 2025 Operational Highlights

Hotels

   -- A total of 4,580 hotels with 327,060 hotel rooms were in operation as of 
      December 31, 2025. 
 
   -- The Company opened 76 hotels and had a pipeline of 1,260 hotels 
      contracted for or under development as of December 31, 2025. 
 
   -- The average daily room rate was RMB162, a decrease of 4.0% from RMB169 in 
      the fourth quarter of 2024. 
 
   -- The occupancy rate was 64.7%, down from 68.6% in the fourth quarter of 
      2024. 
 
   -- Revenue per available room, or RevPAR, was RMB105, a 9.5% year-over-year 
      decrease. 
 
[1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is 
based on the exchange rate of US$1.00=RMB 6.9931 on December 31, 2025 as set 
forth in H.10 statistical release of the U.S. Federal Reserve Board and 
available at https://www.federalreserve.gov/releases/h10/20260105/. 
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

   -- A total of 191 restaurants were in operation as of December 31, 2025. 
 
   -- The AC (average check) was RMB38, a 17.8% year-over-year decrease. 
 
   -- The ADT (average daily tickets) was 88, down from 93 in the fourth 
      quarter of 2024. 
 
   -- The ADS (average daily sales per store) was RMB3,312, a decrease of 21.8% 
      from RMB4,234 in the fourth quarter of 2024. 
 
                                             Quarter Ended 
                         ----------------------------------------------------- 
                           December     December      December      December 
                           31, 2024     31, 2024      31, 2024      31, 2024 
                             RMB          RMB           RMB           RMB 
                            Hotel      Restaurant   Elimination      Total 
Revenues 
Leased-and-operated 
 revenues                 90,969,160    28,534,041     (207,412)   119,295,789 
Franchised-and-managed 
 revenues                148,174,447     4,759,771             -   152,934,218 
Wholesales and others      1,026,363    31,759,229     (495,936)    32,289,656 
                         -----------  ------------  ------------  ------------ 
Total revenues           240,169,970    65,053,041     (703,348)   304,519,663 
                         ===========  ============  ============  ============ 
 
 
                                                 Quarter Ended 
                         ------------------------------------------------------------- 
                           December    December     December     December    December 
                           31, 2025    31, 2025     31, 2025     31, 2025    31, 2025 
                             RMB         RMB          RMB          RMB         US$ 
                            Hotel     Restaurant  Elimination     Total       Total 
Revenues 
Leased-and-operated 
 revenues                 85,005,220  21,237,340            -  106,242,560  15,192,484 
Franchised-and-managed 
 revenues                104,151,920     954,557            -  105,106,477  15,030,026 
Wholesales and others        724,362  16,926,284    (338,210)   17,312,436   2,475,646 
                                                                            ---------- 
Total revenues           189,881,502  39,118,181    (338,210)  228,661,473  32,698,156 
                         ===========  ==========  ===========  ===========  ========== 
 

2025 Financial Results

 
                                               Year Ended 
                         ------------------------------------------------------ 
                          December 31,    December     December    December 31, 
                              2024        31, 2024     31, 2024        2024 
                              RMB           RMB          RMB           RMB 
                             Hotel      Restaurant   Elimination      Total 
Revenues 
Leased-and-operated 
 revenues                  437,521,898  159,326,153     -207,411    596,640,640 
Franchised-and-managed 
 revenues                  625,072,856   10,287,457            -    635,360,313 
Wholesales and others        3,908,057  109,031,616   -1,500,428    111,439,245 
Total revenues           1,066,502,811  278,645,226   -1,707,839  1,343,440,198 
                         =============  ===========  ===========  ============= 
 
 
                                                    Year Ended 
                         ----------------------------------------------------------------- 
                           December     December     December      December      December 
                           31, 2025     31, 2025     31, 2025      31, 2025      31, 2025 
                             RMB          RMB          RMB           RMB           US$ 
                            Hotel     Restaurant   Elimination      Total         Total 
Revenues 
Leased-and-operated 
 revenues                381,361,912  106,812,441    (241,982)    487,932,371   69,773,401 
Franchised-and-managed 
 revenues                528,472,018    5,979,850            -    534,451,868   76,425,601 
Wholesales and others      2,514,491   73,456,665  (1,002,001)     74,969,155   10,720,446 
Total revenues           912,348,421  186,248,956  (1,243,983)  1,097,353,394  156,919,448 
                         ===========  ===========  ===========  =============  =========== 
 

Total revenue

Total revenues were RMB228.7 million (US$32.7 million)([1]) a 24.9% year-over-year decrease.

Hotel revenues were RMB189.9 million (US$27.2 million)([1]) , a 20.9% year-over-year decrease due to a 9.5% year-over-year decrease in RevPAR, the closure of 15 L&O hotels since the first quarter of 2025 due to lease expirations and strategic reviews. The decrease was partially offset by revenues from new openings.

Restaurant revenues were RMB39.1 million (US$5.6 million)([1]) , a 39.9% year-over-year decrease, mainly due to a 21.8% decrease in ADS and the decrease in the number of L&O stores.

Total revenues for the year ended December 31, 2025 were RMB1,097.4 million (US$156.9 million)([1]) , an 18.3% year-over-year decrease.

Total revenues from leased-and-operated, or L&O, hotels and restaurants were RMB106.2million (US$15.2 million)([1]) , a 10.9% year-over-year decrease.

Total revenues from L&O hotels were RMB85.0 million (US$12.2 million)([1]) , a 6.6% year-over-year decrease. The decrease was primarily attributable to a 4.6% year-over-year decrease in L&O hotels' RevPAR, the closure of 15 L&O hotels since the first quarter of 2025, and the reduction in sublease income resulting from the closure of L&O hotels, offset by revenues from the opening of 5 L&O hotels during 2025.

Total revenues from L&O restaurants were RMB21.2 million (US$3.0 million)([1]) , a 25.6 % year-over-year decrease. The decrease was mainly due to the closure of 6 L&O stores since the first quarter of 2025 and a 14.1% year-over-year decrease in L&O stores' ADS. Same L&O store revenues in the fourth quarter of 2025 decreased by 10.4% year over year.

Total revenues from L&O hotels and restaurants for the year ended December 31, 2025 were RMB487.9 million (US$69.8 million)([1]) , an 18.2% year-over-year decrease.

Total revenues from franchised-and-managed, or F&M, hotels and restaurants were RMB105.1 million (US$15.0 million)([1]) , a 31.3% year-over-year decrease.

Total revenues from F&M hotels were RMB104.2 million (US$14.9 million)([1]) , a 29.7% year-over-year decrease, primarily attributable to a temporary waiver of RMB21.0 million of management fees for hotels facing business difficulties, and a decline of RMB6.9 million in membership revenues. The decrease 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. Excluding these impacts, revenues from F&M hotels decreased 10.9% year over year, due to a 9.6% decrease in F&M hotels' RevPAR.

Total revenues from F&M restaurants were RMB1.0 million (US$0.1 million)([1]) , a 79.9% year-over-year decrease. The decrease was mainly due to a 10.9% decrease in ADS.

Total revenues from F&M hotels and restaurants for the year were RMB534.5million (US$76.4million)([1]) , a 15.9% year-over-year decrease.

Total revenues from wholesale and others were RMB17.3 million (US$2.5 million)([1]) , a 46.4% year-over-year decrease.

Total revenues from wholesale and others for the year were RMB75.0 million (US$10.7 million)([1]) , a 32.7% year-over-year decrease.

Total operating costs and expenses

 
                                          Quarter Ended 
                   ----------------------------------------------------------- 
                    December 31,   December 31,   December 31,   December 31, 
                    2024           2024           2024           2024 
                        RMB            RMB            RMB            RMB 
                       Hotel       Restaurant     Elimination       Total 
Operating costs 
and expenses 
Operating costs      139,910,728     59,854,076      (791,324)     198,973,480 
Selling and 
 marketing 
 expenses             13,451,271      4,083,785         87,975      17,623,031 
General and 
 administrative 
 expenses             39,695,498      3,347,191              -      43,042,689 
Other operating 
 expenses              2,635,870         16,422              -       2,652,292 
Impairment loss 
 of goodwill                   -     81,008,000              -      81,008,000 
Impairment of 
 indefinite-lived 
 intangible 
 asset                         -     39,072,000              -      39,072,000 
Other general 
 expenses             30,012,799              -              -      30,012,799 
                   -------------  -------------  -------------  -------------- 
Total operating 
 costs and 
 expenses            225,706,166    187,381,474      (703,349)     412,384,291 
                   =============  =============  =============  ============== 
 
 
                                           Quarter Ended 
                   -------------------------------------------------------------- 
                     December     December     December     December    December 
                     31, 2025     31, 2025     31, 2025     31, 2025     31, 2025 
                       RMB          RMB          RMB          RMB         US$ 
                      Hotel     Restaurant   Elimination     Total       Total 
Operating costs 
and expenses 
Operating costs    123,262,562   35,625,047    (338,210)  158,549,399  22,672,263 
Selling and 
 marketing 
 expenses           11,805,604    2,001,482            -   13,807,086   1,974,387 
General and 
 administrative 
 expenses           18,578,972    5,933,471            -   24,512,443   3,505,233 
Other operating 
 expenses           40,245,786     (57,902)            -   40,187,884   5,746,791 
Impairment loss 
 of goodwill                 -   66,491,000            -   66,491,000   9,508,087 
Impairment of 
 indefinite-lived 
 intangible 
 asset                       -   17,331,000            -   17,331,000   2,478,300 
Other general 
 expenses           31,779,622            -            -   31,779,622   4,544,424 
                   -----------  -----------  -----------               ---------- 
Total operating 
 costs and 
 expenses          225,672,546  127,324,098    (338,210)  352,658,434  50,429,485 
                   ===========  ===========  ===========  ===========  ========== 
 
 
                                            Year Ended 
                     December 31,   December 31,   December 31,   December 31, 
                         2024           2024           2024           2024 
                         RMB            RMB            RMB            RMB 
                        Hotel       Restaurant     Elimination       Total 
Operating costs 
and expenses 
Operating costs       593,798,806    230,496,349    (1,707,841)    822,587,314 
Selling and 
 marketing 
 expenses              55,028,196     12,556,863              -     67,585,059 
General and 
 administrative 
 expenses             156,401,775     26,149,319              -    182,551,094 
Other operating 
 expenses               4,937,315      2,153,148              -      7,090,463 
Impairment loss of 
 goodwill                       -     81,008,000              -     81,008,000 
Impairment of 
 indefinite-lived 
 intangible asset               -     39,072,000              -     39,072,000 
Other general 
 expenses              41,769,330              -              -     41,769,330 
Total operating 
 costs and 
 expenses             851,935,422    391,435,679    (1,707,841)  1,241,663,260 
                    =============  =============  =============  ============= 
 
 
                                              Year Ended 
                   ----------------------------------------------------------------- 
                     December     December     December      December      December 
                     31, 2025     31, 2025     31, 2025      31, 2025      31, 2025 
                       RMB          RMB          RMB           RMB           US$ 
                      Hotel     Restaurant   Elimination      Total         Total 
Operating costs 
and expenses 
Operating costs    552,869,547  162,768,869  (1,243,984)    714,394,432  102,157,045 
Selling and 
 marketing 
 expenses           46,084,781    8,699,788            -     54,784,569    7,834,089 
General and 
 administrative 
 expenses          111,872,466   18,589,380            -    130,461,846   18,655,796 
Other operating 
 expenses           50,188,458    1,543,018            -     51,731,476    7,397,503 
Impairment loss 
 of goodwill                 -   66,491,000            -     66,491,000    9,508,087 
Impairment of 
 indefinite-lived 
 intangible 
 asset                       -   17,331,000            -     17,331,000    2,478,300 
Other general 
 expenses           82,874,509            -            -     82,874,509   11,850,897 
Total operating 
 costs and 
 expenses          843,889,761  275,423,055  (1,243,984)  1,118,068,832  159,881,717 
 

Operating costs were RMB158.5 million (US$22.7 million)([1]) , a 20.3% year-over-year decrease.

Operating costs of the hotel business were RMB123.3 million (US$17.6million)([1]) , an 11.9% year-over-year decrease. The decrease was mainly attributable to lower depreciation and amortization, lower staff related costs, and lower consumable, food and beverage caused by the closing of 15 L&O hotels, partially offset by the rental increase caused by 5 new L&O hotels and the renewal of certain lease agreements.

Operating costs of the restaurant business were RMB35.6million (US$5.1 million)([1]) , a 40.5% year-over-year decrease. The decrease was mainly due to the closure of L&O stores.

For the year, operating costs were RMB714.4 million (US$102.2 million) ([1]) , representing a 13.2% decrease.

Selling and marketing expenses in the fourth quarter of 2025 was RMB13.8 million (US$2.0 million)([1]) , a 21.7% year-over-year decrease.

Selling and marketing expenses of the hotel business were RMB11.8 million (US$1.7 million)([1]) , a 12.2% year-over-year decrease. The decrease was mainly due to lower staff related costs, and lower traveling and meal expenses.

Selling and marketing expenses of the restaurant business were RMB2.0 million (US$0.3 million)([1].) , a 51.0% year-over-year decrease. The decrease was mainly due to lower staff related expenses, and lower sales-channel commissions.

For the year, selling and marketing expenses were RMB54.8 million (US$7.8million) ([1]) , an 18.9% decrease.

General and administrative, or G&A expenses were RMB24.5 million (US$3.5 million)([1]) , a 43.1% year-over-year decrease.

G&A expenses of the hotel business were RMB18.6 million (US$2.7 million)([1]) , a 53.2% year-over-year decrease. The decrease was mainly due to lower staff G&A staff related expenses, lower traveling and meal expenses, and lower consulting fees.

G&A expenses of the restaurant business were RMB5.9 million (US$0.8 million)([1]) , a 77.3 % year-over-year increase. The increase was mainly due to higher bad debt provisions for long-aged account receivables.

For the year, G&A expenses were RMB130.5 million (US$18.7 million)([1]) , a 28.5% year-over-year decrease.

Other operating expenses were RMB40.2 million (US$5.7 million)([1]) , mainly due to the disposal of L&O hotel assets. For the year, other operating expenses were RMB51.7 million, (US$7.4 million)([1]) , increased from RMB7.1 million in 2024.

Impairment loss of goodwill was RMB66.5million (US$9.5 million)([1]) , a 17.9% decrease year over year. Impairment of indefinite-lived intangible asset was RMB17.3 million(US$2.5 million), a 55.6% decrease year over year. These expenses were impairment of goodwill and trademarks related to the restaurant business.

Other general expenses were RMB31.8million (US$4.5 million)([1]) , a 5.9% year-over-year increase. These expenses include provisions for loan receivables related to franchisee loans, and impairment of assets.

For the year, other general expenses were RMB82.9 million (US$11.9 million)([1]) .

Gross profit, defined as total revenues deducted by hotel and restaurant costs, was RMB70.1 million (US$10.0 million)([1]) , a year-over-year decrease of 33.6%. Gross margin was 30.7%, compared to 34.7% a year ago. The gross profit of the hotel business was RMB66.6 million (US$9.5 million)([1]) , a 33.6% year-over-year decrease. The gross profit of the restaurant business was RMB3.5 million (US$0.5 million)([1]) , a 32.8% year-over-year decrease. Gross profit for the year was RMB383.0 million (US$54.8 million) ([1]) , a 26.5% year-over-year decrease.

Income from operations was RMB-64.9 million (US$-9.3 million)([1] ,) compared to income from operations of RMB-95.0million in the fourth quarter of 2024, with a margin of -28.4%. The loss was due to certain one-time or non-operation impacts, including impairment loss of goodwill and trademarks related to restaurant business, provisions for loan receivables related to franchisee loans, impairment of assets, while offset by impact from disposal of L&O hotel assets. Excluding these, the adjusted income from operations decreased 8.3% year over year, mainly due to the year-over-year 9.6% decrease in Revpar. The margin for the adjusted income from operations was 24.3%, up from 19.9% one year ago, thanks to lower operating costs and expenses.

Income from operations of the hotel business was RMB23.2 million (US$3.3 million)([1]) , compared to an income from operations of RMB26.1 million in the fourth quarter of 2024. Excluding the impact of the above-mentioned items on hotels, adjusted income from operations of the hotel business decreased 2.8% year over year, and the margin for the third quarter of 2025 was 22.1%, up from 21.6% one year ago, due to lower operating costs and expenses.

Loss from operations of the restaurant business was RMB88.1 million (US$12.6 million)([1]) , compared to loss from operations of RMB121.1 million in the fourth quarter of 2024. Excluding impairment loss of goodwill, and impairment of indefinite-lived intangible asset, loss from operations of the restaurant business was RMB4.3 million(US$0.6million) with a negative margin of 11.0%.

Income from operations for the year was RMB56.7 million (US$8.1 million) ([1]) compared to income from operations of RMB161.9 million in 2024.

Net income in the fourth quarter of 2025 was RMB-55.7million (US$-8.0 million)([1]) , compared to a net income of RMB-72.8 million in the fourth quarter of 2024, and net margin was -24.4%. The loss was impacted by certain one-time or non-operation impacts, including impairment loss of goodwill and trademarks related to restaurant business, provisions for loan receivables related to franchisee loans, impairment of assets, and foreign exchange losses, while offset by earnings from the disposal of investment in equity securities and disposal of L&O hotel assets. Excluding the impact of the above-mentioned items on hotels, adjusted net income ([2]) was RMB60.5 million, an increase of 6.7%, with a margin of 26.5%.

Net income of the hotel business was RMB29.5 million (US$4.2 million)([1]) , compared to a net income of RMB28.4million in the fourth quarter of 2024, and net margin was15.5%. Excluding the impact of the above-mentioned items on hotels, adjusted net income([2]) of the hotel business increased 63.9% to RMB61.9million (US$8.9 million)([1]) with a margin of 32.6%.

Net loss of the restaurant business was RMB85.2million (US$12.2million)([1]) , compared to a net loss of RMB101.2million in the fourth quarter of 2024. Excluding the impairment of trademarks and goodwill, adjusted net loss of the restaurant business was RMB1.4 million(US$0.2 million)([1]) with a margin of -3.6%.

Net income for the year was RMB163.4 million (US$23.4 million) ([1]) compared to net income of RMB107.3 million in 2024, with a margin of 14.9%.

Adjusted EBITDA (non-GAAP)([3]) in the fourth quarter of 2025 was RMB41.9 million (US$6.0 million)([1]) , a year-over-year decrease of 41.3%. Adjusted EBITDA([3]) margin, defined as adjusted EBITDA (non-GAAP) ([3]) as a percentage of total revenues, was 18.3%, compared to 23.5% a year ago. Adjusted EBITDA (non-GAAP) ([3]) for the year was RMB286.6 million (US$41.0 million)([1]) , a year-over-year decrease of 25.8%.

Core net income (non-GAAP) ([4]) in the fourth quarter of 2025 was RMB63.2 million (US$9.0 million)([1]) , a year-over-year increase of 9.2%. The core net margin, defined as core net income (non-GAAP) ([4]) as a percentage of total revenues, was 27.6%, up from 19.0% one year ago. Core net income (non-GAAP) ([4]) for the year was RMB211.2 million (US$30.2million)([1]) , a year-over-year decrease of 23.9%.

Earnings per American Depositary Share, or ADS, (basic and diluted) in the fourth quarter of 2025 was RMB-0.55(US$-0.08)([1]) , down from RMB-0.70 one year ago. Core net income per ADS (basic and diluted) (non-GAAP) ([4]) was RMB0.63 (US$0.09)([1]) , increase from RMB0.57 a year ago.

Earnings per ADS (basic and diluted) for the hotel business were RMB 0.29 (US$0.04)([1]) , as stable as one year ago. Core net income per ADS (basic and diluted) (non-GAAP) ([4]) for the hotel business were RMB0.63 (US$0.09)([1]) , increase from RMB0.45 a year ago.

Earnings per ADS (basic and diluted) for the year of 2025 was RMB1.65 (US$0.24)([1]) increased from RMB1.08 one year ago. Core net income per ADS (basic and diluted) (non-GAAP) ([4]) was RMB2.09 (US$0.30)([1]) for the year, a decrease from RMB2.73 a year ago.

Cash flow Operating cash inflow in the fourth quarter of 2025 was RMB32.5 million (US$4.6 million)([1]) as a result of income from operations. Investing cash inflow for the fourth quarter 2025 was RMB27.6 million (US$3.9million)([1]) , which was primarily attributable to proceeds from disposal of long-term investments offset by an advance payment for the purchase of strategic assets. Financing cash outflow in the fourth quarter of 2025 was RMB43.2 million (US$6.2 million)([1]) , mainly attributable to dividends distributed to the shareholders.

Cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits. As of December 31, 2025, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB1,964.0 million (US$280.8 million)([1]) , compared to RMB2,014.6million as of September 30, 2025. The decrease was primarily due to dividends distributed to the shareholders, an advance payment for the purchase of strategic assets, partially offset by cash from operating activities, and disposal of investment on equity securities.

Guidance

Taking into account the recovery in long-term trends and short-term industry fluctuations, we expect the decline of total revenues of our organic hotel business for the full year of 2026 to be flat compared to their 2025 levels.

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 December 31, 2025, GreenTree had a total number of 4,580 hotels and 191 restaurants. 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 was the fourth largest hospitality company in China in 2024 according to the China Hospitality Association.

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, superior system management with moderate charges, and fully supported by its operating departments including Decoration, Engineering, Purchasing, Operation, IT and Finance, 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    December 31    December 31 
                                        2024           2025           2025 
                                         RMB            RMB            US$ 
 ASSETS 
 Current assets: 
 Cash and cash equivalents          1,490,235,562  1,652,179,474   236,258,523 
 Restricted cash                       16,096,476      7,389,650     1,056,706 
 Short-term investments                    10,475              -             - 
 Accounts receivable, net of 
  allowance                            99,688,034     81,335,494    11,630,821 
 Amounts due from related parties      21,839,929     18,843,062     2,694,522 
 Inventories                            6,881,470      4,922,160       703,860 
 Other current assets                 114,898,590     92,557,400    13,235,532 
 Loans receivable, net                 85,463,467     38,798,333     5,548,088 
 Total current assets               1,835,114,003  1,896,025,573   271,128,052 
                                    =============  =============  ============ 
 
 Non-current assets: 
 Amounts due from a related party     110,000,000    110,000,000    15,729,791 
 Restricted cash                       18,869,900     18,869,900     2,698,360 
 Long-term time deposits              285,570,000    285,570,000    40,835,967 
 Loans receivable, net                 15,372,238     12,034,825     1,720,957 
 Property and equipment, net          649,528,210    559,918,957    80,067,346 
 Intangible assets, net                75,677,551     56,403,818     8,065,639 
 Goodwill                              96,074,468     25,721,262     3,678,092 
 Long-term investments                184,024,217    156,929,090    22,440,561 
 Operating lease right-of-use 
  assets                            1,328,582,419  1,130,088,595   161,600,520 
 Other assets                         102,545,848    297,560,050    42,550,519 
 Deferred tax assets                  245,760,095    237,098,634    33,904,654 
 TOTAL ASSETS                       4,947,118,949  4,786,220,704   684,420,458 
                                    =============  =============  ============ 
 
 
 LIABSLITIES AND EQUITY 
Current liabilities: 
 Long-term bank loans, current 
  portion                                 400,000     56,800,000     8,122,292 
 Accounts payable                      56,488,405     44,687,183     6,390,182 
 Advance from customers                25,684,437     21,946,599     3,138,322 
 Amounts due to related parties        17,462,176     17,518,102     2,505,055 
 Salary and welfare payable            78,234,585     73,657,641    10,532,903 
 Deferred revenue                     175,046,178    169,139,889    24,186,682 
 Accrued expenses and other 
  current liabilities                 481,910,291    539,836,968    77,195,660 
 Income tax payable                    88,876,497     72,129,824    10,314,428 
 Operating lease liabilities, 
  current                             241,363,244    184,665,265    26,406,782 
 Total current liabilities          1,165,465,813  1,180,381,471   168,792,306 
                                    =============  =============  ============ 
 
 Long-term bank loans                 256,200,000    199,400,000    28,513,821 
 Deferred revenue                     176,353,919    134,414,010    19,220,948 
 Other long-term liabilities          120,975,955    117,513,512    16,804,208 
 Operating lease liabilities, 
  non-current                       1,215,776,075  1,032,472,822   147,641,650 
 Deferred tax liabilities              79,670,908     55,941,338     7,999,505 
 Unrecognized tax benefits            440,072,214    457,930,743    65,483,225 
Total liabilities                   3,454,514,884  3,178,053,896   454,455,663 
                                    =============  =============  ============ 
 
Shareholders' equity: 
Class A ordinary shares               222,587,070    222,587,070    31,829,528 
Class B ordinary shares               115,534,210    115,534,210    16,521,172 
Treasury Stock                       (37,043,116)   (48,054,863)   (6,871,754) 
Additional paid-in capital          1,609,972,272  1,566,949,877   224,070,852 
Retained earnings (Accumulated 
 losses)                            (458,337,571)  (291,545,545)  (41,690,458) 
Accumulated other comprehensive 
 income                                 6,033,263     11,093,099     1,586,292 
Total GreenTree Hospitality Group 
 Ltd. shareholders' equity          1,458,746,128  1,576,563,848   225,445,632 
                                    =============  =============  ============ 
 
Non-controlling interests              33,857,937     31,602,960     4,519,163 
Total shareholders' equity          1,492,604,065  1,608,166,808   229,964,795 
                                    =============  =============  ============ 
 
TOTAL LIABSLITIES AND 
 SHAREHOLDERS' EQUITY               4,947,118,949  4,786,220,704   684,420,458 
 
 
                                           GreenTree Hospitality Group Ltd. 
                        Unaudited Condensed Consolidated Statements of Comprehensive Income 
                                       Quarter Ended                                   Year Ended 
                         ------------------------------------------  ----------------------------------------------- 
                            December       December      December        December         December        December 
                            31, 2024       31, 2025       31, 2025       31, 2024         31, 2025        31, 2025 
                              RMB            RMB           US$             RMB              RMB             US$ 
Revenues 
Leased-and-operated 
 revenues                  119,295,789    106,242,560    15,192,484      596,640,640      487,932,371     69,773,401 
Franchised-and-managed 
 revenues                  152,934,218    105,106,477    15,030,026      635,360,313      534,451,868     76,425,601 
Wholesales and others       32,289,656     17,312,436     2,475,646      111,439,245       74,969,155     10,720,446 
Total revenues             304,519,663    228,661,473    32,698,156    1,343,440,198    1,097,353,394    156,919,448 
                         =============  =============  ============  ===============  ===============  ============= 
 
Operating costs and 
 expenses 
Operating costs          (198,973,480)  (158,549,399)  (22,672,263)    (822,587,314)    (714,394,432)  (102,157,045) 
Selling and marketing 
 expenses                 (17,623,031)   (13,807,086)   (1,974,387)     (67,585,059)     (54,784,569)    (7,834,089) 
General and 
 administrative 
 expenses                 (43,042,689)   (24,512,443)   (3,505,233)    (182,551,094)    (130,461,846)   (18,655,796) 
Other operating 

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