GreenTree Hospitality Reports Profit Growth Despite Revenue Dip

The company’s shift in strategy is reflected in its streamlined portfolio. As of March 31, 2026, GreenTree operated 4,605 hotels, a net increase from the previous year, yet the group has shuttered 13 leased-and-operated (L&O) hotels to optimize its footprint. This consolidation, alongside lower staff-related expenses and reduced administrative costs, helped the firm expand its operational income from RMB 11.3 million to RMB 28.7 million year-over-year.

Performance metrics for the hotel segment highlighted a softer market environment, with blended RevPAR falling 5.7% to RMB 95. The restaurant division faced similar headwinds, as total restaurant revenues dropped 24.6% following a decline in average daily sales per store. Looking ahead, management expects continued pressure, projecting a 10% to 15% revenue decline for the organic hotel business as it continues its standardization process and further closes non-core assets.