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

Total revenues decreased by 18.7% year over year to RMB 235.1 million (US$ 34.7 million). Income from operations was RMB 48.2 million (US$ 7.1 million) compared to RMB 49.2 million for the second quarter of 2025. Net income was RMB 21.3 million (US$ 3.1 million) compared to RMB 160.0 million for the second quarter of 2025. Core net income (non-GAAP) increased 4.4% year over year to RMB 47.2 million (US$ 7.0 million).

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 second quarter of 2026.

A total of 4,615 hotels with 330,029 hotel rooms were in operation as of June 30, 2026. The Company opened 18 hotels in the second quarter of 2026 and had a pipeline of 1,278 hotels contracted for or under development as of June 30, 2026. The average daily room rate was RMB157, a decrease of 5.3% from RMB166 in the second quarter of 2025. The occupancy rate was 65.2%, decreased from 67.9% in the second quarter of 2025. Revenue per available room, or RevPAR, was RMB103, a 9.1% year-over-year decrease.

A total of 198 restaurants were in operation as of June 30, 2026. The AC (average check) was RMB36, a 15.5% year-over-year decrease. The ADT (average daily tickets) was 81, decreased from 85 in the second quarter of 2025. The ADS (average daily sales per store) was RMB2,893, a decrease of 20.3% from RMB3,629 in the second quarter of 2025.

The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of 6.7851 on June 30, 2026 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at https://www.federalreserve.gov/releases/h10/20260706/. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate or at any other rate.

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.

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 subsidies (net of 25% tax), gains from investment in equity securities (net of 25% tax), and other income (net of 25% tax).

Each ADS represents one ordinary share.

Quarter Ended June 30, 2025 June 30, 2025 June 30, 2025 June 30, 2025 RMB RMB RMB RMB Hotel Restaurant Elimination Total Revenues Leased-and-operated revenues 105,970,283 28,389,854 (207,413) 134,152,724 Franchised-and-managed revenues 137,496,914 1,421,688 - 138,918,602 Wholesales and others 561,244 16,076,011 (443,807) 16,193,448 Total revenues 244,028,441 45,887,553 (651,220) 289,264,774 Quarter Ended June 30, 2026 June 30, 2026 June 30, 2026 June 30, 2026 RMB RMB RMB RMB US$ Hotel Restaurant Elimination Total Total Revenues Leased-and-operated revenues 77,613,926 18,246,301 - 95,860,227 14,128,049 Franchised-and-managed revenues 126,253,871 505,479 - 126,759,350 18,682,016 Wholesales and others 717,195 11,771,620 - 12,488,815 1,840,624 Total revenues 204,584,992 30,523,400 - 235,10