The sharp revenue decline and weak operational metrics (RevPAR -9.1%, occupancy -270bps) confirm a deteriorating top-line trend, though cost discipline kept operating income nearly flat. The US$5M buyback is small relative to the $112M market cap and does not offset the fundamental weakness. Traders should watch for further hotel closures and whether the 10-15% full-year revenue guidance proves optimistic. The restaurant segment's 20%+ ADS decline signals ongoing consumer pressure.
Price Chart
Executive Summary
GreenTree Hospitality reported Q2 2026 results with total revenue down 18.7% YoY to RMB235.1M, driven by a 9.1% RevPAR decline and net hotel closures. GAAP net income collapsed to RMB21.3M from RMB160.0M a year ago, largely due to the absence of prior-year one-time gains. However, core net income (non-GAAP) rose 4.4% YoY to RMB47.2M, and the company maintained its hotel revenue guidance of a 10-15% full-year decline. A new US$5M share repurchase program was also authorized. The combination of a steep revenue decline, negative operating trends, and a cautious outlook makes this a bearish report, partially offset by stable core profitability and a small buyback.
Key Facts
- Total revenues decreased 18.7% YoY to RMB235.1 million (US$34.7 million).
- Net income fell 86.7% YoY to RMB21.3 million (US$3.1 million), from RMB160.0 million.
- Core net income (non-GAAP) increased 4.4% YoY to RMB47.2 million (US$7.0 million).
- Blended hotel RevPAR declined 9.1% YoY to RMB103; occupancy fell to 65.2% from 67.9%.
- Restaurant ADS (average daily sales per store) dropped 20.3% YoY to RMB2,893.
- Company maintained guidance for hotel revenue to decrease 10-15% YoY for full year 2026.
- Board authorized a US$5 million share repurchase program over two years.
- Cash and equivalents, restricted cash, short-term investments, and time deposits totaled RMB2,000.3 million (US$294.8 million) as of June 30, 2026.
Financial Impact
Revenue decline of 18.7% YoY; GAAP net income down ~87% YoY; core net income up 4.4% YoY; US$5M buyback authorized
Risk Factors
- Continued RevPAR and occupancy declines in a weak Chinese travel market
- Further net closures of leased-and-operated hotels (13 closed in past year)
- Restaurant segment revenue down 33.5% YoY with no sign of stabilization
- Guidance for another 10-15% revenue decline implies no near-term recovery
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (GHG) — Batch item 1 | 0001213900-26-093247 |
| Document: 0001213900-26-093247-index-headers.html | 0001213900-26-093247 |
| Document: 0001213900-26-093247-index.html | 0001213900-26-093247 |
| Document: 0001213900-26-093247.txt | 0001213900-26-093247 |
| 6-K Filing (GHG) — Batch item 5 | 0001213900-26-093247 |
| Document: 0001213900-26-093247-index-headers.html | 0001213900-26-093247 |
| Document: 0001213900-26-093247-index.html | 0001213900-26-093247 |
| Document: 0001213900-26-093247.txt | 0001213900-26-093247 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 25, 2026 9w ago | 6-K | $1.11 $1.00 | ▲ +9.91% | ▲ +10.89% | $0.9835 (+11.40%) |
Jun 30, 2026 17w ago | 6-K | $1.13 $1.11 | ▲ +1.77% | ▲ +0.74% | $0.9835 (+12.96%) |
US Market Status
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