The sustained revenue contraction and negative guidance suggest further downside risk. Monitor next quarter for continued L&O hotel closures and whether cost cuts can sustain profitability amid top-line erosion. The company's $116M market cap and weak analyst consensus (0% bullish) already reflect pessimism, but the guidance revision may trigger additional selling.
Price Chart
Executive Summary
GreenTree Hospitality reported Q1 2026 revenue of RMB227.7 million, a 14.0% YoY decline, driven by lower RevPAR (-5.7%), occupancy decline (62.5% vs 64.0%), and strategic closures of L&O hotels and restaurants. Net income improved to RMB14.0 million (from RMB7.8 million) due to aggressive cost cutting, but the top-line weakness and guidance for organic hotel revenue to decline 10-15% YoY signal ongoing structural challenges.
Key Facts
- Total revenues decreased 14.0% YoY to RMB227.7 million (US$33.0 million)
- Hotel RevPAR fell 5.7% YoY to RMB95; occupancy dropped to 62.5% from 64.0%
- Restaurant ADS (average daily sales per store) declined 18.8% YoY to RMB3,270
- Net income rose to RMB14.0 million from RMB7.8 million, driven by a 20.1% reduction in total operating costs
- Guidance: organic hotel business revenues expected to decline 10-15% YoY
- Net closure of 13 L&O hotels and 3 L&O restaurants since Q1 2025 due to strategic reviews
- Cash from operations nearly flat at RMB58.1 million; investing cash outflow of RMB50.3 million for strategic asset purchases
Financial Impact
Revenue decline of 14.0% YoY; operating income improved to RMB28.7 million (margin 12.6%) from RMB11.3 million (margin 4.3%) due to cost reductions; core net income (non-GAAP) up 31.7% to RMB23.9 million
Risk Factors
- Continued RevPAR and occupancy declines in a weak Chinese hospitality market
- Further strategic closures of L&O hotels and restaurants reducing revenue base
- Franchisee fee exemptions and loan provisions pressuring margins
- China macro headwinds and consumer spending weakness
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001213900-26-073438 |
| Document: ea0296466-6k_greentree.htm | 0001213900-26-073438 |
| Document: 0001213900-26-073438-index-headers.html | 0001213900-26-073438 |
| Document: 0001213900-26-073438-index.html | 0001213900-26-073438 |
| Document: 0001213900-26-073438.txt | 0001213900-26-073438 |
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% | $0.9900 (+10.81%) |
Jun 30, 2026 17w ago | 6-K | $1.13 $1.11 | ▲ +1.77% | ▲ +0.74% | $0.9900 (+12.39%) |
US Market Status
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