GreenTree Hospitality Group Ltd. reported its fourth‑quarter and full‑year 2025 financial results, showing a 24.9% decline in total revenue to RMB 228.7 million (approximately US$32.7 million) for the quarter and an 18.3% drop to RMB 1,097.4 million (about US$156.9 million) for the year. Hotel revenue fell 20.9% to RMB 189.9 million (US$27.2 million), while restaurant revenue plunged 39.9% to RMB 39.1 million (US$5.6 million). The sharp revenue contraction reflects the impact of lease expirations and the strategic closure of 15 leased‑and‑operated hotels and a number of restaurants, as management noted in its commentary.
The company’s operating cash flow for the quarter was US$4.6 million, down 54.4% from the prior year, a decline driven by lower depreciation, amortization and staff costs but partially offset by higher rental income from new openings. Full‑year operating cash flow figures were not disclosed in the release. Net loss for the quarter improved to RMB –55.7 million from RMB –72.8 million in Q4 2024, while core net income rose to RMB 63.2 million from RMB 57.8 million, indicating a modest improvement in underlying profitability.
Management reiterated its 2025 guidance, maintaining flat RevPAR expectations and projecting a net addition of 280 franchise‑managed hotels after the planned closure of 200 leased‑and‑operated properties. The portfolio rejuvenation program, which includes upgrading 700–800 aged hotels and closing 200 under‑performing L&O assets, is expected to be completed by summer 2026. These actions aim to improve long‑term franchisee profitability and strengthen the company’s network, even as it navigates current revenue headwinds.
Market reaction to the results was positive, with the company’s shares rising 4.84% on the day of the earnings release. Investors appeared to weigh the revenue decline and margin compression against the company’s sizable cash balance and its disciplined cost management, which helped narrow the net loss and support a stable outlook for the remainder of the year.
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