China's GreenTree Hospitality Q1 revenue falls on restaurant and hotel closures

Overview

• China hotel and restaurant operator's Q1 revenue fell 14% yr/yr on lower RevPAR, net closures

• Net income and core net income rose yr/yr, helped by lower operating costs and expenses

• Company guides for 10-15% yr/yr revenue decline in organic hotel business for 2026

Outlook

• Company expects organic hotel business revenue to decline 10% to 15% year over year

• GreenTree cites closures of leased-and-operated hotels and slower new openings as drivers of revenue decline

Result Drivers

• REVPAR AND STORE CLOSURES - Revenue decline was mainly due to a 5.7% drop in RevPAR and net closures of 13 L&O hotels and 3 L&O restaurants, per company

• COST REDUCTIONS - Profitability improved due to lower operating costs, selling and marketing expenses, and G&A expenses, mainly from reduced staff costs, depreciation, and rental costs after closures

Company press release:

Key Details

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