Budget hotel operator GreenTree Hospitality Group Ltd. (GHG.US) on Tuesday reported its revenue fell 14% in the first quarter of 2026, as both its hotel and restaurant business declined amid growing consumer caution in China. The company reported revenue of 227.7 million yuan ($33.5 million) in the three months to March, down from 264.8 million yuan a year earlier.
Revenue from GreenTree’s core hotel business fell 11.4% year-on-year in the quarter to 188.7 million yuan from 213 million yuan a year earlier, while its restaurant business dropped 24.6% to 39.1 million yuan from 51.9 million yuan. Revenue per available room (revpar) for the company’s hotel business dropped 5.7% year-on-year to 95 yuan in the latest quarter.
The company’s gross margin rose to 30.3% in the latest quarter from 29.3% a year earlier. That improvement, combined with sharp reductions in operating expenses, lifted the company’s net profit to 14 million yuan from 7.8 million yuan a year earlier.
GreenTree shares were mostly flat on Tuesday, and were unchanged in late morning trading on the New York Stock Exchange. The stock is down about 35% so far this year.
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