GreenTree Hospitality Q1 Revenue Plunges 14% Amid Hotel Closures, Guides for Further Decline
GHG is trading near its 52-week low of $1.11 (0.9% above the low).
Summary
GreenTree Hospitality reported a 14% year-over-year revenue decline in Q1 to RMB 227.70 million, driven by hotel and restaurant closures and a 5.7% drop in RevPAR. This follows previous reports of revenue declines for fiscal year 2025. Despite the top-line weakness, net income increased due to significant cost reductions. However, the company's guidance for a further 10-15% revenue decline in its organic hotel business for 2026 signals continued operational headwinds for the small-cap company.
At the time of this announcement, GHG was trading at $1.12 on NYSE in the Trade & Services sector, with a market capitalization of approximately $116M. The 52-week trading range was $1.11 to $2.78. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.