GreenTree Hospitality Group Ltd. (NYSE: GHG)

GreenTree Hospitality Group Ltd. operates a hotel and restaurant platform primarily in China. The company offers franchised and managed hotels as well as franchised and self service dining concepts. Its hotel portfolio includes a variety of brands targeting different customer segments, from economy to mid to up scale. The restaurant business consists of quick service and casual dining chains that serve mass consumers across the country.

The company generates revenue mainly from hotel franchise fees, which include initial franchise fees and ongoing management fees calculated as a percentage of franchisee revenue. It also earns income from room sales at leased and operated hotels where it retains all operating revenues. Additionally, the restaurant business contributes revenue from food and beverage sales at its outlets. These streams are supported by a strong direct sales channel and a large loyalty programme that drive repeat business.

The company operates through the following segments: Hotel Business and Restaurant Business. These segments reflect the core operational divisions that generate the majority of its income.

• Hotel Business: This segment encompasses the franchised and managed hotel model, where the company licenses its brands to property owners who pay initial fees and ongoing royalties, and the leased and operated model, where the company directly leases properties and retains all operating revenues; it includes a portfolio of over 11 brands ranging from economy to mid to up scale, covering more than 4,500 hotels with about 327,000 rooms in operation as of the end of 2025.

• Restaurant Business: This segment comprises the quick service chain Da Niang Dumplings and the casual dining chain Bellagio, acquired in 2023, providing affordable meals through a mix of self operated and franchised outlets across China; the segment generated approximately RMB186.2 million in revenue during 2025.

Within China's highly competitive hospitality industry, GreenTree Hospitality Group Ltd. holds a leading position as one of the largest hotel chains by room count. The company benefits from an asset light franchised model that enables rapid expansion while limiting capital expenditure. Its main competitors include Jinjiang, Home Inns and various international hotel brands. Competitive advantages stem from a strong direct sales channel, a large loyalty programme and proprietary technology systems that improve operating efficiency and enhance guest experience.

The company serves primarily value and quality conscious business and leisure travelers within China. A substantial base of individual and corporate members accounts for the majority of room nights in the hotel network. The restaurant business caters to mass consumers seeking convenient and affordable dining options in urban and suburban locations. Together, these customer groups provide a stable foundation for recurring revenue.