GreenTree Hospitality Group Ltd. (GHG): Business Model Canvas [Dec-2025 Updated]

You're looking at a hospitality giant that's built its empire without owning the bricks, which is the core of the asset-light model for GreenTree Hospitality Group Ltd. (GHG). Honestly, seeing their H1 2025 revenue hit RMB 585.1 million while managing a network of 4,509 hotels tells you their franchising engine is definitely humming. As someone who's seen a few market cycles, I can tell you dissecting this Business Model Canvas is key to understanding how they generate those reliable management fees and where the near-term risks-like that small restaurant operating loss-sit. Dive in below to see the nine blocks that define how GreenTree Hospitality Group Ltd. (GHG) keeps growing in China's competitive market.

GreenTree Hospitality Group Ltd. (GHG) - Canvas Business Model: Key Partnerships

When you look at the structure of GreenTree Hospitality Group Ltd. (GHG), the partnerships are what make the asset-light model actually work. You need a massive network of owners and operators to scale this quickly, so their relationship with franchisees is absolutely central.

Hotel Franchisees and Owners for the 4,509-Hotel Network

The core of GreenTree Hospitality Group Ltd.'s business is its franchised-and-managed (F&M) network. As of June 30, 2025, the company had a total of 4,509 hotels operating across China, housing 321,977 rooms. You'll notice that the growth is almost entirely driven by these partners; they opened a net 237 units year-over-year to reach that 4,509 total, with 138 new hotels opening in the first half of 2025 alone. This means the relationship with hotel owners is about providing the brand, the system, and the support, not tying up capital in property ownership.

The pipeline shows this commitment continues, with 1,245 hotels contracted for or under development as of mid-2025. The strategic push is toward higher-margin properties, evidenced by the mid-to-up-scale segment growing to 569 properties, a 12.7% increase.

Restaurant Franchisees for Da Niang Dumplings and Bellagio Brands

The restaurant side, which GreenTree Hospitality Group Ltd. acquired in 2023, also relies heavily on franchising. As of June 30, 2025, the total restaurant count stood at 183 units. The vast majority of these are franchised, which mirrors the hotel strategy.

Here's the quick math on the restaurant mix:

The specific brand breakdown for franchised locations shows the scale of the Da Niang Dumplings partnership, which is the dominant concept:

• Da Niang Dumplings franchised locations: 164 as of June 30, 2025.
• Bellagio franchised locations: 19 as of June 30, 2025.

To be fair, the Q1 2025 data shows some stress here, with franchised restaurants dropping to 71 in Q1 2025 from 81 in Q1 2024, suggesting some partners are struggling or closing down.

GreenTree Inns Hotel Management Group, Inc. (GTI), the Controlling Shareholder

You can't discuss GreenTree Hospitality Group Ltd.'s structure without noting its parent. GreenTree Hospitality Group Ltd. operates as a subsidiary of GreenTree Inns Hotel Management Group, Inc. (GTI). This relationship provides the foundational corporate backing and likely dictates high-level capital allocation and strategic direction for the entire group.

Suppliers for Hotel Operating Materials and Food Manufacturing

For the hotel side, GreenTree Hospitality Group Ltd. explicitly mentions being fully supported by its operating departments, which include Purchasing. This Purchasing function is the key partnership interface for securing materials for hotel operations and for the food manufacturing business, which involves the sale of prepared meals and frozen foods to supermarkets, distributors, and restaurant franchisees. While specific supplier names or contract values aren't public, the centralized purchasing function is a necessary partner to maintain brand standards across the vast network.

Online Travel Agencies (OTAs) for Supplementary Room Distribution

The company relies on an expansive booking network, which inherently includes partnerships with Online Travel Agencies (OTAs) to supplement direct bookings from its membership base. This distribution channel is critical for filling rooms, especially when RevPAR (Revenue Per Available Room) is under pressure, as seen by the blended RevPAR decline of 11% across the first half of 2025. The success of the F&M model depends on these OTAs driving occupancy.

GreenTree Hospitality Group Ltd. (GHG) - Canvas Business Model: Key Activities

Franchising and managing a diverse hotel brand portfolio is central to GreenTree Hospitality Group Ltd.'s operations. As of June 30, 2025, GreenTree Hospitality Group Ltd. had a total of 4,509 hotels in operation, alongside 183 restaurants. This network spans economy to luxury segments across China. During the first half of 2025, the company opened 138 new hotels. The development pipeline remains significant, with 1,245 hotels contracted for or under development as of the same date. For the full fiscal year 2024, total revenues from franchised-and-managed (F&M) hotels were RMB148.2 million (US$20.3 million).

Operating the proprietary central reservation system is a necessary function to support this scale. While GreenTree Hospitality Group Ltd. uses its own system, the broader Global Central Reservation System market size was valued at USD 0.67 billion in 2025. GreenTree Hospitality Group Ltd. aims to keep closer relationships with clients and partners through its expansive booking network.

Providing hotel and restaurant management services to partners drives a significant portion of the business structure. For the first half of 2025, total hotel revenues reached RMB488.0 million (US$68.1 million), representing a 9.5% year-over-year decrease. Total revenues from franchised-and-managed hotels and restaurants for the full year 2024 amounted to RMB152.9 million (US$21.0 million).

Food manufacturing and wholesale activities are tied to the restaurant segment, which GreenTree Hospitality Group Ltd. expanded in 2023 with the acquisition of Da Niang Dumplings and Bellagio. For the first half of 2025, restaurant revenues were RMB97.7 million (US$13.6 million), down 31.6% year-over-year. The company stated it plans to grow the overall number of restaurants in 2025 with a focus on franchised and managed stores.

Developing and maintaining the mobile app and IT platform supports the overall system management. The company is fully supported by operating departments including IT. The company's strong membership base is a key component of its operational reach.

Here's a quick look at some key operational and financial figures from the first half of 2025 and the end of 2024:

The core activities involve managing this large network through specific operational focuses:

• Maintain and grow the portfolio across economy to luxury segments.
• Execute on the 1,245 hotel pipeline.
• Manage the 183 restaurants, including acquired chains.
• Generate F&M hotel revenue, which was RMB148.2 million (US$20.3 million) in FY 2024.
• Support operations with IT and a strong membership base.

The company's gross margin stood at 37.39%, with operating and profit margins at 13.33% and 15.31%, respectively.

GreenTree Hospitality Group Ltd. (GHG) - Canvas Business Model: Key Resources

You're looking at the core assets GreenTree Hospitality Group Ltd. (GHG) relies on to run its business as of late 2025. These aren't just line items on a balance sheet; they are the engines driving their operations across China's hospitality sector.

Strong brand portfolio across economy to mid-scale segments is a foundational resource. GreenTree Hospitality Group Ltd. maintains a broad array of brands covering the economy to mid-scale, up-scale and luxury segments of the hospitality industry, primarily within China.

The sheer scale of the physical network is a massive resource, providing significant market presence and operational leverage. Here's the quick math on their physical footprint as reported for the first half of 2025:

GreenTree Hospitality Group Ltd. also relies heavily on its internal infrastructure. The company uses proprietary technology and a central reservation system to help manage this vast network, aiming for consistent service standards and cost efficiencies across its properties. Furthermore, a loyal membership base for direct bookings is a critical intangible asset, helping to drive occupancy and reduce reliance on third-party distribution channels. The company supports this with investment in digital platforms and mobile check-in capabilities.

The ownership and management of the restaurant brands, Da Niang Dumplings and Bellagio, represent a diversification of the core hospitality offering. GreenTree Hospitality Group Ltd. completed the acquisition of these two leading restaurant chain businesses in China in 2023. To give you some context on the scale of these brands when they were acquired:

• Da Niang Dumplings chain had more than 200 self-operated and franchise stores as of March 2023.
• Bellagio chain had 36 stores as of March 2023.

The strategy involves introducing these brands into the existing hotel base, which offers a clear path for expansion using established physical assets. If onboarding takes 14+ days, churn risk rises, but for internal brand integration, speed is key.

GreenTree Hospitality Group Ltd. (GHG) - Canvas Business Model: Value Propositions

You're looking at the core reasons why customers choose GreenTree Hospitality Group Ltd. (GHG) over competitors in the Chinese market as of late 2025. The value is built around accessible quality, scale, and an owner-friendly structure.

Reliable, modern, and value-for-money accommodation.

GreenTree Hospitality Group Ltd. delivers lodging that balances modern standards with affordability, a key driver for its large customer base across China. This value is quantified by the sheer scale of the network available to guests.

The operational footprint as of June 30, 2025, shows a substantial commitment to this value proposition:

For the full year 2025, the expectation was a net addition of 280 hotels, balancing 480 planned openings against approximately 200 closures.

Multi-brand portfolio catering to diverse traveler needs.

GreenTree Hospitality Group Ltd. manages a portfolio designed to capture different segments of the market, from budget-conscious travelers to those seeking specific dining experiences. This breadth of offering is a core part of the value delivered to the market.

The brand structure includes several key names:

• GreenTree brand hotels.
• Da Niang Dumplings restaurant brand.
• Lu Gang or Bellagio restaurant brand.

This diversification helps maintain relevance across various price points and traveler preferences within the Chinese hospitality sector.

Asset-light franchise model offering low-cost expansion for owners.

The emphasis on franchising and management, rather than owning the physical assets, provides a low-capital route for expansion, which is a significant value proposition for property owners looking to partner with GreenTree Hospitality Group Ltd. This model allows for rapid scaling with lower direct capital expenditure risk for the parent company.

Evidence of this asset-light focus is clear in the restaurant segment, where, as of Q4 2024, nearly 90% of stores were franchised/managed, up from 78% previously. The company also announced a cash dividend of US$0.06 per ADS, payable to shareholders, signaling a commitment to returning capital.

Seamless guest experience via a unified digital platform.

GreenTree Hospitality Group Ltd. aims to provide a consistent and easy-to-use digital interface for booking, check-in, and other guest services across its network. This digital integration is intended to streamline the customer journey.

The company's financial structure reflects a focus on profitability metrics that support ongoing platform investment, even amidst revenue headwinds. For instance, the Price-to-Earnings (P/E) Ratio stood at 4.23, which is less expensive than the market average P/E of about 39.13 as of late 2025.

Quality, eco-friendly guest experiences in China.

The value proposition includes a commitment to quality standards that are perceived as environmentally conscious within the Chinese operating environment. This addresses a growing segment of travelers prioritizing sustainability in their choices.

The company's financial health supports its ability to maintain standards, evidenced by a Price-to-Book Value per Share Ratio of 0.91, suggesting the market values the net assets favorably relative to the stock price. Furthermore, the dividend yield was 2.80%, supported by a healthy dividend payout ratio of 11.63%.

GreenTree Hospitality Group Ltd. (GHG) - Canvas Business Model: Customer Relationships

GreenTree Hospitality Group Ltd. focuses its customer relationships strategy on digital self-service, direct engagement through loyalty, and tailored service for larger accounts. The foundation of this approach is built upon the scale of its operations as of the first half of 2025, with 4,509 hotels in operation as of June 30, 2025.

Automated service via proprietary mobile app and WeChat mini-program is a core component, supported by technology investments. The company has a GFT Rewards licensing agreement that utilizes Datavault\'s ADIO® technology to drive mobile reward systems. While specific GreenTree Hospitality Group Ltd. mobile app user numbers for 2025 aren\'t public, industry data suggests that 71% of guests are more likely to choose hotels offering self-service technologies like mobile check-in. Furthermore, 67% of guests prefer hotels allowing smartphone-based check-in and door access.

The relationship is significantly strengthened through the loyalty rewards program, which is free to join and operates on a tiered structure (Silver, Gold, Platinum). Direct booking is incentivized, and members earn 10 GreenTree Reward points per every $1.00 spent on the room rate, with eligibility to earn points for up to two rooms per night. Historically, GreenTree members contributed up to 35% of total reservations.

For corporate clients, GreenTree Hospitality Group Ltd. aims for dedicated account management, positioning Corporate Travel Solutions as a potential value-added service stream with an estimated annual revenue of $42.5 million and a projected growth potential of 24% year-over-year.

The push for efficiency extends to physical interactions, supporting the self-service check-in/out capability at many hotel locations. This aligns with the general traveler preference where 70% of American travelers are likely to use an app or kiosk instead of a traditional front desk.

Here is a summary of the quantifiable aspects of GreenTree Hospitality Group Ltd.\'s customer relationship strategy:

The loyalty program tiers offer specific earning bonuses, for example, Gold and Platinum members receive a 10% Points earning bonus. Platinum members are further rewarded with a 25% Points earning bonus.

• Silver Tier Benefit: Guaranteed discount rate.
• Gold Tier Benefit: Guaranteed discount rate, 10% Points earning bonus, Welcome gift, Space available room upgrades, Late check out.
• Platinum Tier Benefit: Guaranteed discount rate, 10% Points earning bonus, Welcome gift, Space available room upgrades, Late check out, Early check in.

Subject to space availability.

GreenTree Hospitality Group Ltd. (GHG) - Canvas Business Model: Channels

You're looking at how GreenTree Hospitality Group Ltd. (GHG) gets its services-rooms and restaurant products-to the customer. It's a multi-pronged approach, which makes sense given the scale of operations as of mid-2025.

As of June 30, 2025, GreenTree Hospitality Group Ltd. had 4,509 hotels in operation, totaling 321,977 hotel rooms across China. This massive physical footprint is the core asset these channels must drive occupancy to. Also operating were 183 restaurants.

Direct Booking Channels: CRS, App, and WeChat

The push for direct bookings is always about capturing the full margin, which is key when you see industry OTA commissions ranging from 15% to 30% depending on the platform and contract. GreenTree Hospitality Group Ltd. supports this with its proprietary central reservation system (CRS) and website, which are the backbone for its strong membership base. The company also uses digital tools to engage members directly.

The digital direct channels include:

• Mobile app for direct booking access.
• WeChat mini-program for direct booking access.

On-Site and Traditional Sales

The physical locations themselves remain a critical channel. Hotel front desks at all 4,509 properties are points of sale, handling walk-ins and direct calls. On-site sales teams at managed properties also drive local and group business directly, bypassing third-party fees entirely.

Online Travel Agencies (OTAs)

Online Travel Agencies (OTAs) are necessary for broad visibility, even with the associated costs. While GreenTree Hospitality Group Ltd. doesn't publish its specific booking mix, the reliance on OTAs is a financial lever. For context, industry commission rates for major OTAs often fall between 10% and 25% of the booking value, which directly impacts the net revenue per room night. This channel is used to fill rooms when direct channels are insufficient, balancing volume against margin erosion.

Wholesale Distribution for Restaurant Products

This channel is distinct, focusing on the restaurant segment of GreenTree Hospitality Group Ltd.'s business. The financial contribution from this segment shows a clear trend. For the first half of 2025, total revenues from wholesale and others were RMB36.5 million (US$5.1 million). This represented a 28.5% year-over-year decrease, primarily driven by the decline in the wholesale segment of the restaurant business.

Here's a quick look at the financial impact of this specific channel for H1 2025:

The hotel business, which is the primary revenue driver, generated a net income of RMB200.6 million (US$28.0 million) for the same six-month period.

You should track the direct booking penetration rate against the OTA volume to see how effectively GreenTree Hospitality Group Ltd. is managing its channel cost structure going into the next reporting cycle.

GreenTree Hospitality Group Ltd. (GHG) - Canvas Business Model: Customer Segments

You're looking at the core groups GreenTree Hospitality Group Ltd. (GHG) serves across its lodging and dining operations as of late 2025. The company's structure is built around catering to a massive, price-sensitive domestic market.

The primary lodging customer base is defined by their need for value within the Chinese market. This group is served by a network that, as of June 30, 2025, included 4,509 hotels totaling 321,977 hotel rooms in operation. You can see the scale of the operation in the table below, which also shows the development focus.

The segment description of China's growing middle-class consumer base is supported by the company's focus on economy and midscale brands, such as the flagship GreenTree Inn. This strategy targets travelers in more than 500 cities across China, with a specific emphasis on second- and third-tier markets.

For corporate clients, the segment is served implicitly through the scale and reliability of the network, which is designed to standardize quality. While specific corporate booking volume is not public, the sheer size of the operation suggests significant volume from business travelers needing reliable stays.

Hotel owners and franchisees are a distinct customer segment for GreenTree Hospitality Group Ltd. They are seeking management expertise to operate their properties under the GHG umbrella. This relationship is critical to the asset-light model, as evidenced by the large pipeline of 1,245 hotels under development as of mid-2025.

The restaurant division serves patrons of its acquired chains, Da Niang Dumplings and Bellagio. The operational data shows a shift in the mix of these restaurant locations between the first half of 2024 and the first half of 2025.

• Value-conscious business and leisure travelers in China.
• Hotel owners/franchisees seeking management expertise.
• Corporate clients requiring bulk bookings and reliable stays.

Here's the quick math on the restaurant footprint as of June 30, 2025, compared to the prior year:

What this estimate hides is the specific revenue contribution from the corporate segment versus individual leisure bookings, but the hotel ADR of RMB157 in Q1 2025 gives you a baseline for the value-conscious traveler.

GreenTree Hospitality Group Ltd. (GHG) - Canvas Business Model: Cost Structure

You're looking at the cost side of GreenTree Hospitality Group Ltd. (GHG)'s business model as of late 2025. Given their asset-light, franchised focus, a significant portion of costs is fixed or related to corporate overhead, but the leased-and-operated (L&O) segment still carries direct operational expenses.

The overall cost structure for the first half of 2025 (H1 2025) shows a decrease in operating costs, largely driven by the reduction in the L&O hotel footprint.

Primarily fixed costs due to the asset-light, franchised model.

While the franchise model shifts property-level fixed costs to franchisees, GreenTree Hospitality Group Ltd. still incurs substantial corporate overhead, which acts as a fixed cost base for the management and franchising operations.

Selling, general, and administrative (SG&A) expenses.

Specific total SG&A for GreenTree Hospitality Group Ltd. for H1 2025 is not explicitly detailed in the press release summaries, but component costs are available:

• G&A expenses for the restaurant business in H1 2025 were reported at RMB 10.5 million (US$ 1.5 million), a year-over-year decrease of 33.6%.
• Other general expenses for the hotel business in H1 2025 were RMB 11.6 million (US$ 1.6 million).

IT system development and maintenance costs.

Specific line-item costs for IT system development and maintenance for GreenTree Hospitality Group Ltd. for H1 2025 are not itemized in the available public summaries. The company does mention its IT department supports its superior system management [cite: 2 from previous search].

Cost of revenue for leased-and-operated hotels and restaurant business.

The primary component of direct costs is captured under Operating Costs. For the asset-heavy L&O segment, these costs decreased due to hotel closures.

The decrease in hotel operating costs was mainly due to lower depreciation and amortization and lower consumable, food and beverage expenses resulting from the closing of L&O hotels.

Restaurant business reported an operating loss of RMB 1.5 million (US$ 0.2 million) in H1 2025.

This loss represents a significant shift from the first half of 2024, when the restaurant business reported an income from operations of RMB 4.7 million.

Key financial metrics related to the restaurant business for H1 2025 include:

• Operating Loss: RMB 1.5 million (US$ 0.2 million).
• Net Loss: RMB 1.8 million (US$ 0.3 million).
• Operating Margin: -1.5%.

Finance: draft 13-week cash view by Friday.

GreenTree Hospitality Group Ltd. (GHG) - Canvas Business Model: Revenue Streams

You're looking at the core ways GreenTree Hospitality Group Ltd. (GHG) brings in money, based on their latest reported figures as of late 2025. Honestly, the mix shows a heavy reliance on hotel operations, but the underlying structure is clearly shifting toward asset-light management.

As of June 30, 2025, GreenTree Hospitality Group Ltd. operated a total of 4,509 hotels across China. This scale is key to their revenue generation, which is split between direct operations and fees from franchised/managed properties.

Here is a look at the top-line performance for the first half of 2025:

The revenue streams are clearly segmented, even if the exact split between pure franchise fees and L&O revenue isn't explicitly separated in the top-line figures provided.

The revenue from direct operations, specifically revenue from leased-and-operated hotels and restaurants, accounted for RMB 253.6 million (US$ 35.4 million) in H1 2025. This is a significant portion of the total, but the strategic direction is toward reducing this capital-intensive segment.

For the restaurant segment, which includes the acquired chains, revenue from restaurant operations (Da Niang Dumplings, Bellagio) totaled RMB 97.7 million (US$ 13.6 million) in H1 2025. GreenTree Hospitality Group Ltd. completed the acquisition of Da Niang Dumplings and Bellagio in 2023.

The asset-light model relies heavily on fees. While a specific number for franchise and management fees from 4,509 hotels isn't isolated, the difference between Total Hotel Revenues (RMB 488.0 million) and the L&O revenue subset suggests a substantial portion comes from the franchise/management side, which is the desired focus for margin improvement.

The final component involves support services. GreenTree Hospitality Group Ltd. supports hotel owners through various means, which translates into revenue streams like the provision of IT and other services to franchisees. These services include:

• Site selection support.
• Pre-opening planning.
• Staff training.
• Procurement and supply-chain management.
• Quality assurance programs.
• Customer loyalty programs.

The company continues to invest in digital platforms, including mobile check-in capabilities and data-driven marketing tools, which feed into these service offerings. They have a pipeline of 1,245 hotels under development as of June 30, 2025, indicating future fee-based revenue growth is planned.

Finance: draft H2 2025 fee-based revenue forecast by end of next week.