Risk Score
Pending analysis
Investment Range
$300,500 - $1,815,900
Franchise Fee
$20,000
Total US Locations
18
Business Summary
GreenTree Inn Hotels offers franchises for full-service and select-service hotels that cater to price-conscious travelers. These hotels typically feature between 50 and 150 rooms and can have either interior or exterior corridors. The brand also includes GreenTree Inn & Suites, which are properties with interior corridors and a minimum number of suites, offering amenities like microwaves, refrigerators, coffee makers, hair dryers, irons, ironing boards, and high-speed internet. Additional segments include the GreenTree Boutique line, GreenTree Extended Stay (with kitchenettes in 50% of rooms), and GreenTree Hotels (offering full-service amenities such as food and beverage and meeting facilities). All GreenTree Inn Hotels operate under a standardized Hotel System and are identified by the GreenTree Inn brand marks.
Corporate History
GreenTree Hospitality Group, Inc. was formed in Delaware on August 7, 2014, and its principal business address is in Scottsdale, Arizona. The company began offering franchises for GreenTree Inn Hotels in April 2016. An affiliate, GreenTree Inns Hotel Management Group, Inc., has extensive experience since 2004, overseeing the management, franchising, and operations of approximately 3,000 hotels in Asia (China, Japan, South Korea, and Vietnam) under various trademarks. In March 2018, a subsidiary of this affiliate, GreenTree Hospitality Group Ltd., became listed on the New York Stock Exchange. Another affiliate, APAM Holdings, LLC, owns and operates hotels in several U.S. states but does not franchise or provide services to GreenTree Hospitality Group franchisees.
Financial Overview
Investment Range
$300,500 - $1,815,900
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$24,000
Royalty %
4%
Marketing %
4%
Equipment Costs (High)
$1,243,300
Working Capital
$56,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
GreenTree Hospitality Group's financial statements show positive and improving financial health. The company reported a net income of $836,742 in 2023, a significant increase from $225,267 in 2022. Its working capital also saw substantial growth, increasing from $489,904 in 2022 to $1,548,175 in 2023. The independent auditor has issued an unqualified opinion on the financial statements for both 2022 and 2023, indicating that they present fairly the company's financial position and results of operations. No substantial doubt about GreenTree Hospitality Group's ability to continue as a going concern was noted.
Financing Details
GreenTree Hospitality Group does not offer any direct or indirect financial assistance to its franchisees. The company also does not guarantee any notes, leases, or other obligations of its franchisees.
Performance Metrics
Total US Locations
18
Franchised Units
12
Corporate Units
6
Franchising Since
2016
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
GreenTree Hospitality Group has no litigation to report, as Item 3 of its Franchise Disclosure Document states that no litigation is required to be disclosed.
Bankruptcy History
GreenTree Hospitality Group has no bankruptcy history to report, as Item 4 of its Franchise Disclosure Document states that no bankruptcy is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Conditions
GreenTree Hospitality Group does not offer renewal or successor franchise agreements to its franchisees.
Training & Support Program
Franchisor Assistance
GreenTree Hospitality Group provides franchisees with comprehensive assistance both before and during the operation of their GreenTree Inn Hotel. Before opening, the franchisor assists with site approval, provides specifications for the Hotel's design (Design Standards), identifies approved suppliers for furniture, fixtures, and equipment (FF&E), and approves renovation plans. GreenTree Hospitality Group also trains the Hotel's general manager, provides access to its Manual (which includes System Standards), and lists the Hotel in its Central Reservations System (CRS) and advertising publications. Finally, the franchisor inspects the Hotel and authorizes its opening. During ongoing operations, GreenTree Hospitality Group offers periodic advice based on franchisee reports and its own evaluations, allows the use of its trademarks and confidential information, provides ongoing access to the Manual (with updates), and continues to list the Hotel in the CRS and advertising. The franchisor conducts periodic Quality Assurance inspections, may hold optional annual conventions, and maintains and administers the Marketing Fund. Supplemental training programs are also offered for replacement general managers and other key personnel, although these may incur additional fees, and franchisees are responsible for all related travel and living expenses for their staff.
Initial Training Hours
56
Training Location
Franchisee's location
Ongoing Support
After opening, GreenTree Hospitality Group provides franchisees with ongoing advice on the Hotel's operations, based on reports, evaluations, and inspections. This guidance is delivered through the Manual, bulletins, electronic media, telephone consultations, and visits to the franchisor's headquarters or the Hotel. Franchisees are granted continued use of the GreenTree Inn trademarks, copyrighted materials, and confidential information, and receive access to the updated Manual and listings in advertising publications and the Central Reservations System (CRS). The franchisor conducts periodic quality assurance inspections and may organize annual conventions for hotel personnel. GreenTree Hospitality Group also maintains and administers a Marketing Fund to which franchisees contribute. Furthermore, the franchisor offers additional, supplemental, and optional training programs throughout the franchise term. This includes mandatory training for replacement general managers within 90 days of assuming their position, with potential additional fees. Key Hotel management and other personnel may also be required to attend regional and national meetings and training programs within 180 days of notice. Franchisees are responsible for all fees associated with these programs, as well as their personnel's travel, living, and compensation expenses.
Franchise Requirements
Ideal Candidate Profile
GreenTree Hospitality Group is looking for franchisees who are capable of exercising direct management control over all aspects of the GreenTree Inn Hotel's business. Ideal candidates should not be a "Brand Owner" (an entity owning or managing a competing hotel brand of at least five hotels with a similar average daily room rate). Franchisees or their approved management companies must ensure that Core Management personnel dedicate all their working time to the hotel, without concurrent positions at other lodging facilities. Candidates are expected to have the business abilities and efforts vital for success, be committed to maintaining system standards, and possess a sufficient net worth and funds to meet all financial obligations of the investment.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Staffing Notes
GreenTree Hospitality Group requires that either the franchisee or an approved management company maintain direct management control over all aspects of the Hotel's business and act as the employer for the Hotel's Core Management and other personnel. The Core Management team, which includes the general manager, an assistant general manager (if applicable), and a sales director, must complete the franchisor's initial training program. Each Core Management member is required to dedicate all their working time to supervising the Hotel's day-to-day operations and cannot hold concurrent positions in other lodging facilities or related industry roles. The franchisor may also require specific training programs for personnel to ensure compliance with brand standards and quality assurance.