We present a systematic study of the geometric R'enyi divergence (GRD), also known as the maximal R'enyi divergence, from the point of view of quantum information theory. We show that this divergence, together with its extension to channels, has many appealing structural properties. For example we prove a chain rule inequality that immediately implies the "amortization collapse" for the geometric R'enyi divergence, addressing an open question by Berta et al. [arXiv:1808.01498, Equation (55)] in the area of quantum channel discrimination. As applications, we explore various channel capacity problems and construct new channel information measures based on the geometric R'enyi divergence, sharpening the previously best-known bounds based on the max-relative entropy while still keeping the new bounds single-letter efficiently computable. A plethora of examples are investigated and the improvements are evident for almost all cases.