GreenTree Hospitality Group Ltd. · NYSE:GHG

GreenTree Hospitality — Q3 2024 Earnings Presentation

29 slides from GreenTree Hospitality's earnings presentation, Nov 21, 2024

  1. Slide 1: 2024 Q3 Results

    2024 Q3 Results November 21, 2024 1

  2. Slide 2: Disclaimer

    Disclaimer This presentation does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities. Neither this presentation nor any part of it shall form the basis of or be relied upon in connection with any cont

  3. Slide 3: Contents

    Contents 01 02 03 04 2024Q3 2024Q3 2024Q3 Appendix Performance Review Strategic Execution Operating and Financial Highlights 3

  4. Slide 4: 2024Q3 Performance Review

    Vx Hotel (High-speed Railway Station, Dongfang City, Hainan Province) 01 2024Q3 Performance Review 4

  5. Slide 5: 2024Q3 Highlights

    2024Q3 Highlights RMB Compared with 2023Q3(1) RevPAR 135 Down 13.6% ADS( Average Daily 4,891 Down 25.6% Sales Per Store) Total Revenues 357.0MM Down 22.5% Hotel Revenues 286.9MM Down 15.4% Income from Operations 106.4MM Down 22.8% with margin 29.8% Net Income 65.2MM Down 44.4% with margin 18.3% Adju

  6. Slide 6: Overview of 2024Q3

    Overview of 2024Q3 Total Revenues Income from Operations Hotel Hotel RMB (M) Restaurant RMB (M) Restaurant 500 150 10.3 400 121.8 100 6.9 70.6 300 200 127.5 339.1 50 99.5 286.9 100 0 0 23Q3 24Q3 23Q3 24Q3 Net Income Adjusted EBITDA Hotel Hotel RMB (M) Restaurant Restaurant 150 200 9.1 8.8 100 9.4 10

  7. Slide 7: Hotel Performance

    Hotel Performance RevPAR 2024 RMB 212 190 196 210 177 164 160 161 157 170 145 152 152 146 149 144 131 135 124 142 137127 135 135 136 124 123 119 131 130 115 121 124 130 96 105 155 145 149 139 135 132 139 90 139 133 129 129 71 133 119 127 90 117108 133 120 124 117 117 119 113 124 92 111 100 117 119 1

  8. Slide 8: Restaurant operating metrics: ADS, ADT, AC

    AC (1) ADT (2) ADS (3) RMB RMB 65 160 7,000 6,570 60 58.6 140 6,080 6,371 55.2 6,000 55 53.1 55.0 54.1 52.7 5,433 5,525 4,891 120 120 119 5,000 4,564 4,737 50 46.2 46.2 109 106 45 99 101 4,000 100 94 90 40 3,000 35 80 2,000 30 60 1,000 25 20 40 0 22Q4 23Q1 23Q2 23Q3 23Q4 24Q1 24Q2 24Q3 22Q4 23Q1 23Q

  9. Slide 9: Improvement in Direct Sales and Membership Support

    Improvement in Direct Sales and Membership Support Corporate Members Individual Members ‘000 ‘000‘000 2,145 120 2,020 2,000 100 100 88 1,500 80 60 1,000 40 500 20 0 0 23Q3 24Q3 23Q3 24Q3 9

  10. Slide 10: 2024Q3 Strategic Execution

    Vx Hotel (High-speed Railway Station, Dongfang City, Hainan Province) 02 2024Q3 Strategic Execution 10

  11. Slide 11: 2024Q3 Strategic Execution

    2024Q3 Strategic Execution Further Expansion into Mid-to- Upscale Segment Expansion in Tier 2 + Continuous Penetration in Tier 3 and Lower Cities 11

  12. Slide 12: Further Expansion into Mid-to-UpScale Segment

    Further Expansion into Mid-to-UpScale Segment Organic New Openings (1) Breakdown by Segment 800 Mid-to-Upscale Midscale Economy 618 600 548 24.6% 13.9% 466 400 18.5% 420 Organic Hotel (2) Breakdown by Segment 18.1% Mid-to-Upscale Midscale Economy 49.8% 65.0% 295 4,500 4,336 4,238 14.6% 53.3% 4,059 1

  13. Slide 13: Expansion in Tier 2 + Continuous Penetration in Tier 3 and Lower Cities

    Expansion in Tier 2 + Continuous Penetration in Tier 3 and Lower Cities Organic New Openings Breakdown by City Tier Tier 1 Cities Tier 2 Cities Other Cities 618 600 548 7.1% 7.1% 466 27.0% 21.2% 6.4% 420 5.5% 21.3% 295 17.8% Organic Hotel Breakdown by City Tier 300 7.5% Tier 1 Cities Tier 2 Cities O

  14. Slide 14: 2024Q3 Restaurant Strategic Execution

    2024Q3 Restaurant Strategic Execution Restaurant Breakdown by L&O and F&M 300 F&M L&O 202 200 Business Model Refocused on 51 182 22 Franchised-and-Managed Restaurants 100 151 160 0 23Q3 24Q3 Proportion of Restaurants Breakdown by Location Hospital Street stores Transportation Hub Stores Shopping Mal

  15. Slide 15: Operating and Financial Highlights

    Vx Hotel (High-speed Railway Station, Dongfang City, Hainan Province) 03 Operating and Financial Highlights 15

  16. Slide 16: Hotel Revenue

    Hotel Revenue Total Revenue Revenue from L&O Hotels RMB (M) RMB (M) 200 400 100 300 151.8 118.2 105.9 118.2 0 23Q3 24Q3 24Q2 24Q3 200 Revenue from F&M Hotels RMB (M) 339.1 286.9 286.9 200 264.6 100 100 186.0 167.9 157.8 167.9 0 23Q3 24Q3 24Q2 24Q3 0 23Q3 24Q3 24Q2 24Q3 16

  17. Slide 17: Hotel Operating Costs and Expenses

    Hotel Operating Costs and Expenses Hotel Operating Costs Total Hotel Operating Costs and Expenses (1) RMB (M) RMB (M) 200 300 100 159.9 152.3 143.4 152.3 0 23Q3 24Q3 24Q2 24Q3 Selling and Marketing Expenses 200 RMB (M) 20 QoQ -2.4% 14.3 12.9 13.2 12.9 212.4 217.7 100 201.9 201.9 0 23Q3 24Q3 24Q2 24Q

  18. Slide 18: Hotel Profitability

    Hotel Profitability Income From Operations Net Income RMB (M) % Margin RMB (M) % Margin 150 150 100 100 127.5 50 50 108.5 99.5 99.5 81.6 58.6 63.1 58.6 0 0 23Q3 24Q3 24Q2 24Q3 23Q3 24Q3 24Q2 24Q3 37.6% 34.7% 30.8% 34.7% 32.0% 20.4% 23.9% 20.4% Adjusted EBITDA (1) Core Net Income (2) RMB (M) RMB (M)

  19. Slide 19: Restaurant Revenue and Operating Costs and Expenses

    Restaurant Revenue and Operating Costs and Expenses Total Revenue Total Restaurant Operating Costs and Expenses RMB (M) RMB (M) 150 150 100 100 QoQ 121.8 -0.6% 111.8 50 50 70.6 70.6 65.3 63.9 64.3 63.9 0 0 23Q3 24Q3 24Q2 24Q3 23Q3 24Q3 24Q2 24Q3 19

  20. Slide 20: Restaurant Profitability

    Restaurant Profitability Income From Operations Net Income RMB (M) % Margin RMB (M) % Margin 15 10 10 5 8.8 5 10.3 6.6 6.6 6.9 6.9 3.7 2.9 0 0 23Q3 24Q3 24Q2 24Q3 23Q3 24Q3 24Q2 24Q3 8.5% 9.7% 4.4% 9.7% 7.3% 9.4% 5.6% 9.4% Adjusted EBITDA (1) Core Net Income (2) RMB (M) RMB (M) 10 15 10 5 9.1 5 6.6

  21. Slide 21: Group Profitability

    Group Profitability Net (loss) income Core net income (Non-GAAP) RMB（M） RMB 200 200 100 100 QoQ 127.3 117.4 +4.7% 93.5 93.5 70.2 65.2 62.3 65.2 0 0 23Q3 24Q3 24Q2 24Q3 23Q3 24Q3 24Q2 24Q3 Net Income per ADS (Basic and Diluted) (1) Core Net Income per ADS (Basic and Diluted) (Non-GAAP) (2) RMB RMB 2

  22. Slide 22: Cash and Cash Equivalents

    Cash and Cash Equivalents Total cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits of RMB 1,883.9Million as of September 30, 2024 RMB (M) 2,500 2,000 （1.2） （5.8） 139.2 12.7 8.9 1.3 （8.3） 1,883.9 1,737.2 1,500 1,000 500 0 Cash & Cash

  23. Slide 23: Guidance; Thank you! Q&A

    Guidance We now anticipate revenue for our hotel business for the full year 2024 to decrease approximately 8% compared to 2023. This is based on our operating performance so far this year, in particular lower than expected travel in the third quarter, and the strategic review of our LO hotels segmen

  24. Slide 24: Appendix

    Vx Hotel (High-speed Railway Station, Dongfang City, Hainan Province) 04 Appendix 24

  25. Slide 25: Our Portfolio

    Our Portfolio As of September 30, 2024 Mid-to-Up-Scale • Hotels in operation: 527 • Hotel rooms in operation: 49,763 • Room rates: RMB 200 - 600 Mid-Scale [3] • Hotels in operation: 2,965 • Hotel rooms in operation: 230,580 • Room rates: RMB 150 - 400 [4] Economy • Hotels in operation: 844 • Hotel r

  26. Slide 26: Hotel Breakdown

    Hotel Breakdown Number of Hotels in Operation Number of Hotel Rooms in Operation By Market Segment and Brand 2023Q3 2024Q3 2023Q3 2024Q3 Mid-to-up-scale 455 527 43,485 49,763 GreenTree Eastern 224 234 23,639 25,245 Deep Sleep Hotel 7 7 534 534 Gem 61 91 5,372 8,178 Gya 71 73 5,899 6,071 Vx 92 104 8,

  27. Slide 27: Hotel Operating Data

    Hotel Operating Data 2023Q3 2024Q3 2023Q3 2024Q3 Occupancy rate Total hotels in operation 4,185 4,336 Leased-and-owned hotels 79.0% 75.9% Leased-and-owned hotels 64 56 Franchised hotels 81.3% 74.6% Blended 81.2% 74.6% Franchised hotels 4,121 4,280 Average daily rate (in RMB) Leased-and-owned hotels

  28. Slide 28: Restaurants Operating Data

    Restaurants Operating Data 2023Q3 2024Q3 2023Q3 2024Q3 Total restaurants in ADT 202 182 operation Dine In 56 51 Leased-and-owned 51 22 Delivery 63 55 restaurants Blended 119 106 Franchised restaurants 151 160 AC (in RMB) Dine In 76 60 Number of cities 66 53 Delivery 36 34 Blended 55 46 ADS (in RMB)

  29. Slide 29: Restaurants Operating Data

    Restaurants Operating Data 2023Q3 2024Q3 ADT Leased-and-owned restaurants 158 188 Franchised restaurants 101 89 Blended 120 106 AC (in RMB) Leased-and-owned restaurants 87 100 Franchised restaurants 40 33 Blended 55 46 ADS (in RMB) Leased-and-owned restaurants 13,785 18,860 Franchised restaurants 4,

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