GreenTree Hospitality Group Ltd. · NYSE:GHG

GreenTree Hospitality — Q4 2019 Earnings Presentation

28 slides from GreenTree Hospitality's earnings presentation, Apr 14, 2020

  1. Slide 1: GreenTree Hospitality Group Ltd. 2019Q4 and Full Year Results

    GreenTree Hospitality Group Ltd. 2019Q4 and Full Year Results April 14, 2020

  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 Performance COVID-19 Operating and Review Financial Appendix Highlights 3

  4. Slide 4: Performance Review

    01 Performance Review

  5. Slide 5: Overview of 2019Q4 and full year

    Overview of 2019Q4 and full year As of December 31, 2019 Number of Hotels ADR Financial Overview In 339 cities 3,957 RMB RMB (M) 170 170 1,091.8 164 164 2,757 20.6% 594.1 437.8 12.1% 18Q4 19Q4 18Q4 19Q4 2018 2019 289.4 17.9% 48.9% 162.3 Occupancy RevPAR 20.4% 74.5 11.4% RMB Total Total Net Income Ne

  6. Slide 6: COVID-19

    02 COVID-19

  7. Slide 7: Hotels in operation and occupancy during COVID-19

    Hotels in operation* OCC 100% 90% 80% 70% 60% 50% 40% 30% 20% 21.5% 10% 0% 1/1 1/6 1/11 1/16 1/21 1/26 1/31 2/5 2/10 2/15 2/20 2/25 3/1 3/6 3/11 3/16 3/21 3/26 3/31 7 * hotels in operation = number of hotels in operation excluding requisitioned hotels / total number of hotels

  8. Slide 8: COVID-19: Protecting Guests and Staff

    COVID-19: Protecting Guests and Staff 0) Infection in our hotels All regional managers took systematic A epidemic prevention training from Protection ORE St 5 m iz s | Manual prepared by the Company. ABHEoAD All hotel staffs were trained and followed daily updated Protection Manual through hotel inf

  9. Slide 9: Operating and Financial Highlights

    03 Operating and Financial Highlights 9

  10. Slide 10: Hotel Growth

    Hotel Growth Increasing Number of Hotels in Operation Total L&O Hotels 3,957 4,000 34 3,500 3,000 2,757 29 2,500 2,289 1,964 26 2,000 32 1,500 1,932 2,263 2,728 3,923 1,000 2016 2017 2018 2019 % by Hotel Segment 2016 2017 2018 2019 Luxury - - - 0.5 Mid-to-up-scale 1.5 2.2 4.0 6.7 Mid-scale 94.4 91.1

  11. Slide 11: New Hotel Openings and Closures

    New Hotel Openings and Closures 19Q4 New Openings New Hotel Openings and Closures Breakdown by Market Segment Mid-to-Up-scale 240 Gross Opening 29 Mid-scale YoY Growth -15.2% 15% 43% 81 Gross Opening YoY Growth 24.0% 190 Gross Opening YoY Growth 28.8% 42% Economy 140 Gross Opening 80 YoY Growth 27.5

  12. Slide 12: Pipeline Growth

    Pipeline Growth 19Q4 Pipeline Growth by Market Segment Luxury Mid-to-Up-scale Mid-Scale Economy YOY Growth 120.7% 949 54 181 25% 652 596 47 47 27% 128 364 481 28% 38% 117 430 116 24% 117 27% 272 42% 249 42% 258 54% 231 54% 350 37% 183 30% 205 31% 82 19% 107 22% 18Q4 19Q1 19Q2 19Q3 19Q4 12

  13. Slide 13: Strategic Development

    Strategic Development Further Expansion into Mid-to-Upscale and Luxury Brands Gem Hotel GreenTree Eastern ● Calm sanctuary for business travelers ● Premium boutique hotels with ● 5 new openings in 19Q4 traditional oriental themes ● Pipeline: 29 ● 7 new openings in 19Q4 ● Rate: RMB 280-350 ● Pipeline

  14. Slide 14: Hotel Performance Q4 2019

    Hotel Performance Q4 2019 The Company achieved a steady 0.9% RevPAR YoY growth in 19Q4. Excluding Argyle and Urban, the Company achieved a 2.0% RevPAR YoY growth. F&M Hotels L&O Hotels ADR Occupancy RevPAR RMB RMB 212 203 207 82% 80% 81% 80% 193 78% 70% 166 169 167 65% 67% 66% 135 132 137 133135 134

  15. Slide 15: Hotel Performance 2019 FY

    Hotel Performance 2019 FY The Company achieved a steady 2.0% RevPAR YoY growth in 2019. Excluding Argyle and Urban, the Company achieved a 1.9% RevPAR YoY growth. F&M Hotels L&O Hotels ADR Occupancy RevPAR RMB RMB 211 213 205 83% 82% 81% 82% 81% 186 70% 134 139 137 140 137 141 169 167 66% 68% 66% 66

  16. Slide 16: RevPAR Growth

    RevPAR Growth Quarterly RevPAR RMB 160 164 152 149 145 145 152 142 139 135 137 135 131 135 139 131 127 124 123 129 124 132 133 129 119 120 115 119 117 117 111 108 100 92 80 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 F&M Hotel L&O Hotel 线性 Growth (F&MTrend Hotel)

  17. Slide 17: Membership Program

    Membership Program 93.0% of room nights sold directly Individual Members Corporate Members MM ‘000 44 1,510 1,500 1,450 40 39 1,380 36 1,320 1,270 33 1,200 30 29 900 20 10 600 18Q4 19Q1 19Q2 19Q3 19Q4 18Q4 19Q1 19Q2 19Q3 19Q4 17

  18. Slide 18: Revenue Growth

    Revenue Growth Total Revenue Revenue from F&M Hotels RMB (M) RMB (M) 1,091.8 1,100 900 838.4 800 692.9 1,000 700 600 905.6 500 900 400 300 220.9 800 183.7 200 100 700 0 18Q4 19Q4 2018 2019 600 Revenue from L&O Hotels 500 RMB (M) 400 300 253.4 289.4 250 300 212.7 240.4 200 200 150 100 68.6 100 56.7 5

  19. Slide 19: Operating Costs and Expenses

    Operating Costs and Expenses RMB (M) % of Revenue 92.6 32.0% 90 Total Operating Costs and Expenses (1) 80 79.6 27.5% 81.5 RMB (M) % of Revenue 70 72.0 60 650 50 612.1 56.1% Adjusted (2) 600 40 30 23.2 8.0% 550 30.9 20 13.9 25.5 Adjusted (2) 15.6 500 10 Adjusted (2) 498.0 29.9% 28.2% 5.8% 5.4% 10.6%

  20. Slide 20: Profitability

    Profitability Gross Profit and Margin Net Income and Margin RMB (M) % Margin RMB (M) % Margin 800 100% 500 100% 753.0 437.8 700 631.2 80% 400 371.2 80% 600 70.1% 69.7% 68.0% 69.0% 500 60% 300 60% 400 41.0% 40.1% 40% 200 40% 300 196.8 25.8% 168.4 200 20.8% 20% 100 74.5 20% 100 50.1 0 0% 0 0% 18Q4 19Q

  21. Slide 21: Profitability

    Profitability Adjusted EBITDA (1) and Margin Core Net Income (2) and Margin RMB (M) % Margin RMB (M) % Margin 500 482.7 100.0% 100% 594.1 600 413.7 530.2 80% 400 80.0% 500 60.6% 400 58.5% 300 60.0% 56.1% 60% 54.4% 46.7% 45.7% 44.9% 44.2% 300 40% 200 40.0% 162.3 200 145.8 129.9 112.2 20% 100 20.0% 10

  22. Slide 22: Profitability

    Profitability Net Income per ADS (Basic and Diluted) Core Net Income per ADS (Basic and Diluted) (Non-GAAP) (1) RMB RMB 5.0 5.0 4.73 4.5 4.34 4.5 4.17 4.0 4.0 3.75 3.5 3.5 3.0 3.0 2.5 2.5 2.0 2.0 1.5 1.5 1.27 1.10 1.0 1.0 0.75 0.49 0.5 0.5 0.0 0.0 18Q4 19Q4 2018 2019 18Q4 19Q4 2018 2019 Notes: 1. Co

  23. Slide 23: 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 RMB1,809 million as of December 31, 2019. RMB (M) 118.5 -175.0 2,000 -88.4 -55.8 -54.3 3.8 2,060.5 1,809.3 1,500 Cash & Cash Cash from Operating D

  24. Slide 24: Guidance / Thank you! Q&A

    Guidance Total revenues for the first quarter of 2020 are expected to decline 30%~ 35% from 2019 Total revenues for the full year of 2020 are expected to decline 10%~ 15% from 2019 Thank you! Q&A 24

  25. Slide 25: Appendix

    04 Appendix 25

  26. Slide 26: Our Portfolio

    Our Portfolio As of December 31, 2019 Luxury • Hotels in operation: 20 • Hotel rooms in operation: 4,556 • Room rates: RMB 400 - 1,000 Mid-to-upscale • Hotels in operation: 264 • Hotel rooms in operation: 23,816 • Room rates: RMB 200 - 600 [3] Midscale • Hotels in operation: 2,563 [4] • Hotel rooms

  27. Slide 27: Hotel Breakdown

    Hotel Breakdown Number of Hotels in Operation Number of Hotel Rooms in Operation By Market Segment and Brand 2018Q4 2019Q4 2018Q4 2019Q4 Luxury - 20 - 4,556 Argyle - 20 - 4,556 Mid-to-up-scale 109 264 11,422 23,816 GreenTree Eastern 87 105 9,487 11,263 Deep Sleep Hotel 1 2 62 161 Gem 9 27 841 2,397

  28. Slide 28: Operating Data

    Operating Data 2018Q4 2019Q4 2018Q4 2019Q4 Occupancy rate Total hotels in operation 2,757 3,957 Leased-and-owned hotels 64.5% 66.6% Leased and owned hotels 29 34 Franchised hotels 80.7% 78.4% Blended 80.4% 78.2% Franchised hotels 2,728 3,923 Average daily rate (in RMB) Leased-and-owned hotels 212 20

GreenTree Hospitality Group — Q4 2019 Earnings Presentation on 6ix