GreenTree Hospitality Group Ltd. · NYSE:GHG

GreenTree Hospitality — Q4 2024 Earnings Presentation

30 slides from GreenTree Hospitality's earnings presentation, Apr 24, 2025

  1. Slide 1: Fourth Quarter and Fiscal Year 2024 Results

    Fourth Quarter and Fiscal Year 2024 Results April 24, 2025 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 2024Q4 and Fiscal Year 2024Q4 and Fiscal Year 2024Q4 and Fiscal Year Appendix Performance Review Strategic Execution Operating and Financial Highlights 3

  4. Slide 4: 2024Q4 Performance Review

    Vx Hotel (High-speed Railway Station, Dongfang City, Hainan Province) 01 2024Q4 Performance Review 4

  5. Slide 5: 2024Q4 Highlights

    2024Q4 Highlights RMB Compared with 2023Q4(1) Hotel RevPAR 116 Down 9.6% Restaurant ADS 4,234 Down 16.8% ( Average Daily Sales Per Store) Total Revenues 304.5MM Down 18.2% Hotel Revenues 240.2MM Down 17.1% Net Income -72.8MM Adjusted Net Income (2) 77.3MM Up 26.8% with margin 25.4% Core Net Income (

  6. Slide 6: Overview of 2024Q4

    Overview of 2024Q4 Total Revenues Net Income Hotel Hotel RMB (M) Restaurant RMB (M) Restaurant 400 90 18.9 87.7 13.1 58.4 300 40 65.1 44.3 289.6 8.1 28.4 200 240.2 -10 23Q4 24Q4 23Q4 24Q4 （2.9） Excluding impairment of goodwill and trademarks of r 100 -60 estaurant business，impairment of assets, and

  7. Slide 7: Hotel Performance

    Hotel Performance RevPAR 2024 RMB 212 190 196 210 177 164 160 161 157 158 170 145 152 152 146 149 144 131 135 124 142 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 133 120 124 117 117 119 113 124 115 92 111 100 1

  8. Slide 8: Improvement in Direct Sales and Membership Support

    Improvement in Direct Sales and Membership Support Individual Members Corporate Members million thousand 120 2,165 2,050 102 2,000 100 91 80 1,500 60 1,000 40 500 20 0 0 23Q4 24Q4 23Q4 24Q4 8

  9. Slide 9: ADS, ADT, AC

    AC (1) ADT (2) ADS (3) RMB RMB 65 160 7,000 6,570 60 58.6 140 6,0806,371 55.2 55.0 6,000 5,525 55 53.1 52.7 5,090 4,891 51.2 120 119 5,000 4,737 50 46.2 120 4,234 45.6 109 106 45 99 4,000 100 94 93 40 90 3,000 35 80 2,000 30 60 1,000 25 20 40 0 23Q1 23Q2 23Q3 23Q4 24Q1 24Q2 24Q3 24Q4 23Q1 23Q2 23Q3

  10. Slide 10: 2024Q4 Strategic Execution

    Vx Hotel (High-speed Railway Station, Dongfang City, Hainan Province) 02 2024Q4 Strategic Execution 10

  11. Slide 11: 2024Q4 Strategic Execution

    2024Q4 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% 420 405 Organic Hotel (2) Breakdown by Segment 18.1% 23.0% 49.8% Mid-to-Upscale Midscale Economy 4,425 65.0% 295 4,500 4,238 14.6% 53.

  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% 405 6.7% 21.3% 295 17.8% 21.5% Organic Hotel Breakdown by City Tier 300 7.5% Tier 1 Cities

  14. Slide 14: 2024Q3 Restaurant Strategic Execution

    2024Q3 Restaurant Strategic Execution Restaurant Breakdown by L&O and F&M 300 F&M L&O 200 194 Business Model Focused on 42 182 18 Franchised-and-Managed 163 152 Restaurants 100 0 2023 2024 Proportion of Restaurants Breakdown by Location 120.0% Street stores Shopping Mall Stores Transportation Hub St

  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) 800 Revenue from L&O Hotels Same Hotels Revenue from L&O Hotels 1,400 600 490.9 437.5 400 1,200 YoY 1,191.9 -1.5% 316.0 311.3 200 1,000 1,066.5 125.5 YoY 91.0 -2.4% 0 72.3 70.6 23Q4 24Q4 2023 2024 800 Revenue from F&M Hotels RMB (M)

  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) 600 598.8 593.8 400 881.1 851.9 800 200 154.6 139.9 0 23Q4 24Q4 2023 2024 Selling and Marketing Expenses 600 RMB (M) 80 Reclassification of selling staff related expenses that previo

  18. Slide 18: Hotel Profitability

    Hotel Profitability Cash From Operations Net Income RMB (M) RMB (M) % Margin 400 Net Income Excluding provisions for loans receivable related to franchise loans, and impairment of assets 300 329.2 501.5 400 265.6 244.5 368.8 200 202.7 200 100 8.1 44.3 58.4 18.4 68.8 0 28.4 0 23Q4 24Q4 2023 2024 23Q4

  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) Revenue from Same Store 500 Total Restaurant Operating Costs and Expenses 500 Revenue from Restaurant Excluding impairment of goodwill and trademarks 448.1 441.6 432.1 400

  20. Slide 20: Restaurant Profitability

    Restaurant Profitability Cash from Operations Net Income RMB (M) RMB (M) % Margin 50 Net income Excluding impairment of goodwill and trademarks 5 5.5 29.2 4.5 18.9 7.8 0 13.1 23Q4 24Q4 2023 2024 23Q4 24Q4 2023 2024 (5) （2.9） （8.2） (8.6) (15) (50) (25) (100) （90.9） (31.3) （101.2） (35) (150) -3.4% 14.

  21. Slide 21: Group Profitability

    Group Profitability Cash from Operations Net (loss) income RMB RMB（M） 450 Net (loss) income 480 Excluding impairment of goodwill and trademarks of restaurant business，impairment of assets, and 455.0 350 provisions for loan receviables related to franchisee loans 380 340.1 373.4 250 260.5 269.2 280 1

  22. Slide 22: Profitability

    Profitability Hotel Business Net Income per ADS (Basic and Diluted) (1) Hotel Business Core Net Income per ADS (2) RMB RMB 3 4 2.70 3 2 3.05 2.04 2.53 2 1 1 0.10 0.59 0.45 0.29 0 0 23Q4 24Q4 2023 2024 23Q4 24Q4 2023 2024 Group Business Net Income per ADS (Basic and Diluted) Group Business Core Net I

  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 RMB 1,839.1Million as of December 31, 2024 RMB (M) 2,500 2,000 74.2 9.2 5.2 (3.6) (8.5) (50.9) (70.4) 1,883.9 1,839.1 1,500 1,000 500 0 Cash & Cas

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

    Guidance Taking into account the recovery in long-term trends and short-term industry fluctuations, we expect the total revenues of our organic hotel business for the full year of 2025 to be flat with the 2024 levels. Hotel network ·Gross Opening：~480 hotels ·Closure：~200 hotels Thank you! Q&A 24

  25. Slide 25: Appendix

    Vx Hotel (High-speed Railway Station, Dongfang City, Hainan Province) 04 Appendix 25

  26. Slide 26: Our Portfolio

    Our Portfolio As of December 31, 2024 Mid-to-Up-Scale • Hotels in operation: 553 • Hotel rooms in operation: 51,649 • Room rates: RMB 200 - 600 Mid-Scale [3] • Hotels in operation: 2,978 • Hotel rooms in operation: 230,298 • Room rates: RMB 150 - 400 [4] Economy • Hotels in operation: 894 • Hotel ro

  27. Slide 27: Hotel Breakdown

    Hotel Breakdown Number of Hotels in Operation Number of Hotel Rooms in Operation By Market Segment and Brand 2023Q4 2024Q4 2023Q4 2024Q4 Mid-to-up-scale 474 553 45,488 51,649 GreenTree Eastern 222 239 24,377 25,683 Deep Sleep Hotel 7 8 534 610 Gem 71 105 6,292 9,386 Gya 71 74 5,899 6,155 Vx 92 105 8

  28. Slide 28: Hotel Operating Data

    Hotel Operating Data 2023Q4 2024Q4 2023Q4 2024Q4 Occupancy rate Total hotels in operation 4,238 4,425 Leased-and-owned hotels 66.9% 68.6% Leased-and-owned hotels 65 55 Franchised hotels 72.5% 65.5% Blended 72.4% 68.6% Franchised hotels 4,173 4,370 Average daily rate (in RMB) Leased-and-owned hotels

  29. Slide 29: Restaurants Operating Data

    Restaurants Operating Data 2023Q4 2024Q4 2023Q4 2024Q4 Total restaurants in ADT 194 182 operation Dine In 45 44 Leased-and-owned 42 18 Delivery 55 49 restaurants Blended 99 93 Franchised restaurants 152 164 AC (in RMB) Dine In 70 58 Number of cities 65 53 Delivery 36 35 Blended 51 46 ADS (in RMB) Di

  30. Slide 30: Restaurants Operating Data

    Restaurants Operating Data 2023Q4 2024Q4 ADT Leased-and-owned restaurants 141 186 Franchised restaurants 84 78 Blended 99 93 AC (in RMB) Leased-and-owned restaurants 89 99 Franchised restaurants 37 33 Blended 51 46 ADS (in RMB) Leased-and-owned restaurants 12,501 18,384 Franchised restaurants 3,127

GreenTree Hospitality Group — Q4 2024 Earnings Presentation on 6ix