GreenTree Hospitality Group Ltd. · NYSE:GHG

GreenTree Hospitality — Q1 2024 Earnings Presentation

29 slides from GreenTree Hospitality's earnings presentation, Jun 25, 2024

  1. Slide 1: 2024 Q1 Results

    2024 Q1 Results June 25, 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 2024Q1 2024Q1 2024Q1 Appendix Performance Review Strategic Execution Operating and Financial Highlights 3

  4. Slide 4: 2024Q1 Performance Review

    Vx Hotel (High-speed Railway Station, Dongfang City, Hainan Province) 01 2024Q1 Performance Review 4

  5. Slide 5: 2024Q1 Highlights

    2024Q1 Highlights RMB Compared with 2023Q1(1) RevPAR 114 Down 4.6% ADS( Average Daily 5525 Down 8.7% Sales Per Store) Total Revenues 352.2MM Down 7.1% Hotel Revenues 274.8MM Up 8.8% Income from Operations 72.2MM Up 38.2% with margin 20.5% Net Income 57.3MM Up 76.0% with margin 16.3% Adjusted EBITDA

  6. Slide 6: Overview of 2024Q1

    Overview of 2024Q1 Total Revenues Income from Operations Hotel Hotel RMB (M) Restaurant RMB (M) Restaurant 400 150 127.2 77.7 100 200 1.9 252.6 274.8 50 0.6 70.4 52.0 0 0 23Q1 24Q1 23Q1 24Q1 Net Income Adjusted EBITDA Hotel Hotel RMB (M) Restaurant Restaurant 150 130 7.0 100 6.7 80 50 102.4 84.6 30

  7. Slide 7: Hotel Performance

    Hotel Performance RevPAR 2024 RMB 212 210 190 164 160 161 157 170 145 152 152 146 149 144 131 135 124 142 137127 135 135 136 124 123 119 131 130 115 121 124 130 96 105 155 145 149 139 135 132 139 90 139 129 129 71 133 119 127 133 120 124 117 117 119 90 92 111 117 108 117 119 113 100 103 80 95 91 90

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

    Improvement in Direct Sales and Membership Support Corporate Members Individual Members ‘000 ‘000‘000 100 2,070 93 2,000 1,950 80 78 1,500 60 1,000 40 500 20 0 0 23Q1 24Q1 23Q1 24Q1 8

  9. Slide 9: ADS ADT AC

    AC (1) ADT (2) ADS (3) RMB RMB 60 58.6 160 55.2 55.0 54.1 7,000 6,548 55 51.9 52.0 53.1 140 6,096 6,0806,371 5,525 6,000 5,433 50 120 119 46.2 120 117 5,000 4,564 45 109 4,051 99 101 94 4,000 40 100 3,000 35 80 78 30 2,000 60 1,000 25 20 40 0 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 24Q1 22Q2 22Q3 22Q4 23

  10. Slide 10: 2024Q1 Strategic Execution

    Vx Hotel (High-speed Railway Station, Dongfang City, Hainan Province) 02 2024Q1 Strategic Execution 10

  11. Slide 11: 2024Q1 Strategic Execution

    2024Q1 Strategic Execution Further Expansion into Mid-to- Upscale Segment Greater Penetration in Tier 3 and Lower Cities in South China 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 4,256 4,238 14.6% 53.3% 4,059 3

  13. Slide 13: Greater Penetration in Tier 3 and Lower Cities

    Greater Penetration in Tier 3 and Lower Cities Organic New Openings Breakdown by City Tier Tier 1 Cities Tier 2 Cities Other Cities 618 600 7.1% 548 7.1% 466 27.0% 21.2% 6.4% 420 5.7% 21.3% 18.1% Organic Hotel Breakdown by City Tier 300 295 7.5% Tier 1 Cities Tier 2 Cities Other Cities 65.9% 20.3% 7

  14. Slide 14: Restaurant Strategic Execution

    2023Q4 and Fiscal Year Restaurant Strategic Execution Restaurant Breakdown by L&O and F&M 300 F&M L&O 255 Business Model Transferred to 200 116 185 Increase in Proportion of 27 Franchised-and-Managed 100 Restaurants 139 158 0 23Q1 24Q1 Proportion of Restaurants Breakdown by Location Street stores Tr

  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 Growth

    Hotel Revenue Growth Total Revenue Revenue from L&O Hotels RMB (M) RMB (M) 200 300 274.8 122.5 252.6 82.1 200 0 23Q1 24Q1 Revenue from F&M Hotels RMB (M) 200 100 169.5 151.2 100 0 23Q1 24Q1 0 23Q1 24Q1 16

  17. Slide 17: Hotel Operating Costs and Expenses

    Hotel Operating Costs and Expenses Hotel Operating Costs (2) Total Hotel Operating Costs and Expenses (1) RMB (M) RMB (M) 200 134.2 146.2 300 100 0 23Q1 24Q1 206.7 Selling and Marketing Expenses 203.2 200 RMB (M) 20 15.5 11.1 100 0 23Q1 24Q1 General and Administrative Expenses RMB (M) 100 46.1 0 38.

  18. Slide 18: Hotel Profitability

    Hotel Profitability Income From Operations Net Income RMB (M) % Margin RMB (M) % Margin 100 100 70.4 57.3 52.0 35.0 0 0 23Q1 24Q1 23Q1 24Q1 20.6% 25.6% 13.9% 20.9% Adjusted EBITDA (1) Core Net Income (2) RMB (M) RMB (M) % Margin % Margin 200 100 61.0 102.4 53.0 100 50 84.6 0 0 23Q1 24Q1 23Q1 24Q1 33

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

    Restaurant Revenue Growth and Operating Costs and Expenses Total Revenue Total Restaurant Operating Costs and Expenses RMB (M) RMB (M) 160 160 140 140 127.2 127.2 120 120 100 100 80 77.7 80 75.8 60 60 40 40 20 20 0 0 23Q1 24Q1 23Q1 24Q1 19

  20. Slide 20: Restaurant Profitability

    Restaurant Profitability Income From Operations Net Income RMB (M) % Margin RMB (M) % Margin 5 5 4 4 3 2 3 1 0 0.0 2 1.9 (1) 23Q1 24Q1 (2) 1 (3) (2.2) 0.6 (4) 0 (5) 23Q1 24Q1 -1.7% 0.0% 0.5% 2.4% Adjusted EBITDA (1) Core Net Income (2) RMB (M) RMB (M) 10 5 7.0 3 6.7 YoY3.7% 1 0.0 5 (1) 23Q1 24Q1 (3)

  21. Slide 21: Profitability

    Profitability Net Income per ADS (Basic and Diluted) (1) Core Net Income per ADS (Basic and Diluted) (Non-GAAP) (2) RMB RMB 1.00 1.00 0.80 0.60 0.60 0.58 0.50 0.49 0.40 0.36 0.20 0.00 0.00 23Q1 24Q1 23Q1 24Q1 Notes: 1. EPS, Earnings per ADS (basic and diluted) was calculated as net (loss) income att

  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 1,517.3Million as of March 31, 2024 RMB (M) 83.2 24.3 （1.8） （2.7） （8.6） （8.8） 1,517.3 1,500 94.7 1,337.1 1,000 500 0 Cash & Cash Cash from Ope

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

    Guidance Based on our performance in the first five months of this year, we maintain our previous revenue guidance for the hotel business, that we expect to grow 7% to 12% year-over-year. We are withdrawing our guidance for the restaurant business given the significant revenue unpredictability resul

  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 March 31, 2024 Mid-to-Up-Scale • Hotels in operation: 498 • Hotel rooms in operation: 47,264 • Room rates: RMB 200 - 600 Mid-Scale [3] • Hotels in operation: 2,942 • Hotel rooms in operation: 230,362 • Room rates: RMB 150 - 400 [4] Economy • Hotels in operation: 816 • Hotel rooms

  26. Slide 26: Hotel Breakdown

    Hotel Breakdown Number of Hotels in Operation Number of Hotel Rooms in Operation By Market Segment and Brand 2023Q1 2024Q1 2023Q1 2024Q1 Mid-to-up-scale 425 498 41,124 47,264 GreenTree Eastern 202 233 22,212 25,191 Deep Sleep Hotel 7 7 534 534 Gem 54 75 4,845 6,588 Gya 69 74 5,809 6,121 Vx 86 95 7,4

  27. Slide 27: Hotel Operating Data

    Hotel Operating Data 2023Q1 2024Q1 2023Q1 2024Q1 Occupancy rate Total hotels in operation 4084 4,256 Leased-and-owned hotels 62.9% 66.6% Leased-and-owned hotels 64 66 Franchised hotels 71.9% 67.9% Blended 71.7% 67.8% Franchised hotels 4,020 4,190 Average daily rate (in RMB) Leased-and-owned hotels 2

  28. Slide 28: Restaurants Operating Data

    Restaurants Operating Data 2023Q1 2024Q1 2023Q1 2024Q1 Total restaurants in ADT 255 185 operation Dine In 61 44 Leased-and-owned 116 27 Delivery 48 50 restaurants Blended 109 94 Franchised restaurants 139 158 AC (in RMB) Dine In 67 80 Number of cities 64 53 Delivery 40 40 Blended 55 59 ADS (in RMB)

  29. Slide 29: Restaurants Operating Data

    Restaurants Operating Data 2023Q1 2024Q1 ADT Leased-and-owned restaurants 144 155 Franchised restaurants 84 81 Blended 109 94 AC (in RMB) Leased-and-owned restaurants 62 113 Franchised restaurants 44 42 Blended 55 59 ADS (in RMB) Leased-and-owned restaurants 8,974 17,580 Franchised restaurants 3,696

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