GreenTree Hospitality Group Ltd. · NYSE:GHG
GreenTree Hospitality — Q3 2020 Earnings Presentation
29 slides from GreenTree Hospitality's earnings presentation, Dec 2, 2020
Slide 1: 2020 Q3 Results
2020 Q3 Results December 2, 2020
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
Slide 3: Contents
Contents 01 02 03 04 Performance COVID-19 Operating and Appendix Review Financial Update Highlights 3
Slide 4: Performance Review
Vx Hotel (Wuxi Xinwu District Wanda Plaza Hotel) 01 Performance Review
Slide 5: 2020Q3 Highlights
2020Q3 Highlights Compared with Q2 2020 RevPAR: +32.9% to RMB120 Total revenues +23.6% to RMB266.9MM Adjusted EBITDA (non-GAAP) (1) +46.6% to RMB134.0MM with margin improved to 50.2% Core net income (non-GAAP) (2) +23.8% to RMB92.4MM with margin 34.6% Expansion into Mid- to-Upscale and 28.4% of all
Slide 6: Overview of 2020 and Recovery
Overview of 2020 and Recovery Total Revenue Income from operations RMB (M) % of Revenue RMB (M) 266.9 100.9 216.0 100 200 157.4 62.7 50 37.2 100 0 23.6% 29.0% 37.8% 0 20Q1 20Q2 20Q3 20Q1 20Q2 20Q3 Adjusted EBITDA (1) Core Net Income (2) RMB (M) % of Revenue % of Revenue RMB (M) 134.0 100 92.4 91.4 7
Slide 7: Overview of 2020Q3
Overview of 2020Q3 As of September 30, 2020 Number of Hotels ADR Financial Overview In 341 cities RMB RMB (M) Compared with 19Q3 4,195 174 266.9 3,102 151 250 -8.6% 200 158.8 150 134.0 19Q3 20Q3 19Q3 20Q3 -22.5% 100 85.6 -24.3% Occupancy RevPAR 50 20.4% -16.2% RMB 85.9% 149 79.1% 0 (1) 120 Total Rev
Slide 8: COVID-19 Update
Argyle Boutique Hotel Xijin Ferry in Zhenjiang City, Jiangsu Province 02 COVID-19 Update
Slide 9: ADR, Occupancy and RevPAR recovery
Hotels in China (1) GreenTree ADR recovery % compared with same Occupancy recovery % compared with RevPAR recovery % compared with same quarter of 2019 same quarter of 2019 quarter of 2019 92.2% 92.1% 87.1% 90% 82.6% 90% 90% 78.2% 80.2% 87.0% 90.7% 82.4% 64.6% 78.5% 71.1% 60.6% 60% 60% 60% 55.9% 63.
Slide 10: RMB
110% 99.4% 80% 50% 38.5% 20% 21.5% 23.2% -10% 1/1 1/16 1/31 2/15 3/1 3/16 3/31 4/15 4/30 5/15 5/30 6/14 6/29 7/14 7/29 8/13 8/28 9/12 9/27 10/1210/2711/1111/26 RMB 240 210 201 180 150 120 90 60 49 58 30 38 10 0
Slide 11: Operating and Financial Highlights
Urban Garden Hotel (Shaoxing City Qianqing Road) 03 Operating and Financial Highlights 11
Slide 12: Hotel Growth
Hotel Growth Increasing Number of Hotels in Operation F&M Hotels L&O Hotels 4,195 3,957 4,000 37 34 3,500 3,102 3,000 2,757 30 2,500 2,289 29 2,000 1,964 26 32 1,500 1,932 2,263 2,728 3,923 3,072 4,158 1,000 2016 2017 2018 2019 2019Q3 2020Q3 % by Hotel Segment % by City Tier (1) Luxury Mid-to-upscal
Slide 13: New Hotel Openings and Closures
New Hotel Openings and Closures 20Q3 New Openings New Hotel Openings and Closures Breakdown by Market Segment Mid-to-Up-Scale 45 27.8% Mid-Scale 190 80 Luxury 0.6% 1 49.4% 140 22.2% Economy 36 190 90 181 162 20Q3 New Openings 134 Breakdown by City Tier (1) 111 102 40 Tier 2 Cities 62 31 Openings Oth
Slide 14: Pipeline Growth
Pipeline Growth 20Q3 Pipeline Growth by Market Segment Luxury Mid-to-Up-Scale Mid-Scale Economy YOY +70.2% 1,087 1,110 55 1,025 54 1,000 56 949 25% 25% 218 54 215 25% 200 181 25% 652 47 455 39% 439 40% 41% 27% 403 128 364 500 38% 272 42% 366 36% 379 35% 382 34% 350 37% 205 31% 0 19Q3 19Q4 20Q1 20Q2
Slide 15: 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 traditional oriental themes ● 33 hotels as of 20Q3 ● 137 hotels as of 20Q3 ● Pipeline: 30 ● Pipeline: 65 ● Rate: RMB 280-35
Slide 16: Hotel Performance
Hotel Performance RevPAR 152 152 164 RMB 145 142 150 131 135 137 135 124 123 131 124 127 119 121 115 149 139 145 139 110 129 129 135 132 133 90 120 117 111 108 117 119 71 92 100 70 80 55 30 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 ADR 216 224 RMB
Slide 17: Membership Program
Membership Program 92.5% of room nights sold directly Individual Members Corporate Members MM ‘000 YoY +33.3% YoY +11.0% 52 1,610 49 1,560 50 1,510 1,520 46 1,500 44 1,450 40 39 1,200 30 900 20 10 600 19Q3 19Q4 20Q1 20Q2 20Q3 19Q3 19Q4 20Q1 20Q2 20Q3 17
Slide 18: Revenue Growth
Revenue Growth Total Revenue Revenue from F&M Hotels RMB (M) RMB (M) 802.4 800 617.5 600 489.3 500 700 400 640.3 300 219.6 200.0 200 600 100 0 19Q3 20Q3 First Nine First Nine 500 Months of 2019 Months of 2020 400 Revenue from L&O Hotels RMB (M) 292.1 300 266.9 200 184.9 151.0 150 200 100 72.5 66.8 1
Slide 19: Total Hotel Operating Costs and Expenses——20Q3 VS 19Q3
Total Hotel Operating Costs and Expenses——20Q3 VS 19Q3 Total Hotel Operating Costs and Expenses (1) Hotel Operating Costs (2) RMB (M) % of Revenue RMB (M) % of Revenue 108.0 100 40.5% 174.5 87.3 65.4% 29.9% LO hotel operating costs 50 150 148.0 41.1 YoY 41.4 50.7% +0.8% LO hotel operating costs 14.1
Slide 20: Total Hotel Operating Costs and Expenses——First Nine Months
Total Hotel Operating Costs and Expenses——First Nine Months Total Hotel Operating Costs and Expenses (1) Hotel Operating Costs (2) RMB (M) % of Revenue RMB (M) % of Revenue 300 292.7 246.2 45.7% 500 30.7% 467.1 73.0% 200 LO hotel operating costs 413.6 100 104.5 98.6 51.5% 13.0% 15.4% 400 0 First Nin
Slide 21: Profitability
Profitability Gross Profit and Margin Year over Year Net Income and Margin Year over Year RMB (M) % Margin RMB (M) % Margin 600 400 363.2 556.1 500 300 400 347.5 300 200 165.2 204.9 200 158.8 102.2 100 85.6 100 70.1% 59.5% 69.3% 54.3% 35.0% 32.1% 45.3% 25.8% 0 0 19Q3 20Q3 First Nine First Nine 19Q3
Slide 22: Profitability
Profitability Adjusted EBITDA (1) and Margin Year over Year Core Net Income (2) and Margin Year over Year RMB (M) % Margin RMB (M) % Margin 400 500 484.0 352.9 400 300 300 272.9 194.8 200 200 177.1 134.8 134.0 92.4 100 100 60.6% 50.2% 60.3% 42.6% 46.2% 34.6% 44.0% 30.4% 0 0 19Q3 20Q3 First Nine Firs
Slide 23: Profitability
Profitability Core Net Income per ADS (Basic and Diluted) (Non-GAAP) (1) Net Income per ADS (Basic and Diluted) Year over Year Year over Year RMB RMB 4.0 3.60 4.0 3.46 3.0 3.0 1.89 2.0 1.71 2.0 1.32 1.01 0.90 1.0 0.81 1.0 0.0 0.0 19Q3 20Q3 First Nine First Nine 19Q3 20Q3 First Nine First Nine Months
Slide 24: 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 RMB1,815.4 million as of September 30, 2020. RMB (M) 9.1 -35.8 -33.6 -7.1 -6.7 1,800 175.4 1,815.4 1,714.0 1,300 (1) Cash & Cash Cash from operati
Slide 25: Guidance; Thank you! Q&A
Guidance Total revenues for the full year of 2020 are expected to decline 12%~15% from 2019. Thank you! Q&A 25
Slide 26: Appendix
GYA Shanghai fengxian New Town Railway Station Jinhai Road Hotel 04 Appendix 26
Slide 27: Our Portfolio
Our Portfolio As of September 30, 2020 Luxury • Hotels in operation:20 • Hotel rooms in operation:4,042 • Room rates:RMB 400 - 1,000 Mid-to-upscale • Hotels in operation:337 • Hotel rooms in operation:30,303 • Room rates:RMB 200 - 600 [3] Mid-scale • Hotels in operation:2,684 [4] • Hotel rooms in op
Slide 28: Hotel Breakdown
Hotel Breakdown By Market Segment and Brand Number of Hotels in Operation Number of Hotel Rooms in Operation 2019Q3 2020Q3 2019Q3 2020Q3 Luxury 21 20 4,739 4,042 Argyle 21 20 4,739 4,042 Mid-to-up-scale 171 337 17,147 30,303 GreenTree Eastern 100 137 10,691 14,305 Deep Sleep Hotel 2 3 161 221 Gem 22
Slide 29: Operating Data
Operating Data 2019Q3 2020Q3 2019Q3 2020Q3 Occupancy rate Total hotels in operation 3,102 4,195 Leased-and-owned hotels 73.1% 70.6% Leased and owned hotels 30 37 Franchised hotels 86.1% 79.3% Blended 85.9% 79.1% Franchised hotels 3,072 4,158 Average daily rate (in RMB) Leased-and-owned hotels 224 17
GreenTree Hospitality Group — Q3 2020 Earnings Presentation on 6ix