GreenTree Hospitality Group Ltd. · NYSE:GHG
GreenTree Hospitality — Q2 2021 Earnings Presentation
30 slides from GreenTree Hospitality's earnings presentation, Nov 15, 2021
Slide 1: 2021Q2 Results
GME Hotel (Nanjing University of the Arts, Caochangmen Metro Station) 2021Q2 Results November 15 2021
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 2021Q2 Performance 2021Q2 Strategic 2021Q2 Operating and Appendix Review Execution Financial Highlights 3
Slide 4: 2021Q2 Performance Review
GreenTree Inn (Jiaxing Haining Leather City) 01 2021Q2 Performance Review
Slide 5: 2021Q2 Highlights
2021Q2 Highlights As % of 2020Q2 As % of 2019Q2 RevPAR 149.0% to RMB 134 96.2% Total Revenues 160.7% to RMB 347.1MM 126.2% (1) Income from Operations 142.5% to RMB 89.3MM with margin 25.7% 63.1% Net Income 85.6% to RMB 80.3MM with margin 23.1% 63.1% (2) Adjusted EBITDA (non-GAAP) 144.0% to RMB 111.2
Slide 6: Overview of 2021Q2
Overview of 2021Q2 Total Revenues Income from Operations RMB (M) % of Revenue RMB (M) 126.2% of 2019Q2 160.7% of 2020Q2 400 150 141.4 100% 347.1 63.1% of 2019Q2 142.5% of 2020Q2 80% 274.9 100 89.3 216.0 60% 200 51.4% 62.7 40% 50 29.0% 25.7% 20% 0 0 0% 19Q2 20Q2 21Q2 19Q2 20Q2 21Q2 Net Income Adjuste
Slide 7: ADR, Occupancy, RevPAR
ADR Occupancy RevPAR 99.2% of 2019Q2 96.2% of 2019Q2 RMB RMB 149.0% of 2020Q2 120.2% of 2020Q2 96.9% of 2019Q2 124.0% of 2020Q2 150 139 134 200 100% 120 124 172 171 162 81.1% 79.1% 76.7% 78.6% 142 151 151 90 96 63.4% 63.4% 100 100 50% 50 0 0% 0 19Q2 20Q2 20Q3 20Q4 21Q1 21Q2 19Q2 20Q2 20Q3 20Q4 21Q1
Slide 8: Weekly average RevPAR recovery
100% 0% 1. Note: 20/1/1 20/1/15 20/1/29 20/2/12 20/2/26 20/3/11 20/3/25 Based upon weekly average RevPAR 20/4/8 20/4/22 20/5/6 20/5/20 20/6/3 20/6/17 20/7/1 20/7/15 20/7/29 20/8/12 20/8/26 20/9/9 20/9/23 20/10/7 20/10/21 20/11/4 20/11/18 20/12/2 20/12/16 20/12/30 21/1/13 21/1/27 21/2/10 (1) 21/2/24
Slide 9: 2021Q2 Strategic Execution
Argyle Hotel (Guangdong Yangjiang international financial center) 02 2021Q2 Strategic Execution
Slide 10: 2021Q2 Strategic Execution
2021Q2 Strategic Execution 20 L&O Hotels Open Greater Penetration in Tier 3 and Lower Cities in Southwest and South China Information Technology Innovation 10
Slide 11: 20 Mid-to-Up-Scale L&O Hotels
20 Mid-to-Up-Scale L&O Hotels Strategic geographic footprint of L&O hotels 20 L&O hotels opened in 2021Q2 Greentree Eastern Hotel (Wuhan province Zhuodao Quan) Gya Hotel (Shanghai Xizang North Road Metro Station) 11
Slide 12: Expansion up Mid-to-Up-Scale Segment
Expansion up Mid-to-Up-Scale Segment New L&O Openings Breakdown by Segment New Openings Breakdown by Segment Mid-to-Upscale Midscale Economy Luxury Mid-to-Upscale Midscale Economy 607 0.7% 600 554 13.8% 538 0.9% 11.0% 20.3% 40.0% 425 5.2% 47.3% 51.8% 300 57.2% 201 76.7% 1.0% 55.0% 21.4% 5.0% 37.2% 3
Slide 13: Greater Penetration in Tier 3 and Lower Cities
Greater Penetration in Tier 3 and Lower Cities Hotel Breakdown by City Tier New Openings Breakdown by City Tier (1) Tier 1 Cities Tier 2 Cities Other Cities Tier 1 Cities Tier 2 Cities Other Cities 4,340 4,542 4,500 8.8% 3,957 9.3% 607 9.9% 600 554 7.1% 538 23.5% 23.4% 8.5% 6.1% 23.6% 21.3% 3,000 2,
Slide 14: Information Technology Innovation
Information Technology Innovation All systems including PMS, CRS and MIS migrated to the Microsoft Cloud • 1st among peers to migrate all systems to the Cloud • Higher efficiency with lower cost • Higher confidentiality, integrity, and availability of data • More compliance with laws, regulations
Slide 15: Improvement in Direct Sales and Membership Support
Improvement in Direct Sales and Membership Support 91.1% of room nights sold directly in 2021Q2 Corporate Members Individual Members ‘000 CAGR +12.9% M CAGR +31.2% 2,000 62 1,760 60 1,560 49 1,500 1,380 40 36 1,000 20 500 0 0 19Q2 20Q2 21Q2 19Q2 20Q2 21Q2 15
Slide 16: Operating and Financial Highlights
Qingdao Hongdao High-tech Zone Fangte Exhibition 03 Operating and Financial Highlights 16
Slide 17: Overview of 2021Q2
Overview of 2021Q2 Number of Hotels ADR In 358 cities 4,542 RMB 99.2% of 2019Q2 4,064 120.2% of 2020Q2 172 171 2,955 142 19Q2 20Q2 21Q2 19Q2 20Q2 21Q2 Occupancy RevPAR 96.9% of 2019Q2 96.2% of 2019Q2 RMB 124.0% of 2020Q2 149.0% of 2020Q2 139 134 81.1% 78.6% 63.4% 90 19Q2 20Q2 21Q2 19Q2 20Q2 21Q2 As
Slide 18: Hotel Growth
Hotel Growth Increasing Number of Hotels in Operation F&M Hotels L&O Hotels 4,542 4,500 4,340 4,064 63 3,957 40 4,000 34 35 3,500 3,000 2,757 2,500 2,289 29 2,000 26 1,500 2,263 2,728 3,923 4,300 4,029 4,479 1,000 2017 2018 2019 2020 2020Q2 2021Q2 Growth by Market Segment Growth by City Tier (1) Lux
Slide 19: New Hotel Openings
New Hotel Openings 21Q2 New Openings New Hotel Openings Breakdown by Market Segment Mid-to-Up-Scale 43 21.4% Mid-Scale 137 250 Luxury Gross Opening 1.0% YoY Growth 81.1% 2 9.4% 200 68.2% Economy 19 150 21Q2 New Openings Breakdown by City Tier (1) 224 100 201 201 203 Tier 2 Cities 190 181 162 49 146
Slide 20: Hotel Performance
Hotel Performance RevPAR 164 160 RMB 145 152 152 131 142 137 150 124 131 135 135 135 123 119 124 127 121 115 149 139 145 139 96 110 129 129 135 132 133 90 124 133 117 120 111 108 117 119 71 92 100 70 95 80 55 30 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1 20Q
Slide 21: Revenue Growth
Revenue Growth Total Revenue Revenue from F&M Hotels RMB (M) RMB (M) 101.5% of 2019Q2 400 126.2% of 2019Q2 137.3% of 2020Q2 300 160.7% of 2020Q2 214.4 217.7 347.1 200 158.5 300 100 274.9 0 19Q2 20Q2 21Q2 216.0 200 Revenue from L&O Hotels RMB (M) 193.2% of 2019Q2 232.2% of 2020Q2 116.9 100 100 60.5 5
Slide 22: Hotel Operating Costs and Expenses 21Q2 VS 20Q2
Hotel Operating Costs and Expenses——21Q2 VS 20Q2 Hotel Operating Costs (2) Total Hotel Operating Costs and Expenses (1) RMB (M) New opened L&O hotels’ rental and Urban related Hotel operating costs as % of Revenue RMB (M) New opened L&O hotels’ rental and Urban related 164.4 164.4 Total hotel operat
Slide 23: Profitability
Profitability Income from Operations and Margin Net Income and Margin RMB (M) % Margin RMB (M) % Margin 100% 150 150 141.4 63.1% of 19Q2 127.1 80% 142.5% of 20Q2 80% 63.1% of 19Q2 93.7 85.6% of 20Q2 100 60% 100 89.3 60% 80.3 46.2% 51.4% 43.4% 62.7 40% 40% 50 29.0% 50 25.7% 23.1% 20% 20% 0 0% 0 0% 19
Slide 24: Profitability
Profitability Net Income per ADS (Basic and Diluted) (1) Core Net Income per ADS (Basic and Diluted) (Non-GAAP) (2) RMB RMB 1.50 1.50 1.26 1.23 1.01 1.00 1.00 0.79 0.77 0.72 0.50 0.50 0.00 0.00 19Q2 20Q2 21Q2 19Q2 20Q2 21Q2 Notes: 1. EPS, Earnings per ADS (basic and diluted) was calculated as net (l
Slide 25: 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 RMB1,291.0 Million as of June 30, 2021 RMB (M) 2,000 44.6 13.7 12.4 -259.8 -110.3 -143.5 -0.04 1,000 1,734.0 1,291.0 0 (1) Cash & Cash Cash from o
Slide 26: Guidance; Thank you! Q&A
Guidance Total revenues for the full year of 2021 are expected to grow: 25%~30% from 2020 7%~12% from 2019 Thank you! Q&A 26
Slide 27: Appendix
VX Hotel(Wuhan East Railway Station, Optics Valley , Wuhan) 04 Appendix 27
Slide 28: Our Portfolio
Our Portfolio As of June 30, 2021 Luxury • Hotels in operation:28 • Hotel rooms in operation:5,821 • Room rates:RMB 400 - 1,000 Mid-to-Up-Scale • Hotels in operation:423 • Hotel rooms in operation: 38,704 • Room rates:RMB 200 - 600 [3] Mid-Scale • Hotels in operation:2,917 [4] • Hotel rooms in opera
Slide 29: Hotel Breakdown
Hotel Breakdown Number of Hotels in Operation Number of Hotel Rooms in Operation By Market Segment and Brand 2020Q2 2021Q2 2020Q2 2021Q2 Luxury 21 28 4,388 5,821 Argyle 21 28 4,388 5,821 Mid-to-up-scale 296 423 26,682 38,704 GreenTree Eastern 118 170 12,509 18,155 Deep Sleep Hotel 2 5 161 356 Gem 32
Slide 30: Operating Data
Operating Data 2020Q2 2021Q2 2020Q2 2021Q2 Occupancy rate Total hotels in operation 4,064 4,542 Leased-and-owned hotels 46.5% 72.9% Leased-and-owned hotels 35 63 Franchised hotels 63.7% 78.8% Blended 63.4% 78.8% Franchised hotels 4,029 4,479 Average daily rate (in RMB) Leased-and-owned hotels Total
GreenTree Hospitality Group — Q2 2021 Earnings Presentation on 6ix