GreenTree Hospitality Group Ltd. · NYSE:GHG
GreenTree Hospitality — H2 2022 Earnings Presentation
28 slides from GreenTree Hospitality's earnings presentation, Apr 6, 2023
Slide 1: Second Half and Fiscal Year 2022 Results
Second Half and Fiscal Year 2022 Results April 6, 2023
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 2022H2 and Fiscal Year 2022H2 and Fiscal Year 2022H2 and Fiscal Year Appendix Performance Review Strategic Execution Operating and & Financial Highlights 2023Q1 Recent Development 3
Slide 4: 2022H2 and Fiscal Year Performance Review
GreenTree GreenTreeEastern EasternHotel Hotel (South High-speed (Chongqing NorthRailway Railway Station, Station,Fuzhou City) Hotel) North Square 2022H2 and Fiscal Year 01 Performance Review
Slide 5: Second Half 2022 (H2) Highlights
Second Half 2022 (H2) Highlights As % of 2021 H2 RevPAR 95.8% to RMB 112 Total Revenues 78.9% to RMB 487.8 MM Organic Revenues(1) 84.2% to RMB 466.0 MM Income from Operations 616.4% to RMB 20.0 MM with margin 4.1% Adjusted Income from 86.2% to RMB 85.0 MM with margin 17.4% Operations(2) Net Income 5
Slide 6: Overview of 2022 H2
Overview of 2022 H2 Total Revenues Income from Operations % of Revenue Revenue Related to Urban and Argyle RMB (M) Organic Revenue RMB (M) 800 250 617.9 219.4 600 556.6 200 553.1 487.8 498.3 466.0 150 400 100 85.0 200 39.4% 50 20.0 17.4% 0 3.2 4.1% 0 0.5% 20H2 21H2 22H2 20H2 21H2 22H2 Excluding othe
Slide 7: Overview of 2022H2
Overview of 2022H2 ADR Occupancy RevPAR RMB RMB 200 100% 150 134 171 163 170 168 165 78.6% 118 117 120 153 147 71.1% 142 72.4%69.2% 104 63.4% 62.2% 63.0% 90 92 91 60.0% 100 100 50% 50 0 0% 0 20Q2 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 20Q2 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 20Q2 21Q2 21Q3 21Q4 22Q1 22Q2
Slide 8: Overview of 2022H2
Overview of 2022H2 (1) RevPAR as % of 2019 124.5% 2020 2021 2022 2023 106.0% 101.4% 103.7% 98.4% 100% 99.9% 98.5% 92.9% 95.5% 87.8% 92.2% Occupancy 85.6% turning point 81.3% National Day Golden Week 74.8% 61.3% 56.0% 67.3% 60.7% 2022 Spring New COVID-19 Festival Dragon Boat Tomb cases in Hebei Sweep
Slide 9: 2022H2 and Fiscal Year Strategic Execution & 2023Q1 Recent Development
2022H2 and Fiscal Year Strategic Execution 02 & 2023Q1 Recent Development
Slide 10: 2022H2 Strategic Execution & 2023Q1 Recent Development
2022H2 Strategic Execution & 2023Q1 Recent Development 2022H2: Further Expansion into Mid-to-Upscale Segment 2022H2: Greater Penetration in Tier 3 and Lower Cities in South China Completition of Acquisition of Da Niang Dumplings and Bellagio 10
Slide 11: 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 618 600 554 548 26.2% 11.0% 24.6% 13.9% 466 18.5% 400 51.8% 49.8% 295 63.3% 65.0% 14.6% Organic Pipeline (3) Breakdown by Segment 200 64.4% 37.2% Mid-to-Upscale Midscale Ec
Slide 12: Greater Penetration in Tier 3 and Lower Cities
Greater Penetration in Tier 3 and Lower Cities Organic Hotel Breakdown by City Tier Organic New Openings Breakdown by City Tier Tier 1 Cities Tier 2 Cities Other Cities (1) Tier 1 Cities Tier 2 Cities Other Cities 618 4,500 4,059 3,859 600 554 548 7.1% 3,555 10.1% 8.5% 7.1% 3,178 10.2% 466 10.9% 27.
Slide 13: Completition of Acquisition of Da Niang and Bellagio
Completition of Acquisition of Da Niang and Bellagio Da Niang Bellagio Combined: • A quick service restaurant chain in China • A leading casual dining restaurant chain focusing on the • Generated a combined covering 236 locations in 35 cities. Chinese market covering 36 locations in more than 14 cit
Slide 14: 2022H2 and Fiscal Year Operating and Financial Highlights
Vx Hotel (High-speed Railway Station, Dongfang City, Hainan Province) 2022H2 and Fiscal Year 03 Operating and Financial Highlights 14
Slide 15: Overview of 2022H2
Overview of 2022H2 Considering the impact of deconsolidation of Argyle and disposal of Urban’s interest, the number of hotel as of December 31, 2022 didn’t include of Argyle and Urban hotels. Number of Hotels ADR In 355 cities Number of organic hotels (1) RMB 97.1% of 2021Q4 4,659 4,340 YoY YoY 4,05
Slide 16: Hotel Performance
Hotel Performance RevPAR 2022 RMB 152 152 164 160 146 149 145 142 143 131 131 135 137 135 135 136 150 124 123 119 124 127 124 130 121 115 145 149 96 105 139 135 139 110 129 129 132 133 90 133 117 71 120 124 117 117 119 119 111 108 117 119 92 100 103 70 80 95 91 90 55 30 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2
Slide 17: New Hotel Openings
New Hotel Openings 2022 H2 Organic New Organic New Hotel Openings (1) Openings Breakdown by Market Segment Mid-to-Up-Scale 16 11.8% 64.7% 200 190 136 177 178 175 Economy 23.5% 155 32 Mid-Scale 88 150 137 132 136 110 2022 H2 Organic New 102 Openings Breakdown by City 100 88 Tier (2) 85 79 71 Tier 2 C
Slide 18: Improvement in Direct Sales and Membership Support
Improvement in Direct Sales and Membership Support Corporate Members Individual Members ‘000 CAGR +7.6% ‘000‘000 CAGR +18.0% 69 78 2,000 1,935 1,850 1,670 60 56 1,500 40 1,000 20 500 0 0 20Q4 21Q4 22Q4 20Q4 21Q4 22Q4 18
Slide 19: Revenue Growth
Revenue Growth Total Revenue Revenue from F&M Hotels RMB (M) Revenue Related to Urban and Argyle RMB (M) Revenue Related to Urban and Argyle Organic Revenue Organic Revenue 500 700 Y oY 401.3 -5.6% Yo 400 378.8 - 16 Y 617.9 . 8% Y 372.3 -3.9% 315.2 600 Y o 0% 357.9 - 15. 2 1. 300 % +1 303.7 556.6 Y
Slide 20: Hotel Operating Costs and Expenses
Hotel Operating Costs and Expenses Hotel Operating Costs (2) Total Hotel Operating Costs and Expenses (1) RMB (M) Newly opened L&O hotels related % of Revenue Newly opened L&O hotels related and one-time consulting fee RMB (M) 400 Other General Expenses Yo Y % of Revenue Y -21. 5% Yo .5% 126.0 300 7
Slide 21: Profitability
Profitability Income from Operations and Margin Net Income and Margin RMB (M) % Margin RMB (M) % Margin 200 300 165.1 150 250 219.4 Yo 200 100 Y -1 19 Yo .8 150 Y % 50 -9 29.7% 8. 39.4% 5% 100 85.0 0 -5.3% -4.9% -9.9% 20H2 21H2 YoY -48.2 22H2 50 17.4% % (23.9) .4% (32.6) 3.2 YoY+516 20.0 (50) （48.3）
Slide 22: Profitability
Profitability Net Income per ADS (Basic and Diluted) (1) Core Net Income per ADS (Basic and Diluted) (Non-GAAP) (2) RMB RMB 2.00 2.00 1.90 1.64 Y oY 1.50 - 54 . 4% 1.00 Yo Y- 12 1.00 0. 0 0.87 Yo % Y– 24. 1% 0.66 0.00 20H2 21H2 Y 22H2 oY - 44. 5% 0.50 (0.33) (0.47) -1.00 0.00 20H2 21H2 22H2 Notes: 1
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 1,055.2Million as of December 31, 2022 RMB (M) 1,500 33.2 26.4 1.0 -160.3 151.0 -41.0 -34.5 1,000 1,079.5 1,055.2 500 0 (1) Cash & Cash Cash f
Slide 24: Guidance; Thank you! Q&A
Guidance • Total revenues of the hotel business for the full year of 2023 are expected to grow 30%-35% of the 2022 levels. • Total revenues, taking the merged restaurant business as a whole, for the full year of 2023 are expected to grow 90%-95% of the 2022 levels. Thank you! Q&A 24
Slide 25: Appendix
Geya Hotel (Shanxi Grand GreenTree Eastern Hotel (Jiangning Hospital, Jinyang Street, University Town Hotel, Nanjing City) Taiyuan) 04 Appendix 25
Slide 26: Our Portfolio
Our Portfolio As of December 31, 2022 Mid-to-Up-Scale • Hotels in operation: 426 • Hotel rooms in operation: 41,255 • Room rates: RMB 200 - 600 Mid-Scale [3] • Hotels in operation: 2,953 • Hotel rooms in operation: 231,835 • Room rates: RMB 150 - 400 [4] Economy • Hotels in operation: 680 • Hotel ro
Slide 27: Hotel Breakdown
Hotel Breakdown Number of Hotels in Operation Number of Hotel Rooms in Operation By Market Segment and Brand 2021Q4 2022Q4 2021Q4 2022Q4 Luxury 33 - 6,265 - Argyle 33 - 6,265 - Mid-to-up-scale 519 426 47,666 41,255 GreenTree Eastern 204 205 22,246 22,492 Deep Sleep Hotel 6 7 417 534 Gem 46 53 4,173
Slide 28: Operating Data
Operating Data 2021Q4 2022Q4 2021Q4 2022Q4 Occupancy rate Total hotels in operation 4,659 4,059 Leased-and-owned hotels 60.9% 62.4% Leased-and-owned hotels 66 61 Franchised hotels 69.5% 63.0% Blended 69.2% 63.0% Franchised hotels 4,593 3,998 Average daily rate (in RMB) Leased-and-owned hotels 224 20
GreenTree Hospitality Group — H2 2022 Earnings Presentation on 6ix