GreenTree Hospitality Group Ltd. · NYSE:GHG
GreenTree Hospitality — Q3 2019 Earnings Presentation
25 slides from GreenTree Hospitality's earnings presentation, Nov 20, 2019
Slide 1: GreenTree Hospitality Group 2019Q3 Results Presentation
GreenTree Hospitality Group 2019Q3 Results Presentation November 20, 2019
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: Congratulations
Congratulations Hello everyone and Hello GreenTree I am Iris, Selina’s new baby girl I came to the world on 2019/11/3 3
Slide 4: Contents
Contents 01 02 03 Performance Financial Appendix Review Highlights 4
Slide 5: Performance Review
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Slide 6: Overview of 2019Q3
Overview of 2019Q3 As of September 30, 2019 Number of Hotels ADR Financial Overview In 309 cities RMB RMB (M) 3,102 174 167 2,558 292.1 20.1% 204.9 177.1 18Q3 19Q3 18Q3 19Q3 21.4% 11.6% Occupancy RevPAR RMB 87.2% 85.9% 149 146 [1] Total Revenue Gross Profit Adjusted EBITDA (Non-GAAP) Core Net Income
Slide 7: Hotel Growth
Hotel Growth Increasing Number of Hotels in Operation L&O Hotels F&M Hotels 3,102 3,000 30 2,757 29 2,558 2,500 2,289 30 26 1,964 2,000 32 1,500 1,932 2,263 2,728 2,528 3,072 1,000 2016 2017 2018 18Q3 19Q3 % by Hotel Segment 2016 2017 2018 18Q3 19Q3 Luxury - - - - 0.7 Mid-to-up-scale 1.5 2.2 3.9 3.2
Slide 8: Hotel Openings and Closures
Hotel Openings and Closures 19Q3 New Openings Hotel Openings and Closures Breakdown by Brand Segment Mid-to-up-scale 250 20 Mid-scale 11% 50% 92 2% Gross Opening Luxury 200 YoY Growth 24.0% 3 Gross Opening 150 YoY Growth 28.8% 37% Economy Gross Opening 66 YoY Growth 27.5% 224 100 181 19Q3 New Openin
Slide 9: Pipeline Growth
Pipeline Growth 19Q3 Pipeline Growth by Brand Segment Luxury Mid-to-up-scale Mid-scale Economy YOY Growth 29.4% 652 596 47 47 27% 504 128 481 28% 117 124 25% 116 24% 258 40% 239 40% 264 52% 246 51% 193 32% 219 33% 116 23% 119 25% 18Q3 19Q1 19Q2 19Q3 9
Slide 10: Hotel Performance
Hotel Performance The Company has achieved a steady 2.7% RevPAR YoY growth. Excluding Argyle, the Company achieved a 1.9% RevPAR YoY growth. F&M Hotels L&O Hotels ADR Occupancy RevPAR RMB RMB 224 224 88% 88% 86% 87% 210 85% 164 164 189 77% 152 73% 73% 149 148 70% 73% 145 145 173 170 139 166 166 131
Slide 11: RevPAR Growth
RevPAR Growth Quarterly RevPAR RMB 160 164 152 149 145 145 152 142 139 135 137 131 135 139 131 127 124 123 129 124 132 129 119 120 115 119 117 117 111 108 100 92 80 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 F&M Hotel L&O Hotel Growth 线性 (F&MTrend Hotel) Growth 线性 (L&
Slide 12: Membership Program
Membership Program 93.1% of room nights sold directly Individual Members Corporate Members MM ‘000 50 1,500 1,450 1,380 1,320 1,270 40 39 36 1,200 33 30 29 1,020 26 24 930 900 20 10 600 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 12
Slide 13: Strategic Development
Strategic Development Exploration in mid-to-upscale and luxury brands GreenTree Eastern Gem Hotel ● Premium boutique hotels with ● A calm harbor for business travelers oriented features ● Opening of 4 in 19Q3 ● Opening of 4 in 19Q3 ● Pipeline: 26 ● Pipeline: 42 ● Price: RMB 280-350 ● Price: RMB 300-
Slide 14: Financial Highlights
02 Financial Highlights 14
Slide 15: Revenue Growth
Revenue Growth Total Revenue Revenue from F&M Hotels RMB (M) RMB (M) 802.4 800 617.5 600 509.3 500 700 400 665.2 300 219.6 184.2 600 200 100 0 500 18Q3 19Q3 First Nine First Nine Months of 2018 Months of 2019 400 Revenue from L&O Hotels RMB (M) 292.1 300 200 184.9 243.2 175 155.9 150 200 125 100 72.
Slide 16: Operating Costs and Expenses
Operating Costs and Expenses Total Operating Costs and Expenses (1) Hotel Operating Costs RMB (M) % of Revenue RMB (M) % of Revenue 202.5 246.2 100% 200 450 100% 87.3 50% 100 74.5 413.6 30.6% 29.9% 30.4% 30.7% 0 0% 400 18Q3 19Q3 First Nine First Nine Months of Months of 80% 2018 2019 350 306.0 Selli
Slide 17: Profitability
Profitability Gross Profit and Margin Adjusted EBITDA (1) and Margin RMB (M) % Margin RMB (M) % Margin 600 100% 500 484.0 100% 556.1 415.6 500 462.8 80% 400 80% 69.4% 70.1% 69.6% 69.3% 65.2% 400 62.5% 60.6% 60.3% 60% 300 60% 300 40% 200 177.1 40% 204.9 158.6 200 168.7 20% 100 20% 100 0 0% 0 0% 18Q3
Slide 18: Profitability
Profitability Net Income and Margin Core Net Income and Margin RMB (M) % Margin RMB (M) % Margin 400 100.0% 400 100.0% 363.2 352.9 321.2 80.0% 301.5 80.0% 300 300 58.7% 60.0% 60.0% 48.3% 47.6% 200 45.3% 200 46.2% 45.3% 44.0% 142.8 35.0% 40.0% 40.0% 134.8 115.7 102.2 100 100 20.0% 20.0% 0 0.0% 0 0.0%
Slide 19: Profitability
Profitability Net Income per ADS (Basic and Diluted) Core Net Income per ADS (Basic and Diluted) (Non-GAAP) (1) RMB RMB 4.0 4.0 3.60 3.5 3.5 3.46 3.27 3.07 3.0 3.0 2.5 2.5 2.0 2.0 1.41 1.5 1.5 1.32 1.14 1.01 1.0 1.0 0.5 0.5 0.0 0.0 18Q3 19Q3 First Nine First Nine 18Q3 19Q3 First Nine First Nine Mont
Slide 20: 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 RMB2,061 million as of September 30, 2019 RMB (M) 2,500 -308.1 395.5 -208.0 -47.2 23.4 -56.0 2,000 2,261.0 2,060.5 1,500 (1) Cash & Cash Cash from
Slide 21: Guidance; Thank you! Q&A
Guidance • Expect total revenue for the full year of 2019 to grow 20%-25% from 2018 Thank you! Q&A 21
Slide 22: Appendix
03 Appendix 22
Slide 23: Brand Portfolio
Brand Portfolio As of September 30, 2019 Luxury • Hotels in operation: 21 • Hotel rooms in operation: 4,739 • Room prices: RMB 400 - 1,000 Mid-to-upscale • Hotels in operation:171 • Hotel rooms in operation:17,147 • Room prices: RMB 200 - 600 Midscale • Hotels in operation:2,290 • Hotel rooms in ope
Slide 24: Hotel Breakdown
Hotel Breakdown Number of Hotels in Operation Number of Hotel Rooms in Operation By Market Segment and Brand 2018Q3 2019Q3 2018Q3 2019Q3 Luxury - 21 - 4,739 Argyle - 21 - 4,739 Mid-to-up-scale 82 171 8,930 17,147 GreenTree Eastern 74 100 8,270 10,691 VX 4 19 359 1,544 Gem 2 22 170 2,002 GYa 1 18 70
Slide 25: Operating Data
Operating Data 2018Q3 2019Q3 2018Q3 2019Q3 Occupancy rate Total hotels in operation 2,558 3,102 Leased-and-owned hotels 72.6% 73.1% Leased and owned hotels 30 30 Franchised hotels 87.5% 86.1% Blended 87.2% 85.9% Franchised hotels 2,528 3,072 Average daily rate (in RMB) Leased-and-owned hotels 210 22
GreenTree Hospitality Group — Q3 2019 Earnings Presentation on 6ix