GreenTree Hospitality Group Ltd. · NYSE:GHG
GreenTree Hospitality — Q1 2020 Earnings Presentation
27 slides from GreenTree Hospitality's earnings presentation, Jun 4, 2020
Slide 1: GreenTree Hospitality Group Ltd. 2020Q1 Results
GreenTree Hospitality Group Ltd. 2020Q1 Results June 4, 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 Highlights 3
Slide 4: Performance Review
01 Performance Review
Slide 5: Overview of 2020Q1
Overview of 2020Q1 As of March 31, 2020 Number of Hotels ADR Financial Overview In 342 cities 3,998 RMB RMB (M) 162 2,829 150 157.4 -33.1% 19Q1 20Q1 19Q1 20Q1 67.6 17.9% 47.6 -56.4% Occupancy RevPAR 20.4% -64.5% RMB 78.1% 127 Total Revenue 20Q1 Gross Profit 20Q1 Adjusted EBITDA (Non-GAAP) 20Q1 47.3%
Slide 6: COVID-19
02 COVID-19
Slide 7: ADR, Occupancy and RevPAR YoY: Hotels in China vs GreenTree
Hotels in China (1) GreenTree ADR 2020Q1 YoY Occupancy 2020Q1 YoY RevPAR 2020Q1 YoY 5% 5% 0% 0% 0% -5% -10% -5% -10% -20% -7.8% -10% -15% -30% -20% -15% -25% -40% -17.6% -44.1% -20% -30% -50% -30.8% -35% -33.8% -60% -25% -40% -62.3% -70% Notes: 1. Cited from STR。 7
Slide 8: Occupancy recovery trend during COVID-19
100% 90% 80% 70% 60% 50% 40% 38.5% 30% 20% 23.2% 21.5% 10% 0% 1/1 1/11 1/21 1/31 2/10 2/20 3/1 3/11 3/21 3/31 4/10 4/20 4/30 5/10 5/20 5/30 8
Slide 9: Operating and Financial Highlights
03 Operating and Financial Highlights 9
Slide 10: Hotel Growth
Hotel Growth Increasing Number of Hotels in Operation Total L&O Hotels 3,957 3,998 4,000 34 35 3,500 3,000 2,757 2,829 29 30 2,500 2,289 2,000 1,964 26 32 1,500 1,932 2,263 2,728 3,923 2,799 3,963 1,000 2016 2017 2018 2019 2019Q1 2020Q1 % by Hotel Segment % by City Tier (1) Luxury Mid-to-upscale Mid
Slide 11: New Hotel Openings and Closures
New Hotel Openings and Closures 20Q1 New Openings New Hotel Openings and Closures Breakdown by Market Segment Mid-to-Up-Scale 7 Mid-Scale 190 11.3% 37 59.7% 140 29.0% Gross Openings Economy YoY -39.2% 18 190 90 181 20Q1 New Openings 134 Breakdown by City Tier (1) 102 40 Tier 2 Cities 62 13 Other Cit
Slide 12: Pipeline Growth
Pipeline Growth 20Q1 Pipeline Growth by Market Segment Luxury Mid-to-Up-Scale Mid-Scale Economy YOY +113.1% 1,025 949 56 54 25% 200 25% 181 652 596 47 47 27% 403 39% 128 481 117 28% 364 38% 116 24% 272 42% 249 42% 258 54% 350 37% 366 36% 183 205 31% 30% 107 22% 0 19Q1 19Q2 19Q3 19Q4 20Q1 12
Slide 13: 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 ● 28 hotels as of 20Q1 traditional oriental themes ● Pipeline: 32 ● 109 hotels as of 20Q1 ● Rate: RMB 280-350 ● Pipeline: 5
Slide 14: Hotel Performance Q1 2020
Hotel Performance Q1 2020 The Company had a 44.1% RevPAR YoY decrease in 20Q1. F&M Hotels L&O Hotels ADR Occupancy RevPAR RMB RMB 200 80% 78% 193 78% 168 169 162 127 152 155 61% 124 149 59% 60% 119 117 119 100 48% 71 33% 55 17Q1 18Q1 19Q1 20Q1 17Q1 18Q1 19Q1 20Q1 17Q1 18Q1 19Q1 20Q1 YoY F&M 2.0% 3.9
Slide 15: RevPAR Growth
RevPAR Growth Quarterly RevPAR RMB 164 152 152 150 145 142 137 149 135 135 145 131 139 139 135 131 132 133 129 129 124 127 124 123 110 117 119 117 119 115 111 108 100 92 70 71 55 30 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1 F&M Hotel L&O Hotel 线性 Growth (F&
Slide 16: Membership Program
Membership Program 93.6% of room nights sold directly Individual Members Corporate Members MM ‘000 46 44 1,510 1,520 1,500 1,450 40 39 1,380 36 1,320 33 1,200 30 900 20 10 600 19Q1 19Q2 19Q3 19Q4 20Q1 19Q1 19Q2 19Q3 19Q4 20Q1 16
Slide 17: Revenue Growth
Revenue Growth Total Revenue Revenue from F&M Hotels RMB (M) RMB (M) 300 200 183.5 123.6 235.3 100 200 0 19Q1 20Q1 157.4 Revenue from L&O Hotels RMB (M) 100 60 51.8 40 33.8 20 0 0 19Q1 20Q1 19Q1 20Q1 17
Slide 18: Total Hotel Operating Costs and Expenses
Total Hotel Operating Costs and Expenses Total Hotel Operating Costs and Expenses (1) Hotel Operating Costs RMB (M) % of Revenue RMB (M) % of Revenue 100 89.8 57.0% 150 137.5 87.4% 80.0 76.9 50 Excluding Argyle 130.5 and Urban 34.0% 55.3% 0 116.1 19Q1 20Q1 100 Selling and Marketing Expenses RMB (M)
Slide 19: Profitability
Profitability Gross Profit and Margin Net Income and Margin RMB (M) % Margin RMB (M) % Margin 180 155.3 150 160 134.0 120 130 100 90 67.6 70 60 40 30 10 66.0% 43.0% 56.9% 0 19Q1 20Q1 19Q1 20Q1 -9.0% -20 -14.1 19
Slide 20: Profitability
Profitability Adjusted EBITDA (1) and Margin Core Net Income (2) and Margin RMB (M) % Margin RMB (M) % Margin 150 150 133.9 100 100 92.3 50 47.6 50 27.7 56.9% 30.2% 39.2% 17.6% 0 0 19Q1 20Q1 19Q1 20Q1 Notes: 1. Adjusted EBITDA (non-GAAP) is calculated as net income plus other operating expenses, inc
Slide 21: Profitability
Profitability Net Income per ADS (Basic and Diluted) Core Net Income per ADS (Basic and Diluted) (Non-GAAP) (1) RMB RMB 1.8 1.5 1.33 1.3 1.0 0.91 0.8 0.5 0.27 0.3 0.0 19Q1 20Q1 19Q1 20Q1 -0.2 -0.11 Notes: 1. Core net income is calculated as net income plus share-based compensation, losses from inves
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 RMB1,614 million as of March 31, 2020. RMB (M) -85.7 1,700 -51.0 -48.4 10.0 2.8 -23.1 1,809.3 1,613.9 1,200 Cash & Cash Loans to franchisees, Chan
Slide 23: Guidance; Thank you! Q&A
Guidance Total revenues for the full year of 2020 are expected to decline 10%~15% from 2019. Thank you! Q&A 23
Slide 24: Appendix
04 Appendix 24
Slide 25: Our Portfolio
Our Portfolio As of March 31, 2020 Luxury • Hotels in operation: 20 • Hotel rooms in operation: 4,607 • Room rates: RMB 400 - 1,000 Mid-to-upscale • Hotels in operation: 272 • Hotel rooms in operation: 24,595 • Room rates: RMB 200 - 600 [3] Mid-scale • Hotels in operation: 2,582 [4] • Hotel rooms in
Slide 26: Hotel Breakdown
Hotel Breakdown Number of Hotels in Operation Number of Hotel Rooms in Operation By Market Segment and Brand 2019Q1 2020Q1 2019Q1 2020Q1 Luxury - 20 - 4,607 Argyle - 20 - 4,607 Mid-to-up-scale 124 272 12,718 24,595 GreenTree Eastern 91 109 9,732 11,649 Deep Sleep Hotel 1 2 62 161 Gem 14 28 1,337 2,5
Slide 27: Operating Data
Operating Data 2019Q1 2020Q1 2019Q1 2020Q1 Occupancy rate Total hotels in operation 2,829 3,998 Leased-and-owned hotels 59.6% 32.7% Leased and owned hotels 30 35 Franchised hotels 78.4% 47.7% Blended 78.1% 47.3% Franchised hotels 2,799 3,963 Average daily rate (in RMB) Leased-and-owned hotels 200 16
GreenTree Hospitality Group — Q1 2020 Earnings Presentation on 6ix