GreenTree Hospitality Group Ltd. · NYSE:GHG
GreenTree Hospitality — Q2 2019 Earnings Presentation
24 slides from GreenTree Hospitality's earnings presentation, Aug 16, 2019
Slide 1: GreenTree Hospitality Group 2019Q2 Results Presentation
GreenTree Hospitality Group 2019Q2 Results Presentation August 16, 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: Contents
Contents 01 02 03 Performance Financial Appendix Review Highlights 3
Slide 4: Performance Review
01 Performance Review
Slide 5: Overview of 2019Q2
Overview of 2019Q2 As of June 30, 2019 Number of Hotels ADR Financial Overview In 300 cities RMB RMB (M) 2,955 172 2,434 164 274.9 21.6% 196.0 173.1 21.1% 127.1 19.1% 18Q2 19Q2 18Q2 19Q2 35.2% Occupancy RevPAR RMB 139 82.6% 136 81.1% [1] Total Revenue Gross Profit Net Income Adjusted EBITDA (Non-GAA
Slide 6: Hotel Growth
Hotel Growth Increasing Number of Hotels in Operation L&O Hotels F&M Hotels 2,955 3,000 2,757 30 29 2,500 2,434 2,289 26 26 1,964 2,000 32 1,500 1,932 2,263 2,728 2,408 2,925 1,000 2016 2017 2018 18Q2 19Q2 % by Hotel Segment 2016 2017 2018 18Q2 19Q2 Luxury - - - - 0.6 Mid-to-up-scale 1.5 2.2 3.9 2.5
Slide 7: Hotel Openings and Closures
Hotel Openings and Closures 19Q2 New Openings Hotel Openings and Closures Breakdown by Brand Segment Mid-to-up-scale 250 21 Mid-scale 16% 45% 60 1% Luxury 200 1 Gross Opening 150 YoY Growth 28.8% 38% Economy Gross Opening 52 YoY Growth 27.5% 224 100 19Q2 New Openings 134 146 Breakdown by City Tier (
Slide 8: Pipeline Growth
Pipeline Growth 19Q2 Pipeline Growth by Brand Segment Luxury Mid-to-up-scale Mid-scale Economy 596 600 47 8% 481 117 20% 430 116 400 117 239 40% 246 200 216 193 32% 119 97 0 18Q4 19Q1 19Q2 8
Slide 9: Hotel Performance
Hotel Performance The Company has achieved a steady 2.9% consolidated RevPAR YoY growth. Excluding Argyle, the Company achieved a 2.2% RevPAR YoY growth. F&M Hotels L&O Hotels ADR Occupancy RevPAR RMB RMB 216 216 84% 83% 201 82% 81% 82% 152 152 182 72% 142 69% 71% 71% 71% 139 138 171 169 135 161 163
Slide 10: RevPAR Growth
RevPAR Growth Quarterly RevPAR RMB 160 152 145 145 152 142 139 135 137 139 135 131 131 132 127 124 123 129 124 129 119 120 115 119 117 117 111 108 100 92 80 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 F&M Hotel L&O Hotel Growth 线性 (F&MTrend Hotel) Growth 线性 (L&OTrend Hotel)
Slide 11: Membership Program
Membership Program 93.8% of room nights sold directly Individual Members Corporate Members MM ‘000 40 1,500 36 1,380 1,320 33 1,270 30 29 1,200 26 24 1,020 22 930 20 900 860 10 600 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 11
Slide 12: Strategic Development
Strategic Development Business exploration to mid-to-upscale and luxury brands GreenTree Eastern GMe Hotel ● Premium boutique hotels with oriented ● A calm harbor for business travelers features ● Opening of 4 in 19Q2 and 8 in 1H19 ● Opening of 7 in 19Q2 and 12 in 1H19 ● Pipeline: 22 ● Pipeline: 40
Slide 13: Financial Highlights
02 Financial Highlights 13
Slide 14: Revenue Growth
Revenue Growth Total Revenue Revenue from F&M Hotels RMB (M) RMB (M) 397.9 510.2 400 500 325.1 300 214.4 422.0 200 174.7 400 100 0 18Q2 19Q2 18H1 19H1 300 274.9 Revenue from L&O Hotels 226.0 RMB (M) 200 112.3 96.9 100 75 60.5 100 51.3 50 25 0 0 18Q2 19Q2 18H1 19H1 18Q2 19Q2 18H1 19H1 14
Slide 15: 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 200 100% 158.9 300 100% 128.0 100 78.9 50% 64.2 265.6 28.4% 28.7% 30.3% 31.2% 0 0% 250 18Q2 19Q2 18H1 19H1 80% Selling and Marketing Expenses 200 195.1 RMB (M) % of Rev
Slide 16: Profitability
Profitability Gross Profit and Margin Adjusted EBITDA (1) and Margin RMB (M) % Margin RMB (M) % Margin 351.3 100% 100% 307.0 300 294.0 300 80% 80% 71.6% 71.3% 256.9 69.7% 68.8% 64.3% 63.0% 60.9% 60.2% 196.0 60% 60% 200 200 173.1 161.8 145.3 40% 40% 100 100 20% 20% 0 0% 0 0% 18Q2 19Q2 18H1 19H1 18Q2
Slide 17: Profitability
Profitability Net Income and Margin Core Net Income and Margin RMB (M) % Margin RMB (M) % Margin 300 100.0% 300 100.0% 261.1 80.0% 80.0% 218.0 200 200 185.8 178.4 60.0% 60.0% 51.2% 46.2% 47.6% 45.7% 44.0% 42.7% 41.6% 127.1 42.3% 125.8 40.0% 40.0% 107.6 100 94.0 100 20.0% 20.0% 0 0.0% 0 0.0% 18Q2 19Q
Slide 18: Profitability
Profitability Net Income per ADS (Basic and Diluted) Core Net Income per ADS (Basic and Diluted) (Non-GAAP) (1) RMB RMB 2.59 2.5 2.5 2.14 2.0 2.0 1.92 1.84 1.5 1.5 1.26 1.23 1.06 1.0 0.93 1.0 0.5 0.5 0.0 0.0 18Q2 19Q2 18H1 19H1 18Q2 19Q2 18H1 19H1 Notes: 1. Core net income is calculated as net incom
Slide 19: 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 RMB2,053.7 million as of June 30, 2019 RMB (M) 2,500 207.2 -208.0 -244.7 38.2 2,000 2,261.0 2,053.7 1,500 (3) Cash & Cash Equivalents, Cash from O
Slide 20: Guidance; Thank you! Q&A
Guidance • Expect total revenue for the full year of 2019 to grow 23%-28% from 2018 Thank you! Q&A 20
Slide 21: Appendix
03 Appendix 21
Slide 22: Brand Portfolio
Brand Portfolio As of June 30, 2019 Luxury • Hotels in operation: 19 • Hotel rooms in operation: 4,017 • Room prices: RMB 400 - 1,000 Mid-to-upscale • Hotels in operation: 152 • Hotel rooms in operation: 15,357 • Room prices: RMB 200 - 600 Midscale • Hotels in operation: 2,229 • Hotel rooms in opera
Slide 23: Hotel Breakdown
Hotel Breakdown By Market Segment and Brand Number of Hotels in Operation Number of Hotel Rooms in Operation 2018Q2 2019Q2 2018Q2 2019Q2 Luxury - 19 - 4,017 Argyle - 19 - 4,017 Mid-to-up-scale 60 152 6,760 15,357 GreenTree Eastern 59 96 6,650 10,200 VX 1 17 110 1,397 GMe - 18 - 1,669 GYa - 11 - 918
Slide 24: Operating Data
Operating Data 2018Q2 2019Q2 2018Q2 2019Q2 Occupancy rate Total hotels in operation 2,434 2,955 Leased-and-owned hotels 70.7% 70.5% Leased and owned hotels 26 30 Franchised hotels 82.9% 81.3% Blended 82.6% 81.1% Franchised hotels 2,408 2,925 Average daily rate (in RMB) Leased-and-owned hotels 201 21
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