GreenTree Hospitality Group Ltd. · NYSE:GHG
GreenTree Hospitality — Q2 2024 Earnings Presentation
29 slides from GreenTree Hospitality's earnings presentation, Aug 15, 2024
Slide 1: 2024 Q2 Results
2024 Q2 Results August 15, 2024 1
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 2024Q2 2024Q2 2024Q2 Appendix Performance Review Strategic Execution Operating and Financial Highlights 3
Slide 4: 2024Q2 Performance Review
Vx Hotel (High-speed Railway Station, Dongfang City, Hainan Province) 01 2024Q2 Performance Review 4
Slide 5: 2024Q2 Highlights
2024Q2 Highlights RMB Compared with 2023Q2(1) RevPAR 125 Down 10.8% ADS( Average Daily 4,737 Down 22.1% Sales Per Store) Total Revenues 329.7MM Down 20.5% Hotel Revenues 264.6MM Down 14.8% Income from Operations 84.4MM Down 14.4% with margin 25.6% Net Income 62.3MM Down 38.9% with margin 18.9% Adjus
Slide 6: Overview of 2024Q2
Overview of 2024Q2 Total Revenues Income from Operations Hotel Hotel RMB (M) Restaurant RMB (M) Restaurant 500 110 400 2.9 104.9 80 300 65.3 108.5 50 200 81.6 310.6 264.6 20 100 0 -10 23Q2 24Q2 23Q2 24Q2 (9.6) Net Income Adjusted EBITDA Hotel Hotel RMB (M) Restaurant Restaurant 150 2.0 130 100 1.2 8
Slide 7: Hotel Performance
Hotel Performance RevPAR 2024 RMB 212 210 190 177 164 160 161 157 170 145 152 152 146 149 144 131 135 124 142 137127 135 135 136 124 123 119 131 130 115 121 124 130 96 105 155 145 149 139 135 132 139 90 139 129 129 71 133 119 127 90 117108 133 120 124 117 117 119 113 124 92 111 100 117 119 103 80 95
Slide 8: Improvement in Direct Sales and Membership Support
Improvement in Direct Sales and Membership Support Corporate Members Individual Members ‘000 ‘000‘000 2,104 100 96 1,985 2,000 84 80 1,500 60 1,000 40 500 20 0 0 23Q2 24Q2 23Q2 24Q2 8
Slide 9: Restaurant AC, ADT and ADS
AC (1) ADT (2) ADS (3) RMB RMB 60 58.6 160 55.2 7,000 6,548 55 52.0 53.1 55.0 54.1 52.7 140 6,096 6,0806,371 5,525 6,000 5,433 50 120 119 4,737 46.2 120 117 5,000 4,564 45 109 99 101 4,000 40 100 94 90 3,000 35 80 30 2,000 60 1,000 25 20 40 0 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 24Q1 24Q2 22Q3 22Q4 23Q1 23
Slide 10: 2024Q2 Strategic Execution
Vx Hotel (High-speed Railway Station, Dongfang City, Hainan Province) 02 2024Q2 Strategic Execution 10
Slide 11: 2024Q2 Strategic Execution
2024Q2 Strategic Execution Further Expansion into Mid-to- Upscale Segment Greater Penetration in Tier 3 and Lower Cities in South China 11
Slide 12: 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 618 600 548 24.6% 13.9% 466 400 18.5% 420 Organic Hotel (2) Breakdown by Segment 18.1% Mid-to-Upscale Midscale Economy 49.8% 65.0% 295 4,500 4,272 4,238 14.6% 53.3% 4,059 3
Slide 13: Greater Penetration in Tier 3 and Lower Cities
Greater Penetration in Tier 3 and Lower Cities Organic New Openings Breakdown by City Tier Tier 1 Cities Tier 2 Cities Other Cities 618 600 7.1% 548 7.1% 466 27.0% 21.2% 6.4% 420 5.5% 21.3% 17.8% Organic Hotel Breakdown by City Tier 300 295 7.5% Tier 1 Cities Tier 2 Cities Other Cities 65.9% 20.3% 7
Slide 14: 2024Q2 and Fiscal Year Restaurant Strategic Execution
2024Q2 and Fiscal Year Restaurant Strategic Execution Restaurant Breakdown by L&O and F&M 300 F&M L&O Business Model Transferred to 200 206 183 Increase in Proportion of 57 24 Franchised-and-Managed 100 Restaurants 149 159 0 23Q2 24Q2 Proportion of Restaurants Breakdown by Location Street stores Tra
Slide 15: Operating and Financial Highlights
Vx Hotel (High-speed Railway Station, Dongfang City, Hainan Province) 03 Operating and Financial Highlights 15
Slide 16: Hotel Revenue
Hotel Revenue Total Revenue Revenue from L&O Hotels RMB (M) RMB (M) 300 600 563.2 213.6 228.4 539.4 200 500 131.5 105.9 100 400 0 23Q2 24Q2 23H1 24H1 310.6 300 Revenue from F&M Hotels 264.6 RMB (M) 400 200 347.4 309.0 300 100 200 177.9 157.8 100 0 23Q2 24Q2 23H1 24H1 0 23Q2 24Q2 23H1 24H1 16
Slide 17: Hotel Operating Costs and Expenses
Hotel Operating Costs and Expenses Hotel Operating Costs Total Hotel Operating Costs and Expenses (1) RMB (M) RMB (M) 300 289.6 284.4 200 500 150.1 143.4 100 416.6 424.4 400 0 23Q2 24Q2 23H1 24H1 Selling and Marketing Expenses RMB (M) 28.7 300 24.8 20 13.8 YoY YoY 217.7 13.2 213.3 -3.9% 200 +2.1% 0
Slide 18: Hotel Profitability
Hotel Profitability Income From Operations Net Income RMB (M) % Margin RMB (M) % Margin 200 160.4 300 151.9 108.5 200 100 149.0 81.6 114.0 120.4 100 63.1 0 0 23Q2 24Q2 23H1 24H1 23Q2 24Q2 23H1 24H1 34.9% 30.8% 28.5% 28.2% 36.7% 23.9% 26.5% 22.3% Adjusted EBITDA (1) Core Net Income (2) RMB (M) RMB (M
Slide 19: Restaurant Revenue and Operating Costs and Expenses
Restaurant Revenue and Operating Costs and Expenses Total Revenue Total Restaurant Operating Costs and Expenses RMB (M) RMB (M) 300 300 242.0 232.1 200 200 143.0 140.1 114.9 104.9 100 100 65.3 64.3 0 0 23Q2 24Q2 23H1 24H1 23Q2 24Q2 23H1 24H1 19
Slide 20: Restaurant Profitability
Restaurant Profitability Income From Operations Net Income RMB (M) % Margin RMB (M) % Margin 5 4.7 5 3.7 3.7 2.9 0 0 23Q2 24Q2 23H1 24H1 23Q2 24Q2 23H1 24H1 (5) (5) (10) (10) (9.6) (9.0) (11.9) (15) (14.1) (15) (20) 3.3% (11.3)% 5.6% (6.1)% 2.6% (9.1)% 4.4% (3.9)% Adjusted EBITDA (1) Core Net Income
Slide 21: Group Profitability
Group Profitability Net (loss) income Core net income (Non-GAAP) RMB（M） RMB 200 200 134.5 130.9 119.6 118.5 101.9 100 100 68.6 YoY 70.2 62.3 +2.4% 0 0 23Q2 24Q2 23H1 24H1 23Q2 24Q2 23H1 24H1 Net Income per ADS (Basic and Diluted) (1) Core Net Income per ADS (Basic and Diluted) (Non-GAAP) (2) RMB RMB
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 RMB 1,737.2Million as of June 30, 2024 RMB (M) 2,000 69.2 28.7 0.5 （0.2） （0.8） （5.9） 1,737.2 128.4 1,517.3 1,500 1,000 500 0 Cash & Cash Disposal
Slide 23: Guidance, Dividend and Q&A
Guidance Considering our performance during the first half of the year and the impact of closing certain L&O hotels due to lease expirations and strategic decisions, we have revised our revenue guidance for the hotel business. We now anticipate its performance in 2024 to remain flat compared to 2023
Slide 24: Appendix
Vx Hotel (High-speed Railway Station, Dongfang City, Hainan Province) 04 Appendix 24
Slide 25: Our Portfolio
Our Portfolio As of June 30, 2024 Mid-to-Up-Scale • Hotels in operation: 505 • Hotel rooms in operation: 47,697 • Room rates: RMB 200 - 600 Mid-Scale [3] • Hotels in operation: 2,948 • Hotel rooms in operation: 229,970 • Room rates: RMB 150 - 400 [4] Economy • Hotels in operation: 819 • Hotel rooms
Slide 26: Hotel Breakdown
Hotel Breakdown Number of Hotels in Operation Number of Hotel Rooms in Operation By Market Segment and Brand 2023Q2 2024Q2 2023Q2 2024Q2 Mid-to-up-scale 438 505 42,338 47,697 GreenTree Eastern 217 227 23,205 24,493 Deep Sleep Hotel 7 7 534 534 Gem 54 82 4,873 7,258 Gya 70 75 5,904 6,238 Vx 90 99 7,8
Slide 27: Hotel Operating Data
Hotel Operating Data 2023Q2 2024Q2 2023Q2 2024Q2 Occupancy rate Total hotels in operation 4,108 4,272 Leased-and-owned hotels 74.6% 70.7% Leased-and-owned hotels 65 62 Franchised hotels 77.9% 72.6% Blended 77.8% 72.5% Franchised hotels 4,043 4,210 Average daily rate (in RMB) Leased-and-owned hotels
Slide 28: Restaurants Operating Data
Restaurants Operating Data 2023Q2 2024Q2 2023Q2 2024Q2 Total restaurants in ADT 206 183 operation Dine In 55 44 Leased-and-owned 57 24 Delivery 53 46 restaurants Blended 109 90 Franchised restaurants 149 159 AC (in RMB) Dine In 73 68 Number of cities 66 57 Delivery 38 38 Blended 56 53 ADS (in RMB) D
Slide 29: Restaurants Operating Data
Restaurants Operating Data 2023Q2 2024Q2 ADT Leased-and-owned restaurants 148 165 Franchised restaurants 88 73 Blended 109 90 AC (in RMB) Leased-and-owned restaurants 84 105 Franchised restaurants 41 38 Blended 56 53 ADS (in RMB) Leased-and-owned restaurants 12,456 17,306 Franchised restaurants 3,57
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