GreenTree Hospitality Group Ltd. · NYSE:GHG

GreenTree Hospitality — Q4 2021 Earnings Presentation

30 slides from GreenTree Hospitality's earnings presentation, May 11, 2022

  1. Slide 1: 2021Q4 Results

    2021Q4 Results May 11, 2022 GreenTree Eastern Hotel Zhuodaoquan, Hongshan District, Wuhan city

  2. 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

  3. Slide 3: Contents

    Contents 01 02 03 04 2021Q4 Performance 2021Q4 Strategic 2021Q4 Operating and Appendix Review Execution Financial Highlights 3

  4. Slide 4: 2021Q4 Performance Review

    Vx Hotel Wufutang Subway station, Daxing District, Beijing, Zhongke E- commerce Valley Jiuding 01 2021Q4 Performance Review

  5. Slide 5: 2021Q4 Highlights

    2021Q4 Highlights As % of 2020Q4 As % of 2019Q4 RevPAR 94.4% to RMB 117 91.3% Total Revenues 106.1% to RMB 307.4MM 106.2% (1) Income from Operations 30.5% to RMB 36.1MM with margin 11.8% 36.6% Net Income 35.9% to RMB 28.6MM with margin 9.3% 38.3% Adjusted EBITDA (non-GAAP) (2) 52.6% to RMB 68.8MM wi

  6. Slide 6: Overview of 2021Q4

    Overview of 2021Q4 Total Revenues Income from Operations RMB (M) % of Revenue RMB (M) 106.2% of 2019Q4 106.1% of 2020Q4 400 100% 150 36.6% of 2019Q4 307.4 289.4 289.8 118.5 80% 30.5% of 2020Q4 98.8 100 60% 200 40.9% 40% 50 34.1% 36.1 20% 0 0 0% 19Q4 20Q4 21Q4 19Q4 20Q4 21Q4 Net Income Adjusted EBITD

  7. Slide 7: ADR, Occupancy, RevPAR

    ADR Occupancy RevPAR 90.6% of 2019Q4 RMB 91.3% of 2019Q4 RMB 100.8% of 2019Q4 94.4% of 2020Q4 104.6% of 2020Q4 90.2% of 2020Q4 200 100% 150 134 168 171 170 129 124 162 163 78.6% 118 117 151 76.4% 76.7% 72.4% 69.2% 63.4% 96 100 100 50% 50 0 0% 0 19Q4 20Q4 21Q1 21Q2 21Q3 21Q4 19Q4 20Q4 21Q1 21Q2 21Q3

  8. Slide 8: Weekly average RevPAR recovery

    0% 100% 1. 20/1/1 Note: 20/1/15 20/1/29 20/2/12 20/2/26 20/3/11 20/3/25 20/4/8 20/4/22 20/5/6 Based upon weekly average RevPAR 20/5/20 20/6/3 20/6/17 20/7/1 20/7/15 20/7/29 20/8/12 20/8/26 20/9/9 20/9/23 20/10/7 20/10/21 20/11/4 20/11/18 20/12/2 20/12/16 20/12/30 21/1/13 21/1/27 21/2/10 21/2/24 21/3

  9. Slide 9: 2021Q4 Strategic Execution

    02 2021Q4 Strategic Execution

  10. Slide 10: 2021Q4 Strategic Execution

    2021Q4 Strategic Execution Further Expansion into Mid-to- Upscale Segment Greater Penetration in Tier 3 and Lower Cities in Southwest and South China Brand Innovation 10

  11. Slide 11: Further Expansion into Mid-to-UpScale Segment

    Further Expansion into Mid-to-UpScale Segment New Openings Breakdown by Segment Luxury Mid-to-Upscale Midscale Economy 722 1.4% 607 600 554 0.7% 538 26.2% 13.8% 0.9% 11.0% 425 20.3% 5.2% 47.3% 51.8% 57.4% Pipeline Breakdown by Segment 300 57.2% 76.7% 138 Luxury Mid-to-Upscale Midscale Economy 2.2% 3

  12. Slide 12: Greater Penetration in Tier 3 and Lower Cities

    Greater Penetration in Tier 3 and Lower Cities Hotel Breakdown by City Tier New Openings Breakdown by City Tier (1) Tier 1 Cities Tier 2 Cities Other Cities 4,659 Tier 1 Cities Tier 2 Cities Other Cities 4,340 4,500 722 3,957 8.8% 9.3% 6.4% 607 9.9% 23.5% 600 554 538 2,757 23.4% 7.1% 27.7% 3,000 23.

  13. Slide 13: Expansion in Southwest and South China

    Expansion in Southwest and South China Hotel numbers year over year increase % Hubei & Hunan area +80% Chongqing & Sichuan area +30% Jiangxi & Fujian area +20% 13

  14. Slide 14: Brand Innovation

    Brand Inovation GreenTree E-sports hotels. • Mid-to-Upscale Brand • 25 in operation • Target additional 100 hotels over next 12 months • RMB300-400 ADR and around 100% OCC rate • Better performance during Covid-19 • Less than 14 days renovation period Geli Hotel • Mid-to-Upscale Brand • 7 in operati

  15. Slide 15: Operating and Financial Highlights

    Vx Hotel Hefei Railway Station North Square World Mansion 03 Operating and Financial Highlights 15

  16. Slide 16: Overview of 2021Q4

    Overview of 2021Q4 Number of Hotels ADR In 367 cities 4,659 RMB 100.8% of 2019Q4 4,340 104.6% of 2020Q4 3,957 168 170 162 19Q4 20Q4 21Q4 19Q4 20Q4 21Q4 Occupancy RevPAR 90.6% of 2019Q4 91.3% of 2019Q4 RMB 90.2% of 2020Q4 94.4% of 2020Q4 76.4% 76.7% 129 124 69.2% 117 19Q4 20Q4 21Q4 19Q4 20Q4 21Q4 As

  17. Slide 17: Hotel Growth

    Hotel Growth Increasing Number of Hotels in Operation F&M Hotels L&O Hotels 4,659 4,500 4,340 4,340 66 3,957 40 40 4,000 34 3,500 3,000 2,757 2,500 2,289 29 2,000 26 1,500 2,263 2,728 3,923 4,300 4,300 4,593 1,000 2017 2018 2019 2020 2020Q4 2021Q4 Growth by Market Segment Growth by City Tier (1) Lux

  18. Slide 18: New Hotel Openings

    New Hotel Openings 21Q4 New Openings New Hotel Openings Breakdown by Market Segment Mid-to-Up-Scale 44 31.9% 250 Luxury 2.2% 3 Economy 23.1% 42.8% 200 32 Mid-Scale 59 150 21Q4 New Openings Breakdown by City Tier (1) 224 100 201 201 203 Tier 2 Cities 182 190 181 162 34 146 24.6% 134 138 104 111 50 10

  19. Slide 19: Hotel Performance

    Hotel Performance RevPAR 164 160 RMB 145 152 152 146 131 142 137 136 150 124 131 135 135 135 123 119 124 127 121 115 149 139 145 139 96 110 129 129 135 132 133 90 124 133 117 120 117 117 111 108 117 119 71 92 100 70 95 80 55 30 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19

  20. Slide 20: Improvement in Direct Sales and Membership Support

    Improvement in Direct Sales and Membership Support  91.0% of room nights sold directly in 2021Q4 Corporate Members Individual Members ‘000 CAGR +10.7% M CAGR +25.2% 2,000 69 1,850 1,670 60 56 1,510 1,500 44 40 1,000 20 500 0 0 19Q4 20Q4 21Q4 19Q4 20Q4 21Q4 20

  21. Slide 21: Revenue Growth

    Revenue Growth Total Revenue Revenue from F&M Hotels RMB (M) RMB (M) 85.1% of 2019Q4 400 106.2% of 2019Q4 89.2% of 2020Q4 300 106.1% of 2020Q4 217.2 207.2 200 184.7 307.4 300 289.4 289.8 100 0 19Q4 20Q4 21Q4 200 Revenue from L&O Hotels RMB (M) 164.0% of 2019Q4 147.7% of 2020Q4 112.4 100 100 76.1 68.

  22. Slide 22: 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 Hotel operating costs as % of Revenue RMB (M) Newly opened L&O hotels related 191.9 191.9 200 Total hotel operating costs and expenses as % of Revenue 62.

  23. Slide 23: Profitability

    Profitability Income from Operations and Margin Net Income and Margin RMB (M) % Margin RMB (M) % Margin 100% 150 150 36.6% of 19Q4 80% 118.5 30.5% of 20Q4 80% 38.3% of 19Q4 35.9% of 20Q4 98.8 100 60% 100 60% 79.5 74.5 40% 40.9% 40% 34.1% 50 50 27.4% 36.1 25.8% 28.6 20% 20% 11.8% 9.3% 0 0% 0 0% 19Q4

  24. Slide 24: Profitability

    Profitability Net Income per ADS (Basic and Diluted) (1) Core Net Income per ADS (Basic and Diluted) (Non-GAAP) (2) RMB RMB 1.50 1.50 1.06 1.00 1.00 0.87 0.83 0.75 0.50 0.50 0.35 0.25 0.00 0.00 19Q4 20Q4 21Q4 19Q4 20Q4 21Q4 Notes: 1. EPS, Earnings per ADS (basic and diluted) was calculated as net (l

  25. Slide 25: 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 RMB1,235.9 Million as of December 31, 2021 RMB (M) 2,000 -105.2 154.2 -103.0 -93.5 201.3 -9.1 -0.9 1,000 1,192.1 1,235.9 0 (1) Cash & Cash Cash fr

  26. Slide 26: Guidance and Share Repurchase Program

    Guidance and Share Repurchase Program • Total revenues for the full year of 2022 are expected to grow: 0%~5% from 2021 • Board of Directors has approved a share repurchase program of up to US$20 million, effective for the next 12 months Thank you! Q&A 26

  27. Slide 27: Appendix

    Gya Hotel Beijing Tongzhou District Global Pear Garden 04 Appendix 27

  28. Slide 28: Our Portfolio

    Our Portfolio As of December 31, 2021 Luxury • Hotels in operation: 33 • Hotel rooms in operation: 6,265 • Room rates: RMB 400 - 1,000 Mid-to-Up-Scale • Hotels in operation: 519 • Hotel rooms in operation: 47,666 • Room rates: RMB 200 - 600 [3] Mid-Scale • Hotels in operation: 2,932 [4] • Hotel room

  29. Slide 29: Hotel Breakdown

    Hotel Breakdown Number of Hotels in Operation Number of Hotel Rooms in Operation By Market Segment and Brand 2020Q4 2021Q4 2020Q4 2021Q4 Luxury 23 33 4,749 6,265 Argyle 23 33 4,749 6,265 Mid-to-up-scale 360 519 32,337 47,666 GreenTree Eastern 151 204 15,653 22,246 Deep Sleep Hotel 3 6 221 417 Gem 35

  30. Slide 30: Operating Data

    Operating Data 2020Q4 2021Q4 2020Q4 2021Q4 Occupancy rate Total hotels in operation 4,340 4,659 Leased-and-owned hotels 71.0% 60.9% Leased-and-owned hotels 40 66 Franchised hotels 76.8% 69.5% Blended 76.7% 69.2% Franchised hotels 4,300 4,593 Average daily rate (in RMB) Leased-and-owned hotels Total

GreenTree Hospitality Group — Q4 2021 Earnings Presentation on 6ix