GreenTree Hospitality Group Ltd. · NYSE:GHG
GreenTree Hospitality — Q3 2021 Earnings Presentation
28 slides from GreenTree Hospitality's earnings presentation, Jan 12, 2022
Slide 1: 2021Q3 Results
2021Q3 Results January 12 2022 GreenTree Inn (Zhejiang Jiaxing Haiyan District Yushun Road Hotel)
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 2021Q3 Performance 2021Q3 Strategic 2021Q3 Operating and Appendix Review Execution Financial Highlights 3
Slide 4: 2021Q3 Performance Review
Gya hotel (Hangzhou Lin'an Jiuzhou Street Baolong Plaza) 01 2021Q3 Performance Review
Slide 5: 2021Q3 Highlights
2021Q3 Highlights As % of 2020Q3 As % of 2019Q3 RevPAR 98.6% to RMB 118 79.1% Total Revenues 116.3% to RMB 310.4MM 106.3% (1) Income from Operations 54.4% to RMB 54.9MM with margin 17.7% 36.0% Net Income 38.5% to RMB 33.0MM with margin 10.6% 32.3% Adjusted EBITDA (non-GAAP) (2) 66.5% to RMB 73.7MM w
Slide 6: Overview of 2021Q3
Overview of 2021Q3 Total Revenues Income from Operations RMB (M) % of Revenue RMB (M) 106.3% of 2019Q3 116.3% of 2020Q3 400 152.6 100% 150 36.0% of 2019Q3 310.4 292.1 54.4% of 2020Q3 80% 266.9 100.9 100 60% 200 52.2% 54.9 40% 50 37.8% 20% 17.7% 0 0 0% 19Q3 20Q3 21Q3 19Q3 20Q3 21Q3 Net Income Adjuste
Slide 7: ADR, Occupancy and RevPAR
ADR Occupancy RevPAR 84.3% of 2019Q3 RMB 79.1% of 2019Q3 RMB 93.8% of 2019Q3 98.6% of 2020Q3 107.7% of 2020Q3 91.5% of 2020Q3 149 200 100% 150 134 174 171 85.9% 120 124 162 163 79.1% 76.7% 78.6% 118 151 151 72.4% 63.4% 96 100 100 50% 50 0 0% 0 19Q3 20Q3 20Q4 21Q1 21Q2 21Q3 19Q3 20Q3 20Q4 21Q1 21Q2 2
Slide 8: Weekly average RevPAR recovery
0% 100% 1. Note: 20/1/1 20/1/15 20/1/29 20/2/12 20/2/26 20/3/11 20/3/25 20/4/8 Based upon weekly average RevPAR 20/4/22 20/5/6 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
Slide 9: 2021Q3 Strategic Execution
GreenTree Eastern Hotel (Wuhan Optical Valley East Lake Wuhan University) 02 2021Q3 Strategic Execution
Slide 10: 2021Q3 Strategic Execution
2021Q3 Strategic Execution Further Expansion into Mid-to-Up- Scale Segment Greater Penetration in Tier 3 and Lower Cities in Southwest and South China 10
Slide 11: Further Expansion into Mid-to-Up-Scale Segment
Further Expansion into Mid-to-Up-Scale Segment New Openings Breakdown by Segment Luxury Mid-to-Upscale Midscale Economy 607 0.7% 600 554 13.8% 538 0.9% 11.0% 20.3% 425 5.2% 47.3% 51.8% 300 Pipeline Breakdown by Segment 57.2% 182 76.7% 1.1% Luxury Mid-to-Upscale Midscale Economy 38.5% 37.2% 38.2% 1,2
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 Tier 1 Cities Tier 2 Cities Other Cities 4,340 4,626 4,500 8.7% 3,957 9.3% 607 9.9% 600 554 7.1% 538 23.6% 23.4% 8.5% 6.1% 23.6% 21.3% 3,000 2,
Slide 13: Operating and Financial Highlights
Vatica Hotel (Hainan Haikou Yehai Avenue Hotel) 03 Operating and Financial Highlights 13
Slide 14: Overview of 2021Q3
Overview of 2021Q3 Number of Hotels ADR In 362 cities 4,626 RMB 93.8% of 2019Q3 4,195 107.7% of 2020Q3 174 163 3,102 151 19Q3 20Q3 21Q3 19Q3 20Q3 21Q3 Occupancy RevPAR 84.3% of 2019Q3 79.1% of 2019Q3 RMB 91.5% of 2020Q3 149 98.6% of 2020Q3 85.9% 79.1% 72.4% 120 118 19Q3 20Q3 21Q3 19Q3 20Q3 21Q3 As o
Slide 15: Hotel Growth
Hotel Growth Increasing Number of Hotels in Operation F&M Hotels L&O Hotels 4,626 4,500 4,340 4,195 62 3,957 40 4,000 37 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 4,158 4,564 1,000 2017 2018 2019 2020 2020Q3 2021Q3 Growth by Market Segment Growth by City Tier (1) Lux
Slide 16: New Hotel Openings
New Hotel Openings 21Q3 New Openings New Hotel Openings Breakdown by Market Segment Mid-to-Up-Scale 70 38.5% 250 Luxury Gross Openings 1.1% 2 YoY Growth 12.3% Economy 14.8% 200 27 Mid-Scale 45.6% 83 150 21Q3 New Openings Breakdown by City Tier (1) 224 100 201 201 203 Tier 2 Cities 182 190 181 162 52
Slide 17: Hotel Performance
Hotel Performance RevPAR 164 160 RMB 145 152 152 146 131 142 137 150 124 131 135 135 135 123 119 124 127 121 115 149 139 145 139 96 110 129 129 135 132 133 90 124 133 117 120 117 111 108 117 119 71 92 100 70 95 80 55 30 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4
Slide 18: Improvement in Direct Sales and Membership Support
Improvement in Direct Sales and Membership Support 91.3% of room nights sold directly in 2021Q3 Corporate Members Individual Members ‘000 CAGR +11.7% M CAGR +30.1% 2,000 66 1,810 1,610 60 1,450 52 1,500 39 40 1,000 20 500 0 0 19Q3 20Q3 21Q3 19Q3 20Q3 21Q3 18
Slide 19: Revenue Growth
Revenue Growth Total Revenue Revenue from F&M Hotels RMB (M) RMB (M) 88.3% of 2019Q3 400 106.3% of 2019Q3 100.0% of 2020Q3 300 116.3% of 2020Q3 219.6 194.1 194.0 200 310.4 300 292.1 100 266.9 0 19Q3 20Q3 21Q3 200 Revenue from L&O Hotels RMB (M) 146.9% of 2019Q3 159.4% of 2020Q3 106.5 100 100 72.5 66
Slide 20: Hotel Operating Costs and Expenses 21Q3 vs 20Q3
Hotel Operating Costs and Expenses——21Q3 VS 20Q3 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 172.8 172.8 Total hotel operating costs and expenses as % of R
Slide 21: Profitability
Profitability Income from Operations and Margin Net Income and Margin RMB (M) % Margin RMB (M) % Margin 152.6 100% 150 150 36.0% of 19Q3 80% 54.4% of 20Q3 80% 32.3% of 19Q3 102.2 38.5% of 20Q3 100.9 100 60% 100 60% 85.6 52.2% 40% 54.9 40% 37.8% 35.0% 32.1% 50 50 33.0 20% 20% 17.7% 10.6% 0 0% 0 0% 19
Slide 22: 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 1.32 1.01 1.00 1.00 0.90 0.81 0.49 0.50 0.50 0.33 0.00 0.00 19Q3 20Q3 21Q3 19Q3 20Q3 21Q3 Notes: 1. EPS, Earnings per ADS (basic and diluted) was calculated as net (l
Slide 23: 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 RMB1,192.1 Million as of September 30, 2021 RMB (M) 2,000 2.3 -78.5 -70.7 116.8 -48.4 -17.4 -3.0 1,000 1,291.0 1,192.1 0 (1) Cash & Cash Cash from
Slide 24: Guidance; Thank you! Q&A
Guidance Total revenues for the full year of 2021 are expected to grow: 25%~30% from 2020 7%~12% from 2019 Thank you! Q&A 24
Slide 25: Appendix
Urban Garden Hotel (Suzhou High Speed Railway North Wuyue Plaza) 04 Appendix 25
Slide 26: Our Portfolio
Our Portfolio As of September 30, 2021 Luxury • Hotels in operation: 30 • Hotel rooms in operation: 5,974 • Room rates: RMB 400 - 1,000 Mid-to-Up-Scale • Hotels in operation: 488 • Hotel rooms in operation: 44,662 • Room rates: RMB 200 - 600 [3] Mid-Scale • Hotels in operation: 2,912 [4] • Hotel roo
Slide 27: Hotel Breakdown
Hotel Breakdown Number of Hotels in Operation Number of Hotel Rooms in Operation By Market Segment and Brand 2020Q3 2021Q3 2020Q3 2021Q3 Luxury 20 30 4,042 5,974 Argyle 20 30 4,042 5,974 Mid-to-up-scale 337 488 30,303 44,662 GreenTree Eastern 137 189 14,305 20,283 Deep Sleep Hotel 3 6 221 417 Gem 33
Slide 28: Operating Data
Operating Data 2020Q3 2021Q3 2020Q3 2021Q3 Occupancy rate Total hotels in operation 4,195 4,626 Leased-and-owned hotels 70.6% 65.2% Leased-and-owned hotels 37 62 Franchised hotels 79.3% 72.6% Blended 79.1% 72.4% Franchised hotels 4,158 4,564 Average daily rate (in RMB) Leased-and-owned hotels 171 22
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