GreenTree Hospitality Group Ltd. · NYSE:GHG

GreenTree Hospitality — Q4 2020 Earnings Presentation

32 slides from GreenTree Hospitality's earnings presentation, Apr 14, 2021

  1. Slide 1: 2020Q4 & Full Year Results

    2020Q4 & Full Year Results April 14, 2021

  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 2020Q4 and Full Year 2021 Strategic Focus Operating and Financial Appendix Performance Review and Recent Highlights Developments 3

  4. Slide 4: 2020Q4 and Full Year Performance Review

    GreenTree Eastern Fuzhou High Speed Railway South Station Hotel 01 2020Q4 and Full Year Performance Review

  5. Slide 5: 2020Q4 Highlights

    2020Q4 Highlights Compared with 2020Q3 As % of 2019Q4 (1) RevPAR: +4.1% to RMB 124.4 96.8% Total Revenues +8.6% to RMB 289.8MM 100.1% Income from Operations +17.4% to RMB 118.5MM with margin 40.9% 119.9% (2) Adjusted EBITDA (non-GAAP) +17.8% to RMB 130.6MM with margin 45.1% 117.2% (3) Core Net Incom

  6. Slide 6: Overview of 2020

    Overview of 2020 Total Revenues Income from Operations RMB (M) % of Revenue RMB (M) 150 100% 289.8 118.5 300 266.9 80% 100.9 216.0 100 200 60% 157.4 62.7 40.9% 40% 50 37.8% 100 23.6% 29.0% 20% 37.2 0 0 0% 20Q1 20Q2 20Q3 20Q4 20Q1 20Q2 20Q3 20Q4 Adjusted EBITDA (1) Core Net Income (2) RMB (M) % of Re

  7. Slide 7: ADR, Occupancy and RevPAR of Hotels in China and GreenTree

    Hotels in China (1) GreenTree ADR Occupancy RevPAR RMB RMB 200 100% 150 162 79.1% 120 124 150 151 76.7% 142 63.4% 90 100 47.3% 71 100 50% 50 0 0% 0 20Q1 20Q2 20Q3 20Q4 20Q1 20Q2 20Q3 20Q4 20Q1 20Q2 20Q3 20Q4 ADR as % of 2019 Occupancy as % of 2019 RevPAR as % of 2019 96.4% 96.8% 92.2% 100.4% 87.1% 9

  8. Slide 8: Weekly average occupancy

    (1) 100% 88.4% 77.7% 20% 20/1/1 20/2/1 20/3/1 20/4/1 20/5/1 20/6/1 20/7/1 20/8/1 20/9/1 20/10/1 20/11/1 20/12/1 21/1/1 21/2/1 21/3/1 21/4/12 (1) 106.0% 100% 92.7% 30% 20/1/1 20/2/1 20/3/1 20/4/1 20/5/1 20/6/1 20/7/1 20/8/1 20/9/1 20/10/1 20/11/1 20/12/1 21/1/1 21/2/1 21/3/1 21/4/12 Note: 8 1. Based

  9. Slide 9: 2021 Strategic Focus and Recent Developments

    Argyle Hotel in Enshi Railway Station Commercial Zone 2021 Strategic Focus and Recent 02 Developments

  10. Slide 10: 2021 Strategic Focus and Recent Developments

    2021 Strategic Focus and Recent Developments Rapid Continuous Expansion Support to Franchisees L&O Hotels in Strategic Locations Renovation to Existing Hotels Greater Penetration in Tier 3 and Lower Cities Continue to Improve Direct Sales and Membership Support Expansion into Mid-to-Up-Scale Segment

  11. Slide 11: L&O Hotels in Strategic Locations

    L&O Hotels in Strategic Locations Strategic geographic footprint of new L&O in 2021Q1 New L&O Hotels Opened in 2021Q1  In Major Cities Including Chengdu and Wuhan  In Strategic Locations Including transportation hubs, CBD areas and government centers  Model Hotels ~95% are mid-to-up-scale segment

  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 Tier 1 Cities Tier 2 Cities Other Cities 4,500 4,340 3,957 9.3% 607 9.9% 600 554 7.1% 538 23.4% 8.5% 6.1% 23.6% 21.3% 3,000 2,757 425 21.8% 22.

  13. Slide 13: Expansion into Mid-to-Up-Scale Segment and Renovation to Existing Hotels

    Expansion into Mid-to-Up-Scale Segment and Renovation to Existing Hotels New Openings Breakdown by Segment Luxury Mid-to-up-scale Midscale Economy  Increasing number of new hotels in the Mid- 607 to-Up-Scale segment 600 554 0.7% 13.8% 538 11.0% 0.9% 20.3% 425  760+ hotels opened longer than 7 year

  14. Slide 14: Continue to Improve Direct Sales and Membership Support

    Continue to Improve Direct Sales and Membership Support Individual Members M 92.2% of room nights sold directly in 2020 CAGR +39.0% 60 56 50 44 Membership Benefits from Our Cross-Industrial Alliances 40 29 30 Neighborhood facilities Travel 20 • Laundry services • Car rental • Entertainment • Taxis 1

  15. Slide 15: Operating and Financial Highlights

    Qingdao Hongdao High-tech Zone Fangte Exhibition 03 Operating and Financial Highlights 15

  16. Slide 16: Overview of 2020Q4 and Full Year

    Overview of 2020Q4 and Full Year As of December 31, 2020 Number of Hotels ADR Financial Overview In 345 cities RMB RMB (M) 4,340 3,957 930.0 168 168 162 152 -14.8% 19Q4 20Q4 19Q4 20Q4 2019 2020 289.8 319.3 289.5 (1) +19.9% +22.3% Occupancy RevPAR +0.1% 118.5 109.3 -36.7% -33.9% RMB Total Revenue 20Q

  17. Slide 17: Hotel Growth

    Hotel Growth Increasing Number of Hotels in Operation F&M Hotels L&O Hotels 4,340 3,957 40 4,000 34 3,500 3,000 2,757 2,500 2,289 29 2,000 1,964 26 32 1,500 1,932 2,263 2,728 3,923 4,300 1,000 2016 2017 2018 2019 2020 % by Market Segment % by City Tier (1) Luxury Mid-to-Up-Scale Midscale Economy Tie

  18. Slide 18: New Hotel Openings and Closures

    New Hotel Openings and Closures 20Q4 New Openings New Hotel Openings and Closures Breakdown by Market Segment Gross Opening Mid-to-Up-Scale YoY Growth 6.8% 29 Mid-Scale 190 14.3% 141 Luxury 1.5% 3 69.5% 14.7% 140 Economy 30 203 190 90 181 162 20Q4 New Openings 134 Breakdown by City Tier (1) 111 102

  19. Slide 19: Pipeline Growth

    Pipeline Growth 20Q4 Pipeline Growth by Market Segment Luxury Mid-to-Upscale Mid-Scale Economy YOY +25.0% 1,186 1,087 1,110 54 1,025 54 55 25% 1,000 949 56 25% 246 25% 218 54 215 25% 200 25% 181 652 47 483 41% 439 40% 455 41% 403 39% 128 27% 364 500 38% 272 42% 35% 34% 403 34% 350 366 36% 379 382 37

  20. Slide 20: Hotel Performance

    Hotel Performance RevPAR 152 152 164 RMB 145 142 150 131 135 137 134 135 124 123 131 124 127 119 121 115 149 139 145 139 110 129 129 135 132 129 90 120 124 117 111 108 117 119 71 92 100 70 80 55 30 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 AD

  21. Slide 21: Revenue Growth

    Revenue Growth Total Revenue Revenue from F&M Hotels RMB (M) RMB (M) 1,200 900 831.3 1,091.8 800 1,100 677.5 700 600 1,000 500 930.0 400 900 300 217.2 207.2 200 100 800 0 19Q4 20Q4 2019 2020 700 600 Revenue from L&O Hotels RMB (M) 500 400 300 253.4 250 227.1 289.4 289.8 300 200 200 150 100 68.6 76.1

  22. Slide 22: Hotel Operating Costs and Expenses——20Q4 VS 19Q4

    Hotel Operating Costs and Expenses——20Q4 VS 19Q4 Hotel Operating Costs (2) Total Hotel Operating Costs and Expenses (1) L&O hotel related Non-L&O hotel related Hotel operating costs as % of Revenue L&O hotel related Non-L&O hotel related RMB (M) 99.8 RMB (M) 100 92.6 60% Total hotel operating costs

  23. Slide 23: Hotel Operating Costs and Expenses——Full Year

    Hotel Operating Costs and Expenses——Full Year Cost and Expenses excluding L&O hotel operating costs L&O hotel operating costs Hotel Operating Costs (2) Total Hotel Operating Costs and Expenses (1) L&O hotel related Non-L&O hotel related Hotel operating costs as % of Revenue RMB (M) L&O hotel related

  24. Slide 24: Income from Operations

    Income from Operations Income from Operations and Margin Year over Year Income from Operations and Margin Quarter to Quarter RMB (M) % Margin RMB (M) % Margin 600 100% 200 100% 504.6 500 80% 80% 400 118.5 60% 60% 319.3 100.9 300 100 46.2% 40.9% 40% 40.9% 40% 37.8% 200 34.1% 34.3% 62.7 29.0% 118.5 23

  25. Slide 25: Profitability

    Profitability Adjusted EBITDA (1) and Margin Year over Year Core Net Income (2) and Margin Year over Year RMB (M) % Margin RMB (M) % Margin 500 100% 600 100% 437.9 523.4 500 400 80% 80% 400 355.5 289.5 60% 300 60% 300 47.9% 45.1% 38.5% 40% 200 37.7% 40.1% 40% 38.2% 200 30.9% 31.1% 130.6 111.4 20% 10

  26. Slide 26: Profitability

    Profitability Core Net Income per ADS (Basic and Diluted) (Non-GAAP) (1) Net Income per ADS (Basic and Diluted) Year over Year Year over Year RMB RMB 5.0 5.0 4.34 4.29 4.0 4.0 3.0 2.81 3.0 2.54 2.0 2.0 0.87 1.06 1.0 0.75 0.83 1.0 0.0 0.0 19Q4 20Q4 2019 2020 19Q4 20Q4 2019 2020 Core Net Income per AD

  27. Slide 27: 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 RMB1,904.9 Million as of December 31, 2020. RMB (M) -43.4 90.0 -27.0 -21.1 -20.5 -1.2 112.8 1,800 1,904.9 1,815.4 1,300 (1) Cash & Cash Cash from

  28. Slide 28: Guidance; Thank you! Q&A

    Guidance Total revenues for the full year of 2021 are expected to grow 48%~53% from 2020. 25%~30% from 2019. Thank you! Q&A 28

  29. Slide 29: Appendix

    Gem Hotel (Hefei China Sound Valley) 04 Appendix 29

  30. Slide 30: Our Portfolio

    Our Portfolio As of December 31, 2020 Luxury • Hotels in operation:23 • Hotel rooms in operation:4,749 • Room rates:RMB 400 - 1,000 Mid-to-Up-Scale • Hotels in operation:360 • Hotel rooms in operation:32,337 • Room rates:RMB 200 - 600 [3] Mid-Scale • Hotels in operation:2,786 [4] • Hotel rooms in op

  31. Slide 31: Hotel Breakdown

    Hotel Breakdown By Market Segment and Brand Number of Hotels in Operation Number of Hotel Rooms in Operation 2019Q4 2020Q4 2019Q4 2020Q4 Luxury 20 23 4,556 4,749 Argyle 20 23 4,556 4,749 Mid-to-up-scale 264 360 23,816 32,337 GreenTree Eastern 105 151 11,263 15,653 Deep Sleep Hotel 2 3 161 221 Gem 27

  32. Slide 32: Operating Data

    Operating Data 2019Q4 2020Q4 2019Q4 2020Q4 Occupancy rate Total hotels in operation 3,957 4,340 Leased-and-owned hotels 67.5% 71.0% Leased-and-owned hotels 34 40 Franchised hotels 76.6% 76.8% Blended 76.4% 76.7% Franchised hotels 3,923 4,300 Average daily rate (in RMB) Leased-and-owned hotels 198 19

GreenTree Hospitality Group — Q4 2020 Earnings Presentation on 6ix