GreenTree Hospitality Group Ltd. · NYSE:GHG
GreenTree Hospitality — Q1 2021 Earnings Presentation
30 slides from GreenTree Hospitality's earnings presentation, Jul 28, 2021
Slide 1: 2021Q1 Results
GreenTree Eastern Tongling City Beijing West Road Big Dipper City Hotel 2021Q1 Results July 28, 2021
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 2021Q1 Performance 2021Q1 Recent Operating and Financial Appendix Review Developments Highlights 3
Slide 4: 2021Q1 Performance Review
01 2021Q1 Performance Review
Slide 5: 2021Q1 Highlights
2021Q1 Highlights Compared with 2020Q1 As % of 2019Q1 RevPAR: +35.1% to RMB 95.5 75.5% Total Revenues +53.3% to RMB 241.2MM 102.5% Income from Operations +64.9% to RMB 61.4MM with margin 25.4% 54.9% Net Income +++ to RMB 66.0MM with margin 27.4% 49.3% (1) Adjusted EBITDA (non-GAAP) +74.3% to RMB 64.
Slide 6: Overview of 2021Q1
Overview of 2021Q1 Total Revenues Income from Operations RMB (M) % of Revenue RMB (M) As 102.5% of 2019 111.7 100% As 153.3% of 2020 As 54.9% of 2019 300 100 241.2 As 164.9% of 2020 80% 235.3 200 61.4 60% 157.4 47.5% 50 37.2 40% 100 23.6% 25.4% 20% 0 0 0% 19Q1 20Q1 21Q1 19Q1 20Q1 21Q1 Net Income Adj
Slide 7: ADR, Occupancy, RevPAR
ADR Occupancy RevPAR RMB As 93.0% of RMB As 75.5% of As 81.2% of 2019 100% 2019 150 2019 200 As 100.8% of As 134.0% 127 124 2020 78.1% 79.1% 76.7% of 2020 120 As 135.1% of 162 162 2020 150 142 151 151 63.4% 63.4% 90 96 100 47.3% 71 50% 100 50 0 0% 0 19Q1 20Q1 20Q2 20Q3 20Q4 21Q1 19Q1 20Q1 20Q2 20Q3
Slide 8: Weekly average RevPAR
(1) 106.0% 100% 0% Note: 8 1. Based upon weekly average RevPAR
Slide 9: 2021Q1 Recent Developments
Gem Hotel (Hefei China Sound Valley) 02 2021Q1 Recent Developments
Slide 10: 2021Q1 Recent Developments
2021Q1 Recent Developments Newly L&O Hotels Open Follow-up Greater Penetration in Tier 3 and Lower Cities Expansion into Mid-to-Up-Scale Segment 10
Slide 11: Newly L&O Hotels Open Follow-up
Newly L&O Hotels Open Follow-up Strategic geographic footprint of new L&O in 2021Q1 3 new L&O hotels opened in 2021Q1： • All mid-to-up-scale hotels in major cities GreenTree Eastern Nanning Minzhu GreenTree Eastern Nanning Binhu Road Chaoyang Plaza Hotel Road Qingxiu Wanda Hotel Vx Hotel (Wuhan
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 4,464 4,500 3,957 9.0% 607 9.3% 9.9% 600 554 7.1% 538 23.4% 23.7% 8.5% 6.1% 23.6% 21.3% 3,000 2,
Slide 13: Expansion into Mid-to-Up-Scale Segment
Expansion into Mid-to-Up-Scale Segment New Openings Breakdown by Segment Increasing number of hotels in the Mid-to-Up- Luxury Mid-to-Upscale Midscale Economy Scale segment 607 0.7% 600 554 13.8% 538 0.9% 11.0% 20.3% 425 5.2% 47.3% 51.8% 300 57.2% 201 76.7% 1.5% 15.9% 37.2% 38.2% 67.7% 21.6% 18.1%
Slide 14: Improvement in Direct Sales and Membership Support
Improvement in Direct Sales and Membership Support 92.2% of room nights sold directly in 2021Q1 Individual Members Corporate Members M CAGR +33.7% ‘000 CAGR +13.8% 60 59 1,800 1,710 50 1,520 46 1,500 1,320 40 33 1,200 30 900 20 10 600 19Q1 20Q1 21Q1 19Q1 20Q1 21Q1 14
Slide 15: Operating and Financial Highlights
VX Hotel (Beijing Wufutang metro station Zhongke e-commerce Valley) 03 Operating and Financial Highlights 15
Slide 16: Overview of 2021Q1
Overview of 2021Q1 Number of Hotels ADR In 353 cities 4,464 RMB 3,998 As 93.0% of 2019Q1 162 As 100.8% of 2020Q1 2,829 150 151 19Q1 20Q1 21Q1 19Q1 20Q1 21Q1 Occupancy RevPAR RMB As 81.2% of 2019Q1 As 75.5% of 2019Q1 78.1% 127 As 134.0% of 2020Q1 As 135.1% of 2020Q1 63.4% 96 47.3% 71 19Q1 20Q1 21Q1 1
Slide 17: Hotel Growth
Hotel Growth Increasing Number of Hotels in Operation F&M Hotels L&O Hotels 4,464 4,500 4,340 3,957 3,998 43 4,000 40 34 35 3,500 3,000 2,757 2,500 2,289 29 2,000 26 1,500 2,263 2,728 3,923 4,300 3,963 4,421 1,000 2017 2018 2019 2020 2020Q1 2021Q1 % by Market Segment % by City Tier (1) Luxury Mid-to
Slide 18: New Hotel Openings and Closures
New Hotel Openings and Closures 21Q1 New Openings New Hotel Openings and Closures Breakdown by Market Segment Gross Opening Mid-to-Up-Scale YoY Growth 224.2% 32 Mid-Scale 15.9% 220 136 Luxury 1.5% 3 170 14.9% 67.7% Economy 30 120 201 203 162 21Q1 New Openings 70 Breakdown by City Tier (1) 111 62 Tie
Slide 19: Pipeline Growth
Pipeline Growth 21Q1 Pipeline Growth by Market Segment Luxury Mid-to-Upscale Mid-Scale Economy YOY +23.4% 1,265 1,186 53 1,110 1,087 54 1,025 55 291 27% 54 25% 1,000 56 246 25% 215 25% 218 200 25% 483 41% 516 41% 439 40% 455 41% 403 39% 500 34% 34% 32% 366 36% 379 35% 382 403 405 0 20Q1 20Q2 20Q3 20
Slide 20: Hotel Performance
Hotel Performance RevPAR 152 152 164 RMB 145 142 150 131 135 137 135 135 124 123 131 124 127 119 121 115 149 139 145 139 110 129 129 135 132 96 133 90 124 117 120 111 108 117 119 71 92 100 70 80 95 55 30 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 2
Slide 21: Revenue Growth
Revenue Growth Total Revenue Revenue from F&M Hotels RMB (M) RMB (M) As 97.0% of 2019Q1 As 151.2% of 2020Q1 300 200 183.5 177.9 As 102.5% of 2019Q1 As 153.3% of 2020Q1 117.7 241.2 235.3 100 200 0 19Q1 20Q1 21Q1 157.4 Revenue from L&O Hotels RMB (M) As 108.3% of 2019Q1 100 As 166.0% of 2020Q1 56.1 51
Slide 22: Hotel Operating Costs and Expenses 21Q1 vs 20Q1
Hotel Operating Costs and Expenses——21Q1 VS 20Q1 Hotel Operating Costs (2) Total Hotel Operating Costs and Expenses (1) RMB (M) New opened L&O hotels’ rental and Urban, Argyle related Hotel operating costs as % of Revenue RMB (M) New opened L&O hotels’ rental and Urban, Argyle related 122.2 New open
Slide 23: Profitability
Profitability Income from Operations and Margin Net Income and Margin RMB (M) % Margin RMB (M) % Margin 100% 145 134.0 120% 111.7 100% 100 As 54.9% of 19Q1 80% 105 As 49.3% of 19Q1 80% As 164.9% of 20Q1 60% 66.0 60% 61.4 56.9% 47.5% 65 40% 40% 50 37.2 27.4% 25.4% 20% 23.6% 25 20% 0% -9.0% 0 0% (15)
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 1.33 1.30 1.00 0.91 0.80 0.68 0.50 0.43 0.27 0.30 0.00 19Q1 20Q1 21Q1 19Q1 20Q1 21Q1 -0.20 -0.11 Notes: 1. EPS, Earnings per ADS (basic and diluted) was calculated as net (loss
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 RMB1,734.0 Million as of March 31, 2021. RMB (M) 29.0 2.5 2,000 136.1 -180.3 -103.0 -1.7 -53.5 1,000 1,904.9 1,734.0 0 Cash & Cash Drawing Down of
Slide 26: 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 26
Slide 27: Appendix
GreenTree Inn Changsha Yuelu District Lianfeng Road University of Chinese Medicine Business Hotel 04 Appendix 27
Slide 28: Our Portfolio
Our Portfolio As of March 31, 2021 Luxury • Hotels in operation:26 • Hotel rooms in operation:5,337 • Room rates:RMB 400 - 1,000 Mid-to-Up-Scale • Hotels in operation:387 • Hotel rooms in operation: 35,203 • Room rates:RMB 200 - 600 [3] Mid-Scale • Hotels in operation:2,864 [4] • Hotel rooms in oper
Slide 29: Hotel Breakdown
Hotel Breakdown Number of Hotels in Operation Number of Hotel Rooms in Operation By Market Segment and Brand 2020Q1 2021Q1 2020Q1 2021Q1 Luxury 20 26 4,607 5,337 Argyle 20 26 4,607 5,337 Mid-to-up-scale 272 387 24,595 35,203 GreenTree Eastern 109 162 11,649 17,136 Deep Sleep Hotel 2 4 161 286 Gem 28
Slide 30: Operating Data
Operating Data 2020Q1 2021Q1 2020Q1 2021Q1 Occupancy rate Total hotels in operation 3,998 4,464 Leased-and-owned hotels 32.7% 51.7% Leased-and-owned hotels 35 43 Franchised hotels 47.7% 63.7% Blended 47.3% 63.4% Franchised hotels 3,963 4,421 Average daily rate (in RMB) Leased-and-owned hotels Total
GreenTree Hospitality Group — Q1 2021 Earnings Presentation on 6ix