GreenTree Hospitality Group Ltd. · NYSE:GHG

GreenTree Hospitality — Q4 2023 Earnings Presentation

31 slides from GreenTree Hospitality's earnings presentation, Mar 25, 2024

  1. Slide 1: Fourth Quarter and Fiscal Year 2023 Results

    Fourth Quarter and Fiscal Year 2023 Results March 25, 2024 1

  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 2023Q4 and Fiscal Year 2023Q4 and Fiscal Year 2023Q4 and Fiscal Year Appendix Performance Review Strategic Execution Operating and Financial Highlights 3

  4. Slide 4: 2023Q4 and Fiscal Year Performance Review

    Vx Hotel (High-speed Railway Station, Dongfang City, Hainan Province) 01 2023Q4 and Fiscal Year Performance Review 4

  5. Slide 5: 2023Q4 Highlights

    2023Q4 Highlights RMB Compared with 2022Q4(1) RevPAR 128 Up 23.3% ADS( Average Daily 5,433 Up 14% Sales Per Store) Total Revenues 372.2MM Up 3.2% Hotel Revenues 289.6MM Up 21.7% Income from Operations 23.1MM Adjusted Income from 99.2MM Up 125.0% with margin 26.7% Operations(2) Net Income 7.4MM Adjus

  6. Slide 6: Overview of 2023Q4

    Overview of 2023Q4 Total Revenues Income from Operations Hotel Hotel RMB (M) Restaurant RMB (M) Restaurant 400 100 10.9 87.7 124.0 289.6 50 83.6 238.0 200 47.4 35.2 13.3 0 22Q4 23Q4 22Q4 23Q4 (17.3) (29.0) (4.2) 0 -50 Excluding Other general expenses 22Q4 23Q4 Net Income Adjusted EBITDA Hotel Hotel

  7. Slide 7: Overview of Hotels

    Overview of Hotels ADR Occupancy RevPAR RMB RMB 156 192 150 141 200 181 177 100% 128 168 165 167 120 120 153 147 77.8% 81.2% 104 71.1% 71.7% 72.4% 92 91 60.0% 62.2% 63.0% 100 100 50% 50 0 0% 0 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 22Q1 22Q2 22Q3 22Q4 23Q1 23

  8. Slide 8: Hotel Performance

    Hotel Performance RevPAR 2024 RMB 212 210 190 164 160 161 145 152 152 146 149 144 170 142 124 131 123 119 131 135 124 137 127 135 121 135 136 124 130 115 105 130 96 155 145 149 90 139 135 132 139 139 117108 129 129 133 71 120 124 133 127 90 117 117 119 119 92 111 100 117 119 103 80 95 91 90 50 16Q1

  9. Slide 9: Improvement in Direct Sales and Membership Support

    Improvement in Direct Sales and Membership Support Corporate Members Individual Members ‘000 CAGR +5.3% ‘000‘000 CAGR +14.4% 2,050 100 91 1,935 2,000 1,850 78 80 70 1,500 60 1,000 40 500 20 0 0 21Q4 22Q4 23Q4 21Q4 22Q4 23Q4 9

  10. Slide 10: Overview of Restaurants

    Overview of Restaurants AC (1) ADT (2) ADS (3) RMB RMB 60 160 55.2 53.1 55.0 54.1 7,000 6,027 6,096 6,0806,3716,548 55 51.9 52.0 130 5,433 140 6,000 46.2 46.2 120 119 50 117 110 5,000 4,564 120 4,051 45 101 99 4,000 40 100 78 3,000 35 80 2,000 30 60 1,000 25 20 40 0 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q

  11. Slide 11: 2023Q4 and Fiscal Year Strategic Execution

    Vx Hotel (High-speed Railway Station, Dongfang City, Hainan Province) 02 2023Q4 and Fiscal Year Strategic Execution 11

  12. Slide 12: 2023Q4 and Fiscal Year Hotel Strategic Execution

    2023Q4 and Fiscal Year Hotel Strategic Execution Further Expansion into Mid-to- Upscale Segment Greater Penetration in Tier 3 and Lower Cities in South China 12

  13. Slide 13: Further Expansion into Mid-to-UpScale Segment

    Further Expansion into Mid-to-UpScale Segment Organic New Openings (1) Breakdown by Segment 800 Luxury Mid-to-Upscale Midscale 618 600 548 24.6% 26.2% 13.9% 466 420 18.5% 400 18.1% 49.8% 295 64.4% 63.3% 65.0% 14.6% 53.3% Organic Pipeline (3) Breakdown by Segment 200 64.4% 36.3% Luxury Mid-to-Upscale

  14. Slide 14: 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 27.1% Cities Other Cities (1) 27.0% 618 600 548 7.1% 7.1% 10.1% 466 27.0% 21.2% 6.4% 420 21.7% 5.7% 21.3% 18.1% 65.9% 295 300 7.5% Organic Hotel Breakdown by City Tier 71.7% 20.3% 69.8% 72.3

  15. Slide 15: 2023Q4 and Fiscal Year Restaurant Strategic Execution

    2023Q4 and Fiscal Year Restaurant Strategic Execution Restaurant Breakdown by L&O and F&M 300 Close unprofitable F&M L&O L&O stores, and 250 130 194 Increase in 200 42 YoY Proportion of 150 152 +17.0% Franchised-and- 100 130 managed 50 Restaurants 0 2022 2023 Proportion of Restaurants Breakdown by L

  16. Slide 16: Operating and Financial Highlights

    Vx Hotel (High-speed Railway Station, Dongfang City, Hainan Province) 03 Operating and Financial Highlights 16

  17. Slide 17: Hotel Revenue Growth

    Hotel Revenue Growth Total Revenue Revenue from F&M Hotels RMB (M) RMB (M) 1,200 1,191.9 800 YoY % 696.3 9. 6 1,100 600 582.4 +1 % + 2 oY 7. 2 Y 1,000 936.8 400 900 Y oY 200 152.9 +6.5% 162.9 800 0 700 22Q4 23Q4 2022 2023 600 Revenue from L&O Hotels RMB (M) 500 500 490.9 400 5. Y 0% +4 Yo YoY % 289.

  18. Slide 18: Hotel Operating Costs and Expenses

    Hotel Operating Costs and Expenses Hotel Operating Costs (2) Total Hotel Operating Costs and Expenses (1) RMB (M) RMB (M) 1,200 1,066.5 Y o Y- 1 1 .2 % 947.4 Other General Expenses 1,968.8 800 2000 400 YoY 143.6 154.6 YoY+7.6% -3 565.9 1.8% 0 22Q4 23Q4 2022 2023 1500 Selling and Marketing Expenses 1

  19. Slide 19: Hotel Profitability

    Hotel Profitability Income From Operations Net Income RMB (M) % Margin RMB (M) % Margin Other General Expenses Other General Expenses Y Y +2 2 o Y 150.8 + 12 oY 600 122.7 5.0 600 5.4 % % 500 398.8 388.1 400 63.6 300 300 565.9 63.6 565.9 200 Y oY 29.4 YoY % 83.6 335.3 60.4 276.4 100 35.2 +137.4 36.3

  20. Slide 20: Restaurant Revenue Growth

    Restaurant Revenue Growth Total Revenue Revenue from F&M Restaurants RMB (M) RMB (M) 20 200 18 17.2 16 14.1 14 12 10.6 9.7 158.3 10 9.0 7.6 8.3 149.5 8 6.9 150 6 4 127.2 2 124.0 121.8 0 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 104.9 102.0 100 Revenue from L&O Restaurants 87.7 RMB (M) 150 114.6 50 102

  21. Slide 21: Restaurant Operating Costs and Expenses

    Restaurant Operating Costs and Expenses Material cost Total Restaurant Operating Costs and Expenses RMB (M) RMB (M) Other General Expenses 250 220.3 Yo Y 200 -18 179.3 .6 % 600 150 569.2 13.0 100 550 238.7 Yo 54.0 Yo Y 36.7 Y 50 -17 - 3 2 .0 500 .1% % Yo 0 472.0 Y- 22Q4 23Q4 2022 2023 22 450 39.9 .3

  22. Slide 22: Restaurant Profitability

    Restaurant Profitability Income From Operations Net Income RMB (M) % Margin RMB (M) % Margin Other General Expenses Other General Expenses 50 50 10.9 12.2 21.7 16.5 5% 4. +60 Y (4.2) 39.9 (17.9) 39.9 3.1 Yo 39.9 (20.8) 39.9 13.0 13.0 13.0 13.0 0 0 22Q4 23Q4 2022 2023 22Q4 23Q4 2022 2023 (10.0) (18.2

  23. Slide 23: Profitability

    Profitability Net Income per ADS (Basic and Diluted) (1) Core Net Income per ADS (Basic and Diluted) (Non-GAAP) (2) RMB RMB 0.20 1.00 0.87 . 4% 0.11 72 + 0.10 Y Yo 0.51 0.50 0.00 22Q4 23Q4 (0.05) -0.10 0.00 22Q4 23Q4 Notes: 1. EPS, Earnings per ADS (basic and diluted) was calculated as net (loss) in

  24. Slide 24: 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 1,337.1Million as of December 31, 2023 RMB (M) 1,500 49.6 18.3 -0.9 -1.3 -12.8 -19.7 -27.5 1,000 1,331.4 1,337.1 500 0 (1) Cash & Cash Repayme

  25. Slide 25: Guidance; Thank you! Q&A

    Guidance • Taking into account the recovery in long-term trends and short-term industry fluctuations, we expect total revenues of our organic hotel business for the full year of 2024 to grow 7%~12% over the 2023 levels. Furthermore, considering the closure of the restaurant LO stores and the stores

  26. Slide 26: Appendix

    Vx Hotel (High-speed Railway Station, Dongfang City, Hainan Province) 04 Appendix 26

  27. Slide 27: Our Portfolio

    Our Portfolio As of December 31, 2023 Mid-to-Up-Scale • Hotels in operation: 474 • Hotel rooms in operation: 45,488 • Room rates: RMB 200 - 600 Mid-Scale [3] • Hotels in operation: 2,975 • Hotel rooms in operation: 230,100 • Room rates: RMB 150 - 400 [4] Economy • Hotels in operation: 789 • Hotel ro

  28. Slide 28: Hotel Breakdown

    Hotel Breakdown Number of Hotels in Operation Number of Hotel Rooms in Operation By Market Segment and Brand 2022Q4 2023Q4 2022Q4 2023Q4 Mid-to-up-scale 426 474 41,255 45,488 GreenTree Eastern 205 222 22,492 24,377 Deep Sleep Hotel 7 7 534 534 Gem 53 71 4,753 6,292 Gya 68 71 5,811 5,899 Vx 85 92 7,4

  29. Slide 29: Hotel Operating Data

    Hotel Operating Data 2022Q4 2023Q4 2022Q4 2023Q4 Occupancy rate Total hotels in operation 4,059 4,238 Leased-and-owned hotels 62.4% 66.9% Leased-and-owned hotels 61 65 Franchised hotels 63.0% 72.5% Blended 63.0% 72.4% Franchised hotels 3,998 4,173 Average daily rate (in RMB) Leased-and-owned hotels

  30. Slide 30: Restaurants Operating Data

    Restaurants Operating Data 2022Q4 2023Q4 2022Q4 2023Q4 Total restaurants in ADT 261 194 operation Dine In 43 45 Leased-and-owned 121 42 Delivery 56 56 restaurants Blended 99 101 Franchised restaurants 140 152 AC (in RMB) Dine In 54 72 Number of cities 64 53 Delivery 40 40 Blended 46 54 ADS (in RMB)

  31. Slide 31: Restaurants Operating Data

    Restaurants Operating Data 2022Q4 2023Q4 ADT Leased-and-owned restaurants 134 141 Franchised restaurants 84 84 Blended 99 101 AC (in RMB) Leased-and-owned restaurants 51 89 Franchised restaurants 39 40 Blended 46 54 ADS (in RMB) Leased-and-owned restaurants 6,821 12,500 Franchised restaurants 3,286

GreenTree Hospitality Group — Q4 2023 Earnings Presentation on 6ix