GreenTree Hospitality Group Ltd. · NYSE:GHG

GreenTree Hospitality — H1 2022 Earnings Presentation

29 slides from GreenTree Hospitality's earnings presentation, Dec 27, 2022

  1. Slide 1: First Half 2022 Results

    First Half 2022 Results December 27, 2022

  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 First Half 2022 First Half 2022 First Half 2022 Appendix Performance Review Strategic Execution Operating and Financial Highlights 3

  4. Slide 4: First Half 2022 Performance Review

    GreenTree Eastern Hotel (Hengyang High tech Zone, GreenTree Eastern Hotel Hengyang) ( International Trade City, Yiwu) 01 First Half 2022 Performance Review

  5. Slide 5: First Half 2022 (H1) Highlights

    First Half 2022 (H1) Highlights As % of 2021 H1 RevPAR 79.2% to RMB 92 Total Revenues 77.7% to RMB 457.4 MM Income from Operations -303.7% to RMB -457.7 MM with margin -100.1% Adjusted Income from 21.9% to RMB 32.9 MM with margin 7.2% Operations(1) Net Income -246.7% to RMB -360.9 MM with margin -78

  6. Slide 6: Overview of 2022 H1

    Overview of 2022 H1 Total Revenues Income from Operations % of Revenue RMB (M) 77.7% of 2021H1 RMB (M) 21.9% of 2021H1 200 150.7 588.3 99.9 600 100 32.9 457.4 26.7% 25.6% 0 400 373.4 20H1 21H1 22H1 (100) Excluding other (200) general expenses 200 (300) (400) -100.1% 0 (500) (457.7) 20H1 21H1 22H1 Ne

  7. Slide 7: ADR, Occupancy, RevPAR

    ADR Occupancy RevPAR RMB RMB 200 100% 150 134 171 163 170 168 78.6% 118 120 153 117 142 147 72.4% 69.2% 71.1% 63.4% 62.2% 100 90 92 91 60.0% 100 50% 50 0 0% 0 20Q2 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 20Q2 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 20Q2 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 ADR as % of 2019 Occupancy as % of 2

  8. Slide 8: Weekly average RevPAR recovery

    100% 0% 1. 20/1/1 Note: 20/1/21 20/2/10 20/3/1 20/3/21 20/4/10 20/4/30 20/5/20 20/6/9 Based upon weekly average RevPAR 20/6/29 20/7/19 2020 20/8/8 20/8/28 20/9/17 20/10/7 20/10/27 20/11/16 20/12/6 20/12/26 21/1/15 21/2/4 21/2/24 21/3/16 21/4/5 21/4/25 21/5/15 21/6/4 21/6/24 21/7/14 2021 21/8/3 106.0

  9. Slide 9: First Half 2022 Strategic Execution

    02 First Half 2022 Strategic Execution

  10. Slide 10: 2022 H1 Strategic Execution

    2022 H1 Strategic Execution Further Expansion into Mid-to- Upscale Segment Greater Penetration in Tier 3 and Lower Cities in Southwest and South China Newly L&O Hotels Open Follow-up 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 800 722 1.4% 607 0.7% 600 538 26.2% 554 0.9% 13.8% 11.0% 20.3% 400 51.8% 47.3% 57.4% 57.2% Pipeline Breakdown by Segment 201 200 21.4% Luxury Mid-to-Upscale Midscale Economy 37.2% 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 Tier 1 Cities Tier 2 Cities Other Cities 4,340 4,659 4,669 722 4,500 6.4% 3,957 8.8% 8.7% 6.4% 9.3% 607 9.9% 23.5% 23.5% 600 554 7.1% 538 27.7%

  13. Slide 13: Strategic Development

    Strategic Development  Further Expansion into Mid-to-Upscale Brands Hotels opened in 2022 Wumian Hotel (Hangzhou Haide Geya Hotel (Shanxi Grand Hospital, Xingang Center Store) Jinyang Street, Taiyuan) Open at: 2022.4 Open at: 2022.9 City：Hangzhou City: Taiyuan No. of rooms: 50 No. of rooms: 80 Rate

  14. Slide 14: Operating and Financial Highlights

    GreenTree Eastern Hotel (Nanning Wuxiang Headquarter Base Metro Station ) 03 Operating and Financial Highlights 14

  15. Slide 15: Overview of 2022 H1

    Overview of 2022 H1 Number of Hotels ADR RMB 86.0% of 2021Q2 In 367 cities 4,064 4,542 4,669 171 142 147 20Q2 21Q2 22Q2 20Q2 21Q2 22Q2 Occupancy RevPAR 68.1% of 2021Q2 79.1% of 2021Q2 RMB 134 78.6% 63.4% 62.2% 90 91 20Q2 21Q2 22Q2 20Q2 21Q2 22Q2 As of June 30, 2022 15

  16. Slide 16: Hotel Growth

    Hotel Growth Increasing Number of Hotels in Operation F&M Hotels L&O Hotels 4,659 4,542 4,669 4,500 4,340 66 67 63 3,957 40 4,000 34 3,500 3,000 2,757 2,500 29 2,000 1,500 2,728 3,923 4,300 4,593 4,479 4,602 1,000 2018 2019 2020 2021 2021Q2 2022Q2 Growth by Market Segment Growth by City Tier (1) Lux

  17. Slide 17: New Hotel Openings

    New Hotel Openings 2022 H1 New Openings New Hotel Openings Breakdown by Market Segment Mid-to-Up-Scale 43 21.4% 203 201 201 200 190 201 53.7% 181 182 Economy 162 24.9% 50 Mid-Scale 150 108 134 138 111 108 102 2022 H1 New Openings 100 93 Breakdown by City Tier (1) Tier 2 Cities 62 52 25.9% 50 Other C

  18. Slide 18: Hotel Performance

    Hotel Performance RevPAR 2022 164 160 H1 RMB 145 152 152 146 149 131 142 137 136 150 124 131 135 135 135 123 119 124 127 121 124 115 149 139 145 139 96 105 110 129 129 135 132 133 90 133 117 120 124 117 117 119 111 108 117 119 71 92 100 70 95 91 90 80 55 30 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18

  19. Slide 19: Improvement in Direct Sales and Membership Support

    Improvement in Direct Sales and Membership Support Corporate Members Individual Members ‘000 CAGR +10.5% ‘000‘000 CAGR +22.9% 74 2,000 1,905 1,760 62 60 1,560 1,500 49 40 1,000 20 500 0 0 20Q2 21Q2 22Q2 20Q2 21Q2 22Q2 19

  20. Slide 20: Revenue Growth

    Revenue Growth Total Revenue Revenue from F&M Hotels RMB (M) RMB (M) 77.7% of 2021H1 69.6% of 2021H1 700 500 395.6 400 600 588.3 276.2 300 275.5 200 500 100 457.4 0 20H1 21H1 22H1 400 373.4 Revenue from L&O Hotels RMB (M) 99.0% of 2021H1 300 200 173.0 171.3 200 150 100 84.1 100 50 0 0 20H1 21H1 22H1

  21. Slide 21: 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 % of Revenue Newly opened L&O hotels related RMB (M) 400 Other General Expenses % of Revenue 1,000 300 48.7 103.5 200 900 100 237.9 184.7 204.3 800 0 20H1

  22. Slide 22: Profitability

    Profitability Income from Operations and Margin Net Income and Margin RMB (M) % Margin RMB (M) % Margin 146.3 200 150.7 99.9 100 79.6 68.3 100 32.9 24.9% 26.7% 25.6% 21.3% 0 Excluding 0 20H1 21H1 22H1 other general 20H1 21H1 22H1 (100) expenses (100) (200) (200) -78.9% (300) -100.1% (400) (300) (500

  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 2.00 1.47 0.90 1.19 1.00 1.03 0.00 1.00 0.91 20H1 21H1 22H1 -1.00 -2.00 -3.00 (3.18) -4.00 0.00 20H1 21H1 22H1 Notes: 1. EPS, Earnings per ADS (basic and diluted) was calculate

  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 1,079.5Million as of June 30, 2022 RMB (M) 1,500 28.5 0.8 130.7 -181.6 -105.9 -28.8 1,000 1,235.9 500 1,079.5 0 (1) Cash & Cash Cash from Oper

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

    Guidance • Total revenues for the full year of 2022 are expected to be: 81%-84% of the 2021 levels Thank you! Q&A 25

  26. Slide 26: Appendix

    Vx Hotel, Wuhan East Railway Station, Guanggu 1st Road, Wuhan City 04 Appendix 26

  27. Slide 27: Our Portfolio

    Our Portfolio As of June 30, 2022 Mid-to-Up-Scale • Hotels in operation: 528 • Hotel rooms in operation: 47,347 • Room rates: RMB 200 - 600 Mid-Scale [3] • Hotels in operation: 2,999 • Hotel rooms in operation: 233,950 • Room rates: RMB 150 - 400 [4] Economy • Hotels in operation: 1,142 • Hotel room

  28. Slide 28: Hotel Breakdown

    Hotel Breakdown Number of Hotels in Operation Number of Hotel Rooms in Operation By Market Segment and Brand 2021Q2 2022Q2 2021Q2 2022Q2 Luxury 28 - 5,821 - Argyle 28 - 5,821 - Mid-to-up-scale 423 528 38,704 47,347 GreenTree Eastern 170 201 18,155 22,402 Deep Sleep Hotel 5 7 356 467 Gem 39 52 3,605

  29. Slide 29: Operating Data

    Operating Data 2021Q2 2022Q2 2022Q1 2022Q2 Occupancy rate Total hotels in operation 4,542 4,669 Leased-and-owned hotels 52.6% 57.1% Leased-and-owned hotels 63 67 Franchised hotels 60.2% 62.3% Blended 60.0% 62.2% Franchised hotels 4,479 4,602 Average daily rate (in RMB) Leased-and-owned hotels 199 21

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