SHANGHAI, July 12,
2023 /PRNewswire/ -- GreenTree Hospitality Group Ltd.
(NYSE: GHG) ("GreenTree", the "Company", "we", "us" and "our"), a
leading hospitality management group in China, today announced selected preliminary
results for the first quarter of 2023.
Financial Results
- Total revenues for the first quarter of 2023 are estimated to
be approximately RMB371.1 million
(US$54.0 million)[1] to
RMB389.1 million (US$56.7 million)[1].
Total revenues from organic hotels increased by 16.8% year over
year to approximately RMB252.6
million (US$36.8
million)[1] for the first quarter
of 2023.
- Income from operations for the first quarter of 2023 are
estimated to be approximately RMB55.4
million (US$8.1
million) [1] to RMB60.4 million (US$8.8
million) [1].
Income from operations of organic hotels increased by 397.4% year
over year to approximately RMB57.2 million (US$8.3 million) [1]
for the first quarter of 2023.
Operational Highlights
- As previously disclosed, the Company completed the acquisition
of Da Niang Dumplings and Bellagio from its controlling
shareholder. As of March 31, 2023, Da
Niang had 92 self-operated restaurants and 132 franchised
restaurants, and Bellagio had 28 self-operated restaurants and
eight franchised restaurants.
- A total of 4,084 hotels (all organic hotels) with 302,425 hotel
rooms were in operation as of March 31,
2023, compared to 3,907 organic hotels and 294,525 hotel
rooms as of March 31, 2022.
- As of March 31, 2023, the Company
had 64 leased-and-operated, or L&O, hotels and 4,020
franchised-and-managed, or F&M, hotels in operation in 355
cities across China, compared to
56 L&O hotels and 3,851 F&M hotels (all organic hotels) in
operation in 351 cities across China as of March 31,
2022.
- During the first quarter of 2023, the Company opened 91 hotels,
an increase of three compared to 88 hotels opened in the first
quarter of 2022. Of the hotels opened in the first quarter of 2023,
12 were in the mid-to-up-scale segment, 50 were in the mid-scale
segment, and 29 were in the economy segment. Geographically, nine
hotels were in Tier 1 cities[2], 18 were in Tier 2
cities and the remaining 64 were in Tier 3 and lower cities in
China as of March 31, 2023.
- As of March 31, 2023, the Company
had a pipeline of 957 hotels contracted for or under development
with 250 in the mid-to-up-scale segment, 506 in the mid-scale
segment, and 201 in the economy segment.
- The average daily room rate, or ADR, for all organic hotels in
operation was RMB167 in the first
quarter of 2023, an increase of 8.1% from RMB155 in the first quarter of 2022.
- The occupancy rate, or OCC, for all organic hotels in operation
was 71.7% in the first quarter of 2023, compared to 62.1% in the
first quarter of 2022.
- The revenue per available room, or RevPAR, which is calculated
by multiplying our hotels' ADR by its occupancy rate, was
RMB120 in the first quarter of 2023,
a 24.8% year-over-year increase from RMB96 in the first quarter of 2022.
- As of March 31, 2023, the
Company's loyalty program had over 80 million individual members
and approximately 1,950,000 corporate members, compared to over 72
million individual members and approximately 1,885,000 corporate
members as of March 31, 2022.
The Company expects to release its first quarter together
with second quarter of 2023 financial results around
mid-September of 2023, to be followed by a conference call
that same day.
"The first quarter of 2023 marked a fresh beginning thanks to
the recovery in the hospitality industry and the entire economy in
China. RevPAR recovered to 94.3%
of its first quarter of 2019 level. As we entered the second
quarter, RevPAR during the national Labor Day holiday in early May
reached more than 120% of its level in the same period in 2019,
capitalizing on the popularity of travel during the national
holiday period.
In March of 2023, we completed our acquisition of Da Niang
Dumplings and Bellagio. As of March 31,
2023, the restaurant business was comprised of 120
self-operated restaurants and 140 franchised restaurants. The
restaurant business is estimated to have generated a combined
unaudited revenue of about RMB118.5
million (US$17.3
million)[1] to RMB136.5
million (US$19.9
million)[1] in the first quarter of 2023.
We are grateful for the hard work of our team, franchisees, and
partners that made it possible to recover quickly in the first
quarter of 2023 as China began
returning to normal life," said Mr. Alex
Xu, Chairman and Chief Executive Officer of GreenTree.
About GreenTree Hospitality Group Ltd.
GreenTree Hospitality Group Ltd. ("GreenTree" or the "Company")
(NYSE: GHG) is a leading hospitality management group in
China. As of March 31, 2023, GreenTree had a total number of
4,084 hotels. In 2021, HOTELS magazine ranked GreenTree Top 11
Ranking among the 225 largest global hotel groups in terms of
number of hotels in its annual HOTELS' 225. GreenTree was also the
fourth largest hospitality company in China in 2022 based on the statistics
issued by the China Hospitality Association.
GreenTree has a broad portfolio of diverse brands spanning from
the economy to mid-scale and up-scale segments of the hospitality
industry, mainly in China. Through
its strong membership base, expansive booking network, superior
system management with moderate charges, and fully supported by its
operating departments including Decoration, Engineering,
Purchasing, Operation, IT and Finance, GreenTree aims to keep
closer relationships with all of its clients and partners by
providing a diverse brand portfolio that features comfort, style
and value.
For more information on GreenTree, please
visit http://ir.998.com
Safe Harbor Statements
This press release contains forward-looking statements made
under the "safe harbor" provisions of Section 21E of the Securities
Exchange Act of 1934, as amended, and the U.S. Private Securities
Litigation Reform Act of 1995. In some cases, these
forward-looking statements can be identified by words or phrases
such as "may," "will," "expect," "anticipate," "aim," "estimate,"
"intend," "plan," "believe," "potential," "continue," "is/are
likely to," "confident," "future," or other similar expressions.
GreenTree may also make written or oral forward-looking statements
in its reports filed with or furnished to the U.S. Securities and
Exchange Commission, in its annual report to shareholders, in press
releases and other written materials and in oral statements made by
its officers, directors or employees to third parties. Any
statements that are not historical facts, including statements
about or based on GreenTree's current beliefs, expectations,
assumptions, estimates and projections about us and our industry,
are forward-looking statements that involve known and unknown
factors, risks and uncertainties that may cause our actual results,
performance or achievements to be materially different from those
expressed or implied by the forward-looking statements. Such
factors and risks include, but not limited to the following:
GreenTree's goals and growth strategies; its future business
development, financial condition and results of operations; trends
in the hospitality industry in China and globally; competition in our
industry; fluctuations in general economic and business conditions
in China and other regions where
we operate; the regulatory environment in which we and our
franchisees operate; and assumptions underlying or related to any
of the foregoing. You should not place undue reliance on these
forward-looking statements. Further information regarding these and
other risks, uncertainties or factors is included in the Company's
filings with the U.S. Securities and Exchange Commission. All
information provided, including the forward-looking statements
made, in this press release are current as of the date of the press
release. Except as required by law, GreenTree undertakes no
obligation to update any such information or forward-looking
statements to reflect events or circumstances after the date on
which the information is provided or statements are made, or to
reflect the occurrence of unanticipated events.
For more information, please contact:
GreenTree
Ms. Selina Yang
Phone: +86-158-2166-6251
E-mail: ir@998.com
Mr. Allen Wang
Phone: +86-181-0184-0639
E-mail: ir@998.com
Christensen
In Shanghai
Mr. Jerry Xu
Phone: +86-138-1680-0706
E-mail: mailto:jerry.xu@christensencomms.com
In Hong Kong
Ms. Karen Hui
Phone: +852-9266-4140
E-mail: karen.hui@christensencomms.com
In the US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
E-mail: linda.bergkamp@christensencomms.com
[1]. "The conversion of Renminbi ("RMB") into
United States dollars ("US$") is
based on the exchange rate of US$1.00=RMB6.8676
on March 31, 2023 as set forth in
H.10 statistical release of the U.S. Federal Reserve Board and
available at https://www.federalreserve.gov/releases/h10/20210405/
".
[2]. Tier 1 Cities refers to Beijing, Shanghai, Shenzhen and
Guangzhou; Tier 2 Cities refers to
the 32 major cities, other than Tier 1 Cities, including provincial
capitals, administrative capitals of autonomous regions,
direct-controlled municipalities and other major cities designated
as municipalities with independent planning by the State
Council.
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SOURCE GreenTree Hospitality Group Ltd.
