GreenTree Hospitality Group Ltd. Reports Fourth Quarter and Fiscal Year 2024 Financial Results
PR Newswire
SHANGHAI, April 24, 2025
-- Total revenues decreased by 18.2% year over year to RMB304.5 million
(US$41.7 million)[1].
-- Net income was RMB-72.8million (US$-10.0 million)[1] compared to RMB8.6
million for the fourth quarter of 2023.
-- Adjusted net income[2] was RMB77.3 million (US$10.6 million)[1] compared
to RMB60.9 million for the fourth quarter of 2023.
-- Cash from operations increased year over year to RMB74.2 million (US$10.2
million)[1].
SHANGHAI, April 24, 2025 /PRNewswire/ -- GreenTree Hospitality Group Ltd. $(GHG)$ ("GreenTree", the "Company", "we", "us" and "our"), a leading hospitality and restaurant management group in China, today announced its unaudited financial results for the fourth quarter and fiscal year of 2024. As Da Niang Dumplings and Bellagio, two leading restaurant chain businesses in China, were all under the control of GreenTree Inns Hotel Management Group, Inc., until their acquisition by the Company, the acquisition was accounted for a common-control acquisition in a manner similar to the pooling -of-interests method. The consolidated balance sheets and consolidated statements of comprehensive income/(loss) include the results of each of the combining entities or businesses from the earliest date presented or since the date when the combining entities or businesses first came under common control. In this report, the comparative financial data have been restated to reflect the business combinations under common control.
Fourth Quarter of 2024 Operational Highlights
Hotels
-- A total of 4,425 hotels with 321,282 hotel rooms were in operation as of
December 31, 2024.
-- The Company opened 143 hotels and had a pipeline of 1,214 hotels
contracted for or under development as of December 31, 2024.
-- The average daily room rate was RMB169, a decrease of 4.6% from RMB177 in
the fourth quarter of 2023.
-- The occupancy rate was 68.6%, down from 72.4% in the fourth quarter of
2023.
-- Revenue per available room, or RevPAR, was RMB116, a 9.6% year-over-year
decrease.
Restaurants
-- A total of 182 restaurants were in operation as of December 31, 2024.
-- The AC (average check) was RMB46, a 11.0% year-over-year decrease.
-- The ADT (average daily tickets) was 93, down from 99 in the
fourth quarter of 2023.
-- The ADS (average daily sales per store) was RMB4,234, a decrease of 16.8%
from RMB5,090 in the fourth quarter of 2023.
([1]) The conversion of Renminbi ("RMB") into United States dollars ("US$") is
based on the exchange rate of US$1.00=RMB 7.2993 on December 31, 2024 as set
forth in H.10 statistical release of the U.S. Federal Reserve Board and
available at https://www.federalreserve.gov/releases/h10/20220103/.
([2]) Adjustd net income is defined as net income excluding the impairment of
goodwill and trademarks of restaurant business impairment of assets, and
provisions for loan receviables related to franchisee loans.
Our performance in the fourth quarter was negatively impacted by the closure of 12 leased and managed hotels during the year, lower RevPar compared to a high base last year, and the continued optimization of our restaurant business.
In our hotel business we are simultaneously accelerating the opening of new hotels, with a planned 480 in 2025, and upgrading our existing portfolio with an absolute focus on quality to ensure higher standards of products and services. We believe that the rejuvenation of our portfolio that was slowed down by the pandemic will be completed by the Summer of 2026. While Midscale remains our core segment, hotel openings in 2024 and our pipeline highlight our strategic commitment to expanding our Mid-to-upscale segment where we expect growth over the next two years to deliver significant economies of scale. Finally, we will continue the phased closure of leased and managed hotels, retaining only select flagship properties in key cities to serve as showcases of our capabilities for prospective franchisees.
The strategic transformation of our restaurant business made further progress on our two priorities. At the end of the quarter, franchised and managed stores accounted for almost 90% of all stores up from 78% a year ago , and street stores that benefit from more stable consumer traffic accounted for 50% of all stores, up from 40% a year ago. Additionally, we have been rightsizing many of our stores, reflecting the new economic reality, to improve overall profitability. We believe we now have a strong foundation to build on and will grow the overall number of restaurants in 2025 with a particular focus on franchised and managed as well as street stores.
Quarter Ended
-----------------------------------------------------
December December December December
31, 2023 31, 2023 31, 2023 31, 2023
RMB RMB RMB RMB
Hotel Restaurant Elimination Total
Revenues
Leased-and-operated
revenues 125,521,090 48,191,718 1,075,555 174,788,363
Franchised-and-managed
revenues 162,861,219 1,687,913 - 164,549,132
Wholesales and others 1,267,181 37,843,179 (6,284,349) 32,826,011
----------- ------------ ------------ ------------
Total revenues 289,649,490 87,722,810 (5,208,794) 372,163,506
=========== ============ ============ ============
Quarter Ended
-------------------------------------------------------------
December December December December December
31, 2024 31, 2024 31, 2024 31, 2024 31, 2024
RMB RMB RMB RMB US$
Hotel Restaurant Elimination Total Total
Revenues
Leased-and-operated
revenues 90,969,160 28,534,041 (207,412) 119,295,789 16,343,456
Franchised-and-managed
revenues 148,174,447 4,759,771 - 152,934,218 20,951,902
Wholesales and others 1,026,363 31,759,229 (495,936) 32,289,656 4,423,665
----------
Total revenues 240,169,970 65,053,041 (703,348) 304,519,663 41,719,023
=========== ========== =========== =========== ==========
2024 Financial Results
Year Ended
------------------------------------------------------
December 31, December December December 31,
2023 31, 2023 31, 2023 2023
RMB RMB RMB RMB
Hotel Restaurant Elimination Total
Revenues
Leased-and-operated
revenues 490,924,060 296,890,282 - 787,814,342
Franchised-and-managed
revenues 696,321,236 8,923,712 - 705,244,948
Wholesales and others 4,660,777 135,821,972 (6,284,350) 134,198,399
Total revenues 1,191,906,073 441,635,966 (6,284,350) 1,627,257,689
============= =========== =========== =============
Year Ended
-------------------------------------------------------------------
December 31, December December December 31, December
2024 31, 2024 31, 2024 2024 31, 2024
RMB RMB RMB RMB US$
Hotel Restaurant Elimination Total Total
Revenues
Leased-and-operated
revenues 437,521,898 159,326,153 (207,411) 596,640,640 81,739,433
Franchised-and-managed
revenues 625,072,856 10,287,457 - 635,360,313 87,044,006
Wholesales and others 3,908,057 109,031,616 (1,500,428) 111,439,245 15,267,114
Total revenues 1,066,502,811 278,645,226 (1,707,839) 1,343,440,198 184,050,553
============= =========== =========== ============= ===========
Total revenues were RMB304.5 million (US$41.7 million)([1]) a 18.2% year-over-year decrease.
Hotel revenues were RMB240.2 million (US$32.9 million)([1]) , a 17.1% year-over-year decrease. The decrease was mainly attributable to a 9.8% decrease in F&M hotels' Revpar and the closure of 12 L&O hotels in 2024 while revenues a year ago benefited from a one-time revenue recognition of requisitioned rooms during COVID and a one-time revenue recognition due to a successful lawsuit against sublease.
Restaurant revenues were RMB65.1 million (US$8.9 million)([1]) , a 25.8% year-over-year decrease. The decrease was mainly due to the closure of L&O stores, and a 16.8% decrease in ADS.
Total revenues for the year were RMB1,343.4 million (US$184.1 million)([1]) , a 17.4% year-over-year decrease.
Total revenues from leased-and-operated, or L&O, hotels and restaurants were RMB119.3 million (US$16.3 million)([1]) , a 31.7% year-over-year decrease.
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