GreenTree Hospitality Group Ltd. (GHG) Q4 2024 Earnings Call Transcript
Total Revenue RMB 304 million, a decrease of 18.2% year-over-year due to the closure of 12 leased and managed hotels and lower RevPAR.
Hotel Revenue RMB 240.2 million, a decrease of 17.1% year-over-year mainly due to the closure of 12 L&O Hotels and a year-over-year decrease in RevPAR of 9%.
Net Income Negative RMB 72.8 million, mainly due to impairment of goodwill and trademarks and provisions for loan receivables.
Adjusted Net Income RMB 77.3 million, an increase of 26.8% year-over-year, with a margin of 25.4%.
Core Net Income RMB 57.8 million, a decrease of 22.3% year-over-year, with a margin of 19%.
Adjusted EBITDA RMB 71.5 million, a decrease of 38.3% year-over-year, with a margin of 23.5%.
Cash from Operations RMB 74.2 million, up from negative RMB 13.5 million a year ago.
Hotel Operating Costs and Expenses RMB 225.7 million, a decrease of 10.5% year-over-year due to the closure of 12 L&O hotels.
Restaurant Revenue RMB 65.1 million, a decrease of 25.8% year-over-year due to the closure of L&O stores and a 16.8% decrease in ADS.
Total Costs and Expenses (Restaurant) RMB 187.4 million, an increase of 98.7% year-over-year mainly due to impairment of goodwill and trademarks.
Net Income (Restaurant) RMB 18.9 million, an increase of 44.3% year-over-year excluding impairment.
Cash from Operations (Restaurant) RMB 5.5 million, positive in the fourth quarter of 2024.
Total Cash and Cash Equivalents RMB 1839.1 million, a decrease from RMB 1883.9 million as of September 30, 2024, primarily due to dividend distribution and investment in property.
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GreenTree Group Reports Q3 2025 Net Income of RMB 60.8 Million
- Revenue Decline: GreenTree Group reported Q3 2025 revenues of RMB 303.6 million, a 15.0% decrease from RMB 356.9 million in the same quarter last year, indicating a negative impact on performance due to weak market demand.
- Net Income Change: The company's net income for Q3 was RMB 60.8 million, down 7.2% from RMB 65.5 million year-over-year, highlighting pressure on profitability due to declining revenues.
- Earnings Per Share Drop: Earnings per Class A and Class B ordinary share were RMB 0.6 and RMB 0.65, respectively, reflecting a 7.7% decrease, which may affect investor confidence in the company's future earnings potential.
- Stock Price Fluctuation: GreenTree's stock closed at $1.71 on the New York Stock Exchange, down 1.15% from the previous trading day, reflecting market concerns regarding the company's financial performance.
GreenTree Reports 15% Revenue Decline to RMB 303.6 Million in Q3 2025
- Revenue Decline: GreenTree's total revenue for Q3 2025 was RMB 303.6 million (US$42.6 million), reflecting a 15% year-over-year decrease primarily due to declines in RevPAR and average daily room rates, indicating intensified market competition and consumer weakness.
- Hotel Business Performance: Hotel revenues amounted to RMB 254.5 million (US$35.7 million), down 11.3% year-over-year, with RevPAR decreasing by 8.4% and the closure of seven hotels due to strategic reviews, highlighting the challenges faced in adapting to market changes.
- Restaurant Business Challenges: Restaurant revenues fell to RMB 49.4 million (US$6.9 million), a 30.1% year-over-year decline, mainly due to reduced average daily sales and a decrease in the number of restaurants, suggesting increased pressure in the dining sector that necessitates a reassessment of business strategies.
- Cost Control Efforts: Despite the revenue drop, GreenTree managed to reduce total operating costs by 14.9% to RMB 177.1 million (US$24.9 million), demonstrating effective cost management efforts that may help improve profit margins in the future.
GreenTree Hospitality Group Reports 15% Revenue Decline in Q3 2025
- Revenue Decline: GreenTree's total revenue for Q3 2025 was RMB 303.6 million (approximately $42.6 million), reflecting a 15% year-over-year decrease primarily due to reduced hotel and restaurant revenues, indicating weak market demand.
- Hotel Revenue Drop: Hotel revenues amounted to RMB 254.5 million (around $35.7 million), down 11.3% year-over-year, driven by an 8.4% decline in RevPAR and the closure of seven hotels, highlighting increased competitive pressures and market adjustments.
- Restaurant Business Struggles: Restaurant revenues fell to RMB 49.4 million (about $6.9 million), a 30.1% year-over-year decrease, mainly due to a reduction in L&O restaurant numbers and decreased foot traffic, reflecting low consumer confidence.
- Cost Control Measures: Despite the revenue decline, operating costs decreased by 14.9% to RMB 177.1 million (approximately $24.9 million), indicating effective cost management that may help alleviate profit pressures.
GreenTree Hospitality Group Ltd. Announces Financial Results for the First Half of 2025
Financial Performance: GreenTree Hospitality Group reported a 14.2% year-over-year decrease in total revenues to RMB 585.1 million (US$ 81.7 million) for the first half of 2025, with net income rising to RMB 198.8 million (US$ 27.7 million) compared to RMB 119.6 million in the same period last year.
Operational Highlights: As of June 30, 2025, GreenTree operated 4,509 hotels and 183 restaurants, with a total of 321,977 hotel rooms. The average daily room rate and occupancy rates saw declines, reflecting challenges in the hospitality sector.
Adjusted Metrics: Adjusted EBITDA decreased by 22.2% year-over-year to RMB 149.7 million (US$ 20.9 million), while core net income fell by 29.6% to RMB 92.1 million (US$ 12.9 million), indicating operational pressures despite an increase in net income.
Future Guidance: The company adjusted its revenue guidance for the hotel business to a decline of 10% to 13% year-over-year, influenced by the closure of certain leased-and-operated hotels and strategic business adjustments.
GreenTree Filed Annual Report on Form 20-F for Fiscal Year 2024
Annual Report Filing: GreenTree Hospitality Group Ltd. filed its annual report on Form 20-F for the fiscal year ending December 31, 2024, with the SEC on April 30, 2025, and it is accessible on their investor relations website.
Company Overview: GreenTree is a prominent hospitality management group in China, operating 4,425 hotels and 182 restaurants as of December 31, 2024, and was ranked 11th among global hotel groups by HOTELS magazine in 2023.
GreenTree Hospitality Group Ltd. Reports Third Quarter of 2024 Financial Results
Financial Performance Overview: GreenTree Hospitality Group Ltd. reported a significant decline in Q3 2024 revenues and profits, with total revenues falling by 22.5% year-over-year to RMB 357 million and net income dropping to RMB 65.2 million, attributed to decreased hotel and restaurant revenues despite some operational improvements.
Operational Metrics and Future Outlook: The company operated 4,336 hotels and 182 restaurants as of September 30, 2024, with occupancy rates decreasing and average daily room rates declining; however, management remains optimistic about future growth driven by pipeline expansion and government support, anticipating an approximate 8% revenue decline in the hotel business for 2024.
GreenTree Group Reports Q3 2025 Net Income of RMB 60.8 Million
- Revenue Decline: GreenTree Group reported Q3 2025 revenues of RMB 303.6 million, a 15.0% decrease from RMB 356.9 million in the same quarter last year, indicating a negative impact on performance due to weak market demand.
- Net Income Change: The company's net income for Q3 was RMB 60.8 million, down 7.2% from RMB 65.5 million year-over-year, highlighting pressure on profitability due to declining revenues.
- Earnings Per Share Drop: Earnings per Class A and Class B ordinary share were RMB 0.6 and RMB 0.65, respectively, reflecting a 7.7% decrease, which may affect investor confidence in the company's future earnings potential.
- Stock Price Fluctuation: GreenTree's stock closed at $1.71 on the New York Stock Exchange, down 1.15% from the previous trading day, reflecting market concerns regarding the company's financial performance.
GreenTree Reports 15% Revenue Decline to RMB 303.6 Million in Q3 2025
- Revenue Decline: GreenTree's total revenue for Q3 2025 was RMB 303.6 million (US$42.6 million), reflecting a 15% year-over-year decrease primarily due to declines in RevPAR and average daily room rates, indicating intensified market competition and consumer weakness.
- Hotel Business Performance: Hotel revenues amounted to RMB 254.5 million (US$35.7 million), down 11.3% year-over-year, with RevPAR decreasing by 8.4% and the closure of seven hotels due to strategic reviews, highlighting the challenges faced in adapting to market changes.
- Restaurant Business Challenges: Restaurant revenues fell to RMB 49.4 million (US$6.9 million), a 30.1% year-over-year decline, mainly due to reduced average daily sales and a decrease in the number of restaurants, suggesting increased pressure in the dining sector that necessitates a reassessment of business strategies.
- Cost Control Efforts: Despite the revenue drop, GreenTree managed to reduce total operating costs by 14.9% to RMB 177.1 million (US$24.9 million), demonstrating effective cost management efforts that may help improve profit margins in the future.
GreenTree Hospitality Group Reports 15% Revenue Decline in Q3 2025
- Revenue Decline: GreenTree's total revenue for Q3 2025 was RMB 303.6 million (approximately $42.6 million), reflecting a 15% year-over-year decrease primarily due to reduced hotel and restaurant revenues, indicating weak market demand.
- Hotel Revenue Drop: Hotel revenues amounted to RMB 254.5 million (around $35.7 million), down 11.3% year-over-year, driven by an 8.4% decline in RevPAR and the closure of seven hotels, highlighting increased competitive pressures and market adjustments.
- Restaurant Business Struggles: Restaurant revenues fell to RMB 49.4 million (about $6.9 million), a 30.1% year-over-year decrease, mainly due to a reduction in L&O restaurant numbers and decreased foot traffic, reflecting low consumer confidence.
- Cost Control Measures: Despite the revenue decline, operating costs decreased by 14.9% to RMB 177.1 million (approximately $24.9 million), indicating effective cost management that may help alleviate profit pressures.
GreenTree Hospitality Group Ltd. Announces Financial Results for the First Half of 2025
Financial Performance: GreenTree Hospitality Group reported a 14.2% year-over-year decrease in total revenues to RMB 585.1 million (US$ 81.7 million) for the first half of 2025, with net income rising to RMB 198.8 million (US$ 27.7 million) compared to RMB 119.6 million in the same period last year.
Operational Highlights: As of June 30, 2025, GreenTree operated 4,509 hotels and 183 restaurants, with a total of 321,977 hotel rooms. The average daily room rate and occupancy rates saw declines, reflecting challenges in the hospitality sector.
Adjusted Metrics: Adjusted EBITDA decreased by 22.2% year-over-year to RMB 149.7 million (US$ 20.9 million), while core net income fell by 29.6% to RMB 92.1 million (US$ 12.9 million), indicating operational pressures despite an increase in net income.
Future Guidance: The company adjusted its revenue guidance for the hotel business to a decline of 10% to 13% year-over-year, influenced by the closure of certain leased-and-operated hotels and strategic business adjustments.
GreenTree Filed Annual Report on Form 20-F for Fiscal Year 2024
Annual Report Filing: GreenTree Hospitality Group Ltd. filed its annual report on Form 20-F for the fiscal year ending December 31, 2024, with the SEC on April 30, 2025, and it is accessible on their investor relations website.
Company Overview: GreenTree is a prominent hospitality management group in China, operating 4,425 hotels and 182 restaurants as of December 31, 2024, and was ranked 11th among global hotel groups by HOTELS magazine in 2023.
GreenTree Hospitality Group Ltd. Reports Third Quarter of 2024 Financial Results
Financial Performance Overview: GreenTree Hospitality Group Ltd. reported a significant decline in Q3 2024 revenues and profits, with total revenues falling by 22.5% year-over-year to RMB 357 million and net income dropping to RMB 65.2 million, attributed to decreased hotel and restaurant revenues despite some operational improvements.
Operational Metrics and Future Outlook: The company operated 4,336 hotels and 182 restaurants as of September 30, 2024, with occupancy rates decreasing and average daily room rates declining; however, management remains optimistic about future growth driven by pipeline expansion and government support, anticipating an approximate 8% revenue decline in the hotel business for 2024.
