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GreenTree Hospitality Group Ltd. Reports First Quarter of 2024 Financial Results
GreenTreeGreenTree(US:GHG) Prnewswireยท2024-06-25 10:53

Core Insights - GreenTree Hospitality Group Ltd. reported total revenues of RMB352.2 million (US$48.8 million) for Q1 2024, a decrease of 7.1% year-over-year [10][11] - Hotel revenues increased by 8.8% year-over-year to RMB274.8 million (US$38.1 million), while restaurant revenues decreased by 38.9% to RMB77.7 million (US$10.8 million) [10][11] - The company achieved a net income of RMB57.3 million (US$7.9 million), up from RMB32.6 million in Q1 2023, reflecting a net margin of 16.3% [17][18] Financial Performance - Income from operations was RMB72.2 million (US$10 million), compared to RMB52.3 million in Q1 2023, with an operating margin of 20.5% [17] - Adjusted EBITDA increased by 17.2% year-over-year to RMB109.4 million (US$15.2 million), with an adjusted EBITDA margin of 31.1% [18] - Core net income rose by 21.5% year-over-year to RMB60.7 million (US$8.4 million), with a core net margin of 17.2% [18] Operational Highlights - As of March 31, 2024, GreenTree operated 4,256 hotels with 313,531 rooms, having opened 109 new hotels and with a pipeline of 994 hotels under development [4] - The average daily room rate (ADR) was RMB169, a 0.9% increase from RMB167 in Q1 2023, while the occupancy rate decreased to 67.8% from 71.7% [4] - Revenue per available room (RevPAR) decreased by 4.6% year-over-year to RMB114 [4] Restaurant Business - The company operated 185 restaurants as of March 31, 2024, with an average check (AC) of RMB59, a 5.8% year-over-year increase [5] - Average daily tickets (ADT) decreased to 94 from 109 in Q1 2023, while average daily sales (ADS) per store fell by 8.7% to RMB5,525 [5] - The restaurant segment underwent strategic repositioning, resulting in the closure of unprofitable locations and a focus on profitable franchise operations [6] Cash Flow and Liquidity - Operating cash inflow for Q1 2024 was RMB90.7 million (US$12.6 million), with investing cash inflow of RMB213.1 million (US$29.5 million) primarily from short-term investments [19] - As of March 31, 2024, total cash and cash equivalents, including restricted cash and short-term investments, amounted to RMB1,517.3 million (US$210.1 million), an increase from RMB1,337.1 million at the end of 2023 [20] Guidance - The company maintains its revenue growth guidance for the hotel business at 7% to 12% year-over-year, while withdrawing guidance for the restaurant business due to unpredictability from its strategic repositioning [21]