GreenTree Hospitality Group Ltd. Reports Third Quarter of 2024 Financial Results

Core Viewpoint - GreenTree Hospitality Group Ltd. reported a significant decline in total revenues and net income for the third quarter of 2024, reflecting challenges in both the hotel and restaurant segments amid a recovering economy in China [1][3][6]. Financial Performance - Total revenues decreased by 22.5% year over year to RMB357.0 million (US$50.9 million) [1][3]. - Income from operations was RMB106.4 million (US$15.2 million), down from RMB137.8 million in the same quarter of 2023 [1][6]. - Net income fell to RMB65.2 million (US$9.3 million) compared to RMB117.4 million in the third quarter of 2023 [1][6]. - Adjusted EBITDA decreased by 32.1% year over year to RMB122.5 million (US$17.5 million) [1][8]. - Core net income decreased by 26.6% year over year to RMB93.5 million (US$13.3 million) [1][10]. Operational Highlights Hotels - As of September 30, 2024, the company operated 4,336 hotels with 316,461 rooms [1]. - The average daily room rate (ADR) was RMB181, a decrease of 6.0% from RMB192 in the third quarter of 2023 [1]. - The occupancy rate was 74.6%, down from 81.2% in the same quarter of 2023 [1]. - Revenue per available room (RevPAR) was RMB135, reflecting a 13.6% year-over-year decrease [1]. Restaurants - The company operated 182 restaurants as of September 30, 2024 [1]. - The average check (AC) was RMB46, a 15.9% year-over-year decrease [1]. - Average daily sales (ADS) per store were RMB4,891, down 25.6% from RMB6,570 in the third quarter of 2023 [1]. Cost Management - Total operating costs and expenses were RMB265.2 million (US$37.8 million), a decrease of 17.2% year over year [6]. - Operating costs for the hotel business were RMB152.3 million (US$21.7 million), a 4.8% year-over-year decrease [6]. - Restaurant operating costs were RMB53.4 million (US$7.6 million), a 39.2% year-over-year decrease [6]. Cash Flow and Liquidity - Operating cash inflow was RMB139.2 million (US$19.8 million) due to income from operations [10]. - As of September 30, 2024, total cash and cash equivalents amounted to RMB1,883.9 million (US$268.5 million), an increase from RMB1,737.2 million as of June 30, 2024 [10]. Future Outlook - The company anticipates a revenue decrease of approximately 8% for its hotel business for the full year 2024 compared to 2023, influenced by lower-than-expected travel and strategic reviews leading to hotel closures [10].