GreenTree Hospitality Group (GHG) Q4 2024 earnings summary

Executive summary

• Q4 2024 total revenues declined 18.2% year-over-year to RMB 304.5 million, with hotel revenues down 17.1% and restaurant revenues down 16.8%.

• Net loss for Q4 was RMB 72.8 million, but adjusted net income rose 26.8% to RMB 77.3 million with a 25.4% margin.

• Adjusted EBITDA for Q4 was RMB 71.5 million, down 38.3% year-over-year, with a margin of 23.5%.

• Cash from operations improved to RMB 74.2 million in Q4 2024 from negative RMB 13.5 million a year ago.

• Strategic focus on expanding mid- to upscale hotels, franchised/managed and street restaurant stores, with nearly 90% of restaurants now franchised/managed.

Financial highlights

• Q4 hotel revenues were RMB 240.2 million, down 17.1%; restaurant revenues were RMB 65.1 million, down 25.8%.

• Hotel RevPAR in Q4 was RMB 116, down 9.6% year-over-year; restaurant ADS was RMB 4,234, down 16.8%.

• Adjusted EBITDA for Q4 was RMB 71.5 million, margin 23.5%; core net income was RMB 57.8 million, down 22.3%.

• Cash and equivalents at year-end were RMB 1,839.1 million.

• Gross margin for Q4 was 34.7%, down from 43.1% a year ago.

Outlook and guidance

• 2025 organic hotel business total revenues are expected to be flat compared to 2024.

• Plan to open approximately 480 hotels and close about 200, for a net addition of 280 hotels in 2025.

• RevPAR for 2025 expected to be flat, with a 5% decline in Q1 and gradual recovery in Q2 and Q3.

• Restaurant business aims for 60 new openings in 2025, focusing on franchised and street stores.

• Strategic focus on expanding mid- to upscale hotel segment and growing franchised/managed and street restaurant stores.