The following is a summary of the GreenTree Hospitality Group Ltd. (GHG) Q2 2024 Earnings Call Transcript:
Financial Performance:
Q2 2024 total revenue decreased by 20.5% year-over-year to RMB329.7 million.
Hotel revenue decreased by 14.8%, primarily due to a 10.8% decrease in RevPAR, closures of some hotels offset by new openings.
Restaurant revenue decreased as the company repositioned the business and closed underperforming outlets.Net income decreased by 38.9% to RMB62.3 million, with net margin at 18.9%.
The company revised its 2024 full-year revenue guidance for hotels to remain flat year-over-year.
Business Progress:
Focused on expanding franchise street stores in the restaurant business and achieved profitability.
Continuing strategic shift in hotels to mid-to-upscale segments, particularly in Tier 3 and lower cities.
Membership programs saw growth reaching 96 million individual members and 2.1 million corporate members.
Initiatives to increase profitability include closing unprofitable stores, increasing franchise managed stores, and expanding the number of street stores.
Opportunities:
Growth in franchised street stores and further expansion in mid-to-upscale hotel segments.
Significant opportunity in strategically focusing on Tier 3 and lower tier cities reflecting a substantial market potential.
Risks:
Continued economic recovery challenges impacting discretionary spending.
Market volatility may affect consumer behavior affecting hotel and restaurant revenue.
Strategic risks associated with repositioning underperforming assets and closing unprofitable locations.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
