GHG - Earnings call transcript Q1 2021 | GreenTree Hospitality Group Ltd.

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Operator

Hello, ladies and gentlemen, and thank you for standing by for GreenTree's First Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the management's prepared remarks there will be a question-and-answer session.

As a reminder, today's conference call is being recorded. I would now like to turn the meeting over to your host for today's call to Mr. GreenTree's Firm. Christensen, of Vanguestaine Investor Relations Rene Please proceed, Rene.

Rene Vanguestaine

at and for distributed PR joining you, IR today Melanie. GreenTree's Newswire you everyone, Hello, website our on was Thank services. us. as thank earnings is available as ir.XXX.com, well and on earlier release

comments As reminder, our posted same IR presentation that a a the PowerPoint website. also accompanies we to

the and Financial On Marketing; will President performance Officer; followed will session, Ms. business They then follow. Executive Chairman and XXXX quarter first the which Chief Vice Zheng, will Nicky call from Mr. Yang financials who present Huang, discuss Yang, Ms. be and discuss available GreenTree company's Officer; will and Chief IR are will Q&A Ms. Of overview, during by Xu Megan to Mr. guidance. Sales Huang, Alex answer Xu, Mr. Ms. Selina and operations, Manager. questions your the

that actual performance, the those the and are management's materially differ to and cause and expectations and of are or statements many relate and Securities forward-looking XXE Before may industry, involve Securities and remind achievements to I'd current call known XXXX the as Private in in market you to statements. as Section which results, conditions its historical of are uncertainties Reform conference not meaning amended defined forward-looking we the like of Act unknown difficult the of U.S. this contains company statements to Litigation Exchange statements begin, company's intends, to, the XXXX. beliefs, is based which and can These forward-looking including future, control, by all continue, that statements identified are such predict estimates, similar may, statements. going that likely upon other about factors, facts, the forward, and of Any company's will, events forward-looking beyond confident, which anticipates, or statements. aims, be Such are are as target, expects, Act from terminologies, risks, of statements plans, outlook, and current operating within

statements. company Further statements not this is You should call with forward-looking place go other and my these the included The future undue the uncertainties during and any Commission. information, events the are obligation undertake factors does company's statement current U.S. Chief Exchange a regarding ahead. risks, law. not as applicable information including provided, Mr. pleasure the date. Mr. result except Xu. made our introduce information required filings in any conference otherwise, forward-looking to please Chairman Alex new is Executive as of these forward-looking on to Xu, now under Securities or and It as All reliance or of update today's Officer,

Alex Xu

financial turn X. for performance. also in XXXX, comparison. operations meaningful the Because Please of numbers call more and first Thanks, we details Rene, will the joining and Then, In this first our of QX will we quarter performance. a XXXX particularly the today. for impact our in our into we XXXX provide QX to thanks, hotel everyone, developments of earnings COVID-XX occasionally and go on Slide quarter, will operations highlight report, our

with share core to Earnings Non-GAAP RMBXX.X margin And per million, of XX.X%. adjusted a turned million increased RMBXX net XX.X%. total with We XX.X% million Income XX.X%. million. outstanding to RevPAR operations EBITDA with glad a million with of RMBXX quarter. first our income XX.X% XX.X% are margin increased from increased non-GAAP Net continue to XXXX. see to increased RMBXX.X. positive XX.X% RMBXXX.X revenues Compared increased of income, and QX XX.X% QX to the to the increased in a Total performance to RMBXX.X margin revenues RMBX.XX, to a margin exceeded XX.X%. XXXX, with of

have this existing XXXX slowed On only hotels. income QX from because partially fees, adjusted was RevPAR adjusted compared up operations QX However, most Slide costs core from The adjusted since part operations QX from XXXX. of made reasons net pandemic later. offset and XXXX the income increased and increasing COVID-XX QX EBITDA XXXX the with related Total January and revenues, progress outlined operations, half newly were we with China XXXX. XX% from Total by by of resurgence new recovery of lower QX lower in recovered and of with compared but hotels to over revenues all near hotel to in non-GAAP openings, markedly began opened resulted considerable were EBITDA RevPAR from and income of while X, EBITDA was income consulting shows XXXX. down

turn now Let's to Slide X.

recovery robust saw RevPAR leveraging We in hotel as program, rate strong continued cities, hard by systems and including our and the outperformed RevPAR a encouraged technologies, our well as lower in industry-leading advantages, strategic the with The and our first very XXXX. industry footprint tier in as staff. of occupancy remain expansive compared We of and percentage quarter our by three shows a deployment the loyalty XXXX. monthly China. recovery QX and work management Slide X the recovery of franchisees

and and increase demand lifted. March, month-over-month holiday Sweeping after occupancy sequential in more due We in get the more our people and Week. Spring rebounded in during it especially policy travel China of are pent-up as February as restrictions saw local a While Festival, government's the rate the restrictions April the this, May, Chinese and implementation travel RevPAR during substantial Tomb quickly declined XXXX Golden vaccinated to state in January with and

year-over-year we to begin share report first development. of member XXX.X%. a the in According the these besides of of Tourism, a quarter are to turn research Golden we and developments new to growth in same the million this traveling and XXXX numbers period of in the our to represents the As everyone XX done and discussion Slide strategic holidays expected, Culture in in what have technology-related travel, with development hotel XXX focus Please the Ministry resurgence XXX.X% and with tourists really domestic of domestic from the Week. tourists during

growth strategy key three parts. focuses current on Our

L&O further to are and penetrating adding expanding in and locations; segment. further mid second, we're we three lower First, third, strategic the tier we are hotels in cities; upscale

take Slide at XX. Let's look a

into XX central hotels the During XX. China, in we the China. turn government accelerated three central L&O the L&O to and have transportation Southwest business and our expansion hotels in Southeast China to well-located the mid opened pipeline, hubs, districts, high-end quarter, and Please centers. We around market Slide our all

openings years, four located pipelines for have in our majority past all are new three China's new our the Over cities. lower been cities. current hotel and vast these tier thriving hotels in the of XX.X%

combination strategy, in existing pace hospitality was recovery these footprint of in the of hotels and in China's our testament in recovery until future cities of performance As us end pandemic, the industry. real a a cities capture during of such in to the cities tier at strong when faster this than consistently the cities XXXX soundness This our booming business to two opportunities competitive give our accelerated. advantage other

Now, to please turn XX. Slide

luxury quarter. growing to of This our year, segments. the both open for and more in past and strategic their to We the we franchisees corporate portfolio to X.X% I continuously the to million in thank sales membership by programs, quarter hotels been In resurgence And year our to throughout and and X.X our would the grew COVID in like upscale mid over accounted XXXX. segment growth tremendous of shareholders from closing, years. the the despite of open million, for X.X over membership individual impressive which in in to team, million Slide million the more direct XX shows hotels first China. our new segment hotels most grew XX.X% in XX of memberships quarter. have compared the plan and all corporate few growth support total steady the only first locations and of increased some X.X% end high-end efforts in year, Individual to of from year. We achieved this XX this

We our Megan will accelerate. business pass even the help are ahead. deliver as that next to This first rollouts quarter. for quarter. call to us results Megan, over optimistic will please Huang, continue I who the operations better would go now will summarize travel recover vaccine

Megan Huang

you, impact the and year our operating year highlights to the XX.X% opening Thank ADR expansion X.X% increased increased Slide to across metrics the rebound We XX.X% to Please of the rate market RevPAR Blended over which increased XX.X% China, to COVID-XX. Alex. XX, Occupancy in turn from accelerated hotels of RMBXXX. presence in new first our RMBXX. quarter. XXX

the the XX.X% our upscale operated or or expansion luxury continued Moving to the segment we are our the mid-scale economy F&M with before. hotels. the quarter first segment the all XX.X% end L&O This of the At into and stable while hotels year, portfolio, and had these than quarter, franchised now hotels, in were higher remained of operation, more hotels in segment. X.X% and our of year the number at Last XX economy of we mid for remains business of and hotels and our to total XX. expansion account X,XXX managed, both XX.X%. as hotels the leased core Slide accelerated of X,XXX while first end

the closed our Nine the tier XX first property-related were XXX the were three strategic hotels of in As Slide quarter to and Three we upgrade, the and China. noncompliance can end and the and XX, our Alex opened our lower cities market. you were the and cities, XX hotels, opened in in were that, This and in the midscale the mentioned, cities, XXXX. the the XX.X% three XX in in hotels two the segment, of XX.X% tier due brand luxury in We at luxury mid-to-upscale in due segment, we segment. also segments segment, and cities; these XX due newly hotels position the first enhanced dominant brand XXX see solidified remaining to one economy efforts. first our in already cross-marketing with to and mid-to-upscale six in hotels On quarter, advantage XX lower XXX issues. first in operating to quarter standards, quarter, XX in of tier tier of XX cities. compared in in

-- and on So to new the during net-net, hotels XX pipeline from of XXX and XXXX. the hotels. X,XXX quarter. shows on XX, RMBXXX. these quarterly our at to COVID-XX, rate sector to occupancy L&O XX from portfolio shows XX% our XX.X%. Slide around increased our in XX, midscale operating RevPAR December our XX% for Around performance our our and F&M increased hotels the first quarter, the about growth our to ADR RMBXXX, our XX% Occupancy L&O segment, increased hotels F&M we XX.X%, pipeline hotels our ADR the in the for and increased hotels hotels Despite added to to in to economy increased the at in increased hotels In hotels increased RMBXX. segments. trend. for March mid-to-upscale of RevPAR luxury are for our F&M L&O XXXX, Slide RMBXX. X,XXX new to

in negatively Selina Yang. Festival. performance and the the local pass restrictions was over implementation earlier, our Chinese the I'll that, travel mentioned CFO, by impacted of policies quarter As to call Spring government the during first state With

Selina Yang

to Thank L&O you, XXXX, RMBXX.X to costs to and expansion the that the XX.X% higher hotel to were million. RMBXXX.X operating million. mainly RMBXXX.X Megan. other was our the first quarter XX.X% first XXXX operating The Total to XX.X% in increases from XX.X% increased attributable Please year L&O to pipeline. due a hotel quarter included over revenue L&O from year to with XX% opened our Besides, costs from and first increase, hotels, rents were with rents to Total XX, hotel not higher increase compared million. in were which in operating quarter due and the On increase up Slide compared hotels related F&M XX.X% the costs million, XXXX. RMBXXX.X quarter, million, turn in revenues and numbers. more Slide total hotels XX. Urban costs RMBXXX.X That's costs In increased of hotels. first the year-over-year quarter F&M consolidated increased and revenue total while XXXX both Argyle newly first are the

X.X%, the costs number XXXX, increasing our the the of increased which a million, XXXX. operating first expenses attributable RMBXX.X compared attributable compared decrease first to compared increased first to hotel a year-over-year quarter by Excluding is mainly XXXX. from XXX.X% with million, first were Argyle X.X% XX.X% these of that not RMBXX and in G&A Selling were quarter were Urban and expenses fact in with factors, fees was quarter of with consolidated consulting XXXX, increase increase the administrative General, mainly marketing expenses The staff. quarter our performance. the up and of

with and quarter research compared added G&A staff. XXXX attributable first Excluding the increasing increased newly mainly development, these to to factors, by X.X%, and investment

and margin minus to was the quarter. of The a Income to restrictions of XX.X% decreased compared XX. higher quarter Chinese mainly by Operating decreased during costs with Compared operating to to increase February to XX.X% Spring year sustained defined increase Turning hotels XX.X%, the related expenses recovery and expenses the costs year-over-year operations from and to a first the was RevPAR, mainly margin XXXX, operations from opened hotels Slide L&O in income from XX.X% to to RMBXX.X impact and ago. control XX.X%. attributable costs representing Festival. totaled XX.X% as and million, from of newly revenues due travel and this number during in January the better

net XX.X%. to to to Adjusted And adjusted XX.X% was lower The decreased XXXX, US$X.XX, loss the basic the by that's RevPAR year EBITDA hotels to Please RMBXX.X quarter at up non-GAAP, year RMBX.XX. increased and income net per Slide turn On to XX.X%. from Net net at of pipeline. diluted year quarter EBITDA income decreased and RMBX.XX, which RMBX.XX income was by margin ago from net income Compared XXXX, XXXX. RMBX.XX That's adjusted one increased to million. XX.X% core RMBXX the decreased from opened RMBXX down RMBX.XX US$X.XX, the RMBXX down million over that's income newly board mainly in Core ADS, decreased up attributable increased XX%, XX.X% and ago, first L&O from million, the increased the the slide, RMBX.XX margin increased XX. XX.X% core of to margin margin year. XX.X%. EBITDA net XXXX. first are XX.X% -- ADS per and income by across one quarter with was year same Core and net in margin and and of the at first by

a take look Now, let's at XX. Slide

XX, and attributable of time and from higher cash securities, the has potential and to of capital as acquisitions and quarter to of XX, our acquisitions December investments of had XXXX, the equity cost L&O deposits The RMBX.X fourth significant The provide deposits facilities. hotels, cash cash company of including with to the strategy, was March billion equivalents of on impact down our the bank franchisees, cash, and business. loans investments, our restricted amount and short-term total growth primarily us XXXX. prepaid by compared offset our RMBX.X As enough Slide rent franchisees. cash support equivalents, billion, and continue with XX, execute drawing had see as decrease in COVID-XX we to On you can

begin XXXX. to are Q&A of you. the control remains grow in of XXXX for China, we to year total to our XX% This concludes to XX% Thank ready XXXX Assuming Operator, under expect full-year and the over levels XX% the we revenues now remarks. over pandemic prepared the XX% session.

Operator

begin now Instructions]. session. [Operator will the question-and-answer We

with Praveen ahead. go Your Morgan Please comes Stanley. first from question Choudhary

Praveen Choudhary

taking Thanks my couple Hi. of a I for much have call. very questions.

little is, result. you outlook a tell as first well would to first can I understand particular in would the ended? any The about terms this the first usual. Thank is But quarter results the also, of quarter talk much. than how RevPAR talk for current bit be And you -- the the us is about so anything quarter reason you you opening if trending, as one since first later

Alex Xu

Thanks, Praveen. Okay.

In couple the the was of or after XXX% sometimes, see increased but much first April, can a from pre-COVID more even cases, X, the higher. of only RevPAR XXX% quarter the the level XX% pretty than of level, the X% Slide same about and to higher; paragraph RevPAR You pre-COVID. in level,

So recovery as very the COVID is RevPAR resurgence rapid. is controlled, the

confident we're So pretty the continue. recovery will

X, you the all of Slide think the to the So way end to that refer June. can I

second have we hired the So issue consultant. is

investors the with seeking many, should alternative listings. ask Chinese past, are because, We have situation the companies in many what we -- us more assessing do

numbers So first a the the that's got assessing that, as only situation Praveen. reason. and Thanks, of the delayed. result that quarter we -- think of hired consultant basically and a I the And

Praveen Choudhary

Can helpful. been one your have lately, question we where to of about I That's ask cities normally and peers? hearing in many cities. tier Alex. But you peers you other more lower to more dominant your Thanks, tier seeing compared lower are are trying also that grow

help are second you that first, do than you. manage you heating competition? developed tier cities? you tier is going How any Thank peers? do lower over your cities, competitive in advantage So think that And time will which the think is you there have you in are to lower competition more up

Alex Xu

has the China cities first -- and than a lot more The cities. lower-tier second-tier

Chinese the economy we -- been a again, lower-tier many -- those wide the requires growth third of to be other tier networks the to and cities. other adding economy the resources. lot feel range, opportunities tier are tier third the and growth and three So going lifting opportunities we manage of across to the across board, for the in And wide and And city resources years. a area of have the more

and tried into Some it quickly the have past companies to tier the in lower other cities. expand

system results the getting in see, the experience, we and some can in accumulating are -- those areas. you think have the that so in in resource advantages managing I on not the effectively easy, As

many, a gives I advantage many over ahead. us months think the real that

not city, and a opportunities in in are tier. However, there cities, other first I up also people are competition heating the lot the think second only third-tier everywhere, but the of those realize and also the

we tiers lower have and real that in urban as -- the development wider are said, into other peak, managing a advantages has tier the a network And to resources areas. reached competitive in here requires development I the will accumulated Praveen, but these the confident, cities, system. As still spreading to we start

Operator

[Operator Instructions].

of comes next [ph] Your Please question with from Shaun Billy ahead. America. Bank go

Unidentified Analyst

Alex. have morning, I two questions. Hi, morning. Hi. Hi. Good Selina. good Good morning,

I'm costs major bit secondly, question ones also, opened First And leased-and-operated is, noticed and And more more the three hotel? think should during we share just four, should you then, finally, were And the that is, now. we pipeline. impact roughly quarter. that in in operating ramp-up, in a for of of we about year for about expect? presentation -- how little profitability provide the one and After And the of margin information about RevPAR is and in can hotel months profitability? you mind hotels kind in and metrics terms our first kind Would for that terms been terms P&L of their I then what are operation What should CapEx? on like of five we about in about to of more their they've budget pipeline. we leased-and-operated the XX question see year? seeing like we preopening expect rest the X,XXX And this there

them So six should we next XX months? assume open the to most to be will able in of

Alex Xu

you. thank Billy,

first And question, the I those -- you the then, answer. our decisions to that Selina of a hotels. reasons I'll adding make to L&O you will On to to leave give operating metrics,

find with than area, site franchised China able we and continuously through we the into to trying by which building we have to start and managed. where trying lower invest Southwest we are this able acquire and new especially able the new those, space been that were our our a past, accelerate some just or are And stronghold And those we opportunities and is in much our In have the existing year, Southeast, central hotels alternately there's cost hotels. last We area. secure much, especially year to our to area. and into emerged weak white growth COVID, Delta impacted Shanghai been to region expand

of those of the most impacted most they Southeast which they're So But time from are instance, we borders, area. next most Asia. opportunities with -- during existing COVID further of Central will be heavily and site by in come, hotels current Nanning, is those -- China the opening COVID a than the probably from in may city crisis feel conversions hotels. eventually, And in the for those benefit even the frame, to the the

white And the the And those selecting so, past. that's which locations in weak space us into cities, help the strategic rationale strategic can and the quickly to we're penetrate in of behind GreenTree it.

performance hotels the So of our varies.

performance think, think and really we are In For the good. the more so other time well. closed, door I impacted. Southeast But than to that will countries Asian perform really past cities. are instance, hotels Nanning, in those the is Guangxi because Wuhan, with heavily Nanning Selina? still is more,

Selina Yang

I more share information Alex. you, can our all in Thank hotels. terms Okay. L&O of

portfolio, compare Here XX RevPAR decreased And have in the RevPAR, quarter our by of first first for the XXXX, the decreased the And quarter, we with if the hotels. we L&O RevPAR by XX%. XX.X%. total

the means added if portfolio. more our more see And increased portfolio. the that second of quarter, our year L&O second hotels than L&O for have by that the total than of our we X% with into XXXX. quarter another hotels we hotels for So RevPAR compare XX can And outperformed the L&O we now, the

that portfolio. also total outperformed the you. Thank So

Unidentified Analyst

Thanks lot. a

Alex Xu

turn, think the me will some Let period. -- impact conversion GreenTree, occupancy be a there I when let's of during hotel into the say, add we

can I the think see you that the numbers. --

hotels. L&O the occupancy than lower is F&M quarter, hotel's first The

hotel other included, the On costs cost we the have other opening our side, numbers. in

the traditionally numbers. We the separating cost cost, from open not opening reported have newly

opening -- we of drag think income. hotel able will we So impact should didn't operating down not -- the I cost be major don't lot from a that net see we see to

Unidentified Analyst

I pipeline, should see. the months? what six opening XX for pace next the of the And in terms expect opening to we

Alex Xu

months. XX we hotels. extend it answer the to are further. six most Because some question. your we conversion the open will the them forgot there the it newly from are XX Yes, with and majority built, before open should longer Why much be than But of XX expect in takes of I to of so should hotels some hotels time months? months think, X,XXX six third next, -- will the I use We to

than is first the see, bit continue year about we'll little think, the still substantially same so, higher or And I last year before. is -- openings but one period the less than quarter, second-quarter a the to

is number? think the a Selina understanding. exact -- what has better I

Selina Yang

Yes. opening quarter be XXX. second the will The for than more

Operator

question Please UBS. with comes next go from Your Ingrid ahead. Zhang

Ingrid Zhang

Alex, taking trends. my recent thanks Many have questions Hi. for question. two the Selina, I Megan about

could on about comment we recent is Henan is, and do the little first a us second expect please you impact resurgence share the return cases? to bit please you Many The RevPAR The our flood thanks. possible, the COVID to if with when can of the XXXX level?

Alex Xu

Okay.

-- I didn't didn't I So much for question. get get thank question. the you quite that first so

impact the said Nanjing? You from

Ingrid Zhang

The first, from, recent Yes. from importantly, the yes, outbreak COVID of Henan the impact comp and -- Nanjing. starting COVID flood the cases, resurgence

Alex Xu

COVID COVID those The you. in we the have indicated occasionally think past, COVID. the for I prepared Thank city certain the that Okay. been we've of cases resurgence -- management,

alert have after policies be We to the soon but to our Henan, every immediately the as ourselves. company's in and the crisis hotels flood prepared both from only potential checked saw prepare also newscast, the -- for Henan, not we control we affected quickly as flood

resume the And -- I weeks back will hope our the think our residents. of hotels of so, region, and the local we next the been we other affected in not hosting -- are to local than normal. will for business -- for the have some the And hotels couple for

Nanjing the With the same COVID, thing.

the as hotels in or will be our government the COVID of of hotel. the by being Some process taken

probably terms is by be think income by of that's, Nanjing. small number good the none number. people guests to our very broad that. get with in still offset going our -- a I of of think, And impact get in is A terms of employees thing in and and resurgence, so, relatively the But none impacted impacted revenue and speaking it's that I very, compared the

So we a think taking from the strong to very, measure the crisis spreading. government prevent is very

back the will very will and business like in a and ago And that's weeks, controlled period. couple months normal. confident just go then, two three to So time Guangzhou, that are we crisis of to typically, be

has very effective China and think that I strong mitigation and control policy. very a COVID

-- As having soon impact get getting person as often. and they a quarantine identified, stay policy, be will potential every people that stay-home tracked a

do not -- we think not so, on we a major impact this And performance. least, company's do at not we will our -- have do

Selina Yang

RevPAR levels. June, that positive So second our to year of if quarter very beginning I we of me answer third XXXX from XXXX. we question. Especially the the with mean, to same July if allow level in compare your increased Even with observed April, turn by X% since XXXX. RevPAR the now, please Actually, keeps to in began RevPAR our the still level almost compare And RevPAR our the we the -- the here of XXXX. performed our in of May,

Operator

next Your Sachs. Goldman Cheung Please with Simon from comes question ahead. go

Simon Cheung

question Thanks for also the Hi, everyone. and presentation. taking my

dilutive you a consultant. you the thirdly, about And also. the the to questions give suppose breakdown the sense And because about very a is three if helpful. mentioned then, between you I to And numbers? more your on particularly as franchisee, I have sense just One wanted to give you I and would a would it question quarter, ramp add think then, and L&O take that us here. the about Alex, on, between some be just up. project can as, going the sense us EBITDA the hotels full-year XXX hiring you Can L&O, second get the perhaps mentioned you earlier mentioned that's to about margins time franchisees about a be L&O you're that L&O second for adding margins,

elsewhere. listing see the can You

Thank are consideration if here? can with Just to you. wondering list are conclusion? what anything of you share the Or whether were you key the it some elsewhere, what

Selina Yang

Okay.

more first information. with me the for question, please, detailed share So allow you to

number margin the -- be add we Only are for question we we that's them That are XXX and have the plan, hotels. most -- -- likely open our will we lease-and-operated way, this for open And opportunity in And hotels more full-year, first the and still, second franchised the And EBITDA and XX%. recovered managed the year. the only more them normally, can EBITDA that our For target second the new hotels and to position margin L&O hotels. my than will the of was this year. XXX, to above to of than between better quarter. in will quarter, almost XX%, hotels so they opportunity means approaching here, observe was catch is strategic

Alex Xu

to question, to the and we extent Simon, hard able to And made. that that our you. report progress -- the report the consultants And the we I'm really that's being to -- working are third will you

Operator

Selina closing would I This concludes question-and-answer for now conference remarks. back any session. to our like turn to the

Selina Yang

Thank you, Operator.

Operator

have question. We another

Your Don China Resistance. Lau next ahead. question comes Please with from go

Don Lau

Can management. me? Hi, you hear

Alex Xu

Yes.

Don Lau

for my question. I Hi. just have Hi. two questions. Thanks taking

first That's for second investment? see is growth question, year. so that doing for like XX% line, L&O return to I -- the like top the on have so this the So the our or what's hotels, return first do first like us the looking XX% what's That's we're an What's target -- IRR threshold the for it's basically, project the L&O And we -- for? for we question. for what's like the the one. are to

you. other assume X% of the hotel, numbers that XX% is it the hotel like RevPAR is So of and coming from growth improvement? can Thank I the coming from

Alex Xu

three less be investment than our and Thanks. right? payback hotel cost years due rent, across roughly Okay. moment, four cost at targeting leased-and-operated the improvement higher we'll payback criteria to really still -- higher is be Don, board, But period. to we higher about prefer The and the period. -- this

criteria. So in the hotels, L&O investment one threshold by making that's that's our

in hub. marketing those transportation in we high-impact, is building have second attracting sales TOD make area, that's helping team The instance, by that and the to sales hotels, areas is for marketing, more and criteria those really investments

to more us more members. brand also attracting gain awareness And so, helping and

So are the those key factors.

XX% XX% XXX. XXXX over of to target growth quarter's are XX% terms the loss the above because see -- already hotels which contribute we contribution the be its then, -- the XX and the pre-COVID of the by only XX% XXXX, in to XX% hotel -- F&M more number. XXX about because the So hotels you And F&M than we've been F&M from also over primarily we will here, to have think will that we recovered RevPAR of revenue can I from growing to first by level. hotels to XXX little the pre-COVID close revenue impacted numbers mentioned to pipeline, a And in lower will

they're of why that's down. the so, And math

any? you. And have do you Selina, so, thank

Selina Yang

Yes. more Maybe share on the I detail information. can

Our added F&M XX% of L&O revenue XX% forecast with existing to our all and among L&O also remaining compare from if XXXX, hotels new we increase of them, about the contribution from our hotels. our XX% coming hotels year and

nothing in for range or higher the RevPAR year, due Otherwise, and our the if the of special. hotels resurgency, minus So the of current a maybe in will to COVID-XX, in level X% And I going full to of everything remaining be bit smooth, our the contribution XXXX increase RevPAR COVID-XX previous you. the the the than of the mean terms coming XXXX. number of the positive even and increased. little to X% forecast Thank RevPAR, recovered same from

Operator

Hein [ph] Gerry from Your next with comes ahead. WGI. Please question go

Unidentified Analyst

all-time recently any hit especially two debt need net to on of about the questions. an had quick share past. very price I over the relative One is low, buyback, debt through the have your and you the what shares shareholder Can the of now? is either balance talk And is? has just returns the $XXX short-term especially of share yet modestly, of the to increased then, the dividends where given or million company cash are consideration question you sheet, company gross second Hi. increase

Alex Xu

Okay.

Gerry, want these the the experience mainly continue mentioned drawdown growth, future facilities. bank we year their banking are because using or me for next may we the good by we -- The maintaining facilities, good that our you and accelerated to the those speed, occasionally relationships so relationships and Let sure to questions. Selina thank and take have banking questions. for make

even that's the drawing down we have for though on bank sheet. So reason cash balance the occasionally primarily facility, the

of remain In the terms believe. that sound we very company to be occasionally, the fundamentals have price, of the different share second, we market solid and but understand sentiments

will that the fundamental eventually what -- And will be confident we I the are share reflect so, very that doing. much price company's we'll think, of

those directors board the to of the board decides any to meeting shareholder terms have you and to our will we'll In if discuss situation, whether of with we -- returns of action. various the the and about a directors report programs, take

Operator

now the question-and-answer to over like turn remarks. back our I any Selina concludes would session. conference This to closing Instructions]. for [Operator

Selina Yang

thank GreenTree team, In closing, Operator. we you, Thank the of entire call. on interest and management participation behalf for your you all in today's

If please plans have us. contact all. reach you us, or information require Thank further any to you

Alex Xu

Thank you.

Operator

concluded. for attending now Thank today's The you conference presentation. is

disconnect. now may You

GreenTree Hospitality (GHG) 31 Jul 212021 Q1 Earnings call transcript