Home > > GreenTree total revenues grow 21.4% to $137.4 million in 2018

GreenTree total revenues grow 21.4% to $137.4 million in 2018

03/14/2019| 7:56:10 PM| 中文

In 2018, ADR was RMB164, an increase of 4.5% year-over-year; occupancy rate was 82.1%, a decrease of 0.5% year-over-year; RevPAR was RMB135, representing a 3.8% year-over-year increase.

GreenTree Hospitality Group, a leading franchised hotel operator in China, announced its unaudited financial results for the fourth quarter and full year ended December 31, 2018.

Highlights

A total of 2,757 hotels with 221,529 hotel rooms were in operation as of December 31, 2018, compared to 2,558 hotels and 209,463 hotel rooms as of September 30, 2018, and compared to 2,289 hotels and 190,807 hotel rooms as of December 31, 2017.

Total revenues increased by 20.8% from the fourth quarter of 2017 to RMB249.9 million(US$36.3 million) for the fourth quarter of 2018. Total revenues increased 21.4% year-over-year to RMB945.0 million (US$137.4 million) for the full year 2018.

Adjusted EBITDA (non-GAAP) increased 35.2% from the fourth quarter of 2017 to RMB160.1 million (US$23.3 million) for the fourth quarter of 2018. Adjusted EBITDA (non-GAAP) increased 30.5% year-over-year to RMB609.7 million (US$88.7 million) for the full year 2018.

Net income was RMB53.8 million (US$7.8 million) for the fourth quarter of 2018. Net income increased 38.1% from the same quarter of 2017 to RMB393.6 million (US$57.2 million) for the full year 2018.

Core net income (non-GAAP) increased by 33.4% from the fourth quarter of 2017 to RMB115.9 million (US$16.9 million) for the fourth quarter of 2018. Core net income (non-GAAP) increased 31.8% year-over-year to RMB445.3 million (US$64.8 million)  for the full year 2018.

Fourth Quarter of 2018 Operational Highlights

As of December 31, 2018, GreenTree had 29 leased-and-operated ("L&O") hotels and 2,728 franchised-and-managed ("F&M") hotels in operation in 290 cities across China, compared to 30 L&O hotels and 2,528 F&M hotels in operation in 278 cities as of September 30, 2018, compared to 26 L&O hotels and 2,263 F&M hotels in operation in 263 cities as of December 31, 2017. The geographical coverage of cities grew by 27, with a year-over-year increase of 10.3%.

The Company opened 224 hotels of which all are F&M hotels, 28 in the mid-to-up-scale segment, 86 in the mid-scale segment and 110 in the economy segment. Of the hotels opened, 20 hotels were in Tier 1 cities, 49 in Tier 2 cities and the remaining 155 hotels in other cities in China, while the Company closed a total of 25 hotels in the quarter.

As of December 31, 2018, the Company had a strong pipeline with a total of 430 hotels contracted for or under development.

The average daily room rate, or ADR, for all hotels in operation, was RMB164 in the fourth quarter of 2018, an increase of 3.8% from the same quarter of 2017.

The occupancy rate for all hotels in operation was 80.4% in the fourth quarter of 2018, a decrease of 1.0% from the same quarter of 2017.

The revenue per available room, or RevPAR, which is calculated by multiplying our hotels' ADR by its occupancy rate, was RMB132 in the fourth quarter of 2018, representing a 2.3% increase from the same quarter of 2017.

Operational Highlights for the Full Year 2018

For the full year 2018, the Company opened 554 hotels, of which 553 are F&M hotels and one L&O hotel, 60 in the mid-to-up-scale segment, 271 in the mid-scale segment and 223 in the economy segment. Of the hotels opened, 47 hotels were in Tier 1 cities, 121 in Tier 2 cities and the remaining 386 hotels in other cities in China, while the Company closed a total of 86 F&M hotels and one L&O hotel in this year.

The average daily room rate, or ADR, for all hotels in operation, was RMB164 for the full year 2018, an increase of 4.5% year over year.

The occupancy rate for all hotels in operation was 82.1% for the full year 2018, a decrease of 0.5% year over year.

The revenue per available room, or RevPAR, which is calculated by multiplying our hotels' ADR by its occupancy rate, was RMB135 for the full year 2018, representing a 3.8% year-over-year increase.

The Company sold approximately 95.0% of its room nights through its direct sales channels, including its individual loyal members and corporate members, while online travel agencies, or OTAs, only contributed approximately 5.0%.

The Company added one more brand called Wumian in the mid-scale segment during the third quarter. Wumian aims to provide a comfortable, intimate, simple and stylish space to business travelers for "a deep sleep" experience.

The Company started its apartment business during the second half of the year and opened one hotel in 2018.

Revenue

Total revenues for the fourth quarter of 2018 were RMB249.9 million (US$36.3 million), representing a 20.8% increase over the fourth quarter of 2017. The increase in the fourth quarter of 2018 was primarily attributable to the 199 F&M hotels net addition to our network during this quarter, the addition of a new L&O hotel and the conversion of three F&M to L&O hotels during last quarter, improved RevPAR for both F&M and L&O hotels as well as membership growth; and was partially offset by the renovation of six L&O hotels since last quarter and the conversion of one L&O to an F&M hotel during this quarter.

Total revenues for the full year 2018 were RMB945.0 million (US$137.4 million), representing a 21.4% increase over the full year 2017. The year-over-year increase was primarily attributable to RevPAR growth of 3.8%, and the 468 hotels net addition, compared to 325 last year, as well as membership growth. The membership fee was divided into L&O and F&M revenues.

Total revenues from leased-and-operated hotels for the fourth quarter of 2018 were RMB56.8 million (US$8.3 million), representing a 6.1% increase from the same quarter of 2017.

Total revenues from leased-and-operated hotels for the full year 2018 were RMB213.2 million(US$31.0 million), representing a 10.1% year-over-year increase.

Total revenues from franchised-and-managed hotels for the fourth quarter of 2018 were RMB193.0 million (US$28.1 million), representing a 26.0% increase from the same quarter of 2017.

Total revenues from franchised-and-managed hotels for the full year 2018 were RMB731.8 million(US$106.4 million), representing a 25.2% year-over-year increase.

Gross profit for the fourth quarter of 2018 was RMB175.8 million (US$25.6 million), representing an increase of 19.0% from the same quarter of 2017. Gross profit for the full year 2018 was RMB664.1 million (US$96.6 million), representing a year-over-year increase of 22.0%.

Net income for the fourth quarter of 2018 was RMB53.8 million (US$7.8 million). Excluding the one-time grant of GTI's shares to certain of our directors in the fourth quarter of 2017, net income in the quarter increased by 91.4%, compared to the same quarter of 2017. Net income for the full year 2018 was RMB393.6 million (US$57.2 million). Excluding the one-time grant of GTI's shares to certain of our directors in the fourth quarter of 2017, net income for the full year increased by 21.8% year over year.

Guidance

For the full year 2019, the Company expects growth in total revenues of 20-25% from 2018.

The guidance set forth above reflects the Company's current and preliminary view based on our estimates, may not be indicative of our financial results for the full year ended December 31, 2019 and is subject to change.

TAGS: GreenTree Hospitality | hotel | financial statement
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