Page 1

GreenTree Hospitality Group Ltd. Reports Second Quarter 2021 Financial Results • Total revenues increased 60.7 % year - over - year to RMB347.1million ( US $ 53.8 million ) [ [ 1 ] ] • Income from operations increased 42.5 % year - over - year to RMB89.3 million ( US $ 13.8 million ) [ 1 ] Adjusted EBITDA ( non - GAAP ) [ 2 ] increased 44.0 % year - over - year to RMB111.2 million ( US $ 17.2 million ) [ 1 ] • Core net income ( non - GAAP ) [ 3 ] increased 5.7 % year - over - year to RMB78.9 million ( US $ 12.2 million ) [ 1 ] SHANGHAI , Nov. 15 , 2021 / PRNewswire / -- GreenTree Hospitality Group Ltd. ( NYSE : GHG ) ( " GreenTree " , the " Company " , " we " , " us " and " our " ) , a leading hospitality management group in China , today announced its unaudited financial results for the second quarter of 2021 . Second Quarter of 2021 Operational Highlights • A total of 4,542 hotels with 328,773 hotel rooms were in operation as of June 30 , 2021 , compared to 4,464 hotels and 323,648 hotel rooms as of March 31 , 2021 . • As of June 30 , 2021 , the Company had 63 leased - and - operated ( " L & O " ) hotels and 4,479 franchised - and - managed ( " F & M " ) hotels in operation in 358 cities across China , compared to 35 L & O hotels and 4,029 F & M hotels in operation in 342 cities as of June 30 , 2020. The geographic coverage increased by 4.7 % year over year . • During the quarter , the Company opened 201 hotels , an increase of 90 compared to 111 hotels in the second quarter of 2020. Two of those hotels were in the luxury segment , 43 in the mid - to - up - scale segment , 137 in the mid - scale segment , and 19 in the economy segment . Geographically speaking , 10 hotels were in Tier 1 cities [ 3 ] , 49 in Tier 2 cities and the remaining 142 in Tier 3 and lower cities in China . • As of June 30 , 2021 , the Company had a pipeline of 1,271 hotels contracted for or under development , among which 56 hotels were in the luxury hotel segment , 300 in the mid - to - up - scale segment , 506 in the mid - scale segment , and 409 in the economy segment . • The average daily room rate , or ADR , for all hotels in operation , was RMB 171 , an increase of 20.2 % from RMB142 in the second quarter of 2020 , and a 0.8 % decrease compared with RMB172 in the pre - COVID - 19 second quarter of 2019 . • The occupancy rate , or OCC for all hotels in operation was 78.6 % , an increase of 15.2 % compared with 63.4 % in the second quarter of 2020 , and a 2.5 % decrease compared with 81.1 % in the pre - COVID - 19 second quarter of 2019 . • The revenue per available room , or RevPAR , which is calculated by multiplying our hotels ' ADR by its occupancy rate , was RMB 134 , a 49.0 % year - over - year increase , and a 3.8 % decrease compared with RMB139 in the pre - COVID - 19 second quarter of 2019 . As of June 30 , 2021 , the Company's loyalty program had more than 62 million individual members and more than 1,760,000 corporate members , compared to over 59 million individual members and approximately 1,710,000 corporate members respectively as of March 31 , 2021. The Company sold approximately 91.1 % of room nights directly during the second quarter 2021 . " With the extensive contributions of every franchisee and members of our staff , our Q2 financials made substantial improvements , " said Mr. Alex Xu , Chair and Chief Executive Officer of Greentree . " Although the new waves of COVID - 19 outbreaks have somewhat dampened the recovery and had a negative impact in the affected regions , we have seen optimistic signs of recovery in domestic tourism and business travel , especially during the Tomb - Sweeping Day and the Labor Day Festival . During the quarter , we accelerated our expansion into the mid - range and high - end markets in central , southeast and southwest China . We opened 20 L & O hotels and finished the quarter . Unlike previous years , we were able to secure choice locations at economically attractive prices . All these L & O hotels are situated within popular transportation hubs , central business districts , or government centers . We believe that they will act as anchor hotels and will attract new franchisees to our Company . While improving our own services , we have also been developing a cloud - based IT infrastructure that secures internal and personal data in real time . We are the first to have moved all systems to the Cloud , and we are benefiting from higher operating efficiency and stability . Thanks to this new development , I believe that in the near future , our operations and performance will reach new heights . Once again , I would like to thank our dedicated teams , franchisees , and shareholders for their continuous support over the years . Second Quarter of 2021 Financial Results June 30 , 2020 RMB Quarter Ended June 30 , 2021 RMB June 30 , 2021 US $ 18,102,743 Revenues Leased - and - operated hotels Franchised - and - managed hotels others Total revenues 50,337,339 158,534,095 7,118,530 215,989,964 Revenues Leased - and - operated hotels others Total revenues June 30 , 2020 RMB 84,137,483 Franchised - and - managed hotels 276,197,197 116,882,174 217,656,936 12,517,770 347,056,880 Six Months Ended June 30 , 2021 RMB 172,995,482 395,606,563 33,710,767 1,938,756 53,752,266 June 30 , 2021 US $ 26,793,588 13,051,275 373,385,955 19,667,293 588,269,338 61,271,654 3,046,076 91,111,318 Total revenues were RMB347.1 million ( US $ 53.8 million ) [ 1 ] , a 60.7 % year - over - year increase . The increase was primarily due to the sustained recovery in hotel operations from the impact of COVID - 19 and our newly opened L & O hotels . Compared with the pre - COVID - 19 second quarter of 2019 , total revenues increased by 26.2 % . Total revenues for the first half of 2021 were RMB 588.3 million ( US $ 91.1 million ) [ 1 ] , representing a 57.5 % year - over - year increase . Total revenues from leased - and - operated hotels were RMB116.9 million ( US $ 18.1 million ) [ 1 ] , a 132.2 % year - over - year increase . The increase was primarily due to the 98.7 % year - over - year increase in L & O hotels ' RevPAR and revenues from the 30 L & O hotels opened since the third quarter of 2020. The revenue increase was partially offset by the closure of 2 L & O hotels over the same period . Total revenues from L & O hotels for the first half of 2021 were RMB173.0 million ( US $ 26.8 million ) [ 1 ] , representing a 105.6 % year - over - year increase . Total revenues from franchised - and - managed hotels were RMB217.7 million ( US $ 33.7 million ) [ 1 ] , a 37.3 % year - over - year increase . Initial franchise fees increased by 47.3 % year - over - year , mainly attributable to the gross opening of 181 F & M hotels and the closed F & M hotels . Recurring franchisee management fees and others increased 36.4 % year - over - year primarily due to the 47.9 % increase in RevPAR and the 11.2 % increase in the number of F & M hotels , and was offset by the fee waiver to franchisees related to newly acquired hotels . Total revenues from F & M hotels for the first half of 2021 were RMB395.6 million ( US $ 61.3 million ) [ 1 ] , representing a 43.2 % year - over - year increase .