SHANGHAI, Oct. 8, 2022 /PRNewswire/ — GreenTree Hospitality Group Ltd. (NYSE: GHG) (“GreenTree” or the “Company”), a number one hospitality administration group in China, at the moment introduced sure working knowledge of GreenTree’s organically developed leased-and-operated (“L&O”) and franchised-and-managed (“F&M”) resorts1 for the six months ended June 30, 2022, and business updates on the strategically acquired resorts which might be owned and operated by Argyle Hotel Management (Beijing) Co., Ltd. (“Argyle” or “Argyle Hotel Group”) and Shandong Xinghui Urban Hotel Management Group Co., Ltd. (“Urban” or “Urban Hotel Group”).
Operational Highlights of Organically Developed Hotels for First Half of 2022
- A complete of three,934 organically developed resorts with 296,330 lodge rooms had been in operation as of June 30, 2022, in comparison with 3,859 organically developed resorts with 292,219 lodge rooms as of December 31, 2021.
- As of June 30, 2022, GreenTree had 58 L&O resorts and 3,876 F&M resorts in operation in 351 cities throughout China, in comparison with 53 L&O resorts and 3,676 F&M resorts in operation in 339 cities as of June 30, 2021. GreenTree’s geographic protection elevated by 3.5% 12 months over 12 months.
- During the first half of 2022, GreenTree opened 159 resorts, a lower of 194 in comparison with 353 resorts in the first half of 2021. Of these resorts, 27 had been in the mid-to-up-scale phase, 102 in the mid-scale phase, and 30 in the economy phase. Geographically talking, 13 resorts had been in Tier 1 cities, 35 in Tier 2 cities and the remaining 111 in Tier 3 and decrease cities in China.
- As of June 30, 2022, GreenTree had a pipeline of 812 resorts contracted for or below improvement, amongst which 199 resorts had been in the mid-to-up-scale phase, 427 in the mid-scale phase, and 186 in the economy phase.
- The common each day room charge, or ADR, for GreenTree L&O and F&M resorts in operation, was RMB155 in the first quarter of 2022, a rise of two.7% from RMB151 in the first quarter of 2021. Such ADR was RMB148 in the second quarter of 2022, a 13.4% year-over-year lower.
- The occupancy charge, or OCC, for GreenTree L&O and F&M resorts in operation was 62.1% in the first quarter of 2022, a lower of 4.2% in contrast with 66.3% in the first quarter of 2021. Such OCC was 64.9% in the second quarter of 2022, in contrast with 82.1% in the second quarter of 2021.
- The income per out there room, or RevPAR, which is calculated by multiplying GreenTree L&O and F&M resorts’ ADR by their occupancy charge, was RMB96 in the first quarter of 2022, a 3.8% year-over-year lower. Such RevPAR was RMB96 in the second quarter of 2022, a 31.6% year-over-year lower.
- As of June 30, 2022, GreenTree’s loyalty program had over 74 million particular person members and over 1,905,000 company members, in comparison with over 62 million particular person members and roughly 1,760,000 company members, respectively, as of December 31, 2021. GreenTree bought roughly 91.1% of room nights immediately throughout the first half of 2022.
Additional Business Updates
As beforehand disclosed, GreenTree entered right into a share buy settlement to turn out to be a significant shareholder of Argyle Hotel Group in January 2019. GreenTree accomplished this transaction in April 2019 and started consolidating Argyle’s monetary ends in the Company’s monetary statements.
GreenTree at the moment introduced that the Company is in dispute with Mr. Kevin Zhang, the founder, and the minority shareholder of Argyle, as to efficiency of related transaction paperwork and/or compliance with native legal guidelines and rules by Mr. Zhang. Given this dispute, GreenTree’s board of administrators is assessing whether or not the Company can nonetheless keep efficient management over Argyle, and if not, the Company might deconsolidate Argyle, which can impression the Company’s consolidated monetary statements for 2022 or sure interval thereof. Argyle owned and operated 51 resorts as of December 31, 2021 and contributed 2.4% of GreenTree’s whole income in 2021. GreenTree will endeavor to publish its monetary data for the six months ended June 30, 2022 earlier than the finish of 2022.
As beforehand disclosed, GreenTree acquired a controlling curiosity in Urban Hotel Group in November 2019. GreenTree and Urban’s minority shareholder are presently in discussions concerning a proposal for the minority shareholder to repurchase all of the fairness curiosity in Urban presently held by GreenTree (the “Proposed Repurchase”), because of which GreenTree might stop holding any curiosity in Urban Hotel Group. The related events are negotiating transaction paperwork for the Proposed Repurchase, however no definitive settlement has been signed but. There may be no assurance that the Proposed Repurchase will proceed, or that any transaction will probably be entered into or consummated. Urban owned and operated 749 resorts as of December 31, 2021 and contributed 8.8% of GreenTree’s whole income in 2021.
GreenTree Hospitality Group Ltd. (“GreenTree” or the “Company”) (NYSE: GHG) is a number one hospitality administration group in China. As of December 31, 2021, GreenTree had a complete variety of 4,659 resorts. In 2021, HOTELS journal ranked GreenTree Top 11 Ranking amongst 225 largest world lodge teams by way of variety of resorts in its annual HOTELS’ 225. GreenTree was additionally the fourth largest hospitality firm in China in 2021 based mostly on the statistics issued by the China Hospitality Association.
GreenTree has constructed a powerful suite of manufacturers together with its flagship “GreenTree Inns” model because of its long-standing dedication to the hospitality trade in China and constant high quality of its providers, signature lodge designs, broad geographic protection and handy places. GreenTree has additional expanded its model portfolio into mid-to-up-scale and luxurious segments by means of a sequence of strategic investments. By providing numerous manufacturers, by means of its robust membership base, expansive reserving community, superior system administration with average prices, and totally supported by its working departments together with Decoration, Engineering, Purchasing, Operation, IT and Finance, GreenTree goals to maintain nearer relationships with all of its shoppers and companions by offering a model portfolio that options consolation, type and worth.
For extra data on GreenTree, please go to http://ir.998.com
Safe Harbor Statements
This press launch incorporates forward-looking statements made below the “safe harbor” provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. In some circumstances, these forward-looking statements may be recognized by phrases or phrases comparable to “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to,” “confident,” “future,” or different related expressions. GreenTree may make written or oral forward-looking statements in its experiences filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report back to shareholders, in press releases and different written supplies and in oral statements made by its officers, administrators or workers to 3rd events. Any statements that aren’t historic details, together with statements about or based mostly on GreenTree’s present beliefs, expectations, assumptions, estimates and projections about us and our trade, are forward-looking statements that contain recognized and unknown elements, dangers and uncertainties which will trigger our precise outcomes, efficiency or achievements to be materially totally different from these expressed or implied by the forward-looking statements. Such elements and dangers embody, however not restricted to the following: the anticipated closing and the advantages of the Proposed Acquisition; synergies generated by such acquisition; any anticipated development in the Company’s hospitality business; any anticipated development in the fast service restaurant chains operated by the Target Businesses; and alternatives for additional development; GreenTree’s objectives and development methods; its future business improvement, monetary situation and outcomes of operations; developments in the hospitality and meals and beverage industries in China and globally; competitors in our industries; fluctuations usually financial and business circumstances in China and different areas the place we function; the regulatory setting through which we and our franchisees function; the impression of any additional resurgences of COVID-19 on any of the foregoing; and assumptions underlying or associated to any of the foregoing. You shouldn’t place undue reliance on these forward-looking statements. Further data concerning these and different dangers, uncertainties or elements is included in the Company’s filings with the U.S. Securities and Exchange Commission. All data supplied, together with the forward-looking statements made, on this press launch are present as of the date of the press launch. Except as required by regulation, GreenTree undertakes no obligation to replace any such data or forward-looking statements to mirror occasions or circumstances after the date on which the data is supplied or statements are made, or to mirror the incidence of unanticipated occasions.
Ms. Selina Yang
E-mail: [email protected]
Mr. Allen Wang
E-mail: [email protected]
Mr. Jerry Xu
E-mail: [email protected]
In Hong Kong
Ms. Karen Hui
E-mail: [email protected]
Ms. Linda Bergkamp
Email: [email protected]
1 Organically developed resorts of the Company don’t embody strategically acquired resorts which might be owned and operated by Argyle Hotel Group and Urban Hotel Group.
2 Tier 1 Cities refers to Beijing, Shanghai, Shenzhen and Guangzhou; Tier 2 Cities refers to the 32 main cities, apart from Tier 1 Cities, together with provincial capitals, administrative capitals of autonomous areas, direct-controlled municipalities and different main cities designated as municipalities with impartial planning by the State Council.
SOURCE GreenTree Hospitality Group Ltd.