GreenTree Hospitality Group Ltd.

For Q4 2024, total revenue was RMB 304 million, down 18.2% year over year. Hotel RevPAR was RMB 116, down 9.6%, and restaurant ADS fell 16.8%. Hotel revenue was RMB 240.2 million, down 17.1%, while restaurant revenue was RMB 65.1 million, down 25.8%. Net income was negative RMB 72.8 million, pressured by goodwill/trademark impairments, asset impairment, and loan loss provisions; adjusted net income was RMB 77.3 million, up 26.8%, with a 25.4% margin. Core net income was RMB 57.8 million, down 22.3%, and adjusted EBITDA was RMB 71.5 million, down 38.3%, with a 23.5% margin. Cash from operations was RMB 74.2 million, versus negative RMB 13.5 million a year ago. For 2025, management expects total revenues of its Organic Hotel business to be flat versus 2024, plans to open approximately 480 hotels and close about 200 for a net addition of 280 hotels, and expects to open 60 new restaurants.

Alex Xu framed 2024 as a transition year hurt by 12 leased-and-operated hotel closures, lower RevPAR, and restaurant optimization, but emphasized active portfolio renewal. He said the company is accelerating new hotel openings, upgrading older assets, and shifting away from lower-tier leased hotels toward franchised/managed and flagship properties. On restaurants, he said the business is now more focused on franchised/managed and street stores, with smaller, more efficient formats and a push toward profitable growth.

Selina Yang detailed that hotel revenue fell to RMB 240.2 million, with L&O revenue at RMB 91 million and F&M revenue at RMB 148.2 million; hotel operating costs and expenses fell 10.5% to RMB 225.7 million. She noted hotel cash from operations rose to RMB 68.8 million from RMB 18.4 million, despite lower profitability, and group cash from operations increased to RMB 74.2 million from negative RMB 13.5 million. She also said total cash and cash equivalents, restricted cash, short-term investments, equity securities investments, and time deposits were RMB 1,839.1 million at December 31, 2024, down from RMB 1,883.9 million at September 30, 2024, mainly due to dividend distribution and property investment.

Analysts focused on the 2025 RevPAR outlook, hotel portfolio strategy, restaurant format mix, and share liquidity. Management said it expects RevPAR to be flat for 2025 after a roughly 5% decline in Q1 so far, with second and third quarters expected to recover gradually and leisure demand stronger than business travel. On hotels, management said about 700 to 800 older properties still need upgrading, with completion targeted by summer 2026, and explained that L&O closures are driven by lease expirations and a desire to concentrate resources on franchise/managed and flagship assets. On shares, Alex Xu said the company is pursuing a reverse merger to improve liquidity, though timing has taken longer than planned.