Greentree Hospitality ( (GHG) ) has released its Q3 earnings. Here is a breakdown of the information Greentree Hospitality presented to its investors.
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GreenTree Hospitality Group Ltd., a prominent hospitality and restaurant management group in China, operates an extensive network of hotels and restaurants, known for its diverse brand portfolio catering to various segments of the hospitality industry.
In the third quarter of 2024, GreenTree Hospitality reported a significant decrease in total revenues by 22.5% year-over-year to RMB357.0 million (USD50.9 million). This decline was reflected across its hotel and restaurant operations, attributed to strategic closures and market conditions.
Key financial metrics highlight a 15.4% drop in hotel revenues, with the average daily room rate and occupancy rate decreasing by 6% and 13.6% respectively. Restaurant revenues saw a sharper decline of 42%, influenced by a reduction in average daily sales per store. Despite lower operating costs, net income fell to RMB65.2 million, impacted by a foreign exchange loss.
Despite the challenges faced during the third quarter, GreenTree’s outlook remains cautiously optimistic, with the management focusing on growing its pipeline and upgrading its hotel portfolio. The company anticipates a decrease in hotel business revenue by 8% for the full year due to strategic adjustments and market dynamics.
Looking forward, GreenTree aims to leverage ongoing government stimulus measures and adapt to the evolving hospitality landscape, positioning itself for potential recovery and growth in the coming periods.
