- GreenTree Hospitality Group Ltd. (GHG, Financial) reported a 18.2% drop in Q4 2024 revenues to RMB304.5 million (US$41.7 million).
- The company recorded a net loss of RMB72.8 million compared to a profit in the same period last year.
- GreenTree plans to open 480 new hotels in 2025 with a focus on mid-to-upscale segments.
GreenTree Hospitality Group Ltd. (GHG) has announced its financial results for the fourth quarter of 2024, revealing a 18.2% decline in total revenues to RMB304.5 million (US$41.7 million) compared to the same period last year. The company reported a net loss of RMB72.8 million, a significant drop from the RMB8.6 million profit recorded in Q4 2023.
The downturn in revenue was attributed to a decrease in hotel RevPAR, which fell by 9.6% to RMB116, and an occupancy rate that dropped to 68.6% from 72.4%. Furthermore, the average daily room rate decreased by 4.6% to RMB169.
Despite these challenges, GreenTree expanded its hotel portfolio to 4,425 hotels with 321,282 rooms as of the end of 2024. The company has a pipeline of 1,214 hotels under development and plans to accelerate hotel openings, with 480 new locations scheduled for 2025. This expansion will focus on the mid-to-upscale segments to drive future growth.
In the restaurant segment, GreenTree reported a 16.8% reduction in average daily sales, which fell to RMB4,234. The company has been strategically transforming its restaurant business, with franchised and managed stores now making up 90% of its portfolio, up from 78% in the previous year.
Operational improvements are reflected in increased cash from operations, which rose to RMB74.2 million. However, the company continues to face near-term challenges due to significant impairment charges related to strategic business restructuring efforts.
