Sign in

    Betty Du • UBS

    Betty Du's questions to GreenTree Hospitality Group Ltd (GHG) leadership

    Betty Du's questions to GreenTree Hospitality Group Ltd (GHG) leadership • Q3 2024

    Question

    Betty Du from UBS inquired about the forward-looking supply and demand landscape for the hotel sector into 2025 and asked what specific measures the company plans to implement to improve RevPAR over the next one to two years.

    Answer

    Executive Alex Xu acknowledged that intensified competition and new supply have created a downward pressure on industry-wide RevPAR. He expressed confidence that the company's performance will improve in 2025, driven by a pipeline of new, more competitive hotels, particularly in Tier 2 cities. Mr. Xu highlighted that the company's focus on Tier 2 and 3 cities provides higher profit margins and resilience against market fluctuations, which will be key to withstanding pressure and improving RevPAR.

    Ask Fintool Equity Research AI

    Betty Du's questions to GreenTree Hospitality Group Ltd (GHG) leadership • Q1 2024

    Question

    Betty Du from UBS asked about the impact of the consumer downtrading trend on hotel RevPAR and whether there were performance differences across the economy, mid-scale, and upper mid-scale segments.

    Answer

    Executive Alex Xu explained that the Q2 RevPAR was trending down at a rate similar to Q1, attributing this primarily to a large number of hotels undergoing upgrades, which temporarily impacts operations and revenue recognition. Executive Yiping Yang added that on a year-over-year basis, the mid-scale segment was performing best, followed by the mid-to-upscale and then economy segments, with the latter's large portfolio share affecting overall performance.

    Ask Fintool Equity Research AI