Frank Ma's questions to GreenTree Hospitality Group Ltd (GHG) leadership • Q4 2024
Question
Frank Ma of Qixin Capital asked for an overview of the 2025 hotel business strategy, focusing on the progress of upgrading older hotels and the rationale for closing numerous Leased & Operated (L&O) properties. He also followed up with a question about progress on initiatives to increase the stock's trading liquidity.
Answer
Executive Alex Xu detailed the 2025 strategy, which includes opening 480 new hotels and completing the upgrade of 700-800 older hotels by summer 2026. He explained that L&O hotel closures are strategic, occurring as leases expire in non-ideal locations to focus resources on the Franchised & Managed segment. Regarding liquidity, Xu mentioned a pending reverse merger and a focus on strong operational performance to build shareholder confidence.