Frank Ma's questions to GreenTree Hospitality Group (GHG) leadership • Q4 2024
Question
Frank Ma of Qixin Capital inquired about the 2025 hotel business strategy, progress on hotel upgrades, the rationale for closing Leased & Operated (L&O) hotels, and updates on initiatives to improve share liquidity.
Answer
Executive Alex Xu detailed the 2025 strategy, which includes opening 480 new hotels, completing the upgrade of 700-800 older hotels by summer 2026, and improving management efficiency. He explained that L&O hotel closures are driven by expired leases in non-ideal locations, allowing a strategic shift to Tier 1 flagship and Franchised & Managed properties. Regarding share liquidity, Xu mentioned a pending reverse merger and a focus on strong operational performance and stable dividends to boost shareholder confidence, with other financing options under review.