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    Lewen Liu • China Securities

    Lewen Liu's questions to GreenTree Hospitality Group Ltd (GHG) leadership

    Lewen Liu's questions to GreenTree Hospitality Group Ltd (GHG) leadership • Q3 2024

    Question

    Lewen Liu from China Securities asked about the company's bargaining power relative to Online Travel Agencies (OTAs) given their rapid growth, and requested more details on a new hotel project in Guizhou.

    Answer

    Executive Alex Xu responded that the growth of OTAs is a natural part of the industry's digitalization, primarily taking share from offline channels. He stated the company is working closely with reputable OTAs to create a mutually profitable 'win-win' ecosystem. Regarding the Guizhou project, Mr. Xu confirmed they are partnering with the local government to reposition and reopen a nonperforming 4-5 star hotel, viewing it as a significant opportunity to create a showcase asset.

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    Lewen Liu's questions to GreenTree Hospitality Group Ltd (GHG) leadership • Q2 2024

    Question

    Lewen Liu from China Securities asked about the demand trends, specifically the difference between business and leisure travel. Liu also questioned if there was a performance disparity in Q2 between hotels in first and second-tier cities versus those in lower-tier cities.

    Answer

    Executive Alex Xu responded that there is a clear trend of more leisure travel than business travel, with higher demand in third-tier cities and resort areas, a trend expected to continue. Regarding city-tier performance, Xu noted that first-tier cities saw the largest RevPAR drop (12.5%), followed by second-tier (11.7%), while third-tier cities were most resilient with only a 9% reduction, attributing this to a pullback in business and government travel from last year's highs.

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