GreenTree Hospitality Group Ltd (GHG) 2023 Q4 法說會逐字稿

Hello, ladies and gentlemen, thank you for standing by for GreenTree fourth quarter and fiscal year of 2023 earnings conference call. (Operator Instructions)

大家好，女士們、先生們，感謝大家出席格林豪泰第四季及2023財年財報電話會議。（操作員說明）

I would now like to hand the meeting over to your host today, Rene Vanguestaine with Christensen. Please go ahead.

現在我想將會議交給今天的東道主雷內·範格斯坦和克里斯滕森。請繼續。

Thank you, Darcy. Hello, everyone, and thank you for joining us. GreenTree's earnings release will be distributed shortly, and will be available on our IR website at ir.998.com as well as on PR Newswire services. We have also posted a PowerPoint presentation that accompanies our comments to the same IR website.

謝謝你，達西。大家好，感謝您加入我們。格林豪泰的財報將於近期發布，並將在我們的投資者關係網站 ir.998.com 以及美通社服務上發布。我們也在同一個 IR 網站上發布了一個 PowerPoint 演示文稿，其中附有我們的評論。

On the call from GreenTree are Mr. Alex Xu, Chairman and Chief Executive Officer; Ms. Selina Yang, Chief Financial Officer; Ms. Megan Huang, Vice President of Sales and Marketing; and Ms. [Ellen Zhao], Financial Director.

格林豪泰董事長兼執行長徐先生接聽了電話；楊女士，財務長； Megan Huang女士，銷售及行銷副總裁；財務總監[Ellen Zhu]女士。

Mr. Xu will present the company's performance overview of the fourth quarter of 2023, followed by Mr. Zhou, who will discuss restaurant business operations. And Ms. Yang and Mr. Zhou will then discuss financials and guidance. They will be available to answer your questions during the Q&A session which will follow.

徐先生將介紹公司2023年第四季的業績概覽，隨後周先生將討論餐廳業務運作。楊女士和周先生隨後將討論財務和指導問題。他們將在隨後的問答環節回答您的問題。

Before we begin, I'd like to remind you that this conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended and as defined in the US Private Securities Litigation Reform Act of 1995.

在我們開始之前，我想提醒您，本次電話會議包含經修訂的 1934 年證券交易法第 21E 條含義以及 1995 年美國私人證券訴訟改革法案中定義的前瞻性陳述。

These forward-looking statements can be identified by terminology such as may, will, expect, anticipate and future intends, plans, beliefs, estimates, continue, target, is or are, likely to, going forward, a confident outlook and similar statements. Any statements that are not historical facts, including statements about the company and its industry are forward-looking statements.

這些前瞻性陳述可以透過諸如可能、將、預期、預期和未來打算、計劃、信念、估計、繼續、目標、是或可能、未來、自信的前景和類似陳述等術語來識別。任何非歷史事實的陳述，包括有關公司及其行業的陳述，均為前瞻性陳述。

Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known and unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance or achievements to differ materially from those in the forward-looking statements. You should not place undue reliance on these forward-looking statements.

此類聲明是基於管理層當前的預期以及當前的市場和經營狀況，並涉及涉及已知和未知風險、不確定性和其他因素的事件，所有這些都難以預測，並且其中許多因素超出了公司的控制範圍，這可能會導致公司的實際業績、業績或成就與前瞻性陳述中的結果、業績或成就有重大差異。您不應過度依賴這些前瞻性陳述。

Further information regarding these and other risks uncertainties or factors is included in the company's filings with the US Securities and Exchange Commission. All information provided, including the forward-looking statements made during this conference call are current as of today's date.

有關這些和其他風險不確定性或因素的更多資​​訊包含在該公司向美國證券交易委員會提交的文件中。提供的所有信息，包括本次電話會議期間所做的前瞻性陳述，均為截至今日的最新信息。

The company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise except as required under applicable law.

除適用法律要求外，本公司不承擔因新資訊、未來事件或其他原因而更新任何前瞻性聲明的義務。

It is now my pleasure to introduce our Chairman and Chief Executive Officer, Mr. Alex Xu. Mr. Xu, please go ahead.

現在我很高興向大家介紹我們的董事長兼執行長徐先生。徐先生，請講。

Thanks, Rene, and hello, everyone, and thank you for joining us today. We had a good and stable fourth quarter in our hotel business and continued to make progress in restructuring our restaurant business. Hotel RevPAR increased 23.3% year-over-year reaching 110% of its fourth quarter of 2019 level during the October national holiday, restaurant average daily sales were up 14% year-over-year.

謝謝雷內，大家好，謝謝你們今天加入我們。第四季飯店業務表現良好、穩定，餐飲業務重組持續取得進展。十月國慶日期間，飯店每間客房營收年增 23.3%，達到 2019 年第四季水準的 110%，餐廳日均銷售額年增 14%。

We continue to streamline our hotel and restaurant operations to increase efficiency and quality. We are working on optimizing our products and service standard to further improve our brand identity for each of our hotel brands.

我們繼續簡化酒店和餐廳運營，以提高效率和品質。我們正在努力優化我們的產品和服務標準，以進一步提高我們每個酒店品牌的品牌形象。

In our restaurant business, we are focusing on growing our network of franchisees as we expand the number of street stores while reducing our footprints in shopping malls and supermarkets.

在我們的餐廳業務中，我們在擴大街頭商店數量的同時，專注於發展我們的特許經營商網絡，同時減少在購物中心和超市的足跡。

Now please turn to slide 5. Compared with the fourth quarter of 2022, hotel RevPAR was RMB128, up 23.3% and restaurant ADS was RMB5,433, up 14%. Total revenues were RMB372.2 million, up 3.2%. Hotel revenues reached RMB289.6 million, up 21.7%. The increase in total hotel revenues was primarily due to the continued improvement in RevPAR and the increase in the number of hotels.

現在請翻到投影片 5。與2022年第四季相比，飯店RevPAR為人民幣128元，成長23.3%，餐廳ADS為人民幣5,433元，成長14%。總收入為人民幣3.722億元，成長3.2%。飯店收入達人民幣2.896億元，成長21.7%。酒店總收入的成長主要是由於RevPAR的持續改善和酒店數量的增加。

Income from operations increased to RMB23.1 million with a margin of 6.2%. Adjusted income from operations, excluding other general expenses, which include the provisions for trademarks, especially to due to the acquisition of the restaurant business, loans receivable related to franchisee loans and impairment of assets increased to RMB99.2 million with a margin of 26.7%.

營業收入增至人民幣2,310萬元，利潤率為6.2%。調整後的經營收入，不包括其他一般費用，其中包括商標撥備，特別是由於收購餐廳業務、與特許經營商貸款相關的應收貸款和資產減值增加至人民幣9920萬元，利潤率為26.7 % 。

Net income was RMB7.4 million with a margin of 2%. Adjusted EBITDA as non-GAAP was RMB161.3 million, plus up 2.1% with a margin of 31.3%.

淨利為人民幣740萬元，利潤率為2%。以非公認會計準則計算的調整後 EBITDA 為人民幣 1.613 億元，成長 2.1%，利潤率為 31.3%。

Slide 6 shows detailed numbers for total revenue income from operations, net income and adjusted EBITDA. On slide seven, RevPAR was RMB128. At the bottom of the slide, you can see the weekly RevPAR performance in the fourth quarter compared with 2019.

投影片 6 顯示了營運總收入、淨利潤和調整後 EBITDA 的詳細數據。第七張幻燈片上的 RevPAR 為 128 元人民幣。在幻燈片底部，您可以看到第四季度與 2019 年相比的每週 RevPAR 表現。

RevPAR during the October national holiday was 110% of its pre pandemic levels but trended down for the rest of the quarter to the end of the year even compared with 2019.

10 月國慶假期期間的每間可用客房收入 (RevPAR) 為疫情前水準的 110%，但在本季度剩餘時間至年底，即使與 2019 年相比，仍呈下降趨勢。

Slide 8 shows the trend in our quarterly operating performance. In the fourth quarter compared to a year ago, RevPAR for our L&O hotels increased to RMB161. RevPAR for our F&M hotels increased to RMB127. ADE for our hotels increased to RMB241 and ADR for our F&M hotels increased to RMB175. Occupancy at our hotels increased to 72.5% and at our F&M hotels increased to 66.9%.

投影片 8 顯示了我們季度營運業績的趨勢。與去年同期相比，第四季我們的 L&O 酒店的 RevPAR 增至 161 元人民幣。我們的 F&M 酒店的 RevPAR 增至 127 元人民幣。我們飯店的 ADE 增加至 241 元，F&M 飯店的 ADR 增加至 175 元人民幣。我們飯店的入住率增至 72.5%，F&M 飯店入住率增至 66.9%。

Slide 9 highlights the growth in our membership programs, which accounted for most of our direct sales, individual memberships grow to 91 million, up from 78 million a year ago. And corporate memberships grow to 2.05 million. That's up from 1.94 million a year ago. Slide 10 shows the operating performance of restaurant with ADS up 14% year-over-year at RMB5,433, but down sequentially due to seasonality starting.

幻燈片 9 強調了我們的會員計劃的增長，該計劃占我們直接銷售的大部分，個人會員數量從一年前的 7800 萬增加到 9100 萬。企業會員數增至 205 萬。比一年前的 194 萬增加。幻燈片10顯示，擁有ADS的餐廳經營業績年增14%至人民幣5,433元，但因季節性開始而較上季下降。

With slide 12, our review our strategic execution across our businesses. In our hotel business, we further expanded in the mid to upscale segment and increased our penetration in Tier 3 cities and the lower cities.

在投影片 12 中，我們回顧了整個業務的策略執行情況。飯店業務進一步拓展中高端市場，並增加對三線城市及以下城市的滲透率。

As you can see on slide 13, we continue to grow our mid to upscale segment with 474 hotels, just 11.2% of our total portfolio at the end of the quarter. While the mid-scale segment remains the core of our hotel business with the 17.2%, we continue our expansion into the higher end segments. The economic segment remained stable at 18.6%.

正如您在投影片 13 中看到的那樣，我們繼續擴大中高檔細分市場，擁有 474 家飯店，截至本季末僅占我們總投資組合的 11.2%。雖然中檔細分市場仍然是我們酒店業務的核心（佔 17.2%），但我們繼續向高端細分市場擴張。經濟部分維持穩定在18.6%。

Please turn to slide 14. We continued to expand in Tier 3 and lower cities and 73.5% of our hotels in our current pipelines are in such cities, and we will further capitalize on the substantial opportunities in such locations.

請翻到投影片 14。我們繼續在三線及以下城市擴張，我們目前正在建造酒店的73.5%位於這些城市，我們將進一步利用這些地區的大量機會。

On slide 15, we continued to focus on increased profitability in our restaurant business, which closed unprofitable stores, mostly in shopping malls and supermarkets, increased the proportion of franchised and managed restaurants and expanded the number of street stores.

在幻燈片15中，我們繼續專注於提高餐廳業務的盈利能力，關閉了不盈利的商店，主要位於購物中心和超市，增加了特許經營和管理餐廳的比例，並擴大了街頭商店的數量。

Next, Selina Yang and Ellen Zhao will review operating and financial highlights.

接下來，Selina Yang 和 Ellen Zhao 將回顧營運和財務亮點。

Thank you, Alex. Please turn to slide 17. In the fourth quarter, total revenues increased by 3.2% year-over-year to RMB372.2 million. The increase was primary due to continued improvement in RevPAR and increase in the number of hotels.

謝謝你，亞歷克斯。請翻至投影片 17。第四季總營收年增3.2%至人民幣3.722億元。這一增長的主要原因是每間可用客房收入的持續改善和酒店數量的增加。

Total hotel revenues increased 21.7% to RMB289.6 million compared to the fourth quarter of 2022. Total revenues for F&M hotels were RMB162.9 million, up 6.5% year-over-year, while total revenues from L&O hotels increased by 48.9% to RMB125.5 million.

與2022年第四季相比，飯店總收入成長21.7%至人民幣2.896億元。F&M酒店的總收入為人民幣1.629億元，年增6.5%，L&O酒店的總收入增長48.9%至人民幣1.255億元。

On slide 18, total hotel operating costs and expenses increased 9% year-over-year to RMB252.2 million, excluding other general expenses consisting of provisions for trademarks, especially due to acquisition of the restaurant business, loan receivables related to franchisee loans and impairment of assets.

在投影片 18 中，飯店總營運成本和費用年增 9% 至人民幣 2.522 億元，不包括商標撥備等其他一般費用，特別是由於收購餐廳業務、與特許經營商貸款相關的應收貸款和資產減損。

Our total hotel operating costs and expenses increased 3.1% year-over-year. Among the total hotel operating costs, operating costs increased 7.6% to RMB154.6 million compared to the fourth quarter of 2022. The increase was mainly due to higher consumer birth and the higher cost of general managers of franchised-and-managed hotels due to the increase of our F&M hotels and partially offset by lower utility.

我們的酒店總營運成本和費用年增 3.1%。飯店總營運成本中，營運成本較2022年第四季成長7.6%至人民幣1.546億元。這一增長主要是由於消費者出生率的提高以及我們的 F&M 酒店的增加導致特許經營酒店總經理的成本上升，但部分被公用事業的下降所抵消。

Selling and marketing expenses were RMB8.3 million, a year-over-year increase of only 0.9%. G&A expenses were RMB49.7 million, down 12.5% compared with same quarter of 2022. The decrease was mainly due to lower staff related expenses and lower bad debt.

銷售及行銷費用為人民幣830萬元，較去年同期僅成長0.9%。一般及行政費用為 4,970 萬元，較 2022 年同季下降 12.5%。減少的主要原因是員工相關費用減少和壞帳減少。

Turning to slide 19. Income from hotel operations increased from RMB13.3 million to RMB47.4 million year-over-year. And net income of hotels was RMB21 million compared to RMB7.5 million in the fourth quarter 2022. Adjusted EBITDA increased 82.8% to RMB107.7 million at a core net income increased from RMB47.8 million to RMB61.7 million year over year.

轉到投影片 19。旅館經營收入較去年由人民幣1,330萬元增至人民幣4,740萬元。飯店淨利為人民幣 2,100 萬元，而 2022 年第四季為人民幣 750 萬元。調整後 EBITDA 年增 82.8% 至 1.077 億元，核心淨利從人民幣 4,780 萬元增至 6,170 萬元。

Next, let me turn the call over to Ellen, the Financial Director of our restaurant business.

接下來，讓我把電話轉給我們餐廳業務的財務總監艾倫。

In the fourth quarter, total restaurant revenues for RMB87.7 billion, a 29.2% year-over-year decrease, mainly due to the closure of (technical difficulty)

第四季餐廳總收入為人民幣877億元，年減29.2%，主要是因為餐廳關門所致（技術難度）

Please turn to slide 20. In the fourth quarter, total restaurant revenues were RMB87.7 million, a 29.2% year-over-year decrease, mainly due to the growth of L&O stores and partially by increase in ADS. You can also see the revenue breakdown for F&M restaurants and L&O restaurants.

請翻到投影片 20。第四季度，餐廳總收入為人民幣8,770萬元，較去年同期下降29.2%，主要由於L&O門市的成長以及ADS的增加所致。您也可以查看 F&M 餐廳和 L&O 餐廳的收入細分。

On slide 21, total operating costs and expenses decreased 16.7% year-over-year to RMB118.1 million. You can also observe that down trends in materials costs, personnel costs and the rents.

在投影片 21 中，總營運成本和費用年減 16.7% 至 1.181 億元。您還可以觀察到材料成本、人員成本和租金的下降趨勢。

Turning to slide 22. Loss from restaurant operations was RMB29 million. Net loss was RMB18.2 million. Adjusted EBITDA increased to RMB4 million year-over-year. Net income was RMB21.7 million.

轉到投影片 22。餐廳經營虧損人民幣2,900萬元。淨虧損為人民幣1,820萬元。調整後EBITDA年增至人民幣400萬元。淨利為人民幣2170萬元。

Next, Selina will review the profitability of our Group, please.

接下來請Selina回顧一下我們集團的獲利能力。

Thank you. Please turn to slide 23. Group net income per ADS, that's basic and diluted was RMB0.11. Group core net income per ADS basic and diluted non-GAAP was RMB0.87.

謝謝。請翻至投影片 23。每份美國存託憑證的集團淨利（基本和稀釋後）為人民幣 0.11 元。每股美國存託股基本和稀釋非公認會計原則的集團核心淨利為人民幣0.87元。

Let's now take a look at slide 24. As of December 31, 2023, the company had total cash and cash equivalents, restricted cash, short-term investments, investments in active securities and time deposits of RMB1,337.1 million. That's compared to RMB1,331.4 million as of September 30, 2023.

現在讓我們來看看投影片 24。截至2023年12月31日，本公司的現金及現金等價物、限制性現金、短期投資、活躍證券投資及定期存款總額為人民幣1,337.1百萬元。相比之下，截至 2023 年 9 月 30 日，這一數字為 13.314 億元。

The minor decrease was primary due to investment in property and the repurchase of ordinary shares, partially offset by primary offset by bank loans and repayments from our franchisees.

小幅下降主要是由於房地產投資和普通股回購，部分被銀行貸款和特許經營商還款的主要抵銷所抵消。

Now slide 25. For the year of 2024, we expect total revenues of our organic hotels to grow 7% to 12% year-over-year, and total combined revenues from our restaurants and organic hotel business to grow 3% to 5% year-over-year.

現在投影片 25。到2024年，我們預計有機酒店的總收入將年增7%至12%，餐廳和有機酒店業務的總收入將年增3%至5% 。

This concludes our prepared remarks. Operator, we are now ready to begin the Q&A session.

我們準備好的演講到此結束。接線員，我們現在準備開始問答環節。

Thank you. We will now begin the question-and-answer session. (Operator Instructions)

謝謝。我們現在開始問答環節。（操作員說明）

Dan Xu, Morgan Stanley.

徐丹，摩根士丹利。

Thank you, operator. Good morning, management. Thank you so much for this opportunity to ask the question and congratulations on the fourth quarter result and also good work on narrowing the losses in the restaurant business.

謝謝你，接線生。早安，管理層。非常感謝您給我這個提問的機會，並祝賀第四季度的業績，以及在縮小餐飲業務虧損方面所做的出色工作。

My question is, I actually have not gotten a good time to look at the results in details, but I'm looking at the revenue guidance that Selina just mentioned. I just wanted to check with you for the full year guidance of 2024 of 7% to 12% for hotel business.

我的問題是，我實際上還沒有時間詳細查看結果，但我正在查看 Selina 剛才提到的收入指導。我只是想向您諮詢 2024 年酒店業務的全年指導，即 7% 至 12%。

What are we factoring in terms of our drivers from RevPAR and also drivers from hotel opening? And how is our hotel opening plan for 2024? That's my question. Thank you.

就 RevPAR 的驅動因素以及飯店開業的驅動因素而言，我們要考慮哪些因素？我們的酒店 2024 年開業計劃如何？這就是我的問題。謝謝。

Okay. Thanks, Dan. The 7% to 12% of the hotel revenue up consist of the following factors. We expect continued improvement of the overall RevPAR, but only slightly where is at 2023. So that's around 2% or so the RevPAR growth. The balance of the growth are roughly 10% of the hotel numbers growth because we planned about the detail of the number of hotels opened this year.

好的。謝謝，丹。酒店收入成長7%至12%由以下因素組成。我們預計整體 RevPAR 將持續改善，但與 2023 年相比僅略有改善。因此，RevPAR 成長約為 2% 左右。其餘的增長大約是酒店數量增長的 10%，因為我們計劃了今年開業酒店數量的細節。

We plan to be about 500, Selina, correct me if I'm incorrect in that number. And then also we will have a number of hotels in the transition period that is we have a relatively older portfolio comprised with some of the new starts comparator group.

我們計劃大約 500 人，Selina，如果我的數字不正確，請糾正我。然後，我們還將擁有許多處於過渡期的酒店，即我們擁有相對較舊的投資組合，其中包括一些新開張的比較組。

So like the last quarter, we have taken down -- last year after the pandemic, many hotels into a renovation stage, then reduced by the room renovation stage. Then combined that we have been into a 7% to 12% of total revenue. So that's consist of that number.

所以像上個季度一樣，我們已經把去年疫情過後很多酒店進入了裝修階段，然後減少了房間裝修階段。然後綜合起來我們已經投入了總收入的7%到12%。這就是由這個數字組成的。

And to further elaborate said that we're -- okay, why the only 2% of the RevPAR over 2023? Why not living more aggressive? Because last year, we've seen the RevPAR increase lot stronger than 2022 because of the post the pandemic and also many, I think pent-up demands from the Tier 3 cities where we have a larger percentage and 73%.

更進一步說，我們——好吧，為什麼 2023 年的 RevPAR 僅為 2%？為什麼不活得更有侵略性呢？因為去年，由於疫情後的影響，我們看到每間可用客房收入的增長比2022 年要強勁得多，而且我認為來自三線城市的許多被壓抑的需求，我們在三線城市的比例更大，達到73%。

The Tier 3 cities, the RevPAR increase, I think were in the higher single digits compared with a double digits, 15% to around [15% to 13%], and third in the first tier second tier. So we expect the third year RevPAR growth to be a relatively flat from 2024 comparing with 2023.

我認為，三線城市的RevPAR增幅，與兩位數相比，是更高的個位數，15%到15%左右[15%到13%]，一線二線城市中排名第三。因此，我們預計從 2024 年開始，第三年的 RevPAR 成長將與 2023 年相對持平。

And we will have more seasonality and up and downs. For instance, we have observed during the holiday season and during the weekend, we see a sharp increase, for instance, during the Chinese Spring Festival in the RevPAR -- in the overall ADR and occupancy, but then trended down and also relatively sharply just like in the first quarter national holiday and so imbalance and that there will be trending to be a little bit the upward then 2023.

我們將會有更多的季節性和起起落落。例如，我們觀察到在假期期間和週末期間，我們發現在中國春節期間，RevPAR 的整體 ADR 和入住率急劇上升，但隨後呈下降趨勢，而且也相對急劇上升。就像第一季的國慶日一樣，不平衡，到2023 年將會有一點上升的趨勢。

And we will continue to add new products and new products has a better identity and can offer more family and leisure oriented elements. So we will expect a stronger RevPAR increase in the following several years after we complete this transition period. So that's our assessment here.

而我們會不斷增加新產品，新產品具有更好的標誌性，能夠提供更多的家庭休閒元素。因此，我們預計在完成此過渡期後的幾年內，每間可用房收入 (RevPAR) 將出現更強勁的成長。這就是我們的評估。

Thank you, Alex. And can I just follow up with one question on the RevPAR? I saw that fourth quarter RevPAR growth in 2019 was mainly driven by ADR. And also, occupancy was still, although recovered, but still, I think around 10% below 2019 level, 6 percentage points below 2019, Q4 level.

謝謝你，亞歷克斯。我可以跟進一個有關 RevPAR 的問題嗎？我看到2019年第四季RevPAR的成長主要是由ADR推動的。此外，雖然入住率有所恢復，但我認為仍比 2019 年水平低 10% 左右，比 2019 年第四季度水平低 6 個百分點。

So I'm just wondering, Alex, for your 2024, and if you look at your weekly chart, we are now maybe around 90% of 2019 as of March. Are you seeing this year 2024 with seeing occupancy increase year on year versus 2023, but ADR was a flat to decline. So resulting in this 2% increase or you would say is 1% plus 1%, both are growing? Just my last question. Thank you, Alex.

所以我只是想知道，Alex，你的 2024 年是怎樣的，如果你看一下你的周線圖，截至 3 月份，我們現在可能已經完成了 2019 年的 90% 左右。您是否認為 2024 年的入住率與 2023 年相比會逐年增加，但平均房價卻持平下降？那麼導致 2% 的成長，或者你會說是 1% 加 1%，兩者都在成長？只是我的最後一個問題。謝謝你，亞歷克斯。

Okay, thanks, Dan. The two actually are inter-related, if we lower the ADR then occupancy will be increased. So on balanced there is an optimal rate would, but we do not know what the optimum -- should the best strategy of achieving the optimum RevPAR increase.

好的，謝謝，丹。兩者實際上是相互關聯的，如果我們降低ADR，那麼入住率就會增加。因此，在平衡的情況下，存在一個最佳利率，但我們不知道最佳利率是什麼——應該實現最佳 RevPAR 增加的最佳策略。

However, we -- this is our plan. We plan to have a slight increase of the ADR, but the occupancy we expect to be relatively stable. So we would like to increase the run rate. And so, we expected that most of the growth should be the ADR.

然而，我們——這是我們的計劃。我們計劃 ADR 略有增加，但我們預計入住率將相對穩定。所以我們想提高運行率。因此，我們預計大部分成長應來自 ADR。

And then once the ADR reached certain levels then we try to further increase occupancy. The occupancy -- some of the occupancy resulted from the seasonality. And also, I said the sharp up and down in the balance power pattern.

一旦平均房價達到一定水平，我們就會嘗試進一步增加入住率。入住率－部分入住率是季節性造成的。而且，我還提到了平衡力量格局中的急劇上升和下降。

At the end of 2023 to 2024, we find there's a little bit higher trend in terms of holiday and leisure, and the family related travels. So that's more seasonal than the constant demand for the business travels. So which also resulted in a blended relative a little bit lower occupancy. So our internal projections to beyond the RevPAR -- the increase primarily resulted from ADR.

2023年底至2024年，我們發現度假休閒以及家庭相關旅行的趨勢上升。因此，這比商務旅行的持續需求更具季節性。這也導致混合入住率相對較低。因此，我們的內部預測超出了 RevPAR，這一增長主要來自 ADR。

Thank you, Alex.

謝謝你，亞歷克斯。

(Operator Instructions) Dan Xu, Morgan Stanley.

（操作員指令） Dan Xu，摩根士丹利。

Hi. I have another follow-up question on the hotel opening. I'm just wondering for management, what's the plan for your leased hotel, the L&O hotels for 2024? Do we still have some hotels in the pipeline, and are we still continue to build net additions in leasing on hotels? Thank you.

你好。我還有一個關於酒店開業的後續問題。我只是想問一下管理層，你們租賃的酒店、L&O 酒店 2024 年的計劃是什麼？我們是否還有一些酒店正在籌備中，我們是否仍在繼續淨增加酒店租賃？謝謝。

Okay. Dan, as we previously stated that we'll only build the office towers in the key like Tier 1 and the transportation hub at the showcase hotels. Currently, I think there is -- we plan a one to two showcase. It also (inaudible) flag ship brands such as GreenTree Eastern and the GreenTree Inn.

好的。Dan，正如我們之前所說，我們只會在 1 級等關鍵區域建造辦公大樓，並在展示酒店建造交通樞紐。目前，我認為我們計劃進行一到兩個展示。它還有（聽不清楚）旗艦品牌，例如格林東方和格林豪泰酒店。

So there is single digit numbers there. And currently we are evaluating and that we are still focused on continuing to grow our hotel in the franchise and managed, that is our core competitiveness and strengths.

所以那裡有個位數。目前我們正在評估，我們仍然專注於繼續發展我們的酒店在特許經營和管理方面，這是我們的核心競爭力和優勢。

So let me elaborate that our overall business strategy again, the light of this question, 2023 is a transitional year. I think that we in the past, we tried -- we have evaluated the potentials for acquisitions and growing of the business, we've done many different approaches with also many more brands.

那我再闡述我們的整體經營策略，針對這個問題，2023年就是一個過渡年。我認為我們過去嘗試過——我們評估了收購和業務成長的潛力，我們對更多品牌採取了許多不同的方法。

And now with the COVID and post COVID, and we have transitioned into focus more on the traditional and the fundamental approach to the hotel operations and hotel management, that is our objective is to deliver a consistent service and products to our customers, and we need to upgrade our little bit the aging portfolio.

現在，隨著新冠疫情和後新冠疫情的發生，我們已經轉向更多地關注酒店運營和酒店管理的傳統和基本方法，即我們的目標是為客戶提供一致的服務和產品，我們需要升級我們一點點老化的投資組合。

So we have taken a larger number of hotels and giving our franchisee six months and most of the time to obviously one year time to renovate to a newer standard, which will find that we can substantially increase the ADR occupancy and therefore, RevPAR.

因此，我們採取了更多的酒店，並給我們的特許經營商六個月的時間，大部分時間顯然是一年的時間來裝修到更新的標準，這將發現我們可以大幅提高ADR 入住率，從而提高RevPAR。

And we'll continue to build our teams to be more proficient and more efficient in both their career growth and our productivities, and they're delivering a consistent service quality to our customers.

我們將繼續建立我們的團隊，使其在職業發展和生產力方面更加熟練和高效，並且他們為我們的客戶提供一致的服務品質。

And then thirdly, we're trying to implement and upgrade our existing technology platform to incorporate the new features, especially some of new applications in the technology industries to further improve our frontline employees' ability to serve our customers and then combine that we also have a restaurant and two great brands.

第三，我們正在嘗試實施和升級我們現有的技術平台，以融入新的功能，特別是技術行業的一些新應用，以進一步提高我們一線員工為客戶服務的能力，然後結合我們還有一家餐廳和兩個偉大的品牌。

So there are not many brands can withstand the pressure on competition in the restaurant business for over 20 years. And fortunately, we have two great brands that's Bellagio and Da Niang Dumpling. And so we have started to build a brand and to use the core experience.

所以能夠承受20多年餐飲業競爭壓力的品牌不多。幸運的是，我們有兩個很棒的品牌，那就是貝拉吉歐和大娘餃子。因此，我們開始建立品牌並利用核心體驗。

I understand that to expand in the franchised and managed model and we have managed to increase that, which will further increase, I think our profitability in the restaurant business. And slowly, we already seen the seed and trend and we're not obvious from the previous year. By now with the travel trends to be more leisure and also more family oriented.

我知道，為了擴大特許經營和管理模式，我們已經成功地提高了這一點，我認為這將進一步提高我們在餐廳業務中的獲利能力。慢慢地，我們已經看到了種子和趨勢，而且與前一年相比並不明顯。現在的旅遊趨勢更休閒，也更以家庭為導向。

We find that the leisure element such as the dinings becomes more essential part of the future hotels. So we do see more opportunities for us synergies between the hotels and the restaurants. And so that's our business strategy or we'll continue to focus on the fundamentals.

我們發現餐飲等休閒元素成為未來飯店更重要的組成部分。因此，我們確實看到酒店和餐廳之間有更多協同效應的機會。這就是我們的業務策略，否則我們將繼續專注於基本面。

We'll find that the hotels we have built, and we have established that with our franchisees continued to perform very robust and that our service quality, we can see slowly becoming -- increasingly become more satisfactory to our customers. And the customer satisfaction scores are improving.

我們會發現，我們建造的酒店，以及我們已經建立的酒店，我們的特許經營商繼續表現得非常強勁，我們的服務質量，我們可以看到慢慢地變得越來越令我們的客戶更加滿意。客戶滿意度分數正在提高。

So even after this and post COVID transition period where there is a lot of hotels coming out of that has the wear and tears, but even with that conditions, we slowly improved our customer service scores. So we do see a great fundamentals to be built in the last year this year and next one to two years for a stronger growth in the near future.

因此，即使在這段時期和新冠疫情之後的過渡期之後，許多酒店都出現了磨損，但即使在這種情況下，我們還是慢慢提高了我們的客戶服務分數。因此，我們確實認為去年和未來一兩年將建立良好的基本面，以便在不久的將來實現更強勁的成長。

Thank you.

謝謝。

Simon Cheung, Goldman Sachs.

張西蒙，高盛。

Thanks for taking my question. I've got three very quick questions. Just on your slide 8, where you laid out on the lease and augment the franchise RevPAR performance individually. I can help (technical difficulty) that the additional restaurant performance is much stronger than the franchise.

感謝您提出我的問題。我有三個非常簡短的問題。就在您的投影片 8 上，您分別列出了租賃並提高了特許經營的 RevPAR 績效。我可以幫忙（技術難度）額外的餐廳業績比特許經營強得多。

So Alex, you mentioned that you are modeling or expecting a 2% RevPAR growth, just wondering that obviously the franchise exposure is going to be keep increasing the weaker performance of the franchise or RevPAR. Would that be any way that would drive your overall RevPAR performance 2 percentage point?

Alex，您提到您正在建模或預期 RevPAR 成長 2%，只是想知道特許經營權顯然會繼續增加特許經營權或 RevPAR 的較弱表現。是否有任何方法可以將您的整體 RevPAR 績效提高 2 個百分點？

On an individual basis or let's say, just from your observations, are you seeing any possibility that the franchise are starting to talk about that. Just generally wanted to get a sense how you're thinking of the respective segments and the aggregate of all? That's the first question.

從個人角度來看，或者說，僅根據您的觀察，您是否認為球隊有可能開始談論這一點。一般只是想了解您如何看待各個細分市場以及所有細分市場的整體情況？這是第一個問題。

And then a second one is in relation to the profitability of your book business, great to see you have some leverage in the last one or two quarters, but wondering -- and you also mentioned some synergy benefits opportunity to business. Can you just briefly tell about how you are seeing the margins maybe in the medium term for we spent respective business maybe in a two, three year time.

第二個與您的圖書業務的盈利能力有關，很高興看到您在過去一兩個季度擁有一些槓桿作用，但想知道 - 您還提到了一些協同效益的業務機會。您能否簡要介紹一下您對中期內利潤率的看法，因為我們可能在兩三年的時間內花費了各自的業務。

And equally, just also wanted to get a sense how you're thinking about the top-line growth for the actually the number of hotel and restaurant, because obviously for restaurants, for example, you've reduced your restaurant count by quite significantly over the last one year. So that hotel come [4,000] is that some medium that's out there that you have in your mind? Thank you.

同樣，我也想了解您如何看待酒店和餐廳實際數量的頂線增長，因為顯然對於餐廳來說，您已經將餐廳數量減少了相當多的數量最後一年。那麼，那家飯店 [4,000] 就是您心目中的某種媒介嗎？謝謝。

Okay, great questions. I will leave the third question to Selina about the restaurant business revenue has change. Because the restaurant business, the revenue has a sharp drop because we have closed the many direct owned leased and operated restaurants due to the impact from the lower traffic to the shopping malls and the supermarkets and for the malls.

好的，很好的問題。我將第三個問題留給Selina，關於餐飲業務收入改變的問題。餐飲業務方面，由於受到購物中心、超市和商場客流量下降的影響，我們關閉了許多直營、租賃和經營的餐廳，收入大幅下降。

So even though the number of restaurants, the segment trend that we have a little bit increased number of franchised-and-managed restaurant, while the number of directly owned have dropped, but the impact of the revenue was much larger.

因此，儘管餐廳數量、特許經營餐廳數量略有增加，而直營餐廳數量有所下降，但對收入的影響要大得多。

But going back to the first question, leased-and-operated and the franchise well product trend. As we have said earlier, we built the leased and operated as a showcase hotels. So naturally with the showcase hotels, they tend to warm that route ADR wise and which as a service elements, more complementary services for the family to the businesses.

但回到第一個問題，租賃經營和特許經營良好的產品趨勢。正如我們之前所說，我們建造了租賃酒店並作為展示酒店進行運營。因此，對於展示酒店來說，他們自然傾向於以 ADR 方式溫暖這條路線，並將其作為服務元素，為家庭和企業提供更多補充服務。

So as a result, the ADR has been improved much higher than the balance of the larger base from franchised restaurants or franchise hotels. But we do see that trend will be probably similar because many, many franchised hotels are going through the renovations once after the reservation system.

因此，ADR 的改善遠高於特許經營餐廳或特許經營酒店的較大基數的平衡。但我們確實看到這種趨勢可能會相似，因為很多很多特許經營酒店在預訂系統之後都在進行裝修。

And the ADR, we expect the ADR will grow at the same level and our focus and the strategy right now has been focusing on the ADR driven growth strategy because you always have the option of lowering your price a little bit increases the occupancy and thereby taking the higher a little bit different market shares but resulted in an increase of the same level of ADR -- RevPAR.

至於ADR，我們預計ADR將在同一水平上成長，我們現在的重點和策略一直集中在ADR驅動的成長策略上，因為你總是可以選擇稍微降低價格，增加入住率，從而獲得較高的市場份額略有不同，但導致了相同水平的ADR（RevPAR）的增加。

But with ADR increases, I think we have got more room and a better potential and that to move the quality of the products into a higher and higher level. So for the next two years, and we expect the similar levels of growth for both L&O hotels and the F&M hotels. So that's one thing.

但隨著ADR的增加，我認為我們有更大的空間和更好的潛力，可以將產品的品質推向越來越高的水平。因此，在接下來的兩年裡，我們預計 L&O 酒店和 F&M 酒店將出現類似的成長水準。所以這是一回事。

Another thing is that L&O hotels because we have gone through renovations with a lower base. So the percentage of L&O hotels have gone through the renovation is higher than F&M hotels. That's also drive up ADR increase a little bit higher. So I hope that answered the question for your first.

另一件事是L&O酒店，因為我們已經進行了基數較低的翻修。因此L&O酒店進行改造的比例高於F&M酒店。這也推動了 ADR 的成長。所以我希望這首先回答了您的問題。

For the second question regarding the synergy and then also the restaurant business. We have experimental moving the restaurant with hotels combined with the breakfast delivery to be a three meals for the restaurant. And we have seen some good result such as in our G9 hotels in Shanghai, that increase the revenue substantially.

關於第二個問題，關於協同效應以及餐飲業務。我們嘗試將餐廳與飯店結合起來，將早餐外帶變成餐廳的三餐。我們已經看到了一些好的成果，像是我們在上海的 G9 飯店，收入大幅增加。

But moving the larger staff in the restaurant into the hotels and requires a new system and new operating standard. So we are doing the secondary experiment in the second tier city. So the first tier city we have down and those are many elements that we need to take into consideration.

但將餐廳中更多的員工轉移到酒店，需要新的系統和新的營運標準。所以我們正在二線城市做二次實驗。所以我們的一線城市有很多我們需要考慮的因素。

For instance, the competition landscape of F&B in the buildings, some of the buildings that we lease the hotels already have other restaurant services and then also the space constraints. And thirdly, the staff constraints. And so that -- taken those three factors and we have taken a more experiment [fishier].

例如，建築物中餐飲的競爭格局，我們租賃酒店的一些建築物已經有其他餐廳服務，然後還有空間限制。第三，人員限制。因此，考慮到這三個因素，我們進行了更多實驗[釣魚者]。

I know we have another couple of them opened, scheduled to be in the summer. So we'll report to you the result of the synergy in that area. And right now, I think experiments and forming the standard than system and building a better fundamental and making sure we are not also introducing the some of the uncertainty and higher competition in the restaurant business into the stable hotel business. So those are the elements that we are considering. So third question.

我知道我們還有另外幾家開業，並計劃在夏天開業。因此，我們將向您報告該領域協同作用的結果。現在，我認為，我們正在進行實驗，制定標準，而不是系統，建立更好的基礎，確保我們不會將餐廳業務中的一些不確定性和更高的競爭引入穩定的酒店業務中。這些就是我們正在考慮的要素。那麼第三個問題。

Simon, could you please repeat the third question, which we think has to do with L&O hotels versus F&M going forward?

Simon，您能否重複第三個問題，我們認為這與 L&O 酒店與 F&M 的未來發展有關？

My third question is actually more related to broadly speaking, the number of hotels now you're running at slightly over 4,000 in restaurant over 200 now. I did hear that you have a hotel target additions 500 for this year, but in more like a medium term, do you have any target in your mind in terms of the come for both respective segments?

我的第三個問題實際上更廣泛地涉及到，現在你們經營的酒店數量略多於 4,000 家，餐廳數量現在超過 200 家。我確實聽說你們今年的酒店目標是增加 500 家，但從中期來看，你們對於這兩個細分市場有什麼目標嗎？

Simon, our ambition and the plan is always that let build the fundamentals, then we'll build our growth plan that's compatible with our current resources so that we can continue that to improve our brand standard and brand identity. And so we plan internally the next three to five years and continue to grow our hotels by the numbers, but 10% to 15% per year.

西蒙，我們的雄心壯志和計劃始終是讓我們打下基礎，然後我們將製定與我們當前資源相容的成長計劃，以便我們可以繼續提高我們的品牌標準和品牌形象。因此，我們在內部規劃了未來三到五年，並繼續以每年 10% 到 15% 的速度成長我們的酒店數量。

And slowly hopefully, after we build a stronger fundamental -- build a stronger base, we can even further accelerate it, the growth. But right now because we have a number of issues and experienced and lessons we have learned through the past M&A, which also result in some of the legacy problems that also consumes our internal resources to restructuring those kind of businesses.

慢慢地，希望在我們建立了更強大的基礎之後，我們可以進一步加速成長。但現在因為我們有很多問題，以及我們在過去的併購中學到的經驗和教訓，這也導致了一些遺留問題，也消耗了我們內部資源來重組這類業務。

And also, to restructuring the restaurant and making sure the restaurant has a robust logistics system support to grow the franchise and the managed models, can we -- the hotels landscape is very clear and the restaurants was getting to learn the lessons and patterns of our strengths.

此外，為了重組餐廳並確保餐廳擁有強大的物流系統支援來發展特許經營和管理模式，我們能否——酒店的格局非常清晰，餐廳正在學習我們的經驗教訓和模式的優勢。

I knew which area such as community store, the street front stores and also the high traffic areas such as train stations, subway stations. And so once we have formerly built a profitable, robust business model then we will either grow more quickly. So that's our next mid-term plan.

我知道哪些區域如社區商店、臨街商店以及人流量大的區域如火車站、地鐵站。因此，一旦我們之前建立了一個有利可圖、穩健的商業模式，那麼我們要么會成長得更快。這就是我們的下一個中期計劃。

Sorry, I haven't looked at the numbers yet, but then should the restaurant, are you done with all the [crusher]? Do you feel that your hotel, your restaurant companies pretty much bottom and likely kind of steady at least in the coming quarters?

抱歉，我還沒看過數字，但餐廳應該處理完所有的事情了嗎？[破碎機]？您是否認為您的飯店、餐廳公司已經基本觸底，並且至少在未來幾季可能會保持穩定？

Sorry, Simon numbers (inaudible) that is correct. Right now, with a substantial completion, I think the restaurant reorganization is substantially completed. And so now we can focus on instead of closing our transitioning working restructuring of unprofitable stores that now we can focus on growing the franchise, the more profitable stores.

抱歉，西蒙數字（聽不清楚）是正確的。現在，已經基本完成了，我認為餐廳重組已經基本完成了。因此，現在我們可以專注於而不是關閉對不盈利商店的過渡工作重組，現在我們可以專注於發展特許經營權，即利潤更高的商店。

The legacy issues of the restaurant side, Simon, there's some primarily resolved. Then I think some of the locations our had the higher rent and that continued reduced traffic and so on. And it's more challenging to stay profitable even after our staff put in more efforts and it shows us restaurant we have already closed, substantially closed.

西門餐廳那邊的遺留問題，有些已經基本解決了。然後我認為我們的一些地點的租金較高，並且交通量持續減少等等。即使我們的員工付出了更多努力，而且這表明我們的餐廳已經關閉，基本上關閉，保持盈利也更具挑戰性。

So we do -- we will expect that a number of restaurants and will also growing, but albeit initially, I think slowly. As we stated the pattern, and the system are still emerging. And restaurant conflict -- the competition in the restaurant is stronger than we originally estimated and expected.

所以我們確實這樣做了——我們預計會有一些餐廳數量也會增長，但儘管是一開始，我認為速度會很慢。正如我們所說，模式和系統仍在不斷湧現。還有餐廳衝突——餐廳的競爭比我們最初估計和預期的還要激烈。

And so we do not know the trend will continue, but we still think that the restaurant business, I think it will be more -- has a more characteristics and a challenging than the hotel business.

所以我們不知道這種趨勢會持續下去，但我們仍然認為餐廳業務，我認為它會比酒店業務更具特色和挑戰性。

If I may, just a very final follow-up question. Just you mentioned a number of hotels that you're planning for some upgrades some of your 4,000 issued. How many of them that are going to upgrade, receptions of by the franchisee holiday willing to take indeed upgrades when you compare to your assessment of the entire portfolio?

如果可以的話，我想問一個最後的後續問題。剛才您提到了一些酒店，您計劃對您發放的 4,000 間酒店中的一些酒店進行一些升級。與您對整個投資組合的評估進行比較時，有多少即將升級的特許經營商假期接待確實願意升級？

Right now, about half. I think that my last numbers came in about and half of them are in the renovations. And I think another half we expect them to be completed in the next three years and next two to three years.

現在，大約一半。我認為我最後的數字大約有一半是在裝修中。我認為我們預計另一半將在未來三年和未來兩到三年內完成。

Understood. Thanks a lot for the answers. Thank you.

明白了。非常感謝您的回答。謝謝。

Okay, thank you. I would like to turn the conference back over to Salina Young for any closing or in closing.

好的謝謝。我想將會議轉回薩利娜·楊（Salina Young）進行閉幕或閉幕式。

On behalf of the entire GreenTree management team, we thank you for your interest in our company and your participation in today's call. If you have -- require any further information or have plans to reach us, please feel free to contact us. Thank you, everybody.

我們謹代表整個格林豪泰管理團隊感謝您對我們公司的關注以及您參加今天的電話會議。如果您需要任何進一步的資訊或計劃聯絡我們，請隨時與我們聯繫。謝謝大家。

Thank you.

謝謝。

And the conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。