ghg-6k_20190315.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

March 2019

Commission File Number: 001-38425

GreenTree Hospitality Group Ltd.

(Registrant’s name)

2451 Hongqiao Road, Changning District

Shanghai 200335

People’s Republic of China

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F _ Form 40-F _

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1) : _

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7) : _

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


GREEN TREE HOSPITALITY GROUP LTD .

By:		/s/ Alex S. Xu
Name:		Alex S. Xu
Title:		Chairman and Chief Executive Officer

Date: March 18, 2019

EXHIBIT INDEX


Exhibit No.		Description

99.1		GreenTree Hospitality Group Ltd. Reports Fourth Quarter and Fiscal Year 2018 Financial Results

ghg-ex991_6.htm

Exhibit 99.1

GreenTree Hospitality Group Ltd. Reports Fourth Quarter and Fiscal Year 2018 Financial Results

•

A total of 2,757 hotels with 221,529 hotel rooms were in operation as of December 31, 2018, compared to 2,558 hotels and 209,463 hotel rooms as of September 30, 2018, and compared to 2,289 hotels and 190,807 hotel rooms as of December 31, 2017.

•

Total revenues increased 20.8% from the fourth quarter of 2017 to RMB249.9 million (US$36.3 million)¹ for the fourth quarter of 2018. Total revenues increased 21.4% year-over-year to RMB945.0 million (US$137.4 million)¹ for the full year 2018.

•

Adjusted EBITDA (non-GAAP) increased 35.2% from the fourth quarter of 2017 to RMB160.1 million (US$23.3 million)¹for the fourth quarter of 2018. Adjusted EBITDA (non-GAAP) increased 30.5% year-over-year to RMB609.7 million (US$88.7 million)¹ for the full year 2018.

•

Net income was RMB53.8 million (US$7.8 million) ¹for the fourth quarter of 2018. Net income increased 38.1% from the same quarter of 2017 to RMB393.6 million (US$57.2 million)¹ for the full year 2018.

•

Core net income (non-GAAP) increased 33.4% from the fourth quarter of 2017 to RMB115.9 million (US$16.9 million) ¹ for the fourth quarter of 2018. Core net income (non-GAAP) increased 31.8% year-over-year to RMB445.3 million (US$64.8 million)¹ for the full year 2018.

•

Basic and diluted net income per ADS were RMB0.53 (US$0.08)¹ for the fourth quarter of 2018. Basic and diluted net income per ADS were RMB3.97 (US$0.58)¹ for the full year 2018.

•

Basic and diluted core net income per ADS (non-GAAP) were RMB1.14 (US$0.17)¹ for the fourth quarter of 2018. Basic and diluted core net income per ADS (non-GAAP) were RMB4.49 (US$0.65) ¹ for the full year 2018.

•

As of December 31, 2018, the Company had a strong pipeline with a total of 430 hotels contracted for or under development. For the fourth quarter of 2018, the Company opened 224 hotels of which all are F&M hotels, compared to 171 hotels of which all are F&M hotels for the fourth quarter of 2017. For the full year 2018, the Company opened 554 hotels, compared to 425 hotels for the full year 2017.

•

As of December 31, 2018, the Company had approximately 29 million individual loyal members (of which approximately 21 million are paid members) and over 1,270,000 corporate members, compared to approximately 26 million individual loyal members (of which approximately 20 million are paid members) and over 1,020,000 corporate members respectively, as of September 30, 2018.

1	The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB6.8755 on December 31, 2018 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at https://www.federalreserve.gov/releases/h10/20181231/

•

For the fourth quarter of 2018, the Company sold approximately 94.5% of its room nights through its direct sales channels, including its individual loyal members and corporate members, while all other third parties reservation channels, contributed approximately 5.5%. For the full year 2018, the Company sold approximately 95.0% of its room nights through its direct sales channels.

•

The Company provided guidance for growth in total revenue of 20%-25% from 2018.

SHANGHAI, China, March 14, 2019 /PRNewswire/ -- GreenTree Hospitality Group Ltd. (NYSE: GHG) (“GreenTree”, the “Company”, “we”, “us” and “our”), a leading franchised hotel operator in China, today announced its unaudited financial results for the fourth quarter and fiscal year of 2018.

Fourth Quarter of 2018 Operational Highlights

•

As of December 31, 2018, GreenTree had 29 leased-and-operated (“L&O”) hotels and 2,728 franchised-and-managed (“F&M”) hotels in operation in 290 cities across China, compared to 30 L&O hotels and 2,528 F&M hotels in operation in 278 cities as of September 30, 2018, compared to 26 L&O hotels and 2,263 F&M hotels in operation in 263 cities as of December 31, 2017. The geographical coverage of cities grew by 27, with a year-over-year increase of 10.3%.

•

The Company opened 224 hotels of which all are F&M hotels, 28 in the mid-to-up-scale segment, 86 in the mid-scale segment and 110 in the economy segment. Of the hotels opened, 20 hotels were in Tier 1 cities², 49 in Tier 2 cities³ and the remaining 155 hotels in other cities in China, while the Company closed a total of 25 hotels in the quarter.

•

As of December 31, 2018, the Company had a strong pipeline with a total of 430 hotels contracted for or under development.

•

The average daily room rate, or ADR, for all hotels in operation, was RMB164 in the fourth quarter of 2018, an increase of 3.8% from the same quarter of 2017.

•

The occupancy rate for all hotels in operation was 80.4% in the fourth quarter of 2018, a decrease of 1.0% from the same quarter of 2017.

•

The revenue per available room, or RevPAR, which is calculated by multiplying our hotels’ ADR by its occupancy rate, was RMB132 in the fourth quarter of 2018, representing a 2.3% increase from the same quarter of 2017.

2	“Tier 1 cities” refers to the term used by the National Bureau of Statistics of China and refer to Beijing, Shanghai, Shenzhen and Guangzhou.

“Tier 2 cities” refers to the 32 major cities, other than Tier 1 cities, as categorized by the National Bureau of Statistics of China, including provincial capitals, administrative capitals of autonomous regions, direct-controlled municipalities and other major cities designated as “municipalities with independent planning” by the State Council.

Operational Highlights for the Full Year 2018

•

For the full year 2018, the Company opened 554 hotels, of which 553 are F&M hotels and one L&O hotels, 60 in the mid-to-up-scale segment, 271 in the mid-scale segment and 223 in the economy segment. Of the hotels opened, 47 hotels were in Tier 1 cities⁴, 121 in Tier 2 cities⁵ and the remaining 386 hotels in other cities in China, while the Company closed a total of 86 F&M hotels and one L&O hotel in this year.

•

The average daily room rate, or ADR, for all hotels in operation, was RMB164 for the full year 2018, an increase of 4.5% year over year.

•

The occupancy rate for all hotels in operation was 82.1% for the full year 2018, a decrease of 0.5% year over year.

•

The revenue per available room, or RevPAR, which is calculated by multiplying our hotels’ ADR by its occupancy rate, was RMB135 for the full year 2018, representing a 3.8% year-over-year increase.

•

The Company sold approximately 95.0% of its room nights through its direct sales channels, including its individual loyal members and corporate members, while online travel agencies, or OTAs, only contributed approximately 5.0%.

•

The Company added one more brand called Wumian in the mid-scale segment during the third quarter. Wumian aims to provide comfortable, intimate, simple and stylish space to business travelers for "a deep sleep" experience.

•

The Company started its apartment business during the second half of the year, and opened one hotel in 2018.

•

The Company’s App was ranked 2^nd in terms of user activity on the “Intelligent Mobile Observatory” in hotel sector, a famous mobile big data query platform launched by TalkingData, as of December 31, 2018.

“We remain committed to a steady and stable growth strategy as we explore the growing consumption trends in the second and third tier cities and expand our geographical coverage across China, covering 290 cities at the end of December 2018, ” commented Mr. Alex Xu, Chairman and Chief Executive Officer of GreenTree. “We are investing in select companies to develop strong partnerships that will enhance each other resources, particularly technology and talents, in order to create more value for our customers and franchisees. We will continue to explore similar investment opportunities and we remain interested in exploring appropriate value-enhancing acquisitions to help strengthen our hotel platform and increase long-term shareholder value.”

4	“Tier 1 cities” refers to the term used by the National Bureau of Statistics of China and refer to Beijing, Shanghai, Shenzhen and Guangzhou.

franchisees. We will continue to explore similar investment opportunities and we remain interested in exploring appropriate value-enhancing acquisitions to help strengthen our hotel platform and increase long-term shareholder value.”

Fourth Quarter of 2018 Financial Results

	Quarter Ended
	December 31,2017		December 31,2018		December 31,2018
	RMB		RMB		USD
Revenues
Leased-and-operated hotels		53,589,572		56,834,473		8,266,231
Franchised-and-managed hotels		153,207,697		193,048,471		28,077,736
Total revenues		206,797,269		249,882,944		36,343,967

Full year 2018 Financial Results

	Year Ended
	December 31, 2017		December 31, 2018		December 31, 2018
	RMB		RMB		USD
Revenues
Leased-and-operated hotels		193,542,455		213,172,025		31,004,585
Franchised-and-managed hotels		584,589,358		731,833,909		106,440,828
Total revenues		778,131,813		945,005,934		137,445,413

Total revenues for the fourth quarter of 2018 were RMB249.9 million (US$36.3 million)¹, representing a 20.8% increase over the fourth quarter 2017. The increase in the fourth quarter of 2018 was primarily attributable to the 199 F&M hotels net addition to our network during this quarter, the addition of a new L&O hotel and the conversion of three F&M to L&O hotels during last quarter, improved RevPAR for both F&M and L&O hotels as well as membership growth; and was partially offset by the renovation of six L&O hotels since last quarter and the conversion of one L&O to an F&M hotel during this quarter.

Total revenues for the full year 2018 were RMB945.0 million (US$137.4 million)¹, representing a 21.4% increase over full year 2017. The year-over-year increase was primarily attributable to RevPAR growth of 3.8%, and the 468 hotels net addition, compared to 325 last year, as well as membership growth. Membership fee were divided into L&O and F&M revenues.

•

Total revenues from leased-and-operated hotels for the fourth quarter of 2018 were RMB56.8 million (US$8.3 million)¹, representing a 6.1% increase from the same quarter of 2017.

Total revenues from leased-and-operated hotels for the full year 2018 were RMB213.2 million (US$31.0 million)¹, representing a 10.1% year-over-year increase.

•

Total revenues from franchised-and-managed hotels for the fourth quarter of 2018 were RMB193.0 million (US$28.1 million)¹, representing a 26.0% increase from the same quarter of 2017. Initial franchise fees increased 2.0% in the fourth quarter of 2018 from the same quarter of 2017, primarily due to the gross opening of 224 hotels in the fourth quarter of 2018 as compared to 171 hotels opened in the fourth quarter of 2017, as well as a temporary waiver of initial franchisee fees for Shell hotels, which opened since the third quarter of 2018. The 29.3% increase from the fourth quarter of 2017 in recurring franchisee management fees and others was primarily due to RevPAR growth of 2.3% as well as growth in membership fees, and central reservation system (“CRS”) usage fees, annual IT, marketing fees, hotel manager fees, which in turn resulted from the increased number of hotels and hotel rooms in operation.

•

Total revenues from franchised-and-managed hotels for the full year 2018 were RMB731.8 million (US$106.4 million)¹, representing a 25.2% year-over-year increase. Initial franchise fees increased 18.2% year over year for the full year 2018, primarily due to the gross opening of 553 hotels for the full year 2018 as compared to 425 hotels opened for the full year 2017. The 25.9% year-over-year increase in recurring franchisee management fees and others in full year 2018 was primarily due to RevPAR growth of 3.9% as well as growth in membership fees, and central reservation system (“CRS”) usage fees, annual IT, marketing fees, hotel manager fees, which in turn resulted from the increased number of hotels and hotel rooms in operation.

	Quarter Ended
	December 31, 2017		December 31, 2018		December 31, 2018
	RMB		RMB		USD
Initial franchise fee		18,735,211		19,117,629		2,780,544
Recurring franchise management fee and others		134,472,486		173,930,842		25,297,192
Revenues from franchised-and-managed hotels		153,207,697		193,048,471		28,077,736

	Year Ended
	December 31, 2017		December 31, 2018		December 31, 2018
	RMB		RMB		USD
Initial franchise fee		56,176,467		66,407,440		9,658,562
Recurring franchise management fee and others		528,412,891		665,426,469		96,782,266
Revenues from franchised-and-managed hotels		584,589,358		731,833,909		106,440,828

Total operating costs and expenses

	Quarter Ended
	December 31, 2017		December 31, 2018		December 31, 2018
	RMB		RMB		USD
Operating costs and expenses
Hotel operating costs		59,046,036		74,110,158		10,778,875
Selling and marketing expenses		15,695,841		16,169,263		2,351,722
General and administrative expenses		63,739,147		34,751,049		5,054,330
Other operating expenses		4,340,835		5,667,699		824,333
Total operating costs and expenses		142,821,859		130,698,169		19,009,260

	Year Ended
	December 31, 2017		December 31, 2018		December 31, 2018
	RMB		RMB		USD
Operating costs and expenses
Hotel operating costs		233,646,052		280,954,345		40,863,115
Selling and marketing expenses		45,032,441		50,393,151		7,329,380
General and administrative expenses		121,657,492		95,261,152		13,855,159
Other operating expenses		5,629,448		5,946,226		864,843
Total operating costs and expenses		405,965,433		432,554,874		62,912,497

Hotel operating costs for the fourth quarter of 2018 were RMB74.1 million (US$10.8 million)¹, representing a 25.5% increase from the same quarter of 2017. The increase in the fourth quarter of 2018 was mainly attributable to the increased number and the increased salary of general managers in our hotel network and other costs associated with the expansion of our F&M hotels, and higher rental costs, utility costs, consumables and personnel costs associated with the four new L&O hotels added to our portfolio since the third quarter of 2018; and was partially offset by reduced utility costs due to the renovation of six L&O hotels since the third quarter, and also offset by reduced depreciation and amortization and operating costs related to the conversion of one L&O hotel.

Hotel operating costs for the full year 2018 were RMB281.0 million (US$40.9 million) ¹, representing an 20.2% year-over-year increase. The year-over-year increase for the full year 2018 was mainly attributable to the increased number of general managers in our hotel network and other costs associated with the expansion of our F&M hotels, and higher rental costs, utilities, consumables and personnel costs associated with the GreenTree Eastern L&O hotels and the four new L&O hotels added to our portfolio since the third quarter of 2018.

	Quarter Ended
	December 31, 2017		December 31, 2018		December 31, 2018
	RMB		RMB		USD
Rental		14,438,379		20,804,644		3,025,910
Utilities		3,455,216		3,672,738		534,178
Personnel cost		7,195,580		8,323,820		1,210,649
Depreciation and amortization		5,558,781		7,025,697		1,021,845
Consumable, food and beverage		4,045,329		5,196,402		755,785
Costs of general managers of franchised-and-operated hotels		13,930,111		20,032,682		2,913,633
Other costs of franchised-and-operated hotels		5,658,771		7,032,685		1,022,862
Others		4,763,869		2,021,490		294,013
Hotel Operating Costs		59,046,036		74,110,158		10,778,875

	Year Ended
	December 31, 2017		December 31, 2018		December 31, 2018
	RMB		RMB		USD
Rental		60,252,952		76,055,484		11,061,811
Utilities		16,692,172		19,264,487		2,801,903
Personnel cost		27,546,240		33,715,007		4,903,644
Depreciation and amortization		22,978,585		21,313,405		3,099,906
Consumable, food and beverage		13,470,072		19,275,688		2,803,533
Costs of general managers of franchised-and-operated hotels		54,291,625		70,480,306		10,250,935
Other costs of franchised-and-operated hotels		23,497,850		28,888,506		4,201,659
Others		14,916,556		11,961,462		1,739,724
Hotel Operating Costs		233,646,052		280,954,345		40,863,115

Selling and marketing expenses for the fourth quarter of 2018 were RMB16.2 million (US$2.4 million) ¹, compared to RMB15.7 million in the fourth quarter of 2017. The increase of 3.0% from the fourth quarter of 2017 was mainly attributable to model room construction, increased personnel, compensation and other costs (i.e. travel expenses) of business development personnel, as a result of the increased opening of hotels.

Selling and marketing expenses for the full year 2018 were RMB50.4 million (US$7.3 million)¹, compared to RMB45.0 million for the full year 2017. The year-over-year increase of 11.9% for the full year 2018 was mainly attribute to model room construction, exhibition and other advertising and promotion expenses related to our three new mid-to-upscale brands, increased personnel, compensation and other costs (i.e. travel travelling) of business development personnel, as a result of the increased hotel openings and wider geographic coverage.

General and administrative expenses for the fourth quarter of 2018 were RMB34.8 million (US$5.1 million)¹. Excluding the one-time grant of GTI’s shares to certain of our directors in the fourth quarter of 2017, G&A in the quarter increased by 35.3%, compared to the same quarter of 2017. The increase was primarily attributable to the increased salary and share-based compensation.

General and administrative expenses for the full year 2018 were RMB95.3 million (US$13.9 million)¹. Excluding the one-time grant of GTI’s shares to certain of our directors in the fourth quarter of 2017, G&A for the full year 2018 increased by 13.9% year over year,

Gross profit for the fourth quarter of 2018 was RMB175.8 million (US$25.6 million)¹, representing an increase of 19.0% from the same quarter of 2017. Gross margin in the fourth quarter was 70.3%, compared to 71.4% a year ago. Gross profit for the full year 2018 was RMB664.1 million (US$96.6 million)¹, representing a year-over-year increase of 22.0%.

Income from operations for the fourth quarter of 2018 was RMB123.1 million (US$17.9 million)¹, representing an increase of 89.0% from the same quarter of 2017. Operating margin in the fourth quarter increased to 49.3%, compared to 31.5% a year ago. Income from operations for the full year 2018 was RMB535.0 million (US$77.8 million)¹, representing a year-over-year increase of 38.1%.

Adjusted EBITDA (non-GAAP) for the fourth quarter of 2018 was RMB160.1 million (US$23.3 million)¹, an increase of 35.2% from the same quarter of 2017. The adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP) as a percentage of total revenues, was 64.1% in the fourth quarter of 2018, compared to 57.3% in the fourth quarter of 2017. Adjusted EBITDA (non-GAAP) for the full year 2018 was RMB609.7 million (US$88.7 million)¹, a year-over-year increase of 30.5%.

Net income for the fourth quarter of 2018 was RMB53.8 million (US$7.8 million)¹. Excluding the one-time grant of GTI’s shares to certain of our directors in the fourth quarter of 2017, net income in the quarter increased by 91.4%, compared to the same quarter of 2017; net margin in the quarter was 21.5%, compared to 13.6% a year ago. Net income for the full year 2018 was RMB393.6 million (US$57.2 million)¹. Excluding the one-time grant of GTI’s shares to certain of our directors in the fourth quarter of 2017, net income for the full year increased by 21.8% year over year.

Core net income (non-GAAP) for the fourth quarter of 2018 was RMB115.9 million (US$16.9 million)¹, representing a 33.4% increase from the same quarter of 2017.The core net margin, defined as core net income (non-GAAP) as a percentage of total revenues, was 46.4% in the fourth quarter of 2018, compared to 42.0% in the fourth quarter of 2017. Core net income (non-GAAP) for the full year 2018 was RMB445.3 million (US$64.8 million)¹, representing a 31.8% year-over-year increase.

Basic and diluted earnings per ADS for the fourth quarter of 2018 was RMB0.53 (US$0.08)¹, representing an RMB0.64 increase than one year ago. Basic and diluted earnings per ADS was RMB3.97 (US$0.58)¹for the full year 2018, representing a 27.2% year-over-year increase. Basic and diluted core net income per ADS (non-GAAP) was RMB1.14 (US$0.17)¹ for the fourth quarter of 2018, representing a 20.0% increase from the same quarter of 2017. Basic and diluted core net income per ADS (non-GAAP) were RMB4.49 (US$0.65)¹ for the full year 2018, representing a 21.4% year-over-year increase.

Cash flow. Operating cash inflow for the fourth quarter of 2018 was RMB152.6 million (US$22.2 million)¹, due primarily to improved operating performance across our hotel portfolio. Operating cash inflow for the full year 2018 was RMB554.9 million (US$80.7 million)¹. Investing cash inflow for the fourth quarter of 2018 was RMB153.5 million (US$22.3 million)¹, which was attributable primarily to changes in short-term investments, repayment of loan from third parties, and partially offset by purchase of property and equipment and other investments, mainly including short-term investments, long-term deposits, and loan to franchisees. Investing cash outflow for the full year 2018 was RMB181.8 million (US$26.4 million)¹. Financing cash inflow for the fourth quarter of 2018 was RMB58.3 million (US$8.5 million)¹, which was attributable primarily to RMB60.0 million of proceeds from short-term borrowings. Net financing cash inflow for the full year 2018 was RMB662.8 million (US$96.4 million)¹, which was attributable primarily to proceeds from initial public offering and was partially offset by distribution to the shareholders and payment for initial public offering costs.

Cash and cash equivalents, restricted cash, Short-term investments and securities. As of December 31, 2018, the Company had a total balance of cash and cash equivalents, restricted cash, short term investments and investments in equity securities of RMB2,260.5 million (US$328.8 million)¹, as compared to RMB1,996.3 million as of September 30, 2018, primarily due to net operating cash inflow, offset by investing cash flow for property and equipment and other investments.

Guidance

For the full year 2019, the Company expects growth in total revenues of 20-25% from 2018.

The guidance set forth above reflects the Company’s current and preliminary view based on our estimates, may not be indicative of our financial results for the full year ended December 31, 2019 and is subject to change.

Recent Developments

On January18, 2019, the Company invested in China Gingko Education Group Company Limited, a public company listed on the Hong Kong Stock Exchange (“HKSE”). In the 2017/2018 school year, approximately 10,000 students are enrolled in the college. Gingko is currently ranked as China’s number one hospitality university by the “Gaosan Web Association”, a website with introductions to and rankings of universities in China. The two companies will work together to cultivate professional talent for us and the hospitality industry in China.

On January 28, 2019, the Company announced it would become a major shareholder of Argyle Hotel Management Group (Australia) Pty Ltd. The Argyle hotel network consists of eight mid-scale and upscale brands, with footprints mainly in South West China, South East China, and some hotels in Southeast Asia. Argyle’s highly distinguished brand portfolio and geographic coverage are highly complementary to GreenTree’s business.

On March 11th, 2019, the Company acquired 4.95% in Zhejiang New Century Hotel Management Co., Ltd, which was listed on HKSE on March 11, 2019. New Century operates and manages 150 hotels, ranging from mid-scale to upscale brands, with over 34,000 hotel rooms in 22 provinces. The two companies will explore opportunities for future strategic cooperation.

Dividend Policy

On January 22, 2019, the Company announced the payment of a cash dividend of US$0.30 per ordinary share, or US$0.30 per American Depositary Share ("ADS"). In addition, the company plans to pay a cash dividend of US$0.20 per share per year in the near future, if there is no immediate cash need for the Company's growth or M&A opportunities, to create long-term value and benefits for our shareholders.

Conference Call

GreenTree’s management will hold an earnings conference call at 8:00 AM U.S. Eastern Time on March 14, 2019 (8:00 PM Beijing/Hong Kong Time on March 14, 2019).

Dial-in numbers for the live conference call are as follows:

International		1-412-902-4272
China		4001-201203
US		1-888-346-8982
Hong Kong		800-905945 or 852-3018-4992

Participants should ask to join the GreenTree call, please dial in approximately 10 minutes before the scheduled time of the call.

A telephone replay of the call will be available after the conclusion of the conference call until March 21, 2019.

Dial-in numbers for the replay are as follows:

International Dial-in		1-412-317-0088
U.S. Toll Free		1-877-344-7529
Canada Toll Free		855-669-9658
Passcode:		10129197

Additionally, a live and archived webcast of this conference call will be available at http://ir.998.com.

Use of Non-GAAP Financial Measures

We believe that Adjusted EBITDA and core net income, as we present it, is a useful financial metric to assess our operating and financial performance before the impact of investing and financing transactions, income taxes and certain non-core and non-recurring items in our financial statements.

The presentation of Adjusted EBITDA and core net income should not be construed as an indication that our future results will be unaffected by other charges and gains we consider to be outside the ordinary course of our business.

The use of Adjusted EBITDA and core net income has certain limitations because it does not reflect all items of income and expenses that affect our operations. Items excluded from Adjusted EBITDA and core net income are significant components in understanding and assessing our operating and financial performance. Depreciation and amortization expense for various long-term assets, income tax and share-based compensation have been and will be incurred and are not reflected in the presentation of Adjusted EBITDA. Each of these items should also be considered in the overall evaluation of our results. Additionally, Adjusted EBITDA and core net income does not consider capital expenditures and other investing activities and should not be considered as a measure of our liquidity. We compensate for these limitations by providing the relevant disclosure of our depreciation and amortization, interest expense/income, gains/losses from trading securities, income tax expenses, share-based compensation, share of loss in equity investees, government subsidies and other relevant items both in our reconciliations to the corresponding U.S. GAAP financial measures and in our consolidated financial statements, all of which should be considered when evaluating our performance.

The term Adjusted EBITDA and core net income is not defined under U.S. GAAP, and Adjusted EBITDA and core net income is not a measure of net income, operating income, operating performance or liquidity presented in accordance with U.S. GAAP. When assessing our operating and financial performance, you should not consider this data in isolation or as a substitute for our net income, operating income or any other operating performance measure that is calculated in accordance with U.S. GAAP. In addition, our Adjusted EBITDA and core net income may not be comparable to Adjusted EBITDA and core net income or similarly titled measures utilized by other companies since such other companies may not calculate Adjusted EBITDA and core net income in the same manner as we do.

Reconciliations of the Company’s non-GAAP financial measures, including Adjusted EBITDA and core net income, to the consolidated statement of operations information are included at the end of this press release.

About GreenTree Hospitality Group Ltd.

GreenTree Hospitality Group Ltd. ("GreenTree" or the "Company") (NYSE: GHG) is a leading franchised hotel operator in China. As of December 31, 2018, GreenTree had 2,757 hotels, among which 2,728 are franchised and managed hotels. The Company had the highest proportion of franchised-and-managed hotels among the top four economy to mid-scale hotel networks in China. In 2017, GreenTree was the fourth largest economy to mid-scale hotel group in China in terms of number of hotels according to China Hospitality Association. The Company has built a strong suite of brands including its flagship "GreenTree Inns" brand as a result of its long-standing dedication to the hospitality industry in China and consistent quality of its services, signature hotel designs, broad geographic coverage and convenient locations. GreenTree has positioned its brands to appeal to value-and-quality-conscious business travelers and leisure travelers.

For more information on GreenTree, please visit http://ir.998.com

Safe Harbor Statements

This press release contains forward-looking statements made under the “safe harbor” provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. In some cases, these forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to,” “confident,” “future,” or other similar expressions. GreenTree may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about or based on GreenTree’s current beliefs, expectations, assumptions, estimates and projections about us and our industry, are forward-looking statements that involve known and unknown factors, risks and uncertainties that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Such factors and risks include, but not limited to the following: GreenTree’s goals and growth strategies; its future business development, financial condition and results of operations; trends in the hospitality industry in China and globally; competition in our industry; fluctuations in general economic and business conditions in China and other regions where we operate; the regulatory environment in which we and our franchisees operate; and assumptions underlying or related to any of the foregoing. You should not place undue reliance on these forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided, including the forward-looking statements made, in this press release are current as of the date of the press release. Except as required by law, GreenTree undertakes no obligation to update any such information or forward-looking statements to reflect events or circumstances after the date on which the information is provided or statements are made, or to reflect the occurrence of unanticipated events.

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Balance Sheets

	December 31,2017		December 31,2018		December 31,2018
	RMB		RMB		USD
ASSETS
Current assets:
Cash and cash equivalents		161,963,665		1,264,025,785		183,844,925
Short-term investment		781,850,000		685,512,063		99,703,594
Investments in equity securities		307,754,960		307,693,782		44,752,204
Accounts receivable, net of allowance for doubtful accounts		53,882,894		64,864,184		9,434,104
Amounts due from related parties		3,248,692		228,600		33,248
Prepaid rent		4,292,472		4,478,413		651,358
Inventories		2,355,154		2,547,729		370,552
Other current assets		127,269,801		53,969,039		7,849,474
Loans receivable, net		6,600,000		67,196,568		9,773,335
Deferred tax assets		36,207,884	-		-
Total current assets		1,485,425,522		2,450,516,163		356,412,794

Non-current assets:
Amounts due from a related party		2,600,000	-		-
Restricted cash		3,000,000		3,300,000		479,965
Loan receivable, net	-			39,352,863		5,723,637
Property and equipment, net		96,669,251		222,389,573		32,345,222
Intangible assets, net		3,727,383		27,213,391		3,958,024
Goodwill		2,959,183		5,787,068		841,694
Long-term investments		122,508,832		112,219,460		16,321,644
Other assets		5,741,301		85,701,523		12,464,768
Deferred tax assets		33,351,457		67,909,969		9,877,095
TOTAL ASSETS		1,755,982,929		3,014,390,010		438,424,843

LIABILITIES AND EQUITY
Current liabilities:

	December 31,2017		December 31,2018		December 31,2018
	RMB		RMB		USD
Short-term bank loans	-			60,000,000		8,726,638
Accounts payable		7,293,341		9,182,058		1,335,475
Advance from customers		33,662,363		36,370,325		5,289,844
Amounts due to related parties		473,018		285,578		41,536
Salary and welfare payable		44,577,683		42,767,219		6,220,234
Deferred rent		2,916,205		4,421,427		643,070
Deferred revenue		109,101,986		153,389,895		22,309,635
Accrued expenses and other current liabilities		293,741,951		264,058,985		38,405,786
Income tax payable		103,830,578		104,988,638		15,269,964
Dividends payable		39,691,103	-		-
Deferred tax liabilities		27,745,951	-		-
Total current liabilities		663,034,179		675,464,125		98,242,182

Deferred rent		23,050,635		20,519,682		2,984,464
Deferred revenue		144,258,584		145,545,929		21,168,777
Other long-term liabilities		73,937,277		96,573,810		14,046,079
Deferred tax liabilities		5,797,260		43,538,624		6,332,430
Unrecognized tax benefits		113,299,633		169,619,409		24,670,120
Total liabilities		1,023,377,568		1,151,261,579		167,444,052

Shareholders’ equity:
Class A ordinary shares		160,189,926		217,421,867		31,622,699
Class B ordinary shares		140,696,841		115,534,210		16,803,754
Additional paid-in capital		212,309,734		1,003,026,803		145,884,198
Retained earnings		223,134,889		456,398,812		66,380,454
Accumulated other comprehensive (loss) income		-4,086,149		62,367,692		9,071,005
Total GreenTree Hospitality Group Ltd. shareholders’ equity		732,245,241		1,854,749,384		269,762,110

Non-controlling interests		360,120		8,379,047		1,218,681
Total shareholders’ equity		732,605,361		1,863,128,431		270,980,791

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		1,755,982,929		3,014,390,010		438,424,843

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements of Comprehensive Income

	Quarter Ended									Year Ended
	December 31,2017			December 31,2018			December 31,2018			December 31,2017			December 31,2018			December 31,2018
	RMB			RMB			USD			RMB			RMB			USD
Revenues
Leased-and-operated hotels		53,589,572			56,834,473			8,266,231			193,542,455			213,172,025			31,004,585
Franchised-and-managed hotels		153,207,697			193,048,471			28,077,736			584,589,358			731,833,909			106,440,828
Total revenues		206,797,269			249,882,944			36,343,967			778,131,813			945,005,934			137,445,413

Operating costs and expenses
Hotel operating costs		(59,046,036	)		(74,110,158	)		(10,778,875	)		(233,646,052	)		(280,954,345	)		(40,863,115	)
Selling and marketing expenses		(15,695,841	)		(16,169,263	)		(2,351,722	)		(45,032,441	)		(50,393,151	)		(7,329,380	)
General and administrative expenses		(63,739,147	)		(34,751,049	)		(5,054,330	)		(121,657,492	)		(95,261,152	)		(13,855,159	)
Other operating expenses		(4,340,835	)		(5,667,699	)		(824,333	)		(5,629,448	)		(5,946,226	)		(864,843	)
Total operating costs and expenses		(142,821,859	)		(130,698,169	)		(19,009,260	)		(405,965,433	)		(432,554,874	)		(62,912,497	)

Other operating income		1,145,905			3,909,177			568,566			15,283,828			22,570,806			3,282,787
Income from operations		65,121,315			123,093,952			17,903,273			387,450,208			535,021,866			77,815,703

Interest income and other, net		6,015,508			18,544,966			2,697,253			26,238,440			49,659,928			7,222,737
Interest expense		(514,750	)		(541,876	)		(78,813	)		(1,442,709	)		(541,876	)		(78,813	)
Gains (losses) on investments in equity securities		10,189,653			(29,829,668	)		(4,338,545	)		59,165,221			(57,774,952	)		(8,403,018	)
Other income (expenses), net		1,637,252			(987,674	)		(143,651	)		1,191,211			35,735,374			5,197,495
Income before income taxes		82,448,978			110,279,700			16,039,517			472,602,371			562,100,340			81,754,104

Income tax expense		(92,624,726	)		(49,100,068	)		(7,141,309	)		(186,651,155	)		(160,185,845	)		(23,298,065	)
(Loss) income before share of loss in equity investees		(10,175,748	)		61,179,632			8,898,208			285,951,216			401,914,495			58,456,039

	Quarter Ended									Year Ended
	December 31,2017			December 31,2018			December 31,2018			December 31,2017			December 31,2018		December 31,2018
	RMB			RMB			USD			RMB			RMB		USD
Share of losses (gains) in equity investees, net of tax		251,103			(7,352,226	)		(1,069,336	)		(899,584	)		-8,300,584		(1,207,270	)
Net (loss) income		(9,924,645	)		53,827,406			7,828,872			285,051,632			393,613,911		57,248,769

Net loss attributable to non-controlling interests		300,646			106,099			15,431			348,550			490,930		71,403
Net (loss) income attributable to ordinary shareholders		(9,623,999	)		53,933,505			7,844,303			285,400,182			394,104,841		57,320,172

Net earnings per share
Class A ordinary share-basic and diluted		(0.11	)	0.53			0.08			3.12			3.97		0.58
Class B ordinary share-basic and diluted		(0.11	)		0.53		0.08			3.12			3.97		0.58

Net earnings per ADS
Class A ordinary share-basic and diluted		(0.11	)	0.53			0.08			3.12			3.97		0.58
Class B ordinary share-basic and diluted		(0.11	)	0.53			0.08			3.12			3.97		0.58

Weighted average shares outstanding
Class A ordinary share-basic and diluted		48,635,252			66,789,300			66,789,300			48,635,252			62,860,578		62,860,578
Class B ordinary share-basic and diluted		42,716,957			34,762,909			34,762,909			42,716,957			36,288,343		36,288,343

Other comprehensive income, net of tax
Foreign currency translation adjustments		3,809,703			68,095,749			9,904,116			1,317,020			66,453,841		9,665,310
Comprehensive income, net of tax		(6,114,942	)		121,923,155			17,732,988			286,368,652			460,067,752		66,914,079

Comprehensive loss attributable to non-controlling interests		300,646			106,099			15,431			348,550			490,930		71,403
Comprehensive income attributable to ordinary shareholders		(5,814,296	)		122,029,254			17,748,419			286,717,202			460,558,682		66,985,482

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements of Cash Flows

	Quarter Ended									Year Ended
	December 31,2017			December 31,2018			December 31,2018			December 31,2017			December 31,2018			December 31,2018
	RMB			RMB			USD			RMB			RMB			USD
Operation activities:
Net (loss) income		(9,924,645	)		53,827,406			7,828,872			285,051,632			393,613,911			57,248,769
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		6,016,340			8,144,953			1,184,634			24,956,433			25,549,965			3,716,088
Share of (gain) loss in equity method investments		(251,103	)		7,352,226			1,069,337			899,584			8,300,584			1,207,270
Gains from disposal of a long-term investments		(1,649,041	)		-			-			(1,649,041	)		(36,723,048	)		(5,341,146	)
Interest income		(5,548,429	)		(518,655	)		(75,435	)		(14,698,429	)		(20,447,590	)		(2,973,979	)
Interest expenses		514,750			-			-			1,442,709			-			-
Bad debt expense		(1,455,561	)		656,201			95,440			483,610			1,978,374			287,743
(Gains) losses on investments in equity securities		(10,189,653	)		29,829,668			4,338,545			(59,165,221	)		57,774,952			8,403,018
(Gains) losses on disposal of property and equipment		3,741,825			(267,849	)		(38,957	)		3,899,331			(267,849	)		(38,957	)
Foreign exchange loss (gain)		3,667,123			4,605,147			669,791			2,784,857			(913,782	)		(132,904	)
Share-based compensation		38,048,000			8,540,392			1,242,148			38,048,000			16,108,950			2,342,949
Income tax expenses related to dividend distribution outside PRC		67,675,809			23,345,894			3,395,519			67,675,809			23,345,894			3,395,519
Impairment of long-lived assets		-			5,008,677			728,482			-			5,008,677			728,483

Changes in operating assets and liabilities:
Restricted cash		-			-			-			7,200,000			-			-
Accounts receivable		1,722,327			61,532			8,949			(17,931,396	)		(12,368,310	)		(1,798,896	)
Prepaid rent		(1,167,090	)		(336,797	)		(48,985	)		8,548,750			(185,941	)		(27,044	)
Inventories		(408,760	)		(605,810	)		(88,111	)		(510,999	)		621,293			90,363
Amounts due from related parties		6,457,182			23,399			3,403			13,816,640			1,694,216			246,413
Other current assets		(2,105,589	)		13,126,250			1,909,135			(5,892,325	)		(13,933,400	)		(2,026,528	)
Other assets		-			(1,964,823	)		(285,772	)		1,728,263			(1,964,823	)		(285,772	)
Accounts payable		(3,636,650	)		913,846			132,913			(407,953	)		1,183,032			172,065

	Quarter Ended									Year Ended
	December 31,2017			December 31,2018			December 31,2018			December 31,2017			December 31,2018			December 31,2018
	RMB			RMB			USD			RMB			RMB			USD
Amounts due to related parties		(2,506,684	)		(816,797	)		(118,798	)		290,093			-187,440			(27,262	)
Salary and welfare payable		5,277,943			2,827,062			411,179			7,507,074			(2,203,639	)		(320,506	)
Deferred revenue		14,205,528			(7,186,485	)		(1,045,231	)		52,004,162			45,575,254			6,628,646
Advance from customers		(22,166,166	)		67,464			9,812			(2,116,543	)		2,707,962			393,857
Accrued expenses and other current liabilities		13,237,799			(1,712,846	)		(249,123	)		44,287,986			(4,468,873	)		(649,971	)
Income tax payable		22,572,754			9,223,838			1,341,552			20,753,618			4,328,055			629,489
Unrecognized tax benefits		7,808,244			11,905,554			1,731,591			9,610,768			56,319,776			8,191,372
Deferred rent		3,313,564			(5,860,659	)		(852,397	)		(15,846,523	)		(1,025,731	)		(149,186	)
Other long-term liabilities		7,409,727			4,777,553			694,866			10,672,479			22,636,533			3,292,347
Deferred taxes		(11,369,114	)		(12,322,771	)		(1,792,273	)		(6,777,448	)		(17,107,359	)		(2,488,162	)
Net cash provided by operating activities		129,290,430			152,643,570			22,201,086			476,665,920			554,949,643			80,714,078

Investing activities:
Purchases of property and equipment		(3,564,666	)		(23,915,352	)		(3,478,346	)		(16,552,148	)		(138,471,216	)		(20,139,803	)
Purchases of intangible assets		-			(246,468	)		(35,847	)		(15,386	)		(3,491,958	)		(507,884	)
Proceeds from disposal of property and equipment		778,696			126,301			18,370			2,678,696			126,301			18,370
Acquisitions, net of cash received		-			-			-			-			(13,302,894	)		(1,934,826	)
Proceeds from disposal of a long-term investments	-				-			-			-			89,182,803			12,971,101
Advances for acquisitions of equity investees		-			-12,121,700			(1,763,028	)		-			-18,121,700			(2,635,692	)
Purchases of short-term investments		-781,850,000			-25,100,964			(3,650,784	)		(781,850,000	)		(772,540,145	)		(112,361,304	)
Proceeds from short-term investments		-			241,270,939			35,091,403			-			889,325,672			129,347,054
Increase in long-term investments		-			-			-			(100,701,474	)		-			-
Purchases of investments in equity securities		-			-83,421,433			(12,133,144	)		(39,972,398	)		(88,258,150	)		(12,836,616	)
Proceeds from disposal of investments in equity securities		26,122,308			5,656,574			822,715			64,874,851			30,544,376			4,442,495
Increase of long-term time deposits		-			-60,000,000			(8,726,638	)		-			(60,000,000	)		(8,726,638	)
Repayment from a related party		8,671,250			-			-			8,671,250			-			-
Loan to related parties		(2,500,000	)		-			-			(3,500,000	)		(4,300,000	)		(625,409	)
Repayment of loan from a related party		128,110,474			-			-			128,110,474			-			-
Loan to third parties		-			-			-			-			(166,819,164	)		(24,262,841	)
Repayment of loan from third parties		-			118,380,000			17,217,657			-			118,380,000			17,217,657

	Quarter Ended									Year Ended
	December 31,2017			December 31,2018			December 31,2018			December 31,2017			December 31,2018			December 31,2018
	RMB			RMB			USD			RMB			RMB			USD
Loan to franchisees		-			(8,100,000	)		(1,178,096	)		(6,600,000	)		(54,060,267	)		(7,862,740	)
Repayment from a franchisee		-			930,000			135,263			-			10,050,000			1,461,712
Net cash (used in) provided by investing activities		(624,231,938	)		153,457,897			22,319,525			(744,856,135	)		(181,756,342	)		(26,435,364	)

Financing activities:
Distribution to the shareholders		(569,391,541	)		-			-			(579,042,699	)		(200,532,021	)		(29,166,173	)
Income tax paid related to the above distribution		(64,675,809	)		-			-			(64,675,809	)		(3,000,000	)		(436,332	)
Proceeds from short-term borrowings		-			60,000,000			8,726,638			60,000,000			60,000,000			8,726,638
Repayment of short-term borrowings		(61,442,709	)		-			-			(61,442,709	)		-			-
Changes in restricted cash		1,001,850,000			(300,000	)		(43,633	)		180,000,000			(300,000	)		(43,633	)
Proceeds from initial public offering		-			-			-			-			837,505,007			121,810,051
Payment for initial public offering costs		-			(1,437,170	)		(209,028	)		-			(30,827,578	)		(4,483,685	)
Net cash provided by (used in) financing activities		306,339,941			58,262,830			8,473,977			(465,161,217	)		662,845,408			96,406,866

Effect of exchange rate changes on cash and cash equivalents		142,577			60,504,482			8,800,013			(1,467,838	)		66,023,411			9,602,707

Net (decrease) increase in cash and cash equivalents		(188,458,990	)		424,868,779			61,794,601			(734,819,270	)		1,102,062,120			160,288,287
Cash and cash equivalents at the beginning of the period		350,422,655			839,157,006			122,050,324			896,782,935			161,963,665			23,556,638
Cash and cash equivalents at the end of the period		161,963,665			1,264,025,785			183,844,925			161,963,665			1,264,025,785			183,844,925

GreenTree Hospitality Group Ltd.

Unaudited Reconciliation of GAAP and Non-GAAP Results

	Quarter Ended							Year Ended
	December 31,2017			December 31,2018		December 31,2018		December 31,2017		December 31,2018		December 31,2018
	RMB			RMB		USD		RMB		RMB		USD

Net (loss) income		(9,924,645	)		53,827,406		7,828,872		285,051,632		393,613,911		57,248,769

Deduct:
Other operating income		1,145,905			3,909,177		568,566		15,283,828		22,570,806		3,282,787
Gains on investments in equity securities		10,189,653			-		-		59,165,221		-		-
Share of gain in equity investees, net of tax		251,103			-		-		-		-		-
Other income, net		1,637,252			-		-		1,191,211		35,735,374		5,197,495

Add:
Other operating expenses		4,340,835			5,667,699		824,333		5,629,448		5,946,226		864,843
Income tax expense		92,624,726			49,100,068		7,141,309		186,651,155		160,185,845		23,298,065
Share of loss in equity investees, net of tax	-				7,352,226		1,069,336		899,584		8,300,584		1,207,270
Interest expense		514,750			541,876		78,813		1,442,709		541,876		78,813
Share-based compensation		38,048,000			8,540,392		1,242,148		38,048,000		16,108,950		2,342,949
Depreciation and amortization		6,016,340			8,144,953		1,184,634		24,956,433		25,549,965		3,716,088
Losses on investments in equity securities		-			29,829,668		4,338,545		-		57,774,952		8,403,018
Other expense, net		-			987,674		143,651		-		-		-

Adjusted EBITDA (Non-GAAP)		118,396,093			160,082,785		23,283,075		467,038,701		609,716,129		88,679,533

	Quarter Ended						Year Ended
	December 31,2017		December 31,2018		December 31,2018		December 31,2017		December 31,2018		December 31,2018
	RMB		RMB		USD		RMB		RMB		USD
Net (loss) income		(9,924,645)		53,827,406		7,828,872		285,051,632		393,613,911		57,248,769

Deduct:
Government subsidies (net of 25% tax)		-		-		-		7,665,746		11,362,580		1,652,619
Gains on investments in equity securities (net of 25% tax)		7,642,240		-		-		44,373,916		-		-
Other income (net of 25% tax)		1,227,939		-		-		893,408		26,801,531		3,898,121
Add:
Share-based compensation		38,048,000		8,540,392		1,242,148		38,048,000		16,108,950		2,342,949
Losses on investments in equity securities (net of 25% tax)		-		22,372,251		3,253,909		-		43,331,214		6,302,264
Other expense (net of 25% tax)		-		740,756		107,738		-		-		-
Income tax expenses related to dividend distribution outside PRC		67,675,809		23,345,894		3,395,519		67,675,809		23,345,894		3,395,519
Losses from joint venture closure		-		7,098,197		1,032,391		-		7,098,197		1,032,391
Core net income (Non-GAAP)		86,928,985		115,924,896		16,860,577		337,842,371		445,334,055		64,771,152

Core net income per ADS (Non-GAAP)
Class A ordinary share-basic and diluted	0.95		1.14		0.17		3.7		4.49		0.65
Class B ordinary share-basic and diluted	0.95		1.14		0.17		3.7		4.49		0.65

Operational Data

	As of December 31,2017		As of December 31,2018
Total hotels in operation:		2,289		2,757
Leased and owned hotels	26		29
Franchised hotels		2,263		2,728
Total hotel rooms in operation		190,807		221,529
Leased and owned hotels		3,302		3,734
Franchised hotels		187,505		217,795
Number of cities	263		290

	Quarter Ended
	As of December 31,2017			As of December 31,2018
Occupancy rate (as a percentage)
Leased-and-owned hotels		70.20	%		64.50	%
Franchised hotels		81.60	%		80.70	%
Blended		81.40	%		80.40	%
Average daily rate (in RMB)
Leased-and-owned hotels	193			212
Franchised hotels	158			163
Blended	158			164
RevPAR (in RMB)
Leased-and-owned hotels	135			137
Franchised hotels	129			132
Blended	129			132

	Year Ended
	2017			2018
Occupancy rate (as a percentage)
Leased-and-owned hotels		70.30	%		68.00	%
Franchised hotels		82.90	%		82.30	%
Blended		82.60	%		82.10	%
Average daily rate (in RMB)
Leased-and-owned hotels	186			205
Franchised hotels	156			163
Blended	157			164
RevPAR (in RMB)
Leased-and-owned hotels	131			139
Franchised hotels	129			134
Blended	130			135

	Number of Hotels in Operation				Number of Hotel Rooms in Operation
	As of December 31,2017		As of December 31,2018		As of December 31,2017		As of December 31,2018
Economy hotels	257		465			14,060		23,656
Vatica	104		117			7,704		8,674
Shell	153		348			6,356		14,982
Mid-scale		1,982		2,184		171,041		186,513
GreenTree Inn		1,733		1,881		151,154		162,844
GT Alliance	249		302			19,887		23,607
无眠酒店 (Wumian Hotel)		-	1			-	62
Business to Mid-to-up-scale	50		108			5,706		11,360
GreenTree Eastern	50		87			5,706		9,487
GMe		-	9			-	841
Geya		-	1			-	63
VX		-	11			-	969
Total		2,289		2,757		190,807		221,529

For more information, please contact:

GreenTree

Ms. Selina Yang

Phone: +86-21-3617-4886 ext. 7999

E-mail: ir@998.com

Mr. Nicky Zheng

Phone: +86-21-3617-4886 ext. 6708

E-mail: ir@998.com

Christensen

In Shanghai

Ms. Constance Zhang

Phone: +86-138-1645-1798

E-mail: czhang@christensenIR.com

In Hong Kong
Ms. Karen Hui
Phone: +852-9266-4140
E-mail: khui@christensenIR.com

In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com