GreenTree Hospitality Group reported a 18.2% year-over-year decrease in total revenues for the fourth quarter of 2024, reaching RMB304.5 million (US$41.7 million). Hotel revenues declined by 17.1% to RMB240.2 million (US$32.9 million), primarily due to a 9.8% decrease in franchised-and-managed (F&M) hotels' RevPAR and the closure of 12 leased-and-operated (L&O) hotels during the year. Restaurant revenues decreased by 25.8% to RMB65.1 million (US$8.9 million), driven by the closure of L&O stores and a 16.8% decrease in average daily sales (ADS).
The company reported a net loss of RMB72.8 million (US$-10.0 million) for Q4 2024, a significant shift from a net income of RMB8.6 million in Q4 2023. This net loss was largely due to an RMB81.0 million (US$11.1 million) impairment loss of goodwill related to the restaurant business and RMB69.1 million (US$9.5 million) in other general expenses, including trademark impairments and provisions for franchisee loan receivables. Excluding these non-recurring impacts, adjusted net income for Q4 2024 increased by 26.8% year-over-year to RMB77.3 million (US$10.6 million), with a margin of 25.4%.
For the full fiscal year 2024, total revenues were RMB1,343.4 million (US$184.1 million), representing a 17.4% year-over-year decrease. Net income for fiscal year 2024 was RMB110.0 million, a decrease from RMB269.32 million in 2023. As of December 31, 2024, GreenTree operated 4,425 hotels and 182 restaurants.
The company reported strong liquidity with RMB1.84 billion in total cash and cash equivalents, restricted cash, short-term investments, investments in equity securities, and time deposits as of December 31, 2024. Management announced plans to open 480 new hotels in 2025 and continue upgrading its existing portfolio, with completion expected by Summer 2026. The restaurant business continued its strategic transformation, with franchised and managed stores accounting for almost 90% of all stores, up from 78% a year ago, and street stores representing 50% of all stores, up from 40% a year ago.
The board approved a cash dividend of US$0.10 per ordinary share in Q2 2024, payable to shareholders of record on September 30, 2024. Management also stated its plan to reinstate its continuous dividend policy. This commitment to shareholder returns is a key aspect of the company's financial strategy.
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