December 16, 2020 – Austin, Texas – During GreenTree Hospitality Group Inc.’s third-quarter 2020 earnings call on Dec. 2, Chairman and Chief Executive Alex S. Xu declared, “This year has been like no other in the history of GreenTree.”
Xu also shared GreenTree’s aggressive growth plan that targets reaching 10,000 hotels open by 2024 worldwide, including the U.S.
A key component in the U.S. growth strategy is Advantage Hotels, Inc. of Austin, Texas, a hotel company founded in 2019 by Patrick Mullinix, CEO. Advantage Hotels in October signed a strategic and exclusive development agreement with GreenTree Hospitality Group Inc., based in Scottsdale, Arizona.
“We are extremely excited to have partnered with such a phenomenally successful worldwide hotel company such as GreenTree Hospitality,” Mullinix said. “With a guest loyalty program of 52 million members, GreenTree is a global leader in hotel technology, operations and management.”
Despite the COVID-19 pandemic that began to impact the global hotel industry in January, GreenTree in the third quarter began to recover lost revenue and occupancy across its 4,200-hotel portfolio in the Asian Pacific and the U.S.
Total revenue increased 23.6 percent to $39.3 million in third quarter 2020 compared to third quarter 2019. Occupancy averaged 79.1 percent while ADR decreased 12.9 percent and RevPAR was down 19.8 percent.
Xu pointed out during the earnings call that room rate continues to increase and in November GreenTree recovered to less than 5 percent of the rate charted in the same time period the year before while occupancy achieved year-ago levels.
“We have seen a sustained recovery in domestic tourism and business, leading to improved occupancy rate, ADR and RevPAR during the third quarter, thanks to the tireless work and dedication of our staff and franchisees and the strong support of our loyal members,” Xu told analysts.
Since the third quarter 2019, GreenTree has grown its portfolio by 35 percent across all price tiers.
In third quarter 2020, GreenTree opened 162 hotels. In the quarter that ended Sept. 30, GreenTree had a pipeline of 1,110 hotels. Of those, Xu expects more than 200 to open before the end of this year.
GreenTree plans to aggressively grow its portfolio to 10,000 properties over the next few years through organic growth as well as through mergers and acquisitions. The company also is targeting soft-brand conversions with an eye toward independently owned assets.
GreenTree is an owner-centric hotel brand overseen by a group that has owned, managed and franchised hotels and has fueled its growth as the largest U.S. hotel group in the Asian Pacific. Its agreement with AHI is part of the company’s aggressive growth plan targeting the American hotel market by providing a value-based lodging platform to both franchisees and guests.
GreenTree Hospitality Group Inc. has nearly 20 franchised hotels in the U.S. under the brand GreenTree Inn®. The brand’s limited- and full-service extensions are GreenTree Inn & Suites®, GreenTree Hotel, GreenTree Boutique Collection and GreenTree Extended Stay.
About GreenTree Hospitality Group Ltd.
GreenTree Hospitality Group (GHG) is a leading owner, operator, and franchisor of 4,000+ hotels worldwide.
As the 13th largest hotel company globally ranked by Hotel Magazine 2020, GHG is a trusted partner for its franchisees, employees, and guests alike. GreenTree Hospitality Group USA is an affiliated company of GHG. Brands include GreenTree Inn, GreenTree Inn & Suites, GreenTree Extended Stay, GreenTree Hotel, and GreenTree Boutique Collection. GreenTree prides itself on being able to deliver the ultimate, value-driven and eco-friendly lodging experience.
About Advantage Hotels, Inc.
Advantage Hotels, Inc. (AHI) was formed in June 2019 when industry veteran Patrick Mullinix acquired the brands Vista® and Select Inn® from Advantis Hospitality Alliance. Since then, AHI has added VistaRez Independent Collection®, a support system for independent hotels.