GreenTree Hospitality Group Ltd. Reports First Quarter 2021 Financial Results

Total revenues increased 53.3% year-over-year to RMB241.2 million (US$36.8 million)[1] .

Income from operations increased 64.9% year-over-year to RMB61.4 million (US$9.4 million) [1].

Adjusted EBITDA (non-GAAP) [2] increased 74.3% year-over-year to RMB64.0 million (US$9.8 million) [1].

Core net income (non-GAAP) increased 58.3% year-over-year to RMB43.9 million (US$6.7 million) [1].

SHANGHAI,July 29,2021 --GreenTree Hospitality Group Ltd. (NYSE: GHG) ("GreenTree",the "Company","we","us" and "our"),a leading hospitality management groupin China,today announced its unaudited financial results for the first quarter and fiscal year of 2021.

First Quarter of 2021 Operational Highlights

A total of 4,464 hotels with 323,648 hotel rooms were in operation as of March 31,2021,compared to 4,340 hotels and 315,335 hotel rooms as of December 31,2020.

As of March 31,the Company had 43 leased-and-operated ("L&O") hotels and 4,421 franchised-and-managed ("F&M") hotels in operation in 353 cities across China,compared to 35 L&O hotels and 3,963 F&M hotels in operation in 342 cities as of March 31,2020. The geographic coverage increased by 3.2% year over year.

During the quarter,the Company opened 201 hotels,an increase of 139 compared to 62 hotels in the first quarter of 2020. Three of those hotels were in the luxury segment,32 in the mid-to-up-scale segment,136 in the mid-scale segment,and 30 in the economy segment. Geographically speaking,9 hotels were in Tier 1 cities [3],65 in Tier 2 cities and the remaining 127 in Tier 3 and lower cities in China.

The Company closed 77 hotels,6 due to brand upgrades,and 30 due tonon-compliance with the Company's brand and operating standards. The remaining 41 were closed for property related issues. The Company added124 hotels to its portfolio.

As of March 31,the Company had a pipeline of 1,265 hotels contracted for or under development,among which 53 hotels were in the luxury hotel segment,291 in the mid-to-up-scale segment,516 in the mid-scale segment,and 405 in the economy segment.

The average daily room rate,or ADR,for all hotels in operation,was RMB 151,an increase of 0.8% from RMB150 in the first quarter of 2020,and a 7.0% decrease compared with RMB162 in the pre-COVID-19 first quarter of 2019.

The occupancy rate,or OCC for all hotels in operation was 63.4%,an increase of 16.1% compared with 47.3% in the first quarter of 2020,and a 14.7% decrease compared with 78.1% in the pre-COVID-19 first quarter of 2019.

The revenue per available room,or RevPAR,which is calculated by multiplying our hotels' ADR by its occupancy rate,was RMB 96,a 35.1% year-over-year increase,and a 24.5% decrease compared with RMB127 in the pre-COVID-19 first quarter of 2019.

As of March 31,the Company's loyalty program had more than 59 million individual members and more than 1,710,000 corporate members,compared to over 56 million individual members and approximately 1,670,000 corporate members respectively as of December 31,2020. The Companysold approximately 92.2% of room nights directly during the first quarter 2021 .

"We achieved steady growth during the first quarter and continued to recover from the pandemic despite the resurgence of COVID-19 in many regions of China" said Mr. Alex Xu,Chairman and Chief Executive Officer of Greentree. "As the year unfolds,we remain very focused on our growth strategy which covers three particular areas. First,we are adding L&O hotels in strategic locations,second,we are further expanding in tier 3 and lower cities and,third,we are further penetrating the Mid-to-Upscale segment. We are optimistic that travel will continue to recover as vaccine rollouts accelerate. This should translate into even better results next quarter. On behalf of our Board,I want to thank our team,franchisees and shareholders for their tremendous efforts and support."

1

The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB6.5518 on March 31,2021 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at https://www.federalreserve.gov/releases/h10/20210405/

2

Adjusted EBITDA (non-GAAP) is calculated as net income plus other operating expenses,income tax expense,interest expense,depreciation and amortization,losses from investment in equity securities,share of loss in equity investees (net of tax),but excludes other operating income,interest income and other,net,gains from investment in equity securities,share of gain in equity investees (net of tax). The calculation of Adjusted EBITDA (non-GAAP) included in this report has been aligned according to the abovementioned definition.

3

Tier 1 Cities refers to Beijing,Shanghai,Shenzhen and Guangzhou; Tier 2 Cities refers to the 32 major cities,other than Tier 1 Cities,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.

First Quarter of 2021 Financial Results

Quarter Ended

March 31,

2020

March 31,

2021

March 31,

2021

RMB

RMB

US$

Revenues

Leased-and-operated hotels

33,800,144

56,113,308

8,564,564

Franchised-and-managed hotels

117,663,102

177,949,627

27,160,418

others

5,932,745

7,149,523

1,091,230

Total revenues

157,395,991

241,212,458

36,816,212

Total revenues were RMB241.2 million (US$36.8 million)[1],a 53.3% year-over-year increase. The increase was primarily due to the sustained recovery in hotel operations from the impact of COVID-19 and our newly opened L&O hotels. Compared with the pre-COVID-19 first quarter of 2019,total revenues increased by 2.5%.

Total revenues from leased-and-operated hotels were RMB56.1 million (US$8.6 million) [1],a 66.0% year-over-year increase. The increase was primarily due to the 71.7% year-over-year increase in L&O hotels' RevPAR and revenues from the 12 L&O hotels opened since the second quarter of 2020. The revenue increase was partially offset by the closure of 4 L&O hotels over the same period.

Total revenues from franchised-and-managed hotels were RMB177.9 million (US$27.2 million) [1],a 51.2% year-over-year increase. Initial franchise fees increased by 37.7% year-over-year,mainly attributable to the gross opening of 198 F&M hotels. Recurring franchisee management fees and others increased 52.9% year-over-year primarily due to the 34.3% increase in RevPar and the 11.6% increase in the number of F&M hotels,and was offset by the fee reduction to franchisees during the first quarter 2021.

Quarter Ended

March 31,2020

March 31,2021

March 31,2021

RMB

RMB

US$

Initial franchise fee

13,052,832

17,978,858

2,744,110

Recurring franchise management fee and others

104,610,270

159,970,769

24,416,308

Revenues from franchised-and-managed hotels

117,102

177,627

27,418

Total operating costs and expenses

Quarter Ended

March 31,

2021

RMB

RMB

US$

Operating costs and expenses

Hotel operating costs

89,763,273

122,230,252

18,655,980

Selling and marketing expenses

17,841,322

18,118,110

2,765,364

General and administrative expenses

28,745,571

55,958,157

8,540,883

Other operating expenses

1,157,149

1,393,556

212,698

Total operating costs and expenses

137,507,315

197,700,075

30,174,925

Hotel operating costs were RMB122.2 million (US$18.7 million) [1],a 36.2% increase year over year. The increase was mainly attributable to higher rents due to the opening of 12 L&O hotels since the second quarter of 2020. Excluding these,hotel operating costs increased 17.9%,mainly due to increase in staff number and staff salaries.

Quarter Ended

March 31,

March31,

2020

2021

2021

RMB

RMB

US$

Rental

27,102,982

39,720,751

6,062,571

Utilities

4,420,190

5,896,419

899,969

Personnel cost

10,645

13,653,447

2,083,923

Depreciation and amortization

11,338,835

16,167,503

2,467,643

Consumable,food and beverage

8,750,868

11,339,390

1,730,729

Costs of general managers of franchised-and-managed hotels

20,642,648

27,318,710

4,169,650

Other costs of franchised-and-managed hotels

4,503,060

5,541,994

845,873

Others

2,774,046

2,592,039

395,622

Hotel Operating Costs

89,273

122,252

18,980

Selling and marketing expenses were RMB18.1 million (US$2.8 million) [1],a 1.6% year-over-year increase. The increase was mainly attributable to increases in advertising expenses.

General and administrative expenseswere RMB56.0 million (US$8.5 million) [1],a 94.7% year-over-year increase. The increase was mainly attributable to increased consulting fees and other one-time expenses. Excluding these impacts,G&A expenses increased by 40.0% as a result of the increase in the number of staff.

Gross profit was RMB119.0 million (US$18.2 million) [1],a year-over-year increase of 75.9%. Gross margin was 49.3%,compared to 43.0% a year ago. The increase was primarily due to the recovery in our hotel RevPAR from COVID-19.

Income from operations were RMB61.4 million (US$9.4 million) [1],a year-over-year increase of 64.9%. The increase was mainly due to the sustained recovery in RevPar,the higher number of hotels and better control of costs and expenses during the quarter. Operating margin was 25.4%,compared to 23.6% a year ago.

Net income was RMB66.0 million (US$10.1 million) [1],compared to a loss of RMB14.1 million in the first quarter of 2020 and net margin was 27.4%.The year-over-year increase was mainly attributable to the recovery in RevPAR.

Adjusted EBITDA (non-GAAP) [2]was RMB64.0 million (US$9.8 million) [1],a year-over-year increase of 74.3%. Adjusted EBITDA margin,defined as adjusted EBITDA (non-GAAP) as a percentage of total revenues,was 26.5%,compared to 23.3% a year ago.

Core net income (non-GAAP) was RMB43.9 million (US$6.7 million) [1],a year-over-year increase of 58.3%. The core net margin,defined as core net income (non-GAAP) as a percentage of total revenues,was 18.2%,compared to 17.6% one year ago.

Earnings per ADS (basic and diluted) was RMB0.68 (US$0.10) [1],up from negative RMB0.11 one year ago.Core net income per ADS (basic and diluted) (non-GAAP) was RMB0.43 (US$0.07) [1],up from RMB0.27 a year ago.

Cash flow. Operating cash outflow was RMB1.7 million (US$0.3 million) [1] as a result of income from operations but offset by prepaid rents for L&O hotels and deposit. Investing cash outflow was RMB 258.2 million (US$39.4 million) [1],which was primarily attributable to loans to franchisees,increase in long-term time deposits,acquisition costs of our L&O hotels,and investment in property and equipment. The investing cash outflow was partially offset by proceeds from short-term investments. Financing cash inflow was RMB136.1 million (US$20.8 million).

Cash and cash equivalents,restricted cash,short-term investments,investments in equity securities and time deposit. As of March 31,the Company had total cash and cash equivalents,short term investments,investments in equity securities and time deposits of RMB1,734.0 million (US$264.7 million) [1],compared to RMB1,904.9 million as of December 31,2020. The decrease from the fourth quarter was primarily attributable to loans to franchisees and acquisition costs of our L&O hotels,offset by drawing down of bank facilities.

COVID-19 Update

Due to the implementation of travel restrictions and the government's stay-local policy during the Chinese spring festival,our occupancy rate declined in January and February 2021,but rebounded quickly after this as more people are getting vaccinated and more pent-up demand in China as travel restrictions are lifted. We saw a substantial month over month increase in RevPAR in March,April and May,especially during the Tomb Sweeping holiday and Golden Week. As we expected,these holidays really ushered in a resurgence in travel with 230 million domestic tourists traveling during Golden Week. According to report from the Ministry of Culture and Tourism,this represents 103.2% of the number of domestic tourists in the same period in 2019 and a year-over-year growth of 119.7%. By the end of June,our RevPAR had recovered to 106.0% of the 2019 level. Based upon industry data,our performance and recovery exceeded that of most of our peers.

Guidance

So far,our operations are in line with our previous forecast. Assuming the pandemic remains under control in China in the coming quarters,the Company expects an increase in total revenues of 48%-53% for the full year 2021,compared to 2020 and an increase in total revenues of 25%-30% for the full year 2021,compared to 2019.

The guidance set forth above reflects the Company's current and preliminary views based on our recovery speed and may not be indicative of the final financial results for future interim periods and the full year.

Conference Call

GreenTree's management will hold an earnings conference call at 9:00PM U.S. Eastern Time on July 28,2021 (9:00 AM Beijing/Hong Kong Time on July 29,2021).

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

International

1-412-902-4272

Mainland China

4001-201-203

US

1-888-346-8982

China Hong Kong

800-905-945 or 852-3018-4992

Singapore

800-120-6157

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 August 4,2021.

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:

10157730

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 investments in equity 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 hospitality management group in China. As of March 31,GreenTree had a total number of 4,464 hotels. In 2019,GreenTree ranked among the Top 12 worldwide in terms of number of hotels in "World's Largest Hotel Companies: HOTELS' 325",published by HOTELS magazine,and was as well the fourth largest hospitality company in China in 2020 based on the statistics issued by the China Hospitality Association.

GreenTree 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 further expanded its brand portfolio into mid-to-up-scale and luxury segments through a series of strategic investments. By offering diverse brands,through its strong membership base,expansive booking network,superior system management with moderate charges,and fully supported by its operating departments including Decoration,Engineering,Purchasing,Operation,IT and Finance,GreenTree aims to keep closer relationships with all of its clients and partners by providing a brand portfolio that features comfort,style and value.

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.

---Financial Tables and Operational Data Follow—

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Balance Sheets

December 31,

March

31,

2020

2021

2021

RMB

RMB

US$

ASSETS

Current assets:

Cash and cash equivalents

611,358,209

487,966,856

74,478,289

Short-term investment

301,983,182

515,447,537

78,672,660

Investments in equity securities

242,378,696

250,459,364

38,227,566

Accounts receivable,net of allowance

101,511,057

106,403,840

16,240,398

Amounts due from related parties

9,770,871

44,018,293

6,718,504

Prepaid rent

13,597,867

21,703,579

3,312,613

Inventories

3,804,680

2,631,703

401,676

Other current assets

77,649,794

197,327,460

30,054

Loans receivable,net

222,244,629

270,721,404

41,320,157

Total current assets

1,584,298,985

1,680,036

289,489,917

Non-current assets:

Restricted cash

22,369,900

22,900

3,414,314

Long-term time deposits

490,000,000

200,000

30,525,962

Loan receivable,net

145,988

242,315

36,959,204

Property and equipment,net

668,605,661

728,286,926

111,158,296

Intangible assets,net

491,513,073

490,171,550

74,814,791

Goodwill

100,231,487

100,487

15,313

Long-term investments

369,917

390,838,455

59,600

Other assets

66,635,394

112,912,719

17,233,848

Deferred tax assets

156,070,112

147,935,125

22,579,310

TOTAL ASSETS

4,094,954,517

4,331,575,513

661,127,555

LIABILITIES AND EQUITY

Current liabilities:

Short-term bank loans

150,000

280,000

42,736,347

Accounts payable

19,606,344

21,412,026

3,268,113

Advance from customers

34,305,508

30,051,962

4,586,825

Amounts due to related parties

3,198,253

3,299,440

503,593

Salary and welfare payable

51,567,587

52,241,724

7,973,644

Deferred rent

1,356,132

1,728,841

263,873

Deferred revenue

221,314,997

222,868

33,956,908

Accrued expenses and other current liabilities

300,696,673

326,435,111

49,823,730

Income tax payable

87,483,970

92,472,787

14,114,104

Total current liabilities

869,529,464

1,030,120,759

157,137

Deferred rent

28,973

32,505,167

4,961,258

Deferred revenue

361,901,369

346,072,720

52,821,014

Other long-term liabilities

115,862,713

127,274,124

19,425,825

Deferred tax liabilities

178,413,413

177,698,895

27,122,149

Unrecognized tax benefits

290,679,902

296,322,373

45,628

TOTAL LIABILITIES

1,845,029,834

2,009,994,038

306,785,011

Shareholders' equity:

Class A ordinary shares

222,587,070

222,070

33,423

Class B ordinary shares

115,534,210

115,210

17,633,965

Additional paid-in capital

1,280,404

1,243

175,226

Retained earnings

570,042,924

639,162

97,676,083

Accumulated other comprehensive income

45,647

48,017,408

7,328,889

Total GreenTree Hospitality Group Ltd. shareholders' equity

2,103,031,255

2,175,791,093

332,090,586

Non-controlling interests

146,893,428

145,790,381

22,251,958

Total shareholders' equity

2,249,924,683

2,321,581,474

354,342,544

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

4,555

GreenTree Hospitality Group Ltd

Unaudited Condensed Consolidated Statements of Comprehensive Income

Quarter Ended

March 31,2021

RMB

RMB

US$

Revenues

Leased-and-operated hotels

33,418

Others

5,212

Operating costs and expenses

Hotel operating costs

(89,273)

(122,252)

(18,980)

Selling and marketing expenses

(17,322)

(18,110)

(2,364)

General and administrative expenses

(28,571)

(55,157)

(8,883)

Other operating expenses

(1,149)

(1,556)

(212,698)

Total operating costs and expenses

(137,315)

(197,075)

(30,925)

Other operating income

17,330,931

17,872,403

2,727,862

Income from operations

37,219,607

61,384,786

9,149

Interest income and other,net

10,613,260

15,131,096

2,309,456

Interest expense

(1,010,255)

(3,388,211)

(517,142)

(Losses)Gains from investment in equity securities

(55,918)

27,724,291

4,553

Income before income taxes

(8,352,306)

100,851,962

15,016

Income tax expense

(6,177,560)

(35,206,811)

(5,373,609)

Income (loss) before share of loss in equity investees

(14,866)

65,645,151

10,019,407

Share of gains in equity investees,net of tax

394,844

379,566

57,933

Net income

(14,135,022)

66,024,717

10,077,340

Net loss attributable to non-controlling interests

2,289,368

3,886,521

593,199

Net income attributable to ordinary shareholders

(11,654)

69,911,238

10,539

Net earnings per share

Class A ordinary share-basic and diluted

(0.11)

0.68

0.10

Class B ordinary share-basic and diluted

(0.11)

0.68

0.10

Net earnings per ADS

Class A ordinary share-basic and diluted

(0.11)

0.68

0.10

Class B ordinary share-basic and diluted

(0.11)

0.68

0.10

Weighted average shares outstanding

Class A ordinary share-basic

68,954

68,954

Class A ordinary share-diluted

68,316,917

68,917

Class B ordinary share-basic

34,762,909

34,909

Class B ordinary share-diluted

34,909

Other comprehensive income,net of tax

Foreign currency translation adjustments

4,997,233

2,430,761

371,007

Comprehensive (loss) income,net of tax

(9,137,789)

68,455,478

10,448,347

Comprehensive loss attributable to non-controlling interests

2,199

Comprehensive (loss) income attributable to ordinary shareholders

(6,848,421)

72,341,999

11,041,546

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements of Cash Flows

Quarter Ended

March 31,2021

RMB

RMB

US$

Operating activities:

Net income

(14,022)

66,717

10,340

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

15,666,645

19,074,400

2,322

Share of gains in equity method investments

(394,844)

(379,566)

(57,933)

Fair value change in returnable consideration and contingent consideration,net

-

(502,712)

(76,729)

Interest income

(2,441)

(2,089,240)

(318,880)

Bad debt expense

5,919,636

11,757,435

1,794,535

Losses (Gains) on equity securities

55,917

(27,291)

(4,553)

Foreign exchange losses

1,432

732,281

111,768

Share-based compensation

232,558

778,699

118,853

Withholding tax

4,000

-

-

Changes in operating assets and liabilities:

Accounts receivable

6,121,451

(12,126,644)

(1,850,887)

Prepaid rent

4,335,665

(8,105,712)

(1,237,173)

Inventories

(394,213)

1,172,977

179,031

Amounts due from related parties

794,843

(3,385,042)

(516,658)

Other current assets

20,315,530

(80,953,704)

(12,355,949)

Other assets

(5,682,307)

1,788,864

273,034

Accounts payable

1,146

1,805,682

275,601

Amounts due to related parties

(2,023)

101,187

15,444

Salary and welfare payable

(2,251)

674,137

102,893

Deferred revenue

(30,918,517)

(14,664,778)

(2,238,282)

Advance from customers

(2,574,201)

(4,253,546)

(649,218)

Accrued expenses and other current liabilities

(104,735,404)

15,642

2,349,834

Income tax payable

(16,151,267)

4,988,817

761,442

Unrecognized tax benefits

14,285,229

5,471

861,209

Deferred rent

5,061,762

4,234,903

646,372

Other long-term liabilities

12,529

10,881,411

1,660,828

Deferred taxes

(13,967,629)

7,469

1,132,585

Net cash used in operating activities

(48,386,776)

(1,711,143)

(261,171)

Investing activities:

Purchases of property and equipment

(23,078,232)

(68,499,010)

(10,454,991)

Payment for acquisition of minority equity

-

(868,387)

(132,541)

Acquisitions,net of cash received

-

(309,500)

(47,239)

Collection of acquisition advances

-

1,000

152,630

Advances for purchases of property and equipment

-

(34,463,020)

(5,260,084)

Advance for acquisitions

-

(53,350,105)

(8,142,815)

Purchases of short-term investments

(101,270,000)

(64,355)

(9,909,392)

Proceeds from short-term investments

395,066,686

223,549,240

34,278

Proceeds from sales of long-term time deposits

-

50,000

7,491

Increase of long-term time deposits

(30,000)

(130,000)

(19,876)

Loan to related parties

(165,516,500)

(178,277,880)

(27,210,520)

Repayment from related parties

165,500

147,415,500

22,500,000

Loan to third parties

(2,000)

(1,000)

(228,945)

Loan to franchisees

(98,000)

(191,020,002)

(29,155,347)

Repayment from franchisees

15,015,463

43,326

6,426

Net cash provided by (used in) investing activities

155,003,917

(258,173,193)

(39,404,925)

Financing activities:

Loan from non-controlling interest

-

2,792,853

426,273

Proceeds from short-term borrowings

10,000

130,000

19,875

Capital contribution from noncontrolling interest holders

400,000

3,291,000

502,305

Net cash provided by financing activities

10,400,000

136,853

20,453

Effect of exchange rate changes on cash and cash equivalents

(575,018)

409,130

62,445

Net increase(decrease) in cash and cash equivalents

116,442,123

(123,391,353)

(18,833,199)

Cash and cash equivalents at the beginning of the period

342,223

633,109

96,725,802

Cash and cash equivalents at the end of the period

458,602,346

510,336,756

77,892,603

GreenTree Hospitality Group Ltd.

Unaudited Reconciliation of GAAP and Non-GAAP Results

Quarter Ended

March 31,2021

RMB

RMB

US$

Net income

(14,340

Deduct:

Other operating income

17,862

Interest income and other,456

Gains from investment in equity securities

-

27,553

Share of gains in equity investees,933

Add:

Other operating expenses

1,698

Income tax expense

6,560

35,811

5,609

Interest expense

1,255

3,211

517,142

Depreciation and amortization

15,322

Losses from investment in equity securities

55,918

-

-

Adjusted EBITDA (Non-GAAP)

36,712,470

63,980,339

9,307

Quarter Ended

March 31,340

Deduct:

Government subsidies (net of 25% tax)

12,432,572

10,290,918

1,570,701

Gains from investment in equity securities (net of 25% tax)

-

20,793,218

3,665

Add:

Share-based compensation

232,853

Losses from investments in equity securities (net of 25% tax)

50,081,189

-

-

One-time fees and expense

-

3,673,391

560,669

Asset impairment/Accrued bad debt

-

4,523,574

690,432

Income tax expenses related to dividend distribution

4,000

-

-

Core net income(Non-GAAP)

27,746,794

43,916,245

6,702,928

Core net income per ADS (Non-GAAP)

Class A ordinary share-basic and diluted

0.27

0.43

0.07

Class B ordinary share-basic and diluted

0.27

0.43

0.07

Operational Data

2020 Q1

2021 Q1

Total hotels in operation:

3,998

4,464

Leased-and-owned hotels

35

43

Franchised hotels

3,963

4,421

Total hotel rooms in operation

292,716

323,648

Leased-and-owned hotels

4,349

5,350

Franchised hotels

288,367

318,298

Number of cities

342

353

Quarter Ended

2020 Q1

2021 Q1

Occupancy rate (as a percentage)

Leased-and-owned hotels

32.7%

51.7%

Franchised hotels

47.7%

63.7%

Blended

47.3%

63.4%

Average daily rate (in RMB)

Leased-and-owned hotels

169

184

Franchised hotels

149

150

Blended

150

151

RevPAR (in RMB)

Leased-and-owned hotels

55

95

Franchised hotels

71

96

Blended

71

96

Number of Hotels in Operation

Number of Hotel Rooms in Operation

2020 Q1

2021 Q1

2020 Q1

2021 Q1

Luxury

20

26

4,607

5,337

Argyle

20

26

4,607

5,337

Mid-to-up-scale

272

387

24,595

35,203

GreenTree Eastern

109

162

11,649

17,136

Deepsleep Hotel

2

4

161

286

Gem

28

38

2,517

3,499

Gya

26

45

2,165

3,847

Vx

22

40

1,766

3,309

Ausotel

10

12

1,287

1,589

Urban Garden and others[1]

75

86

5,050

5,537

Mid-scale

2,582

2,864

211,155

229,314

GreenTree Inn

2,027

2,177

172,385

181,964

GT Alliance

315

430

24,231

31,617

GreenTree Apartment

10

15

438

1,031

Vatica

122

122

8,937

8,859

City 118 Selected and others[1]

108

120

5,164

5,843

Economy hotels

1,124

1,187

52,359

53,794

Shell

555

634

24,215

27,512

City 118 and others[1]

569

553

28,144

26,282

Total

3,464

292,648

Notes:

1. Others include other brands in each segment of Urban.

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

InHong 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

View original content:https://www.prnewswire.com/news-releases/greentree-hospitality-group-ltd-reports-first-quarter-2021-financial-results-301343793.html