GreenTree Hospitality Group Ltd. Reports Fourth Quarter and Fiscal Year 2021 Financial Results

Total revenues increased by 6.1% year over year to RMB307.4 million (US48.2 million)[1]for the fourth quarter 2021.

Income from operations decreased by 69.5% year over year to RMB36.1 million (US$5.7 million)[1] for the fourth quarter 2021.

Adjusted EBITDA (non-GAAP)[2]decreased by 47.4% year over year to RMB68.8 million (US10.8 million) for the fourth quarter 2021.

Core net income (non-GAAP)[3]decreased by 67.2% year over year to RMB35.8 million (US$5.6 million)[1] for the fourth quarter 2021.

GreenTree's board of directors has approved a share repurchase program of up to US$20 million over the next 12 months.

SHANGHAI,May 12,2022 -- GreenTree Hospitality Group Ltd. (NYSE: GHG) ("GreenTree",the "Company","we","us" and "our"),a leading hospitality management group in China,today announced its unaudited financial results for the fourth quarter and fiscal year of 2021.

Fourth Quarter of 2021 Operational Highlights

A total of 4,659 hotels with 337,153 hotel rooms were in operation as of December31,2021,compared to 4,626 hotels and 334,162 hotel rooms as of September 30,2021.

As of December 31,the Company had 66 leased-and-operated ("L&O") hotels and 4,593 franchised-and-managed ("F&M") hotels in operation in 367 cities across China,compared to 40 L&O hotels and 4,300 F&M hotels in operation in 345 cities as of December 31,2020. Geographic coverage increased by 6.4% year-over-year.

During the quarter,the Company opened 138 hotels,a decrease of 65 compared to 203 hotels opened in the fourth quarter of 2020. Of the hotels opened in the fourth quarter of 2021,three were in the luxury segment,44 were in the mid-to-up-scale segment,59 were in the mid-scale segment,and 32 were in the economy segment. Geographically speaking,15 hotels were in Tier 1 cities[3],34 were in Tier 2 cities and the remaining 89 were in Tier 3 and lower cities inChina as of December 31,the Company had a pipeline of 1,225 hotels contracted for or under development,of which 57 hotels were in the luxury hotel segment,347 were in the mid-to-up-scale segment,478 were in the mid-scale segment,and 343 were in the economy segment.

The average daily room rate,or ADR,for all hotels in operation was RMB170,a 4.6% increase from RMB162 in the fourth quarter of 2020,and a 0.8% increase from RMB168 in the fourth quarter of 2019,before the COVID-19 outbreak.

The occupancy rate,or OCC,for all hotels in operation was 69.2%,a decrease of 7.5% compared with 76.7% in the fourthquarter of 2020,and a 7.2% decrease compared with 76.4% in the fourth quarter of 2019,before the COVID-19 outbreak.

The revenue per available room,or RevPAR,which is calculated by multiplying our hotels' ADR by its occupancy rate,was RMB117,a 5.6% year-over-year decrease,and a 8.7% decrease compared with RMB129 in the fourth quarter of 2019,before the COVID-19 outbreak.

As of December 31,2021 the Company's loyalty program had over 69 million individual members and approximately 1,850,000 corporate members,compared to over 66 million individual members and approximately 1,810,respectively,as of September 30,2021. The Company sold approximately 91.0% of room nights directly during the fourth quarter of 2021.

2021 Full Year Operational Highlights

For the full year 2021,the Company opened 722 hotels,an increase of 34.2% comparing to 538 newly-opened hotels in the full year 2020. Of the hotels opened in 2021,10 were in the luxury hotel segment,189 were in the mid-to-up-scale segment,415 were in the mid-scale segment,and 108 were in the economy segment. Geographically speaking,46 hotels were in Tier 1 cities,200 were in Tier 2 cities and the remaining 476 were in Tier 3 and other cities in China as of December 31,2021. During 2021,the Company closed 403 hotels,and added a net of 319 hotels to its portfolio.

The average daily room rate,for all hotels in operation,was RMB164 in the full year 2021,a 7.5% year-over-year increase.

The occupancy rate,or OCC for all hotels in operation was 71.1% in the full year 2021,compared with 68.7% in the full year 2020.

The revenue per available room,was RMB116 in the full year 2021,a 11.3% year-over-year increase.

"While addressing unprecedented challenges brought by the pandemic,we have continued to focus on the execution of our strategic growth plan for the long term," said Mr. Alex Xu,Chairman and Chief Executive Officer of GreenTree. "Thanks to the hard work and vigilance of our team,franchisees and partners to protect the health,safety and comfort of our customers,we delivered solid results during the fourth quarter of 2021,recovering 91.3% of our RevPAR in this quarter compared to the same period in 2019.

Several waves of COVID-19 infections in parts of China in the fourth quarter of 2021 dampened user demand for hotels stays overall. Despite the impact of COVID-19 in November,and thanks to our resilient business model,RevPAR for the quarter recovered to 91.3% of its level in the same period in 2019. This performance was better than our industry's average and gave momentum to our business. We also made progress in some of our new business models,such as E-sports hotels. As a result,E-sports hotels have performed better throughout the pandemic,bringing stable occupancy rates and profits to our franchisees and partners.

Going into 2022,we are pleased to see that our business has maintained better momentum than our industryin January and February,especially during Chinese New Year. However,additional COVID-19 outbreaks in March slowed down the pace of recovery in the domestic hospitality industry,especially in top-tier cities. March was negatively impacted by the resurgence of COVID-19 in many parts of China,particularly in Jilin Province,Guangdong Province and Shanghai. While the hotel industry as a whole has been hit hard and is under tremendous pressure,we have been strongly supported by the unwavering dedication of our staff and partners. Their dedication gives us confidence for the future,in our ability to continue to navigate uncertainty and to emerge from the pandemic stronger than ever."

Fourth Quarter 2021 Financial Results

Quarter Ended

December 31,2020

December 31,2021

December 31,2021

RMB

RMB

US$

Revenues

Leased-and-operated hotels

76,113,015

112,445,788

17,645,198

Franchised-and-managed hotels

207,222,721

184,749,925

28,991,295

others

6,420,830

10,236,732

1,606,366

Total revenues

289,756,566

307,432,445

48,242,859

Year Ended

December 31,2021

RMB

RMB

US$

Revenues

Leased-and-operated hotels

227,074,041

391,960,031

61,507,082

Franchised-and-managed hotels

677,480,818

774,359,348

121,513,879

others

25,455,237

39,826,579

6,249,660

Total revenues

930,010,096

1,206,145,958

189,270,621

Total revenuesfor the fourth quarter of 2021were RMB307.4 million (US$48.2 million)[1],a 6.1% year-over-year increase. The increase was primarily due to newly opened L&O and F&M hotels. Compared with the fourth quarter of 2019,before the COVID-19 outbreak,total revenues for the fourth quarter of 2021increased by 6.2%. Total revenues for the full year 2021were RMB1,206.1 million (US$189.3 million)[1],a 29.7% year-over-year increase.

Total revenues from leased-and-operated hotelsfor the fourth quarter of 2021were RMB112.4 million (US$17.6 million)[1],a 47.7% year-over-year increase. The increase was primarily due to a 1.2% year-over-year increase in L&O hotels' RevPAR and revenues from the 29 L&O hotels opened since the beginning of 2021. This revenue increase was partially offset by the closure of three L&O hotels over the same period. Total revenues from L&O hotels for the full year 2021were RMB392.0 million (US$61.5 million)[1],a 72.6% year-over-year increase.

Total revenues from franchised-and-managed hotelsfor the fourth quarter of 2021were RMB184.7 million (US$29.0 million)[1],a 10.8% year-over-year decrease. Initial franchise fees for the fourth quarter of 2021increased by 5.7% year-over-year,mainly attributable to the gross opening of 132 F&M hotels and the closure of 105 F&M hotels. Recurring franchisee management fees and others for the fourth quarter of 2021decreased by 12.4% year-over-year,primarily due to a 5.8% decrease in RevPAR due to impact of COVID-19 and the fee waiver to franchisees of quarantined hotels and hotels whose RevPAR has been severely affected by the pandemic. Total revenues from F&M hotels for the full year 2021 were RMB774.4 million (US$121.5 million)[1],a 14.3% year-over-year increase.

Quarter Ended

December 31,2021

RMB

RMB

US$

Initial franchise fee

18,065,889

19,091,150

2,995,818

Recurring franchise management fee and others

189,156,832

165,658,775

25,477

Revenues from franchised-and-managed hotels

207,721

184,925

28,295

Year Ended

December 31,2021

RMB

RMB

US$

Initial franchise fee

61,051,369

76,263,574

11,967,419

Recurring franchise management fee and others

616,429,449

698,095,774

109,546,460

Revenues from franchised-and-managed hotels

677,818

774,348

121,879

Total operating costs and expenses

Quarter Ended

December 31,2021

RMB

RMB

US$

Operating costs and expenses

Hotel operating costs

99,817,161

191,912,281

30,115,225

Selling and marketing expenses

24,232,688

10,649,862

1,671,196

General and administrative expenses

50,885,097

72,474,197

11,372,783

Other operating expenses

98,341

30,485

4,783

3Total operating costs and expenses

175,033,287

275,066,825

43,163,987

Year Ended

December 31,2021

RMB

RMB

US$

Operating costs and expenses

Hotel operating costs

392,522,306

651,376,905

102,215,250

Selling and marketing expenses

75,347,166

66,921,718

10,501,478

General and administrative expenses

172,557,554

268,252,836

42,094,724

Other operating expenses

1,731,405

4,937,625

774,821

Total operating costs and expenses

642,158,431

991,489,084

155,586,273

Hotel operating costsfor the fourth quarter of 2021were RMB191.9 million (US$30.1 million)[1],a 92.3% year-over-year increase. The increase was mainly attributable to the opening of 29 L&O hotels since the beginning of 2021,which resulted in higher rents,higher utilities and consumables,higher staff headcount and compensation expenses,higher depreciation and amortization,and higher ramp up costs. Excluding the impact from newly-opened L&O hotels in 2021,hotel operating costs for the fourth quarter of 2021increased 19.7%. Hotel operating costs for the full year 2021 were RMB651.4 million (US$102.2 million)[1],a 65.9% year-over-year increase.

Quarter Ended

December 31,

December 31,

2020

2021

2021

RMB

RMB

US$

Rental

28,196,927

63,622,588

9,983,772

Utilities

4,416

6,306,575

989,639

Personnel cost

10,034,679

29,867,603

4,686,879

Depreciation and amortization

13,450,611

29,110,325

4,568,045

Consumable,food and beverage

11,584,105

20,471,596

3,212,440

Costs of general managers of franchised-and-managed hotels

26,088,907

29,807,622

4,677,466

Other costs of franchised-and-managed hotels

5,132,814

6,004,107

942,175

Others

1,702

6,721,865

1,054,809

Hotel Operating Costs

99,161

191,281

30,225

Year Ended

December 31,

2020

2021

2021

RMB

RMB

US$

Rental

118,295,183

235,383

36,965,820

Utilities

15,385

25,782,913

4,045,902

Personnel cost

41,330,758

82,114,394

12,540

Depreciation and amortization

50,324,493

80,575,644

12,644,077

Consumable,food and beverage

43,257,796

69,495,702

10,905,392

Costs of general managers of franchised-and-managed hotels

91,664,745

114,779,305

18,011,378

Other costs of franchised-and-managed hotels

22,985,917

26,123,578

4,099,359

Others

9,291,029

16,936,986

2,657,782

Hotel Operating Costs

392,306

651,905

102,250

Selling and marketing expensesfor the fourth quarter of 2021were RMB10.6 million (US$1.7 million)[1],a 56.1% year-over-year decrease. The decrease was mainly attributable to lower advertising expenses. Selling and marketing expenses for the full year 2021 were RMB66.9 million (US$10.5 million)[1],a 11.2% year-over-year decrease.

General and administrative expenses for the fourth quarter of 2021 were RMB72.5 million (US$11.4 million)[1],a 42.4% year-over-year increase. The increase was mainly attributable to the opening of 29 L&O hotels since the beginning of 2021,increased one-time consulting fees for capital markets advice and increased bad debts during 2021. Excluding the impact from newly-opened L&O hotels and one-time consulting fees,general and administrative expenses for the fourth quarter of 2021 increased by 19.9%. General and administrative expenses for the full year 2021 were RMB268.3 million (US$42.1 million) [1],a 55.5% year-over-year decrease.

Gross profitfor the fourth quarter of 2021 was RMB115.5 million (US$18.1 million)[1],a year-over-year decrease of 39.2%. Gross margin for the fourth quarter of 2021 was 37.6%,compared to 65.6% a year ago. The decrease was primarily due to the operating loss recorded by newly-opened L&O hotels during their ramp-up period. Gross profit for the full year 2021 was RMB554.8 million (US$87.1 million)[1],a 3.2% year-over-year increase.

Income from operations for the fourth quarter of 2021 was RMB36.1 million (US$5.7 million) [1],a year-over-year decrease of 69.5%,with a margin of 11.8%. The decrease was mainly due to the operating loss recorded by newly-opened L&O hotels during their ramp-up period. Excluding the impact of newly-opened hotels,income from operations for the fourth quarter of 2021 was RMB261.4 million,a year-over-year increase of 16.6%,with a margin of 54.3%. Income from operations for the full year 2021 was RMB241.7 million (US$37.9 million) [1],a year-over-year decrease of 24.3%.

Net incomefor the fourth quarter of 2021 was RMB28.6 million (US$4.5 million) [1],compared to RMB79.5 million in the fourth quarter of 2020 and net margin was 9.3%. The year-over-year decrease was mainly attributable to the operating loss recorded by newly-opened L&O hotels during their ramp-up period. Net income for the full year 2021 was RMB207.8 million(US$32.6 million) [1],a year-over-year decrease of 15.1%.

Adjusted EBITDA (non-GAAP)[2]for the fourth quarter of 2021 was RMB68.7 million (US$10.8 million)[1],a year-over-year decrease of 47.4%. Adjusted EBITDA margin,defined as adjusted EBITDA (non-GAAP) as a percentage of total revenues,for the fourth quarter of 2021 was 22.4%,compared to 45.1% a year ago.Excluding the impact of newly-opened hotels,adjusted EBITDA (non-GAAP) for the fourth quarter of 2021 was RMB105.0 million,with a margin of 40.2%. Adjusted EBITDA (non-GAAP) for the full year 2021 was RMB317.7 million (US$49.9 million)[1],a year-over-year decrease of 10.6%.

Core net income (non-GAAP)for the fourth quarter of 2021was RMB35.8 million (US$5.6 million)[1],a year-over-year decrease of 67.2%. The core net margin,defined as core net income (non-GAAP) as a percentage of total revenues,for the fourth quarter of 2021was 11.7%,compared to 37.7% one year ago. Core net income (non-GAAP) for the full year2021was RMB208.8 million (US$32.7 million)[1],a year-over-year decrease of 27.9%.

Earnings per ADS (basic and diluted)for the fourth quarter of 2021 were RMB0.25(US$0.04)[1],downfrom RMB0.83one year ago.Core net income per ADS (basic and diluted) (non-GAAP) for the fourth quarter of 2021 was RMB0.35 (US$0.05)[1],down from RMB1.06a year ago. Earnings per ADS (basic and diluted) for the full year 2021 was RMB2.05 (US$0.32)[1]down from RMB2.54 one year ago. Core net income per ADS (basic and diluted) (non-GAAP) was RMB2.03 (US$0.32)[1]for the full year 2021,a decrease from RMB2.81 a year ago.

Cash flowOperating cash inflow for the fourth quarter of 2021 was RMB201.3 million (US$31.6 million)[1] as a result of income from operations. Investing cash outflow for the fourth quarter of 2021was RMB256.4 million (US$40.2 million) [1],which was primarily attributable to purchases of short-term investment,investments and deposits for property and equipment,and loans to franchisees. The investing cash outflow was partially offset by proceeds from short-term investments. Financing cash inflow for the fourth quarter of 2021 was RMB154.2 million (US$24.2 million),mainly attributable to dividends distributed by the end of the year 2021. Operating cash inflow for the full year 2021 was RMB361.0 million (US$56.6 million) [1]. Investing cash outflow for the full year 2021 was RMB928.4 million (US$145.7 million) [1]. Financing cash inflow for the full year 2021 was RMB255.6 million (US$40.1 million) [1].

Cash and cash equivalents,restricted cash,short-term investments,investments in equity securities and time deposit.As of December 31,the Company had total cash and cash equivalents,short term investments,investments in equity securities and time deposits of RMB1,235.9 million (US$193.9 million)[1],compared to RMB1,192.1 million as of September 30,2021. The increase from the prior quarter was primarily attributable to drawing down of bank facilities offset by dividend distribution to our shareholders,acquisition costs of our L&O hotels,changes in fair value of equity securities and loans to franchisees.

COVID-19 Update

Despite the resurgence of COVID-19 in the fourth quarter of 2021,we delivered solid results,withRevPAR recovering to 91.3% of its level in the same period in 2019.At the end of December 2021,our RevPAR had bounced back to almost 100% of its level in the fourth quarter of 2019 (the "4Q2019 Level"). With the resurgence of COVID-19 nationwide,our RevPAR fell to around 81.3% of the 4Q2019 Level in the first week of November 2021,but gradually recovered to 98.5% of the 4Q2019 Level in the last week of December 2021. In early 2022,hotels braced for a rush of guests during the Chinese New Year due to family reunions and anticipated recovery in domestic tourism,leading to a boom for the hospitality industry. In the first quarter of 2022,the Company's RevPAR temporarily reached 88% of its level in the first quarter of 2019. However,the reintroduction of travel restrictions due to increased omicron variant cases led to a decline in RevPAR.

At the beginning of 2022,another round of COVID outbreaks in March and April led to some restrictions in major cities being locked down,and millions of residents confined at home,slowing down the recovery pace of the domestic hospitality industry,especially in top-tier cities. Outbreaks in Jilin Province,Guangdong Province and Shanghai in March led to a drop in our RevPAR of the first week of May to only 56.0% of its level at the same time in 2019. A certain number of our hotels participate in domestic quarantine programs. We help local governments implement quarantine policies,help our guests isolate safely,and help our franchisees stabilize their income. We believe our hotels' participation can help them stay competitive in the industry. While China's domestic market remains under pressure due to a new wave of infections and the rapid increase in omicron cases,we believe we can continue to outperform the industry across business lines.

Guidance

Assuming the recent resurgences of COVID-19 remain under control in China and the market will recover in the third quarter and fourth quarter,the Company expects an increase in total revenues of up to 5% for the full year 2022,compared to 2021.

The guidance set forth above reflects the Company's current and preliminary views based on its recovery and may not be indicative of the final financial results for any future interim period and/or the full year ending December 31,2022.

Share Repurchase Program

The Company today also announced that its board of directors has authorized a share repurchase program under which the Company may repurchase up to US$20 million worth of its outstanding (i) American depositary shares ("ADSs"),each representing one Class A ordinary share,and/or (ii) Class A ordinary shares over the next 12 months.

Under the share repurchase program,the Company may repurchase its ADSs from time to time through open market transactions at prevailing market prices,privately negotiated transactions,block trades or any combination thereof. The Company will also effect repurchase transactions in compliance with Rule 10b5-1 and/or Rule 10b-18 under the Securities Exchange Act of 1934,as amended,and its insider trading policy,as applicable. The number of ADSs repurchased and the timing of repurchases will depend on a number of factors,including,but not limited to,price,trading volume and general market conditions,along with the Company's working capital requirements and general business conditions. The Company's board of directors will review the share repurchase program periodically,and may authorize adjustment of its terms and size. The Company plans to fund the repurchases from its existing cash balance and does not expect the repurchase program to adversely affect its existing growth plan and strategies.

Conference Call

GreenTree's management will hold an earnings conference call at 8:00 PM U.S. Eastern Time on May 11,2022,(9:00 AM Beijing/Hong Kong Time onMay12,2022).

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

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 conference call will be available after the conclusion of the live conference call until May,2022.

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:

6891497

Additionally,a live and archived webcast of this conference call will be available athttp://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 December 312021,GreenTree had a total number of 4,659 hotels. In 2020,HOTELS magazine ranked GreenTree Top 12 Ranking among 225 largest global hotel groups in terms of number of hotels in its annual HOTELS' 225. GreenTree was also the fourth largest hospitality company in China in 2020 based on the statistics issued by the China Hospitality Association.

GreenTree has a broad portfolio of diverse brands spanning from the economy to mid-scale,up-scale and luxury segments of the hospitality industry mainly in China. 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 diverse brand portfolio that features comfort,style and value.

For more information on GreenTree,please visithttp://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,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,

2020

2021

2021

RMB

RMB

US$

ASSETS

Current assets:

Cash and cash equivalents

611,358,209

298,428,709

46,829,977

Restricted cash

-

3,300,000

517,842

Short-term investments

301,182

557,458,675

87,477,431

Investments in equity securities

242,378,696

157,988,851

24,791,898

Accounts receivable,net of allowance

101,511,057

95,589,936

15,000,147

Amounts due from related parties

9,770,871

310,419,860

48,711,650

Prepaid rent

13,597,867

15,454,967

2,425,222

Inventories

3,804,680

2,297,584

360,541

Other current assets

77,794

135,626,370

21,282,736

Loans receivable,net

222,244,629

323,141,251

50,707,914

Total current assets

1,298,985

1,899,706,203

298,105,358

Non-current assets:

Restricted cash

22,369,900

18,869,900

2,961,099

Long-term time deposits

490,000

160,000

25,107,491

Loans receivable,net

145,703,988

303,150,438

47,570,919

Property and equipment,net

668,605,661

1,052,467,058

165,155,048

Intangible assets,net

491,073

520,117,479

81,617,782

Goodwill

100,231,487

120,819,948

18,959,286

Long-term investments

369,525,917

188,790,785

29,625,394

Other assets

66,635,394

329,366,340

51,684,767

Deferred tax assets

156,070,112

138,776,214

21,777,016

TOTAL ASSETS

4,954,517

4,732,064,365

742,564,160

LIABILITIES AND EQUITY

Current liabilities:

Short-term bank loans

150,000

406,200,000

63,741,644

Accounts payable

19,344

24,036,544

3,771,858

Advance from customers

34,305,508

39,773,738

6,241,367

Amounts due to related parties

3,198,253

9,530,627

1,563

Salary and welfare payable

51,567,587

60,154,565

9,439,564

Deferred rent

1,356,132

1,926,957

302,382

Deferred revenue

221,314,997

215,147,975

33,761,412

Accrued expenses and other current liabilities

300,696,673

379,907,548

59,615,785

Income tax payable

87,483,970

71,384,087

11,201,721

Dividends payable

-

40,999,458

6,433,710

Total current liabilities

869,529,464

1,061,499

196,005,006

Long-term bank loans

-

301,800,000

47,006

Deferred rent

28,642,973

68,842,692

10,802,921

Deferred revenue

361,901,369

314,472,488

49,596

Other long-term liabilities

115,862,713

132,046,925

20,044

Deferred tax liabilities

178,413,413

247,002,602

38,760,098

Unrecognized tax benefits

290,679,902

284,542,615

44,650,945

TOTAL LIABILITIES

1,845,029,834

2,768,821

407,646,616

Shareholders' equity:

Class A ordinary shares

222,587,070

222,070

34,928,768

Class B ordinary shares

115,534,210

115,210

18,129,839

Additional paid-in capital

1,149,280,404

1,151,306

180,323

Retained earnings

570,042,924

420,688

65,979,143

Accumulated other comprehensive income

45,647

39,089,244

6,133,955

Total GreenTree Hospitality Group Ltd. shareholders' equity

2,103,031,255

1,949,053,518

305,849,028

Non-controlling interests

146,893,428

185,026

29,068,516

Total shareholders' equity

2,924,683

2,134,544

334,917,544

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

4,160

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements of Comprehensive Income

Quarter Ended

Year Ended

December 31,2021

RMB

RMB

US$

RMB

RMB

US$

Revenues

Leased-and-operated hotels

76,198

227,082

Franchised-and-managed hotels

207,295

677,879

Others

6,366

25,660

Total revenues

289,859

930,621

Operating costs and expenses

Hotel operating costs

(99,161)

(191,281)

(30,225)

(392,306)

(651,905)

(102,250)

Selling and marketing expenses

(24,688)

(10,862)

(1,196)

(75,166)

(66,718)

(10,478)

General and administrative expenses

(50,097)

(72,197)

(11,783)

(172,554)

(268,836)

(42,724)

Other operating expenses

(98,341)

(30,485)

(4,783)

(1,405)

(4,625)

(774,821)

Total operating costs and expenses

(175,287)

(275,825)

(43,987)

(642,431)

(991,084)

(155,273)

Other operating income

3,728,194

3,781,098

593,337

31,399,552

27,059,935

4,246,294

Income from operations

118,451,473

36,146,718

5,672,209

319,251,217

241,716,809

37,930,642

Interest income and other,net

25,072,336

14,894,610

2,337,289

72,934,212

59,974,418

9,411,295

Interest expense

(514,466)

(2,595)

(424,881)

(3,456,316)

(12,385)

(1,417)

Gains (losses) from investment in equity securities

(27,038,739)

(15,214,276)

(2,387,452)

(36,521)

11,929,538

1,872,005

Other income,net

1,000

8,322,668

1,008

2,296,981

11,818,559

1,854,590

Income before income taxes

117,604

41,442,125

6,503,173

354,573

312,767,939

49,080,115

Income tax expense

(38,060,701)

(12,266,354)

(1,858)

(110,459,202)

(105,313,904)

(16,526,050)

Income before share of gains in equity investees

79,688,903

29,175,771

4,578,315

243,793,371

207,035

32,554,065

Share of gains in equity investees,net of tax

(209,178)

(624,273)

(97,962)

909,364

382,874

60,081

Net income

79,479,725

28,551,498

4,353

244,702,735

207,836,909

32,614,146

Net loss/(income) attributable to non-controlling interests

6,078,488

(2,616,666)

(410,612)

16,641,655

3,411

590,248

Net income attributable to ordinary shareholders

85,558,213

25,832

4,069,741

261,344,390

211,598,320

33,204,394

Net earnings per share

Class A ordinary share-basic and diluted

0.83

0.25

0.04

2.54

2.05

0.32

Class B ordinary share-basic and diluted

0.83

0.25

0.04

2.54

2.05

0.32

Net earnings per ADS

Class A ordinary share-basic and diluted

0.83

0.25

0.04

2.54

2.05

0.32

Class B ordinary share-basic and diluted

0.83

0.25

0.04

2.54

2.05

0.32

Weighted average shares outstanding

Class A ordinary share-basic and diluted

68,286,954

68,954

Class B ordinary share-basic and diluted

34,762,909

34,909

Other comprehensive income,net of tax

Foreign currency translation adjustments

(18,663,525)

(6,398,752)

(1,104)

(19,714,207)

(6,497,403)

(1,019,584)

Comprehensive income,net of tax

60,816,200

22,152,746

3,476,249

224,528

201,339,506

31,594,562

Comprehensive loss/(income) attributable to non-controlling interests

6,247

Comprehensive income attributable to ordinary shareholders

66,688

19,536,080

3,637

241,630,183

205,100,917

32,184,809

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements of Cash Flows

Quarter Ended

Year Ended

December 31,2021

RMB

RMB

US$

RMB

RMB

US$

Operating activities:

Net income

79,725

28,498

4,353

244,735

207,909

32,146

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

Depreciation and amortization

15,801,122

36,374,869

5,708,011

65,971

98,657

15,395,703

Share of (gains) losses in equity method investments

209,178

624,272

97,962

(909,364)

(382,874)

(60,081)

Gain from disposal of subsidiaries

(1,000)

3,609,755

566,449

(1,000)

118,443

18,586

Interest income

(4,050)

(432,726)

(67,904)

(11,121)

(3,669,643)

(575,847)

Bad debt expense

7,900,690

18,153,276

2,848,645

29,953,404

44,798,296

7,830

(Gains)losses from investments in equity securities

27,020,151

13,057

2,073,731

44,506,823

(11,538)

-1,005

(Gains) losses on disposal of property and equipment

-

604,017

94,783

604,783

Foreign exchange (gains) losses

4,504

(3,067,177)

-481,307

4,723,948

(1,310,347)

(205,622)

Share-based compensation

-

619,405

97,198

232,558

2,464,762

386,775

Income tax expenses related to dividend distribution or retained profits

(14,576,403)

-

-

-

-

-

Changes in operating assets and liabilities:

Accounts receivable

14,549

6,230

946,118

(28,789,041)

(22,329,328)

(3,959)

Prepaid rent

(5,367,732)

3,665,273

575,161

5,798

(1,857,100)

(291,420)

Inventories

230,924

(37,664)

(5,910)

(1,281,009)

1,974

234,751

Amounts due from related parties

193,653

(3,364,817)

(528,013)

10,181

(3,963,547)

(621,967)

Other current assets

(15,613,220)

51,188,525

8,032,596

(18,170)

(60,345,478)

(9,469,520)

Other assets

(4,022,768)

(31,726)

(4,873,164)

(19,680,102)

(49,290)

(7,722,796)

Accounts payable

(2,941,115)

3,839,558

602,510

4,551

4,520,260

709,327

Amounts due to related parties

1,655

4,416,205

692,999

(319,778)

6,332,374

993,688

Salary and welfare payable

(864,348)

3,142

479,105

8,913,678

8,978

1,484

Deferred revenue

(26,184)

(27,733,753)

(4,352,031)

(59,516,154)

(53,595,903)

(8,410,367)

Advance from customers

2,569

13,590,894

2,708

(5,119)

5,468,230

858,085

Accrued expenses and other current liabilities

(2,191)

23,308,529

3,617

13,169,673

70,171,021

11,364

Income tax payable

24,167,283

4,882

694,988

(6,354,794)

(16,883)

(2,423)

Unrecognized tax benefits

15,247

-29,717

-4,355

29,185

(6,137,287)

(963,074)

Deferred rent

2,208

12,631,176

1,982,107

6,997,755

40,544

6,397,788

Other long-term liabilities

(7,657)

(5,162,255)

(810,070)

(5,549,798)

14,648,804

2,717

Deferred taxes

2,072

74,237,689

11,513

(12,878)

85,883,087

13,930

Net cash provided by operating activities

112,752,862

201,417

31,800

295,256,932

360,975,138

56,876

Investing activities:

Purchases of property and equipment

(43,353,048)

(90,702)

(14,235,430)

(111,994)

(341,715,516)

(53,621)

Purchases of intangible assets

(878,818)

-

-

(887,893)

(201,746)

(31,658)

Proceeds from disposal of property and equipment

8,968

-

-

80,355

-

-

Payment for acquisition of minority equity

-

(150,000)

(23,538)

-

(1,018,387)

(159,807)

Acquisitions,net of cash received

(14,547,587)

(5,414,241)

(849,613)

(18,415,807)

(147,608,325)

(23,967)

Advances for acquisitions

(6,550,000)

-4,436,494

-696,183

(6,000)

-39,494

-6,195,822

Collection of acquisition advances

40,000

937,000

147,036

36,700

12,500

1,306

Advances for purchases of property and equipment

-

(14,878)

(2,268,600)

-

(219,346,261)

(34,215)

Repayment from advances for purchases of property and equipment

-

-

-

-

22,400,000

3,515,049

Purchases of short-term investments

(58,194)

-178,887

-27,973,965

(206,596,401)

-378,189,081

-59,119

Proceeds from short-term investments

45,050

136,693

21,473,605

453,434,366

536,383,232

84,170,234

Proceeds from sales of long-term time deposits

-

-

-

-

50,000

7,846,091

Increase of long-term time deposits

-

-

-

-30,000

(130,000)

(20,837)

Purchases of investments in equity securities

(65,314)

(8,940,000)

(1,402,881)

(65,881)

Proceeds from disposal of subsidiaries

2,183,350

1,693,391

265,730

2,730

Proceeds from disposal of equity securities and dividends received from equity securities

64,792

72,697,479

11,407,821

198,976

284,591

44,566,518

Proceeds from disposal of euqity method investments

-

-

-

6,380,000

-

-

Loan to related parties

(223,000)

(320,326,394)

(50,200)

(528,500)

(604,618,943)

(94,877,907)

Repayment from related parties

242,740,000

157,518,000

24,718,011

539,996,179

307,933,500

48,321,486

Loan to third parties

(55,000)

(15,500,000)

(2,288)

(62,000)

(36,944,271)

(5,797,362)

Repayment of loan from third parties

-

17,000

2,757,116

-

55,127,367

8,687

Loan to franchisees

(13,194)

(35,040,000)

(5,498,541)

(218,821,974)

(423,028)

(66,440,547)

Repayment from franchisees

28,408,205

29,983

4,274

99,209,300

133,285

20,277

Net cash (used in) provided by investing activities

(161,676,790)

(256,412,050)

(40,646)

(111,552,657)

(928,388,186)

(145,365)

Financing activities:

Distribution to the shareholders

-

(320,253,160)

(50,254,710)

-

(320,710)

Loan from non controlling interest

9,148,249

6,897,050

1,082,298

20,585,804

9,689,903

1,557

Repayment of short-term borrowings

(60,000)

(200,000)

(31,364)

(70,000)

(250,000)

(39,230,455)

Proceeds from short-term borrowings

150,000

668,000

104,823,777

160,000

808,000

126,792,832

Capital contribution from noncontrolling interest holders

681,000

(490,000)

(76,892)

6,943,589

8,191,000

1,285,347

Payment for contingent consideration

-

(2,001,521)

Net cash provided by (used in) financing activities

99,249

154,890

24,190,109

115,527,872

255,627,743

40,571

Effect of exchange rate changes on cash and cash equivalents

(6,751)

271,089

42,540

(7,261)

(1,197)

(210,934)

Net increase(decrease) in cash and cash equivalents and restricted cash

44,570

99,309,346

15,583,803

291,886

(313,502)

(49,136,852)

Cash and cash equivalents and restricted cash at the beginning of the period

589,604,539

221,289,261

34,725,114

342,160,223

633,109

99,769

Cash and cash equivalents and restricted cash at the end of the period

633,109

320,607

50,917

633,609

50,918

GreenTree Hospitality Group Ltd.

Unaudited Reconciliation of GAAP and Non-GAAP Results

Quarter Ended

Year Ended

December 31,2021

RMB

RMB

US$

RMB

RMB

US$

Net income

79,146

Deduct:

Other operating income

3,294

Interest income and other,295

Gains from investment in equity securities

-

-

-

45,136

11,005

Share of gain in equity investees,net of tax

-

-

-

1,118,542

382,081

Other income,590

Add:

Other operating expenses

98,784

1,821

Income tax expense

38,701

12,354

1,859

110,202

105,904

16,050

Share of loss in equity investees,net of tax

209,273

97,962

209,178

-

-

Interest expense

514,466

2,595

424,881

3,316

12,385

1,417

Depreciation and amortization

15,868

5,656

15,703

Losses from investment in equity securities

27,739

15,452

82,213,657

-

-

Adjusted EBITDA(Non-GAAP)

130,742

68,974

10,666

355,453,041

317,705,156

49,871

Quarter Ended

Year Ended

December 31,146

Deduct:

Government subsidies (net of 25% tax)

853,820

1,633

207,550

15,071,058

12,745,154

1,993

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

-

-

-

-

8,947,404,004

Other income (net of 25% tax)

1,334,250

6,001

979,506

1,736

8,863,919

1,390,942

Add:

Share-based compensation

619,775

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

25,784,922

11,707

1,589

41,786,009

-

-

One-time fees and expense

6,264,115

2,008

448,327

19,565

24,935

3,855,402

Asset impairment/Accrued bad debt

-

4,523,574

709,847

Core net income(Non-GAAP)

109,340,692

35,984

5,629,411

289,532,073

208,837,953

32,232

Core net income per ADS (Non-GAAP)

Class A ordinary share-basic and diluted

1.06

0.34

0.05

2.81

2.02

0.32

Class B ordinary share-basic and diluted

1.06

0.34

0.05

2.81

2.02

0.32

Operational Data

2020 Q4

2021Q4

Total hotels in operation:

4,340

4,659

Leased and owned hotels

40

66

Franchised hotels

4,300

4,593

Total hotel rooms in operation

315,335

337,153

Leased and owned hotels

4,888

7,064

Franchised hotels

310,447

330,089

Number of cities

345

367

Quarter Ended

2020 Q4

2021Q4

Occupancy rate (as a percentage)

Leased-and-owned hotels

71.0%

60.9%

Franchised hotels

76.8%

69.5%

Blended

76.7%

69.2%

Average daily rate (in RMB)

Leased-and-owned hotels

190

224

Franchised hotels

162

168

Blended

162

170

RevPAR (in RMB)

Leased-and-owned hotels

135

136

Franchised hotels

124

117

Blended

124

117

Year Ended

2020

2021

Occupancy rate (as a percentage)

Leased-and-owned hotels

57.8%

63.4%

Franchised hotels

68.9%

71.3%

Blended

68.7%

71.1%

Average daily rate (in RMB)

Leased-and-owned hotels

179

213

Franchised hotels

152

163

Blended

152

164

RevPAR (in RMB)

Leased-and-owned hotels

104

135

Franchised hotels

105

116

Blended

105

116

Number of Hotels in Operation

Number of Hotel Rooms in Operation

2020 Q4

2021Q4

2020 Q4

2021Q4

Luxury

23

33

4,749

6,265

Argyle

23

33

4,749

6,265

Mid-to-up-scale

360

519

32,337

47,666

GreenTree Eastern

151

204

15,653

22,246

Deepsleep Hotel

3

6

221

417

Gem

35

46

3,202

4,173

Gya

42

62

3,572

5,302

Vx

33

79

2,681

7,021

Ausotel

13

18

1,666

2,237

Urban Garden and others

83

104

5,342

6,270

Mid-scale

2,786

2,932

225,069

230,750

GreenTree Inn

2,163

2,169

181,295

178,849

GT Alliance

374

515

28,560

36,802

GreenTree Apartment

13

16

862

1,098

Vatica

121

112

8,749

8,115

City 118 Selected and others

115

120

5,603

5,886

Economy hotels

1171

1,175

53,180

52,472

Shell

620

650

26,784

28,196

City 118 and others

551

525

26396

24,276

Total

4,659

315,153

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

Mr. Jerry Xu

Phone: +86-138-1680-0706

E-mail: jxu@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

1 The conversion of Renminbi ("RMB")into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB6.3726 on December31,2021 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at https://www.federalreserve.gov/releases/h10/20220103/

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

3 Core net income is calculated as net income plus share-based compensation,losses from investments in equity securities (net of 25% tax),one-time fees and expense and asset impairment/accrued bad debt but excludes government subsidies (net of 25% tax),gains from investment in equity securities (net of 25% tax),and other income (net of 25% tax).

4 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.

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