GreenTree Hospitality Group in China announced its unaudited financial results for the second quarter ended June 30, 2019.
Total revenues increased 21.6% to RMB 274.9 million (USD 40.0 million) for the second quarter of 2019. Total revenues increased 20.9% to RMB 510.2 million (USD 74.3 million) for the first half of 2019.
Adjusted EBITDA (non-GAAP) increased 19.1% to RMB 173.1 million (USD 25.2 million) for the second quarter of 2019. Adjusted EBITDA (non-GAAP) increased 19.5% to RMB 307.0 million (USD 44.7 million) for the first half of 2019.
Net income increased 35.2% to RMB 127.1 million (USD 18.5 million) for the second quarter of 2019. Net income increased 46.4% to RMB 261.1 million (USD 38.0 million) for the first half of 2019.
ADR for all hotels in operation was RMB 172 in the second quarter of 2019, an increase of 4.8% year-over-year. The occupancy rate, or OCC for all hotels in operation was 81.1% in the second quarter of 2019, compared with 82.6% in the second quarter of 2018. RevPAR, which is calculated by multiplying our hotels' ADR by its occupancy rate, was RMB 139 in the second quarter of 2019, representing a 2.9% year-over-year increase.
Total revenues for the second quarter of 2019 were RMB 274.9 million (USD 40.0 million), representing a 21.6% year-over-year increase. The increase was primarily attributable to the addition of 134 hotels to current network, improved RevPAR, contribution from membership growth, and the consolidation of the Argyle's results of operation into the statement.
GreenTree announced in January that it has entered into an agreement to acquire majority stake in Argyle Hotel Management Group (Australia), an owner and operator of hotels in China and South East Asia.
As of June 30, 2019, the company had a total balance of cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposit of RMB 2,053.7 million (USD 299.1 million), as compared to RMB 2,180.8 million as of March 31, 2019, primarily due to cash outflow due to acquisitions, offset by operating cash inflow and loan to third parties and franchisees. Investments in equity securities include securities and investment in Gingko and New Century which is recorded in Long-term investments account.
GreenTree took a 4.95% stake in Hong Kong-listed New Century Hotel for USD 29.2 million in March.
The Company expects total revenue for the full year 2019 total to grow 23-28% from 2018.