Q4 2020 GreenTree Hospitality Group Ltd Earnings Call
Hello, ladies and gentlemen, and thank you for standing by for Greentree fourth quarter, and full year 2020 earnings Conference call. At this time all participants are in a listen only mode. After management's prepared remarks there'll be a question and answer session. As a reminder, today's conference call is being Ricky.
I would now like to turn the meeting over to your host for today's call. Mr. Rene Van Greenstein of Christiansen brain trees Investor Relations firm. Please proceed Rene.
Thank you.
That's true.
Greentree earnings release was distributed earlier today and he's a vineyard bolt on our eye a website and I am Dork 99, a dotcom and.
What is on PR newswire services.
And as a reminder, we also posted a powerpoint presentation that accompanies our comments to the C. I a website.
On a call from Green tree and Mr and extreme chairman and Chief Executive Officer.
Sitting on young Chief Financial Officer and.
And Mr and Nicky Jang high a manager.
Ms. Megan Huang Vice President of sales and marketing is attending on industry wide concerns and he's not able to join our cold day.
Mr. Hu will present, the company's Q4, and full year, 2020 performance overview.
Hello, Mr. Yang, who will discuss business operations, finding shows and guidance.
And there would be a vaguely about to answer your questions during the Q&A session, which will follow.
Before we begin.
And I do remind you that this conference call contains forward looking statements within the meaning of section 21 E of the Securities Exchange Act of 19, and said before and as amended and.
And as defined in the U S Private Securities Litigation Reform Act a 1995.
These forward looking statements can be identified by Jeremy and Richie searches me whaler.
<unk> anticipates aims future intends plans believes estimates continue down a good is a likely to going forward and gum sedan outlook and she made a statement.
Any statements that are not historical facts, including statements about the company and its industry on.
Forward looking statements.
Such statements are based upon management's current expectations and current market and a period and conditions.
And relate to events and involve known and unknown risks uncertainties and other factors on.
All of which are difficult to predict and many of which on beyond the company's control, which may cause a company's actual results performance or achievements.
A differentiated from those into forward looking statements.
You should not place undue reliance on these forward looking statements.
Further information regarding these and other risks uncertainties or factors is.
As included in the company's filings with the U S Securities and Exchange Commission.
All information provided including the forward looking statements made during this contract on school a current as of today's date.
The company does not undertake any obligation to update any forward looking statement and as a result of a new information future events or otherwise ex.
And as required under applicable law.
It is now my pleasure to introduce our chairman and Chief Executive Officer, Mr. On the Street.
Mr. Hu. Please go ahead.
Thank you Rene and thanks, everyone for joining on our 2020 fourth quarter and the full year on this call today. In this report we will highlight our Q4 and a full year performance followed by our strategic focus in 2020 one and.
And then we will go into the detail us off on a lot.
Operation and a financial performance in Q4 on a full year 2020.
Please turn to slide five we were glad to see a robust recovery continued in the fourth quarter compared with a Q3 2020.
<unk> increased a full 0.1% to 124.4 RMB total revenues increased eight 6% to 289 point.
Point 8 million RMB income from operations increased 17, 4% true 118 point.
Finally on D with a margin of 14, 9%.
Non-GAAP adjusted EBITDA increased 17, 8% to 136 million RMB with a margin of 45, 1%.
And the non-GAAP core net income increased 18, 3% to 100 on <unk>.
And I 0.3 mailing on B with a margin of 37, 7%.
While revpar was slightly lower than in the fourth quarter of 2020.
2019, and income from operations adjusted EBITDA and a core net income was substantially higher than in the Q4 2019.
Let's take a look at slide six share you can see a considerable progress we have made seems to a pandemic hit our business back in January 2020.
Total revenues income from operations adjusted EBITDA on the non-GAAP core net income all increased.
And all three consecutive quarters and from the lows in Q1 weighted.
It's a consistently improving margins.
Let's turn to slide seven.
The fourth quarter or a saw a sustained recovery and occupancy rate a D.
We are on the right path.
We outperformed the industry by leveraging our strategic advantages, including our expansive footprint in tier three and a lower cities.
And our industry, leading the member loyalty program as well as the hard work of our franchisees and staff.
Slide eight shows our occupancy rate and the valspar over the past 15 months.
Due to the resurgence of COVID-19 in several provinces and cities such as flip a Shanghai and Beijing.
Our occupancy rate declined in Q4, 2020 and the and generate 2021.
And as you can see occupancy rate was at its lowest point during the Chinese Spring Festival.
Due to the government state and local policy.
However, a.
H, a bonded quickly, especially after a march 16, and when people put a travel more freely and low risk items.
With a rollout of the COVID-19 vaccines.
Most of the travel restrictions have been lifted.
According to the official mitral blob of the Ministry of culture and tourism.
Paul on the sweeping holiday and on April 5th 'twenty.
2021 saw 100 and true milling domestic tourists.
And that represents a year over a year a growth of 100, a 44, 6% and a $94 five per cent of the number of domestic tourists in 2019 by.
By early April.
Our occupancy rate has recovered a 277, 7% and a fraud Parr recovered to 92, 7% I'll say 2019 levels.
The key takeaway is that by the end of 2020 Greentree proved to be a more resilient and still.
<unk> performed better.
Please turn to slide 10.
And again in the discussion of a strategic focus.
In 2020, one and all of a strategic planning focuses on two key components hotel and expansion and a franchisee support.
Expansion targets strategic locations tier three and smaller cities.
And the mid to upscale market segment.
And for our franchisees in 2020 one we are.
Expanding our plan to renovate or a 760 existing hotel and the following years, which should significantly increase a royal palm.
And we'll also continue to improve our direct sales channel and the members support on.
And to continue our investment in the I T and data infrastructure.
Let's take a look a slide 11.
In Q4, 2020, we accelerated our expansion into the middle and higher end markets in central China source used to China on the southwest China.
And the first quarter of 2021 we opened several L and O hotels and tier one and two cities in these regions, including Chengdu Wuhan.
And.
All well located around transportation hubs.
Central business districts.
Or government centers.
By a showcasing our brand and operating standards and we believe this will tell us will help us to attract and.
More high quality, a franchisees further accelerating our growth.
Slide 12 highlights our strong presence in China, striving justly and a lower cities.
And this not by choice, but by design over the past a four years. The vast majority of a new hotel openings have been in tier three and a lower cities.
And a 69, 8% of all hotels in our current development pipeline and are located in such a cities.
As a testament to the soundness of this strategy during the pandemic.
And the pace of recovery at our hotels in tier three and a lower cities was consistently faster than your other cities.
Until the end of the Q4 when business recovery in the queue.
Two cities accelerated debt.
A combination of our existing footprint.
And all of a strong performance in these cities gave us a real competitive advantage to capture future opportunities and China's filming hospitality industry.
Now please turn to slide 13, we.
We had been consistently growing our high end segment over the past few years.
And at the end of 2020 hotels and this segment represented 21, 2% on for a total portfolio.
Compared to only five 2% in 2017.
This year, we plan to open more hotels and the mid to upscale and luxury segment.
And in 2021 we also.
And our ongoing and hotel upgrade program to innovate.
760, hotels, which had been in operation for more than seven years.
On slide 14.
You get a summary of the marketing support which we provide to our franchisees. It's the same slide also shows the impressive growth and both of our individual and corporate membership programs.
Which contribute the most of our 92 two per cent of all direct sales and 2020.
In addition to the benefits, which we provide our members also receive benefits from a business or alliances, which in turn and held price and subtract more members.
In summary.
Despite the money unprecedented challenges brought on Pongratz by COVID-19.
Company delivered a robust Q4 weighted.
It's above average and a sequential improvement in operating and financial metrics across the hospitality industry.
I am extremely grateful for the achievements of our teams.
Cannot thank you enough.
Off a smart government policies strong and local government and community support and.
I cannot thank you enough all of our employees franchisees and a guess.
And all of our investors for their support and dedication. Thanks.
Thanks to our Louisiana and the business model, we are able to weather and extremely difficult year in the travel industry and performed well above the industry benchmark.
When considering our a well second mandate and a robust.
Land portfolio, it's a loyalty members and on a store.
And on balance sheet, we are well positioned to capitalize on opportunities and to create long term and.
And a sustainable growth for all our shareholders in 2020, one and beyond.
I will now pass the call over to Sabrina.
We'll just summarized on our business operations and financial for the fourth quarter and Selina. Please go ahead. Thank you Alex.
Please turn to slide 16.
Impact of COVID-19, or the companies I appreciate it's a performing what the average though.
The fourth quarter off and trying to 'twenty blended ADR increased three six per cent year over year to 162 RMB.
Occupancy rate increased to 76, 7%.
And Red pocket creates a threep friendship effect to a 124 RMB.
Nevertheless, we continue to expand our market presence across China.
I hope I need to kind get a three and your hotels and the fourth quarter.
We anything here with a 1000 Wi Fi on day eight hotels in our pipeline I'm trying to put a 5% over here and tons of nitrogen.
It was a a rack near a split a quarter, where a 208 nine and it.
On a media on B, a 0.1% increase compared to the fourth quarter of 2019.
Income from operations increased a 19, 9% to 118 5 million RMB.
Non-GAAP net income increased to 22.3 per cent to walk on just night price three media on me.
And a core net income for a D S basic and diluted increased to try and two one points keep a stance to one point.
RMB.
Moving to slide 17.
And at the end of the fourth quarter, we had 4340 hotels in operation.
Nice place sit on project more than a year before.
40 of these hotels were leased and operated or and also accounts.
And for solid and 300 and with French Fries and Maggie.
S and hotels.
Why don't we just get a segment remains a core of our business.
A full point chip a sense of all or a hotel.
Last year, we continued our expansion into both the high end and a CT and Mi segments.
These expansion accelerated in the fourth quarter.
As the number and then we get you a scale and luxury hotels increased two eight point to a per cent of our total portfolio.
Why are as a quantum and segment and 27 per cent remained stable.
And Alex mentioned, we also saw solid.
Sorry, sorry, despite our already Doctor Army and expedition and tier three and a small a seat here.
And it's and off the fourth quarter 67, 2% of our hotel REIT index.
He's a check and advantages in house all of a cross marketing efforts across all off a breath and a location.
On Slide 18, you can see that in the fourth quarter, we opened to find great and its a great hotel.
Compared to 119, and the fourth quarter 2019.
Three hotels were in a luxury segment.
And the mid scale segment.
Once I get a 41 is a mid a scarce assets.
And so lucky and the economy segment.
19 were in tier one cities 42 in tier two cities.
And a great. Many one kind of a 42 in tier three and a smaller cities in China.
15, 8% of newly opened hotels in the fourth quarter were indymedia kept scale and luxury segments of the market.
We closed a 58 hotels.
A future Brent earthquake 35, due to noncompliance with our brand and operating standard.
And a 15 property related issues.
So net net we added 145 hotels two out of a port 40, a killing the courtship.
Slide 19 shows the growth in our price file for new hotels.
Despite COVID-19.
And by increased it from 949 on December 31st 2019.
Two one salad and a what kinds of it six on December 31st day, 2020.
About 41% of these new hotels, a it would meet a scare a stachnik.
And about 34% and economy sector, and a round, 25% and a beta test scale and luxury segment.
Slide 20 shows a quarterly operating performance training.
Comparable with third quarter, where possible our L. A hotels increased to one kind of said fine on B and.
A record for our S and hotels increased to 124 RMB.
A D off of our air a hotel increased to 100 and Nike on B and a D off of our assets hotels increased to 162 on me.
Occupancy rate and our O L. A hotels increased to 31% and at this rate and all of a S. M. A hotels decreased to 76, four and 8%.
And that continued to rebound.
Total revenues increased debt point to want a cent year over year to 289.8 media on me.
Kind of a rack Neil for S and hotels decreased a full six per cent to 207000 to a media obviously.
And I took a Ras and your front are all hotels increased 11%.
76 Y media RFP.
The increase was primary due to the 10 day recovery on a hotel operations from the impact of COVID-19.
As well as a rack no contribution for a alright newly opened are all hotels.
This represents and eight 6% sequential increase over Q3 total a rack news.
Primary is that properly and for a 120 on b and a third quarter to 124 and be in the fourth quarter.
Turning to slide 22, you would see that hotel operating costs, well and 19 9.8 media on be a.
That's been a 0.8% year over year increase.
That is many COVID-19, both to higher rents and increase of other costs with expansion of our air also tariffs.
And the fourth quarter, we opened four new air off a tower, which accounted for most of the increase in a hotel operating costs and this quarter.
And if we exclude arrow a hotel operating costs.
Ladies and.
And protests either decreased 7%.
Comparable with third quarter, we observed a still and 6% a sequential decrease and that's mainly due to higher annuity opening expenses in the third quarter.
Selling and marketing expenses were 20 footprint to meet and RMB and.
And you're already a increase of 4% per se.
It's a net which was mainly attributable to a higher advertising costs.
Comparable with third quarter sat and and marketing expenses increased by sucking price, 9% and took about two higher and if a highly expenses.
Q4, and then.
And it's trading expenses were 15 9 million RMB 136, 1% year over year.
The decrease was primarily attributed both to the effective can tell a fifth he's traveling expenses.
And the impact of one time provision for bad debt kill them and just didn't hear me out of 2019.
Excluding the impact of these back back in 2019, a again a in the first quarter a decreased by 14 price 3%.
Comparatively third quarter, a G&A expenses increased by 13, 6%, which was mainly attributable to the increase of consulting fees and higher staff costs.
A tiny tiny operating costs and expenses decreased 11, 8% here over a year to 175 media on B.
Excluding a era a hotel operating costs.
Total operating cost and expenses decreased 23 five per cent from 2019.
Turn to slide four income from operation defined as.
And it's right to you a minus two to a heartbreaking cost and expenses for the fourth quarter of 2020 totaled RMB 118.45 million. That's the I started 18 French immediate.
Representing a year over year increase of 19 prevents a stat.
The increase was mainly due to just the standard recovery of Revpar.
The increased number of hotels and better control of class a expenses during this quarter.
Operating and marketing you find a as income from operations as a percentage of total rack news what 49% cash.
Compared to say full price once a centrally on coal.
Compared with third quarter net income from operations increased by 17.4% and operating margin increased from 37, 8%, a 40 pretty bad price that many trips so true a ratchet.
On slide 25.
Adjusted EBITDA increased 17, 2% year over year to why and how you thought he thought he price six media on B.
And EBITDA margin increased to a 45, 1%.
On a core net income increased to 22.3 per cent to $109 3 million on B and the core net margin was 37 and 27 per cent.
It was comparable with Q3, adjusted EBITDA and twisted by 17.8% objective would be that marking increased a three point and friend per SEC.
Core net income increased by 18, 3% and the market increased a 321%.
Next day, please turn to slide 26.
Net income for a day asked was RMB 83 cents that is U S. Dollars 13 Sex Act for a RMB 75 cents one year ago.
Core net income per ADR basic and diluted non-GAAP was RMB.
Oh six that D. C. I started a 16 cents up from RMB.
Ex Kevin says in 2019 and up from RMB 90 cents and the third quarter tiny tiny.
Let's now take a look at slide 20 salad.
And as of December 31st a tiny 'twenty the comedy and had total cash and a cash equivalents, we skipped cash short term investments and what's going on the equity securities and time deposits of one 9 billion R&D.
Compared to one point a.
To be a b.
And B as of September 30, a tragic tracking.
The increase from that stood a quarter was primary a chip both to increase the cash inflow from operating activities.
Offset by loans to franchisees and investment and upgrade costs and our L. A hotels.
The cash and cash equivalents per watt us with ample resources and we continue to evaluate the potential you're back to net.
And to support our franchisees.
Lastly on slide 28, you can see that it can meet significant impacts, which COVID-19 has had on our business.
Assuming a bit and it remains kind of control and China, which back towards a rack news with a full year 2021 to throw a 48% to a 53% over 2020 levels.
And it's hard to fight for a statutory Turkey to stack or by 2019.
This concludes our prepared remarks.
[noise] upgrades and now we are ready to be a hell.
L a session.
Yeah.
Thank you we will now begin the question and answer session to ask a question you May Press Star then one on your touch time fine if youre using a speakerphone. Please pick up your handset before pressing the case to withdraw your question. Please press Star then two.
I'll now give you a few moments to register your questions.
Okay.
[noise] [noise]. Your first question comes from Praveen Choudhary from Morgan Stanley. Please.
Please go ahead.
Okay.
Hi, Good morning can you hear me, Hi, Alex Hi, Celina.
Hello, Hi, a program and we can carry on really clearly.
Great. Thank you so much so first of all thank you very much for the presentation and a.
A great to see that.
Out of Covid and the company did a remarkably well and came out stronger.
My question is related to a two things one I just wanted to understand the competitive dynamics a here from some of your competitors there.
That.
And the market, whether it's you know other companies were struggling on the.
Incumbents and the bigger ones like you My class you managed to add more hotels and and because you have the financial might and you are a big enough and you have a scale.
But I look at your net openings for 2020.
That's not as strong as we would have liked a if you're a capitalized so I just wanted understand what's the dynamics there and the second question is related to the first quarter and.
How are you trending right now and a what do you expect in terms of Revpar not I know you have given the guidance on revenue, but in terms of revpar trend and in first half. The second half how are you incorporating that in your guidance. Thank you so much.
Okay a prevent.
Prevent a first of all I will have a funny and a hunting for the first that's a second question in terms of a first quarter or a product trend.
A because the first quarter we saw a.
Some resurgence in certain cities and provinces. So.
She occupancy and a for a part was low rents and the same period a.
All of a 2019.
And.
We also have a we also given and you know the a franchisee support in terms of a so really a really.
And we bring a certain fees and a franchise and.
Yeah, a franchise a franchise fees.
So in terms of a in adding a hotel and be a 'twenty 'twenty. A we are the first takes them out a six months and including the especially the first two quarters.
We did see a a.
Slower a movement in terms of goods and people and a construction companies and on.
And also the a lack of the a certain people are concerned about continued investment in renovating our hotels for the opening. So we are if you can see the numbers with a total year of 2020, we did not add as many as we projected and I think we're all reading a predictors of a 700 west shore.
And but I think we would plan to a.
Capture that and a 2021 and for Houston and second as a first quarter a.
A pipeline and I think we should add about 200 and hotels compared with 60 in 2020 and if so and the so that's I think a that's mainly the impact of the Covid for the a majority of the first half of a year off a 2020 okay.
So a phenomena.
And Prairie.
And for a second the question how is it a wrap a trend in the first a corner a fifth year.
We observe cash revpar in general rate decreased by around a 20% and.
And he's a cabinet or rate.
And due to the Chinese Spring Festival and.
And the occupancy rate and they're also a revpar jumped to the lowest.
However in March we observed a rat probably rebounded quickly.
<unk> declined it's a less than 10 per cent and especially by the end of March and early April a office rate has recovered to a 78 and 25% a.
Nearly 80 per century coffee as the normal Alpha times, a 19 and our Revpar has a great coverage to nearly a 97% ex off times and a 19, so and so we we we especially a deal in the first two a two weeks after April we observed a revpar.
Continue to a coverage as off the charge a 19, so that as we a what do we observe just for the first a quarter.
Thanks, Selena and and if I can follow up a on the Revpar trend.
I know in 2019 second half.
It was a low base thinks we're a little bit difficult. So as we go to the second half of a 2021 and barring any new flare up of Covid should we expect the revpar.
And to be up compared to 19, whether it's 5%, whether it's 10% and and the reason I'm asking is that what is embedded in your guidance of the revenue growth for full year and jumps a second half revpar versus 19.
Okay. Thank.
Thank you Avi.
And for a lot of guidance I think a fifth a comprehension of a.
It's a competition of two factors the first and why is that how a S. M expansion and second a weiss our newly opened to air Ocean County So.
So it's a afford a normally to finish off our S. M a hotel.
Yeah.
Alright.
Alright expansion for the second a half off for this year and since.
Since the third quarter, we expect a rats ought to be a at the same level at a a turnkey 19 and for the fourth quarter a weeks back to a truth was 3% above the level of 2019.
Okay, great Super. Thank you so much I mean.
I had just some strategic question does it don't want to take a lot of time for you.
For Alex a one question is about acquisition you have a lot of cash do you you have been talking about for some time, you did some acquisition and Argyle and urban and what's the plan and future considering there will be many opportunities at this time and second was any plans for listing in Hong Kong. Thank you and that's it for me.
Okay prevent the a we accelerated I think our a gross.
And the.
The first a quarter.
Quarter on fishing or a.
And by providing you know we book by adding a strategically in a certain as you know since our last growth area, such as a southeast China southwest, China and Central China.
And by growing the Bose and providing some liquidity to our French Fry and trial from franchisees.
A good franchisee support.
And in addition.
And that we and ease.
If they're a stretched.
A strategic location strategically on hotels, we may add selectively L. A L. A hotel she in those regions and.
So a third and we are continually evaluating on a smaller regional but a with a robust operating team and the but not as big and so I think we were and <unk>.
And discussing before on the world countries that's a.
And a smaller scale, a local regional but with a strong a P team.
We may partner on make a divestment.
So we are where we are aggressively.
Evaluating those opportunities and debt and.
We also trying to figure out a.
The impact.
Office, a new dynamics tools with those cities for a Houston city with a the tourism.
Marty followed them on the recovery period, and that's why the city with a stronger business travelers and a what was the impact would be a cash flow to our on the messaging and the hotels and the planning to make smarter decisions.
A four hour you know.
And all the only growth, but with a profitable growth.
So thank you so much per event.
Thank you. Your next question comes from Colin Yao from Goldman Sachs. Please go ahead.
Alright.
Thanks, and thanks management for taking my question, and then and congratulations on a robust recovery and ring and Revpar. So my first question and it's.
Oh, so about M. A so since management management and bad.
The company will be doing more of a kind of liza on a courthouse and strategic locations. So so I would like to know like a what's the thoughts behind that so why and why we would like to do and all of her talents and also how many are a really kind of the opening this year.
And a third of it would be Oh, well, we consider forming a JV like some of our peers do a probably a JV with some property a on there talking about a person. So so that's my first question and my My second question. It's also a about repositrak and selling not just mentioned.
A recovery has been robust and the first and second quarter, So and so I'd like to know so what why are we a Korean and put a full year a revpar recovery or are we seeing like a perhaps a full year revpar will be about a hunter and 10% versus a nighttime 19 and.
And I both that given you already mentioned, that's a second quite a revpar was like two or three about 19 already and and and the third question a would be oh, so about a secondary to that.
I think and metro and perhaps maybe a missed that part a.
With us by a program just now so it's a.
It was on my three questions. Thank you.
Okay. So.
I will answer the first a questions that that'd be a.
What we're.
We're doing the L. A no hotels because.
Right now we find that the way we are we on the we have the smallest we have the lowest a number of Illinois, a hotel should not among our peers.
And I know, who the Hell house, a that in the past several years and possibly a year. So we have not many because.
And as we recommended to our franchisees and the last three years and we've been seeing a dramatic increase and a.
A wrench.
In a various design and construction cost in and a you know the cost across the board and increase substantially. So that is the reason and I think we advised the hour and.
Hotel onerous all franchisees to make you know that a to be conservative.
But this year, we see the a range and a along with many other cost and sector in those items.
If and sectors, the or I think of that come back to a reasonable level and.
In addition, and certain strategic locations. So we feel that a we need where a.
Represented on the hotels will gave us the a.
Just a brand standard.
And also gave us a a P.
As a true recruiting trend and the best people to sat and operating a standard.
And.
So those are a crucial for those area. We are we a we don't have a strong presence such as in the South East, China, and southwest, China, and South part of China.
Under that T a.
And it's always wall.
We are a more impact to a salaried all growth in ethanol and the sentiment so that a that is the reason why we.
We plan to add a more in that area because the financial return on and there's also a healthier on.
We see a.
Reasonable a.
Control a for the a T.
T a C a cost such as a rent such as construction cost and new.
We are also able to identify a semi improve hotels well, we can on a warranty a hotel on a previous a hotel owners will have some knee and a financial and.
And we are able to a either a partner or buy those hotels. So that's the reason behind this week and earn boast a great return and as well and setting up the.
On a stronger base being the model a hotel, so setting up and the operating standard and a and create a base to a train our teams and stand up the training and the team and it just didn't and cryptography Shanghai Okay.
So a fee.
Second a you should recall I think the full year of a par a.
Gross a comparable 2019, and I'll leave that to Sydney and and in terms of a secondary listing and I think I will leave at the Sydney and that's a common and.
And thank you for a question.
Actually our foot cost to make it on a consecutive basis.
Back to a day.
Decrease of 3% two and increase of 2% in terms of Revpar could easily come counterweight to F. 'twenty and 19, so yeah all of a forecast rates on a increase of <unk> five percentage, 35% a major composed of two parts.
A turnkey per standard contribution from all of a normal expansion of S. M. A hotel and the batteries and income strong contribution off a guarantee a whole Oakland a hell of a hotel.
Yes.
And so forth or for your past and interest cost.
On County, we are considering.
Potentially a T listing in Hong Kong.
And there will be a per watt information, but a necessary.
Alright, Thank you very much Alex and Telenor.
Thank you. Thank you once again, if you wish to ask a question. Please press star one on your telephone and wait for your name to be announced your next question comes from Bruce and me from UBS. Please go ahead.
Yeah.
Yeah.
Okay.
And then ex for taking my question. So I have to smoke constraints a the first one and it's also on the L. A hotels so.
May I ask so do you have a a like a target for so for the contribution from the L. A hotels and total hotel count So and say I can see it's only up about a 1% and 2000.
And I think so as you I a.
Accelerating the opening of a L. A hotels a what's your opening plan for it and it went away and do have the plans and quickly its contribution and my second question and it's more about a a outlook for the upcoming and Liberty a holiday. So could you give us some color on it and do this and.
How is the bookings data on for this holiday.
Yeah.
[noise] okay.
Hello, Thank you for a question.
It's a very first a question at what a what what's the hour per share open air and hotels in this year.
And so our forecast we expect a expect a and around the 10 per cent contribution from the newly opened hotels, but it's really hard to and two to give a day. That's number one if there is a great hotels opened and Detroit and as you know well only one and a location.
And of the pop key and a condition of the property and such as Brian already quite a mess that we could make a decision to open a leased operating hotel.
And <unk>.
For your second question.
And on our forecasting in May it, especially on that May day and.
Now we are from the advanced reservation, and we kick a Jos a.
And as such a per stance in terms of up and say Iraqi and so I think that's a I think that's where the economy or a day, a photocopy of hard ADR occupancy rates for a rebound continuously.
Okay.
And adding a little bit more who are sitting in his comments that debt.
We'll take all day.
We do not want a force a particular number in terms of opening up a L and all.
A palace has the money.
First of all it's a property has to be right and has to be generating a solid financial returns and secondly that has to be a more representative of a hotel in sourcing key locations, that's a bad strategic locations such as transportation hubs and.
Debt.
On the Oh, we see more opportunities this year and this book.
With the last quarter on last.
The second half a posture on this on the first quarter of the share and we see more opportunities and much more on a time before on.
And then I wanted to elaborate a little bit about.
Salinas comments, we do not want to keep and unrealistic.
Projections and as well part of wealth.
And we do believe that like to like a kind of revpar growth so not to buy the change of the composition and such as a adding more a higher and hotels and spending more in terms of and in terms of a and <unk>.
In terms of the a tour.
And as cities and also higher a rented on the higher impacted hotels and excluding debt lifelike and.
We think that Raul Parra and.
And it will be anywhere between probably 3% down from 2019.
True somewhere a 2% up from 2019, so somewhere of a neutral.
On a flat if we're able to achieve 2019 shortfall.
And again the reason is of a we do believe.
And that's always a stress levels on the personal a consumption.
Consumption as well as incorporate and travel budget.
And due to the a worldwide.
And then a crisis, so even though we may see it as a number of tourist number of tourists.
It's a threat increased on or achieve the same levels.
But in terms of a ADR and a cause.
<unk> per capita a wood.
I think and will.
And it will be a constraint and so that's the on and.
That's how our a production.
Production and assumptions in that and a but we will be less impacted because our position of the hotel and a cheater three and also a position all hotels interim chief and the industry, a zoom rooms, and a development zone.
And the.
We are we a flips on hotels and net for the business travelers various it's a leisure travelers so a few.
This created a positive impact to conquer and that to the impact from Covid.
Oh, Thanks, So mask a small follow up question and so for our newly opened Oh hotels. This year, so whether it be mini me to upscale hotels.
Yeah.
And Upskill that's true.
Yeah. So.
A newly opened on overdrafts.
And then and be in the mid to upscale segment.
A correct or so.
And you.
And mentally and those area. We have we have a less of a presence such as a way to mention the south southeast southwest and also your and you didn't see those brand and we have lots of price and so such a mid to upscale.
And primarily.
And so a segment so that is correct.
Okay. Thank you a city now and I think a effects.
Thank you.
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