Apr. 29 at 4:00 PM
$GHG 2025 net income was
$23.8 million, but that is heavily distorted by non-recurring items. It includes about
$12 million USD in goodwill/ intangible asset write-offs, plus roughly
$9-10 million USD in temporary waivers granted to hotels for renovation/struggling. Adjusting for those two items, net income is closer to
$47 million (near 2 PE).
Goodwill on the balance sheet is now down to just
$3.6 million, so no risk of further large write-offs. Most of the hotel upgrades are expected to be completed later this year, and the China hotel segment is likely to improve so the temporary waivers should phase out. There were ton of extra costs from shutting down L&O hotels, but that process is nearing completion. Longer term is about the China market. Occupancy fell to 64.7%, down from 68.6% (and similar to other chains), while RevPAR declined by 9.6%. As upgraded hotels come online, RevPAR should improve and occupancy should go up 5-10% to historical levels.
