Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document Information [Line Items] | |
Entity Registrant Name | GreenTree Hospitality Group Ltd. |
Entity Central Index Key | 0001724755 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Period End Date | Dec. 31, 2019 |
Document Type | 20-F |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2019 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Interactive Data Current | Yes |
Entity File Number | 001-38425 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 2451 Hongqiao Road |
Entity Address, Address Line Two | Changning District |
Entity Address, City or Town | Shanghai |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 200335 |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Registration Statement | false |
Document Accounting Standard | U.S. GAAP |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | 2451 Hongqiao Road |
Entity Address, Address Line Two | Changning District |
Entity Address, City or Town | Shanghai |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 200335 |
Contact Personnel Name | Dr. Yiping Yang |
City Area Code | +86 |
Local Phone Number | 21-3617-4886 |
Class B Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 34,762,909 |
American Depositary Shares | |
Document Information [Line Items] | |
Title of 12(b) Security | American Depositary Shares, each representing one Class A ordinary share |
Trading Symbol | GHG |
Security Exchange Name | NYSE |
Common Class A | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 67,416,046 |
Title of 12(b) Security | Class A ordinary shares, par value $0.50 per share* |
Security Exchange Name | NYSE |
No Trading Symbol Flag | true |
STATEMENTS OF CONSOLIDATED BALA
STATEMENTS OF CONSOLIDATED BALANCE SHEETS | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 319,847,701 | $ 45,943,248 | ¥ 1,264,025,785 |
Short-term investments | 437,279,026 | 62,811,202 | 685,512,063 |
Investments in equity securities | 207,007,926 | 29,734,828 | 307,693,782 |
Accounts receivable, net of allowance for doubtful accounts of RMB6,433,215 and RMB22,420,168 (USD3,220,456) as of December 31, 2018 and 2019 respectively | 99,701,226 | 14,321,185 | 64,864,184 |
Amounts due from related parties | 31,739,731 | 4,559,127 | 228,600 |
Prepaid rent | 18,794,665 | 2,699,685 | 4,478,413 |
Inventories | 2,537,717 | 364,520 | 2,547,729 |
Other current assets | 66,004,017 | 9,480,884 | 53,969,039 |
Loans receivable, net | 82,312,201 | 11,823,407 | 67,196,568 |
Total current assets | 1,265,224,210 | 181,738,086 | 2,450,516,163 |
Restricted cash | 22,312,522 | 3,204,993 | 3,300,000 |
Long-term time deposits | 560,000,000 | 80,438,967 | 60,000,000 |
Loans receivable, net | 121,563,742 | 17,461,539 | 39,352,863 |
Property and equipment, net | 614,936,505 | 88,330,102 | 222,389,573 |
Intangible assets, net | 496,280,316 | 71,286,207 | 27,213,391 |
Goodwill | 100,078,236 | 14,375,339 | 5,787,068 |
Long-term investments | 398,637,701 | 57,260,723 | 112,219,460 |
Other assets | 76,957,992 | 11,054,324 | 25,701,523 |
Deferred tax assets | 160,488,193 | 23,052,687 | 133,300,966 |
TOTAL ASSETS | 3,816,479,417 | 548,202,967 | 3,079,781,007 |
Current liabilities: | |||
Short-term debt | 60,000,000 | 8,618,461 | 60,000,000 |
Accounts payable | 15,296,042 | 2,197,139 | 9,182,058 |
Advance from customers | 40,105,627 | 5,760,813 | 36,370,325 |
Amounts due to related parties | 3,518,031 | 505,334 | 285,578 |
Salary and welfare payable | 42,650,527 | 6,126,365 | 42,767,219 |
Deferred rent | 5,179,664 | 744,012 | 4,421,427 |
Deferred revenue | 231,925,272 | 33,313,981 | 210,585,604 |
Accrued expenses and other current liabilities | 302,448,361 | 43,443,989 | 241,407,979 |
Income tax payable | 93,909,177 | 13,489,208 | 104,988,638 |
Total current liabilities | 795,032,701 | 114,199,302 | 710,008,828 |
Deferred rent | 17,821,686 | 2,559,925 | 20,519,682 |
Deferred revenue | 410,807,248 | 59,008,769 | 380,173,585 |
Other long-term liabilities | 118,112,511 | 16,965,801 | 96,573,810 |
Deferred tax liabilities | 195,303,547 | 28,053,599 | 43,538,624 |
Unrecognized tax benefits | 261,641,717 | 37,582,481 | 169,619,409 |
Total liabilities | 1,798,719,410 | 258,369,877 | 1,420,433,938 |
Shareholders’ equity: | |||
Additional paid-in capital | 1,152,108,217 | 165,489,991 | 1,003,026,803 |
Retained earnings | 308,698,533 | 44,341,770 | 252,617,450 |
Accumulated other comprehensive income | 65,300,854 | 9,379,881 | 62,367,692 |
Total GreenTree Hospitality Group Ltd. shareholders’ equity | 1,861,168,513 | 267,340,130 | 1,650,968,022 |
Noncontrolling interests | 156,591,494 | 22,492,960 | 8,379,047 |
Total shareholders’ equity | 2,017,760,007 | 289,833,090 | 1,659,347,069 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 3,816,479,417 | 548,202,967 | 3,079,781,007 |
Common Class A | |||
Shareholders’ equity: | |||
Ordinary shares, value | 219,526,699 | 31,533,037 | 217,421,867 |
Common Class B | |||
Shareholders’ equity: | |||
Ordinary shares, value | ¥ 115,534,210 | $ 16,595,451 | ¥ 115,534,210 |
STATEMENTS OF CONSOLIDATED BA_2
STATEMENTS OF CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)shares |
Allowance for doubtful accounts receivable | ¥ 22,420,168 | $ 3,220,456 | ¥ 6,433,215 |
Common Class A | |||
Common stock, par value | $ / shares | $ 0.50 | ||
Common stock, authorized | 400,000,000 | 400,000,000 | 400,000,000 |
Common stock, issued | 67,416,046 | 67,416,046 | 66,789,300 |
Common stock, outstanding | 67,416,046 | 67,416,046 | 66,789,300 |
Common Class B | |||
Common stock, par value | $ / shares | $ 0.50 | ||
Common stock, authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, issued | 34,762,909 | 34,762,909 | 34,762,909 |
Common stock, outstanding | 34,762,909 | 34,762,909 | 34,762,909 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | 12 Months Ended | |||
Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
Revenues: | ||||
Total revenues | ¥ 1,091,793,135 | $ 156,826,271 | ¥ 905,614,669 | ¥ 743,175,399 |
Operating costs and expenses: | ||||
Hotel operating costs (including purchase from related parties of nil, nil and RMB357,539 for the years ended December 31, 2017, 2018 and 2019, respectively) | (338,826,479) | (48,669,378) | (274,419,263) | (226,867,029) |
Selling and marketing expenses (including service from a related party of nil, nil and RMB24,941 for the years ended December 31, 2017, 2018 and 2019, respectively) | (84,970,401) | (12,205,234) | (47,397,767) | (32,802,901) |
General and administrative expenses (including purchase from a related party of RMB4,035,262, nil and RMB3,576,659 for the years ended December 31, 2017, 2018 and 2019, respectively) | (184,989,324) | (26,572,054) | (95,261,152) | (121,657,492) |
Other operating expenses | (3,286,652) | (472,098) | (5,946,226) | (5,629,448) |
Total operating costs and expenses | (612,072,856) | (87,918,764) | (423,024,408) | (386,956,870) |
Other operating income | 24,832,269 | 3,566,932 | 22,570,806 | 15,283,828 |
Income from operations | 504,552,548 | 72,474,439 | 505,161,067 | 371,502,357 |
Interest income and other, net (including interest income from related parties of RMB3,590,818, RMB263,366 and RMB3,100,049 for the years ended December 31, 2017, 2018 and 2019, respectively) | 66,088,425 | 9,493,008 | 49,659,928 | 26,238,440 |
Interest expenses | (2,505,904) | (359,951) | (541,876) | (1,442,709) |
Gains (losses) from investments in equity securities | 55,253,744 | 7,936,704 | (57,774,952) | 59,165,221 |
Other income, net | 2,690,742 | 386,501 | 35,735,374 | 1,191,211 |
Income before income taxes and share of (losses) gains in equity investees | 626,079,555 | 89,930,701 | 532,239,541 | 456,654,520 |
Income tax expenses | (189,567,817) | (27,229,713) | (152,718,668) | (182,568,262) |
Income before share of (losses) gains in equity investees | 436,511,738 | 62,700,988 | 379,520,873 | 274,086,258 |
Share of (losses) gains in equity investees, net of tax | 1,262,431 | 181,337 | (8,300,584) | (899,584) |
Net income | 437,774,169 | 62,882,325 | 371,220,289 | 273,186,674 |
Net loss attributable to noncontrolling interests | 4,944,094 | 710,175 | 490,930 | 348,550 |
Net income attributable to ordinary shareholders | 442,718,263 | 63,592,500 | 371,711,219 | 273,535,224 |
Other comprehensive income, net of tax | ||||
-Foreign currency translation adjustments | 2,933,162 | 421,322 | 66,453,841 | 1,317,020 |
Comprehensive income, net of tax | 440,707,331 | 63,303,647 | 437,674,130 | 274,503,694 |
Comprehensive loss attributable to noncontrolling interests | 4,944,094 | 710,175 | 490,930 | 348,550 |
Comprehensive income attributable to ordinary shareholders | 445,651,425 | 64,013,822 | 438,165,060 | 274,852,244 |
Leased And Operated Hotels | ||||
Revenues: | ||||
Total revenues | 253,420,676 | 36,401,602 | 212,671,930 | 193,042,455 |
Franchised And Managed Hotels | ||||
Revenues: | ||||
Total revenues | ¥ 838,372,459 | $ 120,424,669 | ¥ 692,942,739 | ¥ 550,132,944 |
Common Class A | ||||
Net earnings per share: | ||||
Basic and diluted earnings per share | (per share) | ¥ 4.34 | $ 0.62 | ¥ 3.75 | ¥ 2.99 |
Weighted average shares outstanding | ||||
Weighted average shares outstanding basic and diluted | 67,315,727 | 67,315,727 | 62,860,578 | 48,635,252 |
Common Class B | ||||
Net earnings per share: | ||||
Basic and diluted earnings per share | (per share) | ¥ 4.34 | $ 0.62 | ¥ 3.75 | ¥ 2.99 |
Weighted average shares outstanding | ||||
Weighted average shares outstanding basic and diluted | 34,762,909 | 34,762,909 | 36,288,343 | 42,716,957 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Due from related parties | ¥ 3,100,049 | ¥ 263,366 | ¥ 3,590,818 |
Hotel Operating Costs | |||
Due to related parties | 357,539 | 0 | 0 |
Selling And Marketing Expenses | |||
Due to related parties | 24,941 | 0 | 0 |
General And Administrative Expenses | |||
Due to related parties | 3,576,659 | 0 | 4,035,262 |
Leased And Operated Hotels | |||
Revenue from related parties | 385,355 | 0 | 0 |
Franchised And Managed Hotels | |||
Revenue from related parties | ¥ 2,358,491 | ¥ 434,346 | ¥ 633,405 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | CNY (¥) | USD ($) | Initial Public OfferingCNY (¥) | Common Class ACNY (¥)shares | Common Class AUSD ($)shares | Common Class AInitial Public OfferingCNY (¥)shares | Common Class BCNY (¥)shares | Common Class BUSD ($)shares | Additional Paid-in CapitalCNY (¥) | Additional Paid-in CapitalUSD ($) | Additional Paid-in CapitalInitial Public OfferingCNY (¥) | Retained EarningsCNY (¥) | Retained EarningsUSD ($) | AOCI Attributable to ParentCNY (¥) | AOCI Attributable to ParentUSD ($) | ParentCNY (¥) | ParentUSD ($) | ParentInitial Public OfferingCNY (¥) | Noncontrolling InterestCNY (¥) | Noncontrolling InterestUSD ($) |
Balance at Dec. 31, 2016 | ¥ 1,026,922,511 | ¥ 160,189,926 | ¥ 140,696,841 | ¥ 174,261,734 | ¥ 556,468,509 | ¥ (5,403,169) | ¥ 1,026,213,841 | ¥ 708,670 | ||||||||||||
Balance, shares at Dec. 31, 2016 | shares | 48,635,252 | 48,635,252 | 42,716,957 | 42,716,957 | ||||||||||||||||
Distribution to the shareholders | (618,733,802) | (618,733,802) | (618,733,802) | |||||||||||||||||
Net income (loss) | 273,186,674 | 273,535,224 | 273,535,224 | (348,550) | ||||||||||||||||
Foreign currency translation adjustments | 1,317,020 | 1,317,020 | 1,317,020 | |||||||||||||||||
Share-based compensation | 38,048,000 | 38,048,000 | 38,048,000 | |||||||||||||||||
Balance at Dec. 31, 2017 | 551,217,621 | ¥ 160,189,926 | ¥ 140,696,841 | 212,309,734 | 41,747,149 | (4,086,149) | 550,857,501 | 360,120 | ||||||||||||
Balance, shares at Dec. 31, 2017 | shares | 48,635,252 | 48,635,252 | 42,716,957 | 42,716,957 | ||||||||||||||||
Cumulative effect of the adoption of ASU 2014-09 | ASU 2014-09 | (169,522,782) | (169,522,782) | (169,522,782) | |||||||||||||||||
Redesignation Class B ordinary shares as ClassA ordinary shares | ¥ 25,162,631 | ¥ (25,162,631) | ||||||||||||||||||
Redesignation Class B ordinary shares as Class A ordinary shares, shares | shares | 7,954,048 | 7,954,048 | (7,954,048) | (7,954,048) | ||||||||||||||||
Distribution to the shareholders | (160,840,918) | (160,840,918) | (160,840,918) | |||||||||||||||||
Issuance of Class A ordinary shares upon initial public offering, net of issuance cost | ¥ 806,677,429 | ¥ 32,069,310 | ¥ 774,608,119 | ¥ 806,677,429 | ||||||||||||||||
Issuance of Class A ordinary shares upon initial public offering, net of issuance cost, shares | shares | 10,200,000 | |||||||||||||||||||
Acquisitions of subsidiaries and business | 8,509,857 | 8,509,857 | ||||||||||||||||||
Net income (loss) | 371,220,289 | 371,711,219 | 371,711,219 | (490,930) | ||||||||||||||||
Foreign currency translation adjustments | 66,453,841 | 66,453,841 | 66,453,841 | |||||||||||||||||
Share-based compensation | 16,108,950 | 16,108,950 | 16,108,950 | |||||||||||||||||
Balance at Dec. 31, 2018 | 1,659,347,069 | ¥ 217,421,867 | ¥ 115,534,210 | 1,003,026,803 | 252,617,450 | 62,367,692 | 1,650,968,022 | 8,379,047 | ||||||||||||
Balance, shares at Dec. 31, 2018 | shares | 66,789,300 | 66,789,300 | 34,762,909 | 34,762,909 | ||||||||||||||||
Distribution to the shareholders | (386,637,180) | (386,637,180) | (386,637,180) | |||||||||||||||||
Capital contribution from noncontrolling interest holders | 14,719,481 | 14,719,481 | ||||||||||||||||||
Acquisitions of subsidiaries and business | 263,132,911 | ¥ 2,104,832 | 122,591,019 | 124,695,851 | 138,437,060 | |||||||||||||||
Acquisitions of subsidiaries and business, shares | shares | 626,746 | 626,746 | ||||||||||||||||||
Net income (loss) | 437,774,169 | $ 62,882,325 | 442,718,263 | 442,718,263 | (4,944,094) | |||||||||||||||
Foreign currency translation adjustments | 2,933,162 | 421,322 | 2,933,162 | 2,933,162 | ||||||||||||||||
Share-based compensation | 26,490,395 | 26,490,395 | 26,490,395 | |||||||||||||||||
Balance at Dec. 31, 2019 | ¥ 2,017,760,007 | $ 289,833,090 | ¥ 219,526,699 | $ 31,533,037 | ¥ 115,534,210 | $ 16,595,451 | ¥ 1,152,108,217 | $ 165,489,991 | ¥ 308,698,533 | $ 44,341,770 | ¥ 65,300,854 | $ 9,379,881 | ¥ 1,861,168,513 | $ 267,340,130 | ¥ 156,591,494 | $ 22,492,961 | ||||
Balance, shares at Dec. 31, 2019 | shares | 67,416,046 | 67,416,046 | 34,762,909 | 34,762,909 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Operating activities: | ||||
Net income (loss) | ¥ 437,774,169 | $ 62,882,325 | ¥ 371,220,289 | ¥ 273,186,674 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 40,366,299 | 5,798,256 | 25,549,965 | 24,956,433 |
Impairment of long-lived assets | 5,008,677 | |||
Share of losses (gains) in equity investees | (140,564) | (20,191) | 8,300,584 | 899,584 |
Gain from disposal of a long-term investment | (1,097,790) | (157,688) | (36,723,048) | (1,649,041) |
Interest income | (35,659,822) | (5,122,213) | (20,447,590) | (14,698,429) |
Interest expenses | 1,442,709 | |||
Bad debt expense | 38,423,347 | 5,519,168 | 1,978,374 | 483,610 |
(Gain) Loss from investments in equity securities | (55,253,744) | (7,936,704) | 57,774,952 | (59,165,221) |
Loss (Gain) on disposal of property and equipment | 860,000 | 123,531 | (267,849) | 3,899,331 |
Foreign exchange loss (gain) | (1,408,437) | (202,309) | 430,430 | 2,784,857 |
Share-based compensation | 26,490,395 | 3,805,107 | 16,108,950 | 38,048,000 |
Income tax expenses related to dividend distribution | 19,845,708 | 2,850,658 | 23,345,894 | 67,675,809 |
Gains from the acquisition of an equity investee | (1,344,212) | |||
Changes in operating assets and liabilities: | ||||
Accounts receivable | (52,263,625) | (7,507,200) | (12,368,310) | (17,931,396) |
Prepaid rent | (14,316,252) | (2,056,401) | (185,941) | 8,548,750 |
Inventories | 351,518 | 50,492 | 621,293 | (510,999) |
Amounts due from related parties | (3,228,596) | (463,759) | 1,694,216 | 13,816,640 |
Other current assets | 10,990,176 | 1,578,641 | (13,933,400) | (5,892,325) |
Other assets | (22,637,263) | (3,251,639) | (1,964,823) | 1,728,263 |
Accounts payable | 4,814,800 | 691,603 | 1,183,032 | (407,953) |
Amounts due to related parties | 3,232,453 | 464,313 | (187,440) | 290,093 |
Salary and welfare payable | (2,047,293) | (294,075) | (2,203,639) | 7,507,074 |
Deferred revenue | 18,973,331 | 2,725,348 | 78,439,349 | 78,565,271 |
Advance from customers | 3,735,302 | 536,543 | 2,707,962 | (2,116,543) |
Accrued expenses and other current liabilities | 27,198,083 | 3,906,760 | (7,472,169) | 32,058,446 |
Income tax payable | (12,476,008) | (1,792,066) | 4,328,055 | 20,369,900 |
Unrecognized tax benefits | 92,022,308 | 13,218,177 | 56,319,776 | 9,610,768 |
Deferred rent | (1,939,759) | (278,629) | (1,025,731) | (15,846,523) |
Other long-term liabilities | 21,538,701 | 3,093,841 | 22,636,533 | 10,672,479 |
Deferred taxes | (30,207,540) | (4,339,042) | (24,574,536) | (8,860,341) |
Net cash provided by operating activities | 513,939,897 | 73,822,847 | 554,949,643 | 469,465,920 |
Investing activities: | ||||
Purchases of property and equipment | (213,329,308) | (30,642,838) | (138,471,216) | (16,552,148) |
Purchases of intangible assets | (2,240,298) | (321,799) | (3,491,958) | (15,386) |
Proceeds from disposal of property and equipment | 1,800,000 | 258,554 | 126,301 | 2,678,696 |
Acquisitions, net of cash received | (325,016,059) | (46,685,636) | (13,302,894) | |
Advance for acquisitions | (38,869,400) | (5,583,240) | (18,121,700) | |
Purchases of short-term investments | (823,183,360) | (118,242,891) | (772,540,145) | (781,850,000) |
Proceeds from short-term investments | 1,107,076,219 | 159,021,549 | 889,325,672 | |
Increase of long-term time deposits | (500,000,000) | (71,820,506) | (60,000,000) | |
Purchases of investments in equity securities | (328,228,962) | (47,147,141) | (88,258,150) | (140,673,872) |
Proceeds from disposal of equity securities | 222,015,253 | 31,890,496 | 30,544,376 | 64,874,851 |
Proceeds from disposal of equity method investments | 1,671,092 | 240,037 | 89,182,803 | |
Loan to related parties (including loan to a related party settled with dividend payable in December) | (634,638,425) | (91,160,105) | (4,300,000) | (3,500,000) |
Repayment from related parties | 458,752,530 | 65,895,678 | 136,781,724 | |
Loan to third parties | (10,340,000) | (1,485,249) | (166,819,164) | |
Repayment from third parties | 118,380,000 | |||
Loan to franchisees | (157,411,151) | (22,610,697) | (54,060,267) | (6,600,000) |
Repayment from franchisees | 21,985,474 | 3,158,016 | 10,050,000 | |
Net cash used in investing activities | (1,219,956,395) | (175,235,772) | (181,756,342) | (744,856,135) |
Financing activities: | ||||
Distribution to the shareholders (Note 1) | (226,951,236) | (32,599,505) | (200,532,021) | (579,042,699) |
Income tax paid related to the above distribution | (3,000,000) | (64,675,809) | ||
Proceeds from short-term borrowings | 60,000,000 | 60,000,000 | ||
Repayment of short-term borrowings | (61,442,709) | |||
Capital contribution from noncontrolling interest holders | 14,719,481 | 2,114,321 | ||
Proceeds from issuance of Class A ordinary shares (Note 1) | 837,505,007 | |||
Payment for initial public offering costs | (30,827,578) | |||
Net cash (used in) generated from financing activities | (212,231,755) | (30,485,184) | 663,145,408 | (645,161,217) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (6,917,309) | (993,609) | 66,023,411 | (1,467,838) |
Net increase (decrease) in cash and cash equivalents and restricted cash | (925,165,562) | (132,891,718) | 1,102,362,120 | (922,019,270) |
Cash and cash equivalents and restricted cash at the beginning of the year | 1,267,325,785 | 182,039,959 | 164,963,665 | 1,086,982,935 |
Cash and cash equivalents and restricted cash at the end of the year | 342,160,223 | 49,148,241 | 1,267,325,785 | 164,963,665 |
Supplemental disclosure of cash flow information: | ||||
Interest paid | (2,133,568) | (306,468) | (1,442,709) | |
Income taxes paid | (120,341,664) | (17,285,998) | (93,299,479) | (160,064,218) |
Supplemental disclosure of non-cash investing and financing activities: | ||||
Dividend payable settled by loan to a related party | 157,461,267 | 22,617,896 | ||
Consideration payable for acquisitions | 16,776,500 | 2,409,793 | 10,000,000 | |
Current assets settled for acquisition of a subsidiary | 37,255,016 | 5,351,348 | 8,225,876 | |
Ordinary shares issued or to be issued for acquisitions | 124,695,851 | 17,911,438 | ||
Contingent consideration included in other current liabilities | 4,027,207 | 578,472 | ||
Returnable consideration included in other assets | 3,333,420 | 478,816 | ||
Acquisition of a subsidiary transferred from long-term investment | 3,330,000 | |||
Reconciliation of cash, cash and equivalents and restricted cash | ||||
Cash and cash equivalents | 319,847,701 | 45,943,248 | 1,264,025,785 | 161,963,665 |
Restricted cash | 22,312,522 | 3,204,993 | 3,300,000 | 3,000,000 |
Cash and cash equivalents and restricted cash at the end of the year | ¥ 342,160,223 | $ 49,148,241 | ¥ 1,267,325,785 | ¥ 164,963,665 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Principal Activities | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES GreenTree Hospitality Group Ltd. (the “Company”) was incorporated in the Cayman Islands on October 18, 2017. Alex S. Xu is the founder, Chief Executive Officer (“CEO”) and controlling shareholder of the Company (through his shareholding of Class A ordinary shares and Class B ordinary shares of Green Tree Inns Hotel Management Group. Inc. “GTI”) which account for 74.23% of the voting interest of the Company) (the “Founder”). In preparation of its initial public offering in the United States, the Company had undergone a reorganization in 2017 whereby the Company became the parent entity of its consolidated subsidiaries. As part of the reorganization, the business operations of the consolidated subsidiaries were transferred to the Company. In return, the Company issued 48,635,252 Class A ordinary shares and 42,716,957 Class B ordinary shares to GTI, a company controlled by the Founder. (the “Reorganization”). Subsequent to the Reorganization, GTI became the sole shareholder of the Company. As the Company, its subsidiaries are all under the control of the Founder, the reorganization was accounted for as a transaction under common control in a manner similar to a pooling of interests. Therefore, the accompanying consolidated financial statements have been prepared as if the corporate structure of the Company had been in existence since the beginning of the periods presented. For the year ended December 31, 2017, the Company declared a dividend of RMB30,382,838 to GTI to fund the repurchase of ordinary shares and declared a dividend of RMB588,350,964 to GTI in conjunction to the Reorganization. In February and March 2018, the Company declared and paid a cash dividend of USD25,578,618 pursuant to a board resolution. On March 11, 2018, 7,594,048 Class B ordinary shares were redesignated as Class A ordinary shares. On March 27, 2018, the Company completed an initial public offering (“IPO”) on the New York Stock Exchange. The Company offered 10,200,000 ADSs representing 10,200,000 Class A ordinary shares at USD14.00 per ADS. Net proceeds from the IPO deducting underwriting discount were USD133,518,000. IPO costs of RMB30,827,578 (USD4,483,685) were recorded as reduction of the proceeds from the IPO in shareholders’ equity. In January 2019, the Company declared and paid a cash dividend of USD30,559,675 pursuant to a board resolution. On January 25, 2019 and June 27, 2019, the Company issued an aggregate of 626,746 Class A ordinary shares as a portion of the purchase consideration for the acquisition of 60% equity interest mainly in Argyle Hotel Management (Beijing) Co., Ltd (“Argyle Beijing”). In December 2019, the Company declared and paid a cash dividend of USD25,544,739 pursuant to a board resolution. On January 15, 2020, the Company issued 870,908 Class A ordinary shares as a portion of the purchase consideration for the acquisition of 70% equity interest in Shandong Xinghui Urban Hotel Management Group Co., Ltd (“Shandong Xinghui”). 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (CONTINUED) The Company and its subsidiaries are hereinafter referred to as the Group. The principal business activities of the Group are to develop leased-and-operated and franchised-and-managed economy hotels under the “GreenTree” brand in the PRC. The Group’s major direct and indirect invested subsidiaries consist of the following as of December 31, 2019: Major subsidiaries Percentage of Ownership Date of Incorporation, Merger or Acquisition Place of Incorporation Major Operation GreenTree Inns Hotel (Shanghai) Management, Inc. 100 % November 30, 2004 PRC Hotel management GreenTree Inns Hotel (China) Management, Inc. 100 % June 30, 2005 PRC Hotel management GreenTree Inns Jiangpu Hotel (Shanghai) Company Limited. 100 % August 9, 2005 PRC Hotel management Hexie (Changzhou) Hotel Management Co., Ltd. 100 % September 14, 2006 PRC Hotel management GreenTree Inns Hotel (Jiangsu) Management, Inc. 100 % January 30, 2007 PRC Hotel management GreenTree Inns Hotel (Changning) Management, Inc. 100 % January 30, 2007 PRC Hotel management GreenTree Inns Hotel (Tianjin) Co., Ltd. 100 % August 2, 2007 PRC Hotel management GreenTree Inns Hotel (Zhejiang) Management, Inc. 100 % August 13, 2007 PRC Hotel management GreenTree Inns Hotel (Sichuan) Management, Inc. 100 % January 8, 2008 PRC Hotel management GreenTree Inns Hotel (Beijing) Management, Inc. 100 % March 17, 2008 PRC Hotel management Shiruide Hotel Management (Shanghai) Co., Ltd. 100 % February 16, 2009 PRC Hotel management Jinan Dongrunbao Inns Management Co., Ltd. 100 % April 22, 2009 PRC Hotel management GreenTree Suites Management Corp (“GreenTree Suites”) 100 % June 30, 2009 Cayman Islands Investment holding Pacific Hotel Investment, Inc.(“PHI”) 100 % June 30, 2009 Samoa Investment holding GreenTree Inns Hotel Management Group, Inc. (“GreenTree Samoa”) 100 % October 28, 2010 Samoa Investment holding GreenTree Hotels (Hong Kong), Limited. 100 % February 17, 2011 Hong Kong Investment holding Shanghai Evergreen Technology Co., Ltd. 100 % October 20, 2011 PRC Information (“Shanghai Evergreen”) technology services Shanghai Beifu Industrial Co., Ltd. 100 % February 25, 2014 PRC Hotel management Shenzhen Gegao Investment Management Co., Ltd. 100 % May 7, 2015 PRC Investment holding Yancheng Ruixin Hotel Management Co., Ltd. 70 % June 5, 2015 PRC Hotel management Shanghai Jingjia Hotel Co., Ltd. 100 % February 15, 2017 PRC Hotel management Shanghai Wumian Hotel Management Co., Ltd. 66.7 % January 16, 2018 PRC Hotel management Yancheng Zexin Hotel Management Co., Ltd. 51 % July 1, 2018 PRC Hotel management Foshan Baiqinghui Hotel Management Co., Ltd. 70 % August 31, 2018 PRC Hotel management GreenTree Hotel (Xuzhou) Co., Ltd. 100 % February 5, 2018 PRC Hotel property Banyan Hotel (Xuzhou) Co., Ltd. 100 % May 3, 2018 PRC Hotel property Argyle Beijing 60 % April 1, 2019 PRC Hotel management Shandong Xinghui 70 % November 30,2019 PRC Hotel management 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (CONTINUED) Leased-and-operated hotels The Group owns hotel property or leases hotel properties from property owners and is responsible for all aspects of hotel operations and management, including hiring, training and supervising the managers and employees required to operate the hotels. In addition, the Group is responsible for hotel development and customization to conform to the standards of the “GreenTree” brand, as well as repairs and maintenance, operating expenses and management of properties over the term of the lease, which ranges from 10 to 20 years. Under the lease arrangements, the Group typically receives rental holidays of three to twenty-four months and pays fixed rent on a monthly or quarterly basis for the first three or five years of the lease term, after which the rental payments may be subject to an increase every three to five years. The Group recognizes rental expense on a straight-line basis over the lease term. Franchised-and-managed hotels The Group enters into franchise arrangements with property owners or franchisees who lease hotel properties from property owners for which the Group is not responsible for employee recruiting and compensation, except for the general manager of most franchised-and-managed hotels. Under a typical franchise agreement, the franchisee is required to pay an initial franchise fee and recurring franchise management fees equal to a certain percentage of the revenues of the hotel. The franchisee is responsible for the costs of hotel development and customization and the costs of its operations. The term of the franchise agreement is 5 to 20 years and is renewable only upon a mutual agreement between the Group and the franchisee. |
Summary of Principal Accounting
Summary of Principal Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES Basis of presentation The consolidated financial statements of the Group have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”). Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and the consolidated VIEs for which the Company is the ultimate primary beneficiary. All intercompany transactions and balances are eliminated upon consolidation. The Group evaluates its business activities and arrangements with the entities that operate the franchised-and-managed hotels to identify potential variable interest entities. Generally, these entities qualify for the business scope exception; therefore, consolidation is not appropriate under the variable interest entity consolidation guidance. Variable Interest Entities The Group evaluates the need to consolidate certain variable interest entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. The Company is deemed as the primary beneficiary of and consolidates variable interest entities when the Company has the power to direct the activities that most significantly impact the economic success of the entities and effectively assumes the obligation to absorb losses and has the rights to receive benefits that are potentially significant to the entities. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences could be material to the consolidated financial statements. The Group bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Group’s consolidated financial statements include allowance for doubtful accounts receivable, impairment of loans receivable, fair value measurement and impairment of investments, the useful lives and impairment of property and equipment and intangible assets, valuation allowance for deferred tax assets, impairment of goodwill, average life of memberships, estimates involved in the accounting for its membership program, contingent liabilities, purchase price allocation and share-based compensation arrangements (Note 16). Cash and cash equivalents Cash and cash equivalents include cash on hand and time deposits placed with commercial banks or other financial institutions. The Group considers highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase of three months or less to be cash equivalents. All cash and cash equivalents are unrestricted as to withdrawal and use. Restricted cash Restricted cash comprise of deposits pledged with banks as security in relation to the guarantee for lease agreement, the guarantees for short-term debt (Note 11) and the guarantees for prepaid cards. Long-term time deposits Long-term time deposits comprise of deposits placed with certain bank with a maturity of one to three years. Unrealized gains from long-term time deposit of nil, nil and RMB16,897,702 (USD2,427,203) were recognized for the years ended December 31, 2017, 2018 and 2019, respectively. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Investments Short-term investments Short-term investments consist of investments in wealth management products, where certain deposits with variable interest rates or where principal amounts are not guaranteed, are placed with certain financial institutions. The Group accounts for short-term investments in debt in accordance with ASC topic 320, Investments — Debt investments not classified as trading or as held-to-maturity are classified as available-for-sale securities. Available-for-sale investments are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income. Realized gains or losses are included in earnings during the period in which the gain or loss is realized. An impairment loss on the available-for-sale securities is recognized in the consolidated statements of income when the decline in value is determined to be other-than-temporary. The Group accounts for its investments in equity securities in accordance with ASC Subtopic 321 (“ASC 321”), Investments – Equity Securities. These securities are generally held for resale in anticipation of short-term market movements and therefore the Group classifies them as investment in equity securities in current assets which are carried at fair value at each balance sheet date. Gains and losses, both realized and unrealized, are included in gains (losses) from these securities in the consolidated statements of comprehensive income. The realized losses of RMB 22,565,408 was recognized for the year ended December 31, 2017 and the realized gains of RMB 14,381,423 and RMB 70,390,093(USD 10,110,904) were recognized for the years ended December 31, 2018 and 2019, respectively. For the years ended December 31, 2017, 2018 and 2019, there were unrealized losses of RMB 36,599,813, RMB72,156,375 and RMB29,832,919 (USD 4,285,231) respectively. Long-term investments The Group’s long-term investments consist of equity-method investments, equity investments with readily determinable fair values and equity investments without readily determinable fair values. Investments in entities in which the Group can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC Topic 323, Investments-Equity Method and Joint Ventures 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Long-term investments (continued) Investments in equity securities that have readily determinable fair values (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) are measured at fair value, with unrealized gains and losses from fair value changes recognized in net income in the consolidated statements of comprehensive income. As of December 31, 2018 and 2019, there were unrealized gains of nil and RMB 6,473,358 (USD929,840) respectively. For investments in equity securities without readily determinable fair values, the Group elected to use the measurement alternative to measure such investments at cost minus impairment adjusted by observable price changes in orderly transactions for the identical or a similar investment of the same issuer. These investments are measured at fair value on a nonrecurring basis when there are events or changes in circumstances that may have a significant adverse effect. An impairment loss is recognized in the consolidated statements of comprehensive income equal to the amount by which the carrying value exceeds the fair value of the investment. Prior to the adoption of ASU 2016-01 on January 1, 2019, these investments were accounted for using the cost method of accounting, measured at cost less other-than-temporary impairment. As of December 31, 2019, one of the investments was remeasured based on observable price changes in orderly transactions for an identical or similar investment of the same issuer. Accordingly, the Group recognized unrealized gains of RMB 8,223,212 (USD1,181,190). No impairment loss was recognized in any of the periods presented. Accounts receivable, net of allowance for doubtful accounts Trade receivables mainly consist of franchise fees receivable, rental amounts due from individual and corporate customers and travel agents, and sublease rental receivables due from third-party merchandisers, which are recognized and carried at the original invoice amounts less an allowance for doubtful accounts. The Group establishes an allowance for doubtful accounts primarily based on the age of the receivables and factors surrounding the credit risk of specific franchisees, customers, and merchandisers. Accounts receivable balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Inventories Inventories mainly consist of small appliances, bedding and daily consumables. Small appliances and bedding are stated at cost, less accumulated amortization, and are amortized over their estimated useful lives, generally one year, from the time they are put into use. Daily consumables are expensed when used. Loans receivable Loans receivable are carried at the original loan principal and accrued interest based on the contract rate, less an allowance for uncollectible accounts, as appropriate. The allowance for uncollectible accounts is estimated based on an assessment of the payment history, the existence of collateral, current information and events, and the facts and circumstances around the credit risk of the debtors. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Property and equipment, net Property and equipment, net are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment is provided using the straight-line method over the following expected useful lives: Leasehold improvements Over the shorter of the lease term or estimated useful lives Buildings 20 years Furniture, fixtures and equipment 3-5 years Motor vehicles 5 years Construction in progress represents leasehold improvements under construction or being installed and is stated at cost. Cost comprises original cost of property and equipment, installation, construction and other direct costs. Construction in progress is transferred to leasehold improvements and depreciation commences when the asset is ready for its intended use. Expenditures for repairs and maintenance are expensed as incurred, whereas the costs of betterments that extend the useful life of property and equipment are capitalized as additions to the related assets Intangible assets Intangible assets are carried at cost less accumulated amortization and any recorded impairment. Intangible assets acquired through business combinations are recognized as assets separate from goodwill if they satisfy either the “contractual-legal” or “separability” criterion, and are measured at fair value upon acquisition. Favorable leases from such business combination transactions are amortized over the remaining operating lease term. Reacquired rights represent the franchise right the Group previously granted to the acquiree through franchise agreements and are amortized over the next renewal date in the applicable agreement. Amortization is computed using the straight-line method over the following estimated useful lives: Trademark 10 years or indefinite life Technology 10 years Network rights 10 years Purchased software 5 years Favorable leases the remaining lease term Reacquired rights the remaining franchise term The trademarks acquired in the acquisition of Argyle Group and Urban Hotel Group (Note 3) can be renewed without substantial obstacles. As a result, the useful life is determined to be indefinite. The Group evaluates the trademark at the end of each reporting period to determine whether events and circumstances continue to support an indefinite useful life. Impairment is tested annually or more frequently if events or changes in circumstances indicate that it might be impaired. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Business combinations The Group accounts for all business combinations under the purchase method in accordance with ASC 805, Business Combinations The determination and allocation of fair values to the identifiable net assets acquired, liabilities assumed and noncontrolling interest is based on various assumptions and valuation methodologies requiring considerable judgment. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Group determines discount rates to be used based on the risk inherent in the acquiree’s current business model and industry comparisons. Although the Group believes that the assumptions applied in the determination are reasonable based on information available at the date of acquisition, actual results may differ from forecasted amounts and the differences could be material. Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the identifiable assets acquired less liabilities assumed of an acquired business. The Group’s goodwill at December 31, 2018 and 2019 was related to its acquisition of subsidiaries and business. The Group follows ASC subtopic 350-20, Intangibles-Goodwill and Other: Goodwill. Goodwill and business acquired in a business combination are not amortized, but instead tested for impairment at least annually, or more frequently if certain circumstances indicate a possible impairment may exist. In accordance to ASC 350-20, the Group has assigned and assessed goodwill for impairment at the reporting unit level. A reporting unit is an operating segment or one level below the operating segment. The Group has determined that it has one reporting unit, which is also its only reportable segment. The Group has the option to first assess qualitative factors to determine whether it is necessary to perform the two-step test in accordance with ASC 350-20, Testing Goodwill for Impairment. If the Group believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the two-step quantitative impairment test described above is required. Otherwise, no further testing is required. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. In performing the two-step quantitative impairment test, the first step compares the carrying amount of the reporting unit to the fair value of the reporting unit based on either quoted market prices of the ordinary shares or estimated fair value using a combination of the income approach and the market approach. If the fair value of the reporting unit exceeds the carrying value of the reporting unit, goodwill is not impaired and the Group is not required to perform further testing. If the carrying value of the reporting unit exceeds the fair value of the reporting unit, then the Group must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. The fair value of the reporting unit is allocated to its assets and liabilities in a manner similar to a purchase price allocation in order to determine the implied fair value of the reporting unit goodwill. If the carrying amount of the goodwill is greater than its implied fair value, the excess is recognized as an impairment loss. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Goodwill (continued) In 2017, 2018 and 2019, the Group performed a qualitative assessment for the reporting unit. Based on the requirements of ASC350-20, the Group evaluated all relevant factors, weighed all factors in their entirety and concluded that it was not more-likely-than-not the fair value was less than the carrying amount of the reporting unit, and further impairment testing on goodwill was not necessary. Impairment of long-lived assets The Group evaluates impairment of its long-lived assets to be held and used, including property and equipment, definite-lived intangible assets and other non-current assets, when events or changes in circumstances indicate, in management’s judgment, that the carrying value of such assets may not be recoverable in accordance with ASC subtopic 360-10, Property, Plant and Equipment-Overall Revenue recognition Leased and owned hotel revenues Revenues from leased-and-operated hotels are primarily derived from hotel operations, including the rental of rooms and food and beverage sales. Each of these products and services represents an individual performance obligation and, in exchange for these services, the Group receives fixed amounts based on fixed rates or fixed standalone selling price. Revenue is recognized when rooms are occupied, and food and beverages are sold as the respective performance obligations are satisfied. Sublease rental revenues are derived from subleasing partial space of the leased-and-operated hotels to third-parties, which are recognized on a straight-line basis over the contractual lease term. The sublease rental revenue is recorded in leased-and-operated hotels revenue in the consolidated statements of comprehensive income amounted to RMB42,218,264, 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Revenue recognition (continued) Franchise and managed hotel revenues The franchise and managed agreement contains the following promised services: • Intellectual Property (“IP”) license grant the right to access the Group’s hotel system IP, including brand names. • Pre-opening services include providing services (e.g., property design, leasehold improvement, construction project management, systems installation, personnel recruiting and training, etc.) to the franchisees to assist in preparing for the hotel opening. • System maintenance services include providing standardization hotel property management system (PMS), central reservation system (CRS) and other internet related services. • Hotel management services include providing day-to-day management services of the hotels for the franchisees. The promises to provide pre-opening services and system maintenance services are not distinct performance obligation because they are attendant to the license of IP. Therefore, the promises to provide pre-opening services and system maintenance services are combined with the license of IP to form a single performance obligation. Hotel management services forms a single distinct performance obligation. Revenues from franchised-and-managed hotels are derived from franchise agreements where the franchisees are required to pay (i) an initial one-time non-refundable franchise fee, and (ii) continuing franchise fees, which mainly consist of on-going management and service fees based on a certain percentage of the room revenues of the franchised-and-managed hotels and central reservation system (“CRS”) usage fee based on a fixed rate per transaction. For franchised-and-managed hotels, we have a performance obligation to provide franchisees a license to our hotel system intellectual property for use of certain of our brand names. The one-time franchise fees are fixed consideration payable upon submission of a franchise application or renewal and are recognized on a straight-line basis over the initial or renewal term of the franchise agreements. The Group does not consider this advance consideration to include a significant financing component, since it is used to protect the Group from the franchisees failing to adequately complete some or all of its obligations under the contract. The continuing fees represent variable consideration, as the transaction price is based on a percentage of underlying service revenue is recognized by the franchisees’ operations. The Group recognizes continuing franchise fees on a monthly basis over the term of the agreement as those amounts become payable. In addition, the Group designates hotel managers to certain hotels and accounts for hotel manager fees related to the hotels under the franchise program as revenues. Pursuant to the franchise-and-management agreements, the Group charges the franchisees fixed hotel manager fees to compensate the Group for the franchised-and-managed hotel managers’ salaries, social welfare benefits and certain other out-of-pocket expenses as incurred. The hotel manager fee is recognized as revenue on a monthly basis. During the years ended 2017, 2018 and 2019, the hotel manager fees that were recognized as part of franchised-and-managed hotels revenue were RMB83,482,652, RMB99,185,965 and RMB115,638,242 (USD 16,610,394), respectively. Membership Program The Group invites its customers to participate in a membership program with four tiers of membership – E-membership, R-membership, gold membership and platinum membership. A one-time membership fee is charged for new members except for the E-membership. The membership automatically expires after two years in the event of non-usage and is automatically renewed if used at least once within a two-year period. Members enjoy discounts on room rates, priority in hotel reservation, and accumulate membership points for their paid stays, which can be redeemed for membership upgrades, room night awards and other gifts within two years after the points are earned. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Membership Program (continued) Membership fees from the Group’s membership program are earned and recognized on a straight-line basis over the expected membership duration of the different membership levels. Such duration is estimated based on the Group’s and management’s experience and is adjusted on a periodic basis to reflect changes in membership retention. The membership duration is estimated to be three to five years depending on membership level. Membership points earned by members represent a material right to free or discounted goods or services in the future. The membership program has one performance obligation that consists of marketing and managing the program and arranging for award redemptions by members. . The amount of revenue the Group recognize upon point redemption is impacted by the estimate of the “breakage” for points that members will never redeem . The Group estimates breakage based on the Group’s historical experience and expectations of future member behavior and will true up the estimated breakage at end of each period. PRC Value-Added Taxes and related tax surcharges Starting from May 2016, the accommodation services of the Group are subject to 6% of Value-Added Taxes. The Group is subject to education surtax and urban maintenance and construction tax, on the services provided in the PRC. Advertising and promotional expenses Advertising related expenses, including promotion expenses and production costs of marketing materials, are charged to the consolidated statements of comprehensive income as incurred, and amounted to RMB11,369,822, RMB15,654,573 and RMB 23,934,351 (USD3,437,954) for the years ended December 31, 2017, 2018 and 2019, respectively. Government subsidies Government subsidies are received from provincial and local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. Such subsidies allow the Group full discretion to utilize the funds and are used by the Group for general corporate purposes. During the years ended December 31, 2017, 2018 and 2019, the Group received financial subsidies of RMB10,220,995, RMB15,150,107 and RMB9,880,735(USD1,419,279), respectively, from various local PRC government authorities. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. Such amounts are recorded as other operating income when received as the amount of the subsidies and the timing of payment are determined solely at the discretion of the relevant government authorities and there is no assurance that the Group will continue to receive any or similar subsidies in the future. Interest income and other, net Interest income and other, net consists primarily of interest income, and to a much lesser extent foreign exchange gains or losses. Interest income is mainly generated from bank deposits and other interest earning financial assets and is recognized on an accrual basis using the effective interest method. Leases Leases are classified as capital or operating leases. A lease that transfers to the lessee substantially all the benefits and risks incidental to ownership is classified as a capital lease. The Group did not have any leases that qualified as capital leases for the years ended December 31, 2018 and 2019. The Group leases hotel space under certain operating lease agreements. Certain of the lease agreements contain rent holidays and rent escalation provisions. Rent holidays and rent escalation provisions are considered in determining straight-line rent expense to be recorded over the lease term. The lease term begins on the date of initial possession of the lease property for purposes of recognizing lease expense on a straight-line basis over the term of the lease. The excess of rent expense and rent paid, as the case may be for respective leases, is recorded as deferred rent. Rental expenses amounted to RMB60,839,102, RMB78,272,335 and RMB81,379,034 (USD11,689,367) for the years ended December 31, 2017, 2018 and 2019, respectively. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Income taxes Income taxes are provided for using the liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or change in tax status is recognized in income in the period the change in tax status occurs or the change in tax rates or tax law is enacted. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some or all of the deferred tax assets will not be realized. In accordance with ASC subtopic 740-10, Income Taxes, Overall The Group estimates its liability for unrecognized tax benefits which are periodically assessed and may be affected by changing interpretations of laws, rulings by tax authorities, changes and/or developments with respect to tax audits, and expiration of the statute of limitations. The ultimate outcome for a particular tax position may not be determined with certainty prior to the conclusion of a tax audit or appeal or litigation process. The actual benefits ultimately realized may differ from the Group’s estimates. As each tax audit is concluded, adjustments, if any, are recorded in the Group’s financial statements. Additionally, in future periods, changes in facts, circumstances and new information may require the Group to adjust the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recognized in the period in which the changes occur. The Group has elected to include interest and penalties related to an uncertain tax position in “income tax expense (benefit)” in the consolidated statements of comprehensive income. For the annual period ended December 31, 2018, the Company adopted ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, and classified all deferred income tax assets as noncurrent on the consolidated balance sheets on a prospectively basis. Foreign currency translation and transactions The reporting currency of the Group is the Renminbi (“RMB”). The functional currency of the Company, GreenTree Samoa, GreenTree Suites, PHI and the entities incorporated in Hong Kong is the United States dollar (“USD”). The financial records of PRC subsidiaries of the Company are maintained in the local currency, the Renminbi (“RMB”), which is their functional currency. Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Nonmonetary assets and liabilities are re-measured into the applicable functional currencies at historical exchange rates. Transactions in currencies other than the applicable functional currencies during the year are converted into the functional currencies at the applicable rates of exchange prevailing on the transaction dates. Transaction gains and losses are recognized in “interest income and other, net” in the consolidated statements of comprehensive income. Assets and liabilities are translated into RMB at the exchange rate at the balance sheet date. Equity accounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income (loss) in the consolidated statements of comprehensive income. Convenience translation Translations of amounts from RMB into U.S. dollars and HKD into U.S. dollars are solely for the convenience of the reader and were calculated at the noon buying rate of USD1 to RMB6.9618 and USD1 to HKD7.7894 on December 31, 2019, as set forth in H.10 statistical release of the Federal Reserve Board. The translation is not intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into U.S. dollars at that rate on December 31, 2019, or at any other rate. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Fair value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Group follows ASC subtopic 820-10, Fair Value Measurements and Disclosures, which establishes a three-tier fair value hierarchy, and prioritizes the inputs used in measuring fair value as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Investments in equity securities with readily determinable fair values are measured using quoted market prices, and are recorded at fair values at each balance sheet date. The Group measures equity investments without readily determinable fair value and elected to use the measurement altern |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | 3. BUSINESS COMBINATIONS Business combination in 2018: During the year ended 2018, the Group completed four acquisitions. The results of the acquired entities’ operations have been included in the Company’s consolidated financial statements since their respective dates of acquisition. The Group completed the valuation necessary to assess the fair value of the acquired assets and liabilities and the non-controlling interests with the assistance from an independent valuation firm, resulting from which the amounts of goodwill were determined and recognized as of the respective acquisition dates. In January 2015, the Group acquired 50% of the equity interest in Yancheng Zexin Hotel Management Co., Ltd. (the “Zexin”) and the investment was accounted for under equity method given the Group had the ability to exercise significant influence over Zexin. In July 2018, the Group acquired additional 1% of the equity interest in Zexin for a cash consideration of RMB80,000. The acquisition closed on July 1, 2018 when the Group obtained control of Zexin’s operations holding in aggregate 51% of its equity interest. The fair value of previously held equity interest is RMB3,333,000 at the acquisition date. A gain of RMB1,344,212 in relation to the revaluation of the previously held equity interest was recorded in other income, net in the consolidated statement of comprehensive income for the year ended December 31, 2018. In July 2018, the Group acquired 100% of the equity interest in a hotel chain and 70% of the equity interest in an individual hotel for an aggregate cash consideration of RMB10,000,000 and RMB13,000,000, respectively. In August 2018, the Group acquired 70% of the equity interest in an individual hotel for an aggregate cash consideration of RMB1,400,000. These business acquisitions were accounted for under purchase accounting. The net revenue and net loss of the acquiree included in the consolidated statements of operations for the year ended December 31, 2018 were RMB14,148,551 and RMB 332,960, respectively. Pro forma financial information of the acquires are not presented as the effects of the acquisitions on the Group’s consolidated financial statements were immaterial. The following is a summary of the fair values of the assets acquired and liabilities assumed: 2018 Amortization Period Current assets (i) 11,520,969 Property and equipment 32,618,088 3 - 17 years Intangible assets Favorable leases 20,095,000 Remaining lease terms Trademark 1,530,000 Remaining beneficial period Goodwill 2,827,885 Current liabilities (18,636,959 ) Deferred tax liabilities (5,406,250 ) Noncontrolling interest (8,509,857 ) Total 36,038,876 (i) Current assets acquired primarily included cash and cash equivalent of RMB1,177,106, other receivables of RMB1,438,641 and loans receivable of RMB7,500,000. As the acquires are unlisted companies, the fair value measurements for the non-controlling interest and previously held equity interest are estimated with reference to the purchase price per share as of the acquisition date and adjustment for the lack of control and marketability. 3. BUSINESS COMBINATIONS Business combinations in 2019: During the years ended 2019, the Group completed four business combinations Argyle Group On April 4, 2019, the Group completed the acquisition of Argyle Group through acquiring 60% equity interest in Argyle Beijing. Argyle Group is an owner and operator of hotels, with a network of mid-scale and up-scale brands in China and Southeast Asia. The total consideration amounted to RMB126,819,172 (USD18,216,434), which was measured at the fair value of the 626,746 ordinary shares on the acquisition date and cash consideration of RMB65,779,032 (USD9,448,567). As of December 31, 2019, the last payment of RMB6,000,000 (USD861,846) has not been paid. The business acquisition was accounted for under purchase accounting. The net revenue and net loss of the acquire included in the consolidated statements of operations for the year ended December 31, 2019 were RMB11,882,976 (USD1,706,883) and RMB7,694,834 (USD1,105,294), respectively. Pro forma financial information of the acquire is not presented as the effects of the acquisitions on the Group’s consolidated financial statements were immaterial. The following is a summary of the fair values of the assets acquired and liabilities assumed: 2019 Amortization Period Current assets 3,777,860 Property and equipment 1,013,378 3 - 17 years Intangible assets Purchased software 669,206 4 – 7 years Trademark 230,500,000 Indefinite life Goodwill 42,198,903 Current liabilities (7,618,079 ) Deferred tax liabilities (57,625,000 ) Non current liabilities (15,642,000 ) Noncontrolling interest (70,455,096 ) Total 126,819,172 3. BUSINESS COMBINATIONS Business combinations in 2019 (continued): Urban Hotel Group On November 30, 2019, the Group completed the acquisition of Urban Hotel Group through acquiring 70% equity interest in Shandong Xinghui. Urban Hotel Group is a leading franchised hotel operator in China. The total consideration amounted to RMB 190,349,496 (USD27,341,994), which was measured at the fair value of the 870,908 ordinary shares on the acquisition date, RMB126,000,000 (USD18,098,768) of cash consideration and the fair value of the contingent consideration and the returnable consideration depending on the achievement or failing of certain financial targets on annual basis (“Contingent Consideration Arrangement”) on the acquisition date. Pursuant to the clause of the agreement, the estimated contingent consideration will not exceed RMB105million (USD15million) and the estimated returnable consideration will not exceed RMB69million (USD10million). The Group has assessed such Contingent Consideration Arrangement to be classified as a financial liability and remeasured at the end of each reporting period with any changes in its fair value to be recognized in its consolidated profit and loss statements. With the assistance of an independent third-party valuation firm based on the Company’s assessment of whether certain financial targets could be achieved or not, the fair value of the returnable consideration and contingent consideration recognized as of the acquisition date is RMB3,333,421(USD478,816) and RMB4,027,207(USD578,472), respectively. As of December 31, 2019, the last payment of the cash consideration of RMB10,500,000 (USD1,508,231) has not been paid and the 870,908 ordinary shares were not issued until January 15, 2020. The following is a summary of the fair values of the assets acquired and liabilities assumed: 2019 Amortization Period Current assets (i) 50,482,296 Property and equipment 6,913,189 3 - 10 years Intangible assets Favorable leases 20,100,000 Remaining lease terms Trademark 212,800,000 Indefinite life Purchased software 34,739 2 years Deferred tax assets 4,000,000 Other assets 4,537,000 Goodwill 49,037,577 Current liabilities (19,831,341 ) Non current liabilities (11,517,000 ) Deferred tax liabilities (58,225,000 ) Noncontrolling interest (67,981,964 ) Total 190,349,496 ( i ) Current assets acquired primarily included cash and cash equivalent of RMB28,162,864, other receivables of RMB16,928,966 and accounts receivable of RMB5,116,320. 3. BUSINESS COMBINATIONS Business combinations in 2019 (continued): Urban Hotel Group The net revenue and net loss of the acquires included in the consolidated statements of operations for the year ended December 31, 2019 were RMB6,832,148 (USD981,377) and RMB362,260 (USD52,035), respectively. The following table summarizes unaudited pro forma results of operation for the years ended December 31, 2018 and 2019 assuming that the acquisition occurred as of January 1, 2018. The pro forma results have been prepared for comparative purpose only based on management’s best estimate and do not purport to be indicative of the results of operations which actually would have resulted had the acquisition occurred as of January 1, 2018. 2018 2019 Proforma net revenue 991,089,437 1,189,828,873 Proforma net income 395,817,977 468,408,130 Others On July 1, 2019, the Group completed the acquisition of a company at consideration of RMB37,255,016 (USD5,351,348) of current assets which were effectively settled upon the acquisition. On August 31, 2019, the Group completed the acquisition of one hotel at a cash consideration of RMB5,530,000 (USD794,335). As of December 31, 2019, the last payment of RMB276,500 (USD39,717) has not been paid. The business acquisitions were accounted for under purchase accounting. The assets and liabilities of these two acquirees were immaterial to the consolidated financial statements. The Group incurred transaction cost of RMB2,589,034 (USD371,892) for the abovementioned four acquisitions, which was expensed and recorded in general and administrative expenses in the year ended December 31, 2019. The valuations used in the purchase price allocation described above were determined by the Company with the assistance of independent third-party valuation firms. The valuation reports considered generally accepted valuation methodologies such as the income, market and cost approaches. As the acquirees are all private companies, the fair value estimates of noncontrolling interests are based on significant inputs considered by market participants which mainly include (a) discount rate, (b) projected terminal value based on future cash flow (c) financial multiple of companies in the same industry and (d) adjustment for lack of control and marketability. Goodwill was recognized as a result of expected synergies from combining operations of the Group and acquired business and other intangible assets that do not qualify for separate recognition. Goodwill is not amortized and is not deductible for tax purposes. In accordance with ASC 350, the Group assigned and assessed goodwill for impairment at the reporting unit level. All the acquired business has been integrated with the Group’s business. The Group concluded that it has only one reporting unit. Accordingly, goodwill is allocated to one single reporting unit. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 4. REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregated Revenues The following tables present our revenues disaggregated by the type of the services: Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB USD Leased and owned hotels revenue 193,042,455 212,671,930 253,420,676 36,401,602 Franchise and managed hotel revenues 550,132,944 692,942,739 838,372,459 120,424,669 Initial franchise fee 35,140,250 42,806,330 54,930,266 7,890,239 Continuing franchise fees 514,992,694 650,136,409 783,442,193 112,534,430 Total 743,175,399 905,614,669 1,091,793,135 156,826,271 Substantially all revenues are generated in the PRC. Contract Balances The Group’s payments from customers are based on the billing terms established in contracts. Customer billings are classified as accounts receivable when the Group’s right to consideration is unconditional. If the right to consideration is conditional on future performance under the contract, the balance is classified as a contract asset. Our contract assets are insignificant at December 31, 2018 and December 31, 2019. Payments received in advance of performance under the contract are classified as current or non-current contract liabilities on the Group’s consolidated balance sheets and are recognized as revenue as the Group performs under the contract. Years Ended December 31, 2018 2019 2019 RMB RMB USD Advance from customers 36,370,325 40,105,627 5,760,813 Deferred revenue-current 210,585,604 231,925,272 33,313,981 Deferred revenue-non current 380,173,585 410,807,248 59,008,769 Total contract liabilities 627,129,514 682,838,147 98,083,563 The deferred revenue balances above, as of December 31, 2018 and 2019 were comprised of the following: Years Ended December 31, 2018 2019 2019 RMB RMB USD Initial fees received from franchisees owners 274,637,959 295,443,732 42,437,837 Cash received for membership fees and not recognized as revenue 238,496,707 257,351,279 36,966,198 Cash received for prepaid card and sublease 53,356,062 58,075,704 8,342,053 Deferred revenue related to the membership program 24,268,461 31,861,805 4,576,662 Total contract liabilities 590,759,189 642,732,520 92,322,750 The Group recognized revenues that were previously deferred as contract liabilities of RMB139,641,810 and RMB212,226,297 (USD30,484,400) during the years ended December 31, 2018 and 2019, respectively. Revenue Allocated to Remaining Performance Obligations Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. 4. REVENUE FROM CONTRACTS WITH CUSTOMERS (CONTINUED) Revenue Allocated to Remaining Performance Obligations (continued) As of December 31,2019, the Group had RMB295,443,732 (USD42,437,837) of deferred revenues related to initial fees received from franchisees owners are expected to be recognized as revenues over the remaining contract periods over one to 27 years. The Group had RMB257,351,279 (USD36,966,198) of deferred revenues related to membership fees that are expected to be recognized as revenues over the remaining membership life, which is estimated to be one to five years. The Group had RMB31,861,805 (USD4,576,662) of deferred revenues related to unsatisfied performance obligations under Greentree Reward membership program that will be recognized as revenues when the points are redeemed, which we estimate will occur over the next two years. The Group also had RMB58,075,704 (USD8,342,053) related to cash received for prepaid card and sublease, which are expected to be recognized as revenues in future periods over the terms of the related contracts. |
Loans Receivable Net
Loans Receivable Net | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
LOANS RECEIVABLE, NET | 5. LOANS RECEIVABLE, NET Loans receivable, net is comprised of the following: As of December 31, 2018 2019 2019 RMB RMB USD Loans receivable, current portion Franchisees 18,757,404 79,572,201 11,429,831 Third parties 48,439,164 17,740,000 2,548,192 Less: bad debt provision - (15,000,000 ) (2,154,616 ) Total 67,196,568 82,312,201 11,823,407 Loans receivable, non-current portion Franchisees 39,352,863 113,963,742 16,369,867 Third parties - 7,600,000 1,091,672 39,352,863 121,563,742 17,461,539 In 2019, the Group entered into loan agreements with certain franchisees with an amount of RMB157,411,151 (USD22,610,697) to finance the construction and renovation of certain franchised-and-managed hotels with maturity from one year to three years and an interest rate of 7.7%-9.9% per annum. In 2019, the Group entered into loan agreements with third parties with an amount of RMB10,340,000 (USD1,485,249) to support their daily operation or other purpose and annual interest rate is 6.5%-10.0%. As of December 31, 2018 and 2019, the Group recognized an allowance of nil and RMB15,000,000(USD2,154,616) in relation to a loan to a third party. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 6. PROPERTY AND EQUIPMENT, NET Property and equipment, net consists of the following: As of December 31, 2018 2019 2019 RMB RMB USD Buildings 191,222,937 543,500,662 78,068,985 Leasehold improvements 254,720,926 289,710,814 41,614,355 Furniture, fixtures and equipment 40,771,896 57,302,434 8,230,980 Motor vehicles 2,486,375 2,912,805 418,398 Total 489,202,134 893,426,715 128,332,718 Less: Accumulated depreciation (265,449,689 ) (295,096,805 ) (42,388,004 ) Impairment (5,008,677 ) – – 218,743,768 598,329,910 85,944,714 Construction in progress 3,645,805 16,606,595 2,385,388 Property and equipment, net 222,389,573 614,936,505 88,330,102 On June 3, 2019, the Group acquired 100% equity interests in a company from third party for a total cash consideration of RMB183,555,000 (USD26,366,026). The said company had no operations and was not qualified as a business as it had no input or process to create output. The Group adopted ASU No.2017-01, Business Combinations (Topic 802): Clarifying the Definition of a Business Depreciation expense was RMB24,076,465, RMB23,919,015 and RMB37,340,304 (USD5,363,599) for the years ended December 31, 2017, 2018 and 2019, respectively, and were included in the following captions: For the years ended December 31, 2017 2018 2019 2019 RMB RMB RMB USD Hotel operating costs 22,978,585 21,313,405 31,671,274 4,549,294 General and administrative costs 1,097,880 2,605,610 5,669,030 814,305 Total 24,076,465 23,919,015 37,340,304 5,363,599 Impairment of nil, RMB5,008,677 and nil was recognized on the property and equipment for the year ended December 31, 2017, 2018 and 2019, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | 7. INTANGIBLE ASSETS, NET Intangible assets, net consist of the following: As of December 31, 2018 2019 2019 RMB RMB USD Intangible assets with indefinite life: Trademark – 443,300,000 63,676,061 Intangible assets with definite life: Trademark 4,724,493 4,724,493 678,631 Technology – 4,200,000 603,292 Network rights 259,048 390,317 56,066 Purchased software 10,980,093 14,339,844 2,059,790 Reacquired rights 2,531,418 2,531,418 363,615 Favorable leases 20,498,648 41,600,548 5,975,545 Others 435,185 435,185 62,510 Total 39,428,885 511,521,805 73,475,510 Less: Accumulated amortization (12,215,494 ) (15,241,489 ) (2,189,303 ) Total. 27,213,391 496,280,316 71,286,207 Amortization expense of intangible assets for the years ended December 31, 2017, 2018 and 2019 amounted to RMB879,968, RMB1,630,950 and RMB3,025,995 (USD434,657), respectively. No impairment charges were recognized for the years ended December 31, 2017, 2018 and 2019. The estimated aggregate amortization expense for each of the five succeeding years is as follows: Year ending December 31, RMB USD 2020 6,655,671 956,027 2021 6,621,247 951,083 2022 6,548,904 940,691 2023 6,162,554 885,196 2024 6,067,685 871,568 Thereafter 20,924,255 3,005,581 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 8. GOODWILL The changes in the carrying amount of goodwill for the years ended December 31, 2017, 2018 and 2019 were as follows: For the years ended December 31, 2017 2018 2019 2019 RMB RMB RMB USD Balance as of January 1 2,959,183 2,959,183 5,787,068 831,260 Acquisitions (note 3) - 2,827,885 94,291,168 13,544,079 Balance as of December 31 2,959,183 5,787,068 100,078,236 14,375,339 No impairment loss was recognized in any of the periods presented. |
Long-Term Investments
Long-Term Investments | 12 Months Ended |
Dec. 31, 2019 | |
Long Term Investments [Abstract] | |
Long-Term Investments | 9. LONG-TERM INVESTMENTS As at December 31, 2017, 2018 and 2019, long-term investments consisted of the following: As of December 31, 2018 2019 2019 RMB RMB USD Equity method investments Shanghai Wiselong Enterprise Management Co., Ltd. - 23,579,728 3,387,016 Others 8,217,986 - - Equity securities with readily determinable fair values China Gingko Education Group Company Limited - 70,193,934 10,082,728 Zhejiang New Century Hotel Management Co., Ltd. - 192,639,353 27,670,912 Equity securities without readily determinable fair values Yibon Hotel Group Co., Ltd ("Yibon") 103,701,474 103,701,474 14,895,785 Others 300,000 8,523,212 1,224,282 Total 112,219,460 398,637,701 57,260,723 9. LONG-TERM INVESTMENTS (CONTINUED) Equity method investments None of the Group’s equity method investments was considered individually or in aggregate significant for the years ended December 31, 2018 and 2019. Equity securities with readily determinable fair values: In January 2019, the Group acquired 5.56% equity interest, 27,776,000 ordinary shares, in China Gingko Education Group Company Limited with HK$40.40million (USD5.19million) during its initial public offering in the Hong Kong Stock Exchange and further acquired 2.71% equity interest, 13,560,000 ordinary shares with HK$19.53million (USD2.51million) through secondary market. On March 11, 2019, the Group acquired 4.95% of shares in Zhejiang New Century Hotel Management Co., Ltd. in its global offering in the Hong Kong Stock Exchange, for a total amount of USD29.2 million. Equity securities without readily determinable fair values: Investment in Yibon In April 2017, the Group acquired a 30% interest in Yibon for cash consideration of RMB103,701,474 in form of capital injection into the target company. The terms of investment in 30% equity interest in the ordinary shares of Yibon includes a contingent redemption clause if certain specified criteria is not met. As a result, the investment is accounted for as a cost method investment as the shares are not in-substance common stock prior to January 1, 2019. Along with the adoption of ASU 2016-01, the Group accounted it as equity securities without readily determinable fair values. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets Noncurrent Disclosure [Abstract] | |
Other Assets | 10. As of December 31, 2018 2019 2019 RMB RMB USD Acquisition deposits 18,120,615 38,869,400 5,583,240 Rental deposit 5,065,000 6,685,000 960,240 Interest receivable - 17,326,910 2,488,855 Returnable consideration from the acquisition of Urban Hotel Group (Note 3) - 3,333,421 478,816 Others 2,515,908 10,743,261 1,543,173 Total 25,701,523 76,957,992 11,054,324 |
Short-Term Debt
Short-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Short Term Borrowings [Abstract] | |
Short-term Debt | 11. SHORT-TERM DEBT As of December 31, 2018 2019 2019 RMB RMB USD Short-term bank borrowings 60,000,000 60,000,000 8,618,461 In November 2019, the Group renewed a one-year loan contract with a bank for an aggregate principal amount of RMB60,000,000. As of December 31, 2019, the principal amount outstanding was RMB 60,000,000, bearing the interest rate of 4.60% per annum. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 12. As of December 31, 2018 2019 2019 RMB RMB USD Other payables 169,470,083 210,561,540 30,245,273 Business taxes and related tax surcharge 52,639,207 64,345,243 9,242,616 Accrued rental 2,151,623 2,250,443 323,256 Accrued utilities 3,307,734 2,306,796 331,351 Other accrued expenses 3,839,332 2,180,632 313,228 Payables for contingent consideration (Note 3) - 4,027,207 578,472 Consideration payables for acquisitions 10,000,000 16,776,500 2,409,793 Total 241,407,979 302,448,361 43,443,989 |
Other Long-term Liabilities
Other Long-term Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Statement Of Financial Position [Abstract] | |
Other Long-term Liabilities | 13. As of December 31, 2018 and 2019, other long-term liabilities are mainly comprised of deposits from franchisees. |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2019 | |
Class Of Stock Disclosures [Abstract] | |
Ordinary Shares | 14. The Group’s Class A and Class B ordinary shares are identical in all respects except for voting and conversion rights. On all matters upon which the holders are entitled to vote, the Class A shares and Class B shares then outstanding shall constitute 39% and 61% of the total voting power of the issued and outstanding shares of the Group, respectively. |
Hotel Operating Costs
Hotel Operating Costs | 12 Months Ended |
Dec. 31, 2019 | |
Operating Expenses [Abstract] | |
Hotel Operating Costs | 15. Hotel operating costs include all direct costs incurred in the operation of the leased-and-operated hotels and cost of providing franchise services and consist of the following: Year ended December 31, 2017 2018 2019 2019 RMB RMB RMB USD Rental 60,252,952 76,055,484 79,597,408 11,433,452 Utilities 16,692,172 19,264,487 19,119,300 2,746,316 Personnel cost 27,546,240 33,715,007 38,277,298 5,498,190 Depreciation and amortization 22,978,585 21,313,405 34,727,153 4,988,243 Consumable, food and beverage 13,470,072 19,275,688 27,666,436 3,974,035 Costs of hotel manager of franchised-and-managed hotels 54,291,625 70,480,306 96,565,044 13,870,701 Other costs of franchised-and-managed hotels 16,718,827 22,353,424 29,192,923 4,193,301 Others 14,916,556 11,961,462 13,680,917 1,965,140 Total 226,867,029 274,419,263 338,826,479 48,669,378 |
Share Based Compensation
Share Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share Based Compensation | 16. SHARE BASED COMPENSATION Grant of fully vested GTI ordinary shares to directors of the Company On November 11, 2017, GTI issued 352,500 fully vested ordinary shares to certain directors of the company in recognition of their past services to the Company. Accordingly, the Company recorded share-based compensation expense on the date of issuance of these shares of RMB38,048,000 which was recorded in general and administrative expenses for the year ended December 31, 2017. 2018 Share Incentive Plan In January 2018, the Group adopted the 2018 Share Incentive Plan which allows the Group to offer incentive awards to employees, directors and consultants (the “Participants”). Under the 2018 Share Incentive Plan, the Group may issue incentive awards to the Participants to purchase not more than 9,000,000 Class A ordinary shares. The incentive awards granted under the Share Incentive Plans typically have a maximum life of six years and vest in typical ways as vest ratably over the following four years starting after the first/second/third anniversary of the stated vesting commencement date. As of December 31, 2019, the Group had granted 1,829,000 options. Share-based compensation expense of RMB16,108,951 and RMB27,676,666 (USD3,975,504) was recognized in general and administrative expenses for the years ended December 31, 2018 and 2019. During the year ended December 31, 2019, cash used to settle the related share-based compensation is RMB1,186,271(USD170,398). The weighted-average grant date fair value for options granted during the years ended December 31, 2018 and 2019 was USD5.54 and USD 3.57 computed using the binomial option pricing model. The binomial model requires the input of subjective assumptions including the expected stock price volatility and the expected price multiple at which employees are likely to exercise stock options. The Group uses historical data to estimate forfeiture rate. Expected volatilities are based on the average volatility of the Group and comparable companies. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Prior to the IPO, the estimated fair value of the ordinary shares, at the option grant dates prior to the IPO, was determined with assistance from an independent third-party valuation firm. The Company’s management is ultimately responsible for the determination of the estimated fair value of its ordinary shares. 16. SHARE BASED COMPENSATION (CONTINUED) 2018 Share Incentive Plan (continued) The fair value of share options was estimated using the following significant assumptions: Granted in 2018 Granted in 2019 Risk-free interest rate 2.42 % 1.60%-2.60% Volatility 34.00 % 35.66%-37.98% Dividend yield – 2.5 % Life of option 6 years 6 years The aggregate grant date fair value of the outstanding options was determined to be RMB60,525,042 and RMB39,628,188 (USD5,692,233) as of December 31, 2018 and 2019, respectively and such amount shall be recognized as compensation expenses using the accelerate method for all employee share options granted. The total fair value of share options vested during the years ended December 31, 2018 and 2019 were RMB5,431,798 and RMB11,316,415 (USD1,625,501). As of December 31, 2018 and 2019, there was RMB42,791,057 and RMB12,314,260 (USD1,768,833) in total unrecognized compensation expense related to unvested options, which is expected to be recognized over a weighted-average period of 3.11 and 2.58 years. The following table summarized the Group’s share option activity under the option plans: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value USD Years USD Share options outstanding at December 31, 2018 1,591,500 12.94 3.11 1,180,080 Granted 96,000 12.00 Forfeited (327,500 ) 15.19 Expired (203,000 ) 12.00 Exercised (135,000 ) 12.00 Share options outstanding at December 31, 2019 1,022,000 12.28 3.96 - Vested and expected to vest at December 31, 2019 898,665 12.28 3.87 - Exercisable as of December 31, 2019 289,500 12.35 3.21 - |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 17. INCOME TAXES Samoa Under the current laws of Samoa, GreenTree Samoa is not subject to tax on income or capital gain. Cayman Island Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Hong Kong GreenTree Hotels (Hong Kong), Limited is subject to Hong Kong profit tax at a rate of 16.5% in the years ended December 31, 2017, 2018 and 2019. No Hong Kong profit tax has been provided as the Group has not had assessable profit that was earned in or derived from Hong Kong during the years presented. 17. INCOME TAXES ( PRC On March 16, 2007, the PRC government promulgated the Law of the People’s Republic of China on Enterprise Income Tax (“New EIT Law”), which was effective from January 1, 2008. Under the New EIT Law, domestically-owned enterprises and foreign-invested enterprises are subject to a uniform tax rate of 25%. Enterprises qualified as "High New Technology Enterprises ("HNTEs") enjoy a preferential income tax rate of 15%. Shanghai Evergreen was qualified as an HNTE during 2017 to November 2020 under the CIT Law. Shanghai Evergreen has been entitled to a preferential income tax rate of 15% during 2017 to 2019. The current and deferred components of income tax expense appearing in the consolidated statements of comprehensive income are as follows: As of December 31, 2017 2018 2019 2019 RMB RMB RMB USD Current tax 193,428,603 153,947,310 197,233,190 28,330,775 Deferred tax (10,860,341 ) (1,228,642 ) (7,665,373 ) (1,101,062 ) Total 182,568,262 152,718,668 189,567,817 27,229,713 Reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows: Years ended December 31 2017 2018 2019 PRC statutory tax rate 25 % 25 % 25 % Withholding tax on the PRC earnings distribution 14 % 4 % 3 % Effect of international rate difference 2 % (1 %) 0 % Effect of preferential tax rate (3 %) (3 %) (5 %) Tax effect of expenses that are not deductible in determining taxable profit 1 % 4 % 7 % Effective tax rate 39 % 29 % 30 % The principal components of the Group’s deferred income tax assets and liabilities as of December 31,2017, 2018 and 2019 are as follows: As of December 31, 2018 2019 2019 RMB RMB USD Deferred tax assets: Net loss carryforward 3,378,686 15,741,149 2,261,075 Deferred revenue 117,236,504 146,046,006 20,978,196 Deferred rent 6,235,277 5,683,389 816,368 Bad debt expenses 1,608,304 5,268,134 756,720 Accrued expenses 7,874,804 7,368,561 1,058,427 Impairment of long-lived assets 1,252,169 - - Valuation allowance (4,284,778 ) (19,619,046 ) (2,818,099 ) Total deferred tax assets 133,300,966 160,488,193 23,052,687 Deferred tax liabilities: Depreciation of property and equipment (4,028,230 ) (3,864,132 ) (555,048 ) Unrealized gains from equity securities (10,312,983 ) (4,304,431 ) (618,293 ) Intangible assets arising from acquisition (5,851,517 ) (143,943,382 ) (20,676,173 ) Withholding tax on PRC earnings to be distributed (23,345,894 ) (43,191,602 ) (6,204,085 ) Total deferred tax liabilities (43,538,624 ) (195,303,547 ) (28,053,599 ) 17. INCOME TAXES ( Valuation allowances have been provided for net deferred tax assets in the legal entity where, based on all available evidence, it was determined by management that more likely than not to be realized in future years. As of December 31, 2019, the Group had tax losses carryforwards of RMB62,964,595 (USD9,044,298) which will expire between 2020 and 2024 if not utilized. The EIT law also imposes a withholding income tax of 10% on dividends distributed by a foreign invested enterprise ("FIE") to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company's jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. The cumulated undistributed earnings of the Group’s PRC subsidiaries that the Group intends to indefinitely reinvest were RMB511,830,950 (USD73,519,916) as of December 31, 2019. In December 2019, the Group announced that its board of directors approved the payment of a cash dividend of USD0.25 per ordinary shares, which is distributed from the Group’s PRC entities’ 2019 earnings. Other than these dividends distributions, the Group intends to indefinitely reinvest the remaining undistributed earnings of the Group’s PRC subsidiaries. As of December 31, 2019, the related PRC withholding tax liability accrued was RMB43,191,602 (USD6,204,086). The Group made its assessment of the level of authority for each of its uncertain tax positions (including the potential application of interests and penalties) based on the technical merits, and has measured the unrecognized tax benefits associated with the uncertain tax positions. It is possible that the amount of uncertain tax benefits will change in the next 12 months, however, an estimate of the range of the possible outcomes cannot be made at this time. RMB 261,641,717 (USD 37,582,481) of the uncertain tax positions, if ultimately recognized, would affect the effective tax rate. In the years ended December 31, 2019, the Company recorded interest expense of RMB 26,499,488 (USD 3,806,413). As of December 31, 2019, the accumulated interest expense and penalty recorded by the Group was RMB69,301,971 (USD 9,954,605) and nil respectively. As of December 31, 2018, the accumulated interest expense and penalty recorded by the Group was RMB42,802,483 and nil respectively. Unrecognized tax benefits — January 1, 2018 113,299,633 Increases — tax positions in the current period 58,693,484 Decreases — tax positions in prior period (2,373,708 ) Unrecognized tax benefits — December 31, 2018 169,619,409 Unrecognized tax benefits — January 1, 2019 169,619,409 Increases — tax positions in the current period 104,031,858 Decreases — tax positions in prior period (12,009,550 ) Unrecognized tax benefits — December 31, 2019 261,641,717 The Group’s PRC subsidiaries are subject to examination by the PRC tax authorities from 2014 through 2019 on non-transfer pricing matters, and from 2009 through 2019 on transfer pricing matters. |
Mainland and China Contribution
Mainland and China Contribution Plan and Profit Appropriation | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Mainland and China Contribution Plan and Profit Appropriation | 18. MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION Full time employees of the Group in the PRC participate in a government-mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. PRC labor regulations require the Group to accrue for these benefits based on a certain percentage of the employees’ salaries, subject to certain ceilings. The total contribution for such employee benefits were RMB22,859,925, RMB22,289,686 and RMB28,700,397 (USD4,122,554) for the years ended December 31, 2017, 2018 and 2019, respectively. The Group has no ongoing obligation to its employees subsequent to its contributions to the PRC plan. |
Statutory Reserves and Restrict
Statutory Reserves and Restricted Net Assets | 12 Months Ended |
Dec. 31, 2019 | |
Statutory Reserves And Restricted Net Assets [Abstract] | |
Statutory Reserves and Restricted Net assets | 19. STATUTORY RESERVES AND RESTRICTED NET ASSETS In accordance with the PRC Regulations on Enterprises with Foreign Investment, an enterprise established in the PRC with foreign investment is required to make appropriations to certain statutory reserves, namely a general reserve fund, an enterprise expansion fund, a staff welfare fund and a bonus fund, all of which are appropriated from net profit as reported in its PRC statutory accounts. A foreign invested enterprise is required to allocate at least 10% of its annual after-tax profits to a general reserve fund until such fund has reached 50% of its respective registered capital. Appropriations to the enterprise expansion fund and staff welfare and bonus funds are at the discretion of the board of directors for the foreign invested enterprises. For other subsidiaries incorporated in the PRC, the general reserve fund was appropriated based on 10% of net profits as reported in each subsidiary's PRC statutory accounts. General reserve and statutory surplus funds are restricted to set-off against losses, expansion of production and operation and increasing registered capital of the respective company. Staff welfare and bonus fund and statutory public welfare funds are restricted to capital expenditures for the collective welfare of employees. The reserves are not allowed to be transferred to the Company in terms of cash dividends, loans or advances, nor are they allowed for distribution except under liquidation. As of December 31, 2018 and 2019, the PRC statutory reserve funds amounted to RMB57,726,641 and RMB 63,030,266 (USD9,053,731), respectively. In addition, under PRC laws and regulations, the Group's PRC subsidiaries are restricted in their ability to transfer their net assets to the Company in the form of dividend payments, loans or advances. Amounts of net assets restricted include paid up capital and statutory reserve funds of the Group’s PRC totaling RMB394,424,291 and RMB 509,435,466 (USD 73,175,826) as of December 31, 2018 and 2019, respectively. Furthermore, cash transfers from the Group’s PRC subsidiaries to the Group's subsidiaries outside of the PRC are subject to the PRC government control of currency conversion. Shortages in the availability of foreign currency may restrict the ability of the Group's PRC subsidiaries to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligations. |
Related Party Transactions and
Related Party Transactions and Balances | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Balances | 20. RELATED PARTY TRANSACTIONS AND BALANCES Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. The related parties that had transactions or balances with the Group in 2018 and 2019 consisted of: Related Party Nature of the party Relationship with the Group Alex S. Xu Individual Founder and CEO Hui Xu Individual Brother of Alex S. Xu Yan Zhang Individual Executive officer for catering management entities controlled by GTI Wen Qi Individual Vice president, human resources and administration of the Group GTI Investment holding Shareholder of the Group, controlled by Alex S. Xu Da Niang Dumpling Catering Group Co., Ltd, together with its subsidiaries (“Da Niang Group”) Catering management Controlled by GTI Shanghai Aotao Industrial Co., Ltd, together with its subsidiaries and VIE (“Aotao”) **** Catering management Controlled by GTI Shanghai JYHM Restaurant Management Co., Ltd. (“JYHM”) Catering management Controlled by GTI 1250 Bayshore Highway, LLC (“Bayshore”) Hotel management Controlled by Alex S. Xu 519 Information Technology (Shanghai) Inc. (“519”) Wine distributor Controlled by Hui Xu Napa Infinity Winery (Shanghai) Inc. (“Napa”) Wine distributor Controlled by Hui Xu Pacific Hotel Management (Rongcheng) Co., Ltd. (“Rongcheng”) Hotel management Controlled by Hui Xu Yibon Hotel management Equity investee of the Group TB* Franchised hotels Equity investee of the Group Shiquanmeiwei (Beijing) Catering and Management Co., Ltd.(“Shiquanmeiwei”) **** Catering management Controlled by GTI Steigenberger** Franchised hotels Equity investee of the Group Yancheng Zexin Hotel Co., Ltd Hotel management Equity investee of the Group * TB ceased to be related party due to liquidation in August 2019. ** Steigenberger ceased to be related party due to disposal in September 2019. *** As the Group acquired Ze Xin on July 1, 2018, Ze Xin was included as a subsidiary of the Group and ceased to be a related party. **** Aotao became a related party as it was acquired by a company controlled by GTI in January 2019. Shiquanmeiwei is also included in Aotao in 2019. 20. RELATED PARTY TRANSACTIONS AND BALANCES (CONTINUED) (a) Related party balances Due from related parties: As of December 31, 2018 2019 2019 RMB RMB USD Current: Aotao - 20,086,504 2,885,246 GTI - 8,424,629 1,210,122 Napa - 2,506,484 360,034 Yibon - 722,114 103,725 Steigenberger 225,000 - - Shiquanmeiwei 3,600 - - 228,600 31,739,731 4,559,127 Amounts due from GTI mainly comprised of loans maturing in one year with an interest rate of 4.35% per annum. Amount due from Aotao mainly comprised of loans maturing in one year with an interest rate of 4.35% per annum. Amount due from Napa represents receivable for design service fee and the authorization of access to 168 mall from the Group and amount due from Yibon of RMB722,114 represents receivable for franchise revenue. Due to related parties: As of December 31, 2018 2019 2019 RMB RMB USD Yibon - 3,205,890 460,498 JYHM 221,028 312,141 44,836 TB 64,550 - - 285,578 3,518,031 505,334 Amount due to Yibon comprised of receipts on behalf of Yibon which were unsecured, interest free, and repayable upon demand. Amount due to JYHM primarily comprised of payable for its service which were unsecured, interest free, and repayable upon demand. 20. RELATED PARTY TRANSACTIONS AND BALANCES (CONTINUED) (b) Related party transactions During the years ended December 31, 2017, 2018 and 2019, related party transactions consisted of the following: As of December 31, 2017 2018 2019 2019 RMB RMB RMB USD Loan to Aotao - - (167,279,750 ) (24,028,233 ) Repayment from Aotao - - 157,279,750 22,591,823 Interest income from Aotao - - 1,316,854 189,154 Franchise management fee to Aotao - - (24,941 ) (3,583 ) Loan to GTI (including a loan settled with dividend payable in December) - - (192,558,675 ) (27,659,323 ) Repayment from GTI and settlement with dividend payable to GTI in December 9,730,276 1,717,539 184,134,046 26,449,201 Interest income from GTI - - 907,880 130,409 Loan to Da Niang Group - - (274,800,000 ) (39,472,550 ) Repayment from Da Niang Group - - 274,800,000 39,472,550 Interest income from Da Niang Group - - 875,315 125,731 Service purchased from Da Niang Group - - (339,121 ) (48,712 ) Sublease revenue from JYHM - - 385,355 55,353 Advance from JYHM - 221,028 312,141 44,836 Service purchased from JYHM - - (18,418 ) (2,646 ) Revenue from Napa - - 2,358,491 338,776 Purchase from Napa (4,035,262 ) - (3,576,659 ) (513,755 ) Franchised revenue from Yibon - - 681,239 97,854 Advance from Rongcheng 141,380 - - - Franchised revenue from TB 400,639 389,583 - - Advance from TB 294,193 - - - Advance to Shiquanmeiwei - (3,600 ) - - Loan to Steigenberger (225,000 ) - - - Repayment from Bayshore 8,671,250 - - - Repayment from Yan Zhang 128,110,474 - - - Interest income from Yan Zhang 3,515,358 - - - Franchised revenue from Ze Xin 232,766 44,763 - - Loan to Ze Xin (3,500,000 ) (4,300,000 ) - - Repayment from Ze Xin 367,488 - - - Interest income from Ze Xin 75,460 263,366 - - Repayment to 519 (4,100 ) - - - |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 21. COMMITMENTS AND CONTINGENCIES Operating lease commitments As lessee The Group has entered into lease agreements for business office and certain hotels which it operates. Such leases are classified as operating leases. Future minimum lease payments under non-cancellable operating lease agreements at December 31, 2019 were as follows: Year Ended December 31, 2019 2019 RMB USD 2020 95,832,417 13,765,465 2021 98,443,524 14,140,527 2022 84,716,637 12,168,784 2023 77,391,692 11,116,621 2024 66,291,320 9,522,152 Thereafter 346,317,562 49,745,405 Total 768,993,152 110,458,954 As lessor The Group subleases its leased assets under operating lease arrangements for terms ranging from one to twenty years. The terms of the leases generally also require the tenants to pay security deposits and provide for periodic rent adjustments according to the then prevailing market conditions. At 31 December 2019, the Group had total future minimum lease receivables under non-cancellable operating leases with its tenants falling due as follows: Year Ended December 31, 2019 2019 RMB USD 2020 68,958,773 9,905,308 2021 59,328,993 8,522,077 2022 56,454,340 8,109,159 2023 51,396,861 7,382,697 2024 48,665,175 6,990,315 Thereafter 270,004,257 38,783,685 Total 554,808,399 79,693,241 Litigation and contingencies The Company and its operations from time to time are, and in the future may be, parties to or targets of lawsuits, claims, investigations, and proceedings, including but not limited to non-compliance respect to licenses and permits, franchise agreements and lease contracts, which are handled and defended in the ordinary course of business. The Group may be unable to estimate the reasonably possible loss or a range of reasonably possible losses until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, or the progress of settlement negotiations. The Company accrues a liability for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated. When a single amount cannot be reasonably estimated but the cost can be estimated within a range, the Company accrues the minimum amount. The Company expenses legal costs, including those expected to be incurred in connection with a loss contingency, as incurred. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 22. EARNINGS PER SHARE Basic and diluted earnings per share for each of the years presented is calculated as follows: Year Ended December 31, 2017 2018 2019 2019 RMB RMB RMB USD Numerator: Net income used in calculating earnings per share-basic and diluted 273,535,224 371,711,219 442,718,263 63,592,500 Denominator: Weighted average number of Class A ordinary shares outstanding used in calculating basic and diluted earnings per share 48,635,252 62,860,578 67,315,727 67,315,727 Weighted average number of Class B ordinary shares outstanding used in calculating basic and diluted earnings per share 42,716,957 36,288,343 34,762,909 34,762,909 Allocation of undistributed earnings — basic and diluted: To Class A Shares 145,628,165 235,665,522 291,950,431 41,936,056 To Class B Shares 127,907,059 136,045,697 150,767,832 21,656,444 Basic and diluted earnings per share: To Class A Shares 2.99 3.75 4.34 0.62 To Class B Shares 2.99 3.75 4.34 0.62 In January 2020, the Company issued 870,908 Class A ordinary shares as a portion of purchase consideration for the acquisition of Urban Hotel Group, are included in the computation of basic and diluted earnings per shares upon the completion of the acquisition of Urban Hotel Group. The Group did not include share options in the computation of diluted earnings per share for the years ended December 31, 2017, 2018 and 2019 because those share options were anti-dilutive for earnings per share. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 23. SUBSEQUENT EVENTS Beginning in January 2020, the emergence and wide spread of the novel Coronavirus (“COVID-19”) has resulted in quarantines, travel restrictions, and the temporary closure of stores and facilities in China and elsewhere. Substantially all of the Group’s revenue and workforce are concentrated in China. Consequently, the COVID-19 outbreak may adversely affect the Group’s business operations, financial condition and operating results for 2020, including but not limited to negative impact to the Group’s total revenues, slower collection of accounts receivables and additional allowance for doubtful accounts. Because of the uncertainties surrounding the COVID-19 outbreak, the extent of the business disruption and the related financial impact cannot be reasonably estimated at this time. |
Parent Company Only Condensed F
Parent Company Only Condensed Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Company Only Condensed Financial Information | 24. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION Condensed balance sheets As of December 31, 2018 2019 2019 RMB RMB USD ASSETS Current assets Cash and cash equivalents 721,573,493 22,137,640 3,179,873 Amounts due from subsidiaries - 6,271,868 900,898 Amounts due from a related party - 8,424,629 1,210,122 Other current assets 4,117,311 2,416,728 347,141 Total current assets 725,690,804 39,250,865 5,638,034 Non-current assets: Investments in subsidiaries 925,492,357 1,577,484,393 226,597,450 Equity securities with readily determinable fair values - 262,833,287 37,747,645 Other assets 6,875,561 - - TOTAL ASSETS 1,658,058,722 1,879,568,545 269,983,129 LIABILITIES AND EQUITY Current liabilities: Other payable - 6,000,000 861,846 Amounts due to subsidiaries 7,090,700 4,924,176 707,314 Other long-term liabilities - 7,475,856 1,073,839 Total liabilities 7,090,700 18,400,032 2,642,999 Shareholders’ Equity: Class A ordinary shares (USD0.50 par value per share; 400,000,000 and 400,000,000 shares authorized as of December 31, 2018 and 2019; 66,789,300 and 67,416,046 shares issued and outstanding as of December 31, 2018 and 2019, respectively) 217,421,867 219,526,699 31,533,037 Class B ordinary shares (USD0.50 par value per share; 100,000,000 and 100,000,000 shares authorized as of December 31, 2018 and 2019; 34,762,909 and 34,762,909 shares issued and outstanding as of December 31, 2018 and 2019, respectively) 115,534,210 115,534,210 16,595,451 Additional paid-in capital 1,003,026,803 1,152,108,217 165,489,991 Retained earnings 252,617,450 308,698,533 44,341,770 Accumulated other comprehensive (loss) income 62,367,692 65,300,854 9,379,881 Total Shareholders’ Equity 1,650,968,022 1,861,168,513 267,340,130 TOTAL LIABILITIES AND EQUITY 1,658,058,722 1,879,568,545 269,983,129 24. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (CONTINUED) Condensed statements of operations As of December 31, 2017 2018 2019 2019 RMB RMB RMB USD General and administrative expenses – (1,307,753 ) (33,538,433 ) (4,817,495 ) interest income 13,785,679 5,970,063 857,546 Interest expense – – (646,315 ) (92,837 ) Gains on investments in equity securities – – 6,473,358 929,840 Share of profit in subsidiaries, net (Note a) 273,535,224 359,233,293 464,459,590 66,715,446 Income before tax and net income 273,535,224 371,711,219 442,718,263 63,592,500 Other comprehensive income, net of tax - Foreign currency translation adjustments 1,317,020 66,453,841 2,933,162 421,322 Comprehensive income 274,852,244 438,165,060 445,651,425 64,013,822 24. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (CONTINUED) Condensed statements of cash flows As of December 31, 2017 2018 2019 2019 RMB RMB RMB USD Operating activities: Net income 273,535,224 371,711,219 442,718,263 63,592,500 Adjustments to reconcile net income to net cash used in operating activities: Share-based compensation - 1,307,753 26,490,395 3,805,107 Gains from investments in equity securities - - (6,473,358 ) (929,840 ) Share of profit in subsidiaries, net (273,535,224 ) (359,233,293 ) (464,459,590 ) (66,715,446 ) Changes in operating assets and liabilities: Other current assets - (4,117,311 ) 1,700,582 244,273 Amounts due from subsidiaries - - (6,271,868 ) (900,897 ) Amounts due to subsidiaries - 7,090,700 (2,166,524 ) (311,202 ) Other long-term liabilities - - 7,475,856 1,073,840 Net cash provided by (used in) operating activities - 16,759,068 (986,244 ) (141,665 ) Investing activities: Advances for acquisitions - (6,875,561 ) - - Payment for acquisitions - - (52,903,471 ) (7,599,108 ) Investment to subsidiaries - - (2,938,656 ) (422,112 ) Purchases of investments in equity securities - - (247,415,003 ) (35,538,941 ) Loan to a related party - - (192,558,675 ) (27,659,323 ) Repayment from a related party - - 26,672,779 3,831,305 Net cash used in investing activities - (6,875,561 ) (469,143,026 ) (67,388,179 ) Financing activities: Proceeds from issuance of Class A ordinary shares (note 1) - 837,505,007 - - Payment for initial public offering costs - (30,827,578 ) - - Distribution to the shareholders (note 1) (579,042,699 ) (200,532,021 ) (226,951,236 ) (32,599,505 ) Dividends from subsidiaries 579,042,699 39,691,103 - - Net cash generated from financing activities - 645,836,511 (226,951,236 ) (32,599,505 ) Effect of exchange rate changes on cash and cash equivalents and restricted cash - 65,853,475 (2,355,347 ) (338,325 ) Net decrease in cash and cash equivalents and restricted cash - 721,573,493 (699,435,853 ) (100,467,674 ) Cash and cash equivalents and restricted cash at beginning of the year - - 721,573,493 103,647,547 Cash and cash equivalents and restricted cash at end of the year - 721,573,493 22,137,640 3,179,873 (a) Basis of presentation In the Company-only financial statements, the Company’s investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries since inception. The Company records its investment in its subsidiary under the equity method of accounting as prescribed in ASC 323-10 Investment-Equity Method and Joint Ventures Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted and as such, these Company-only financial statements should be read in conjunction with the Group’s consolidated financial statements. |
Summary of Principal Accounti_2
Summary of Principal Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation The consolidated financial statements of the Group have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”). |
Basis of Consolidation | Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and the consolidated VIEs for which the Company is the ultimate primary beneficiary. All intercompany transactions and balances are eliminated upon consolidation. The Group evaluates its business activities and arrangements with the entities that operate the franchised-and-managed hotels to identify potential variable interest entities. Generally, these entities qualify for the business scope exception; therefore, consolidation is not appropriate under the variable interest entity consolidation guidance. |
Variable Interest Entities | Variable Interest Entities The Group evaluates the need to consolidate certain variable interest entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. The Company is deemed as the primary beneficiary of and consolidates variable interest entities when the Company has the power to direct the activities that most significantly impact the economic success of the entities and effectively assumes the obligation to absorb losses and has the rights to receive benefits that are potentially significant to the entities. |
Use of Estimates | Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences could be material to the consolidated financial statements. The Group bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Group’s consolidated financial statements include allowance for doubtful accounts receivable, impairment of loans receivable, fair value measurement and impairment of investments, the useful lives and impairment of property and equipment and intangible assets, valuation allowance for deferred tax assets, impairment of goodwill, average life of memberships, estimates involved in the accounting for its membership program, contingent liabilities, purchase price allocation and share-based compensation arrangements (Note 16). |
Cash and Cash Equivalents | Cash and cash equivalents Cash and cash equivalents include cash on hand and time deposits placed with commercial banks or other financial institutions. The Group considers highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase of three months or less to be cash equivalents. All cash and cash equivalents are unrestricted as to withdrawal and use. |
Restricted Cash | Restricted cash Restricted cash comprise of deposits pledged with banks as security in relation to the guarantee for lease agreement, the guarantees for short-term debt (Note 11) and the guarantees for prepaid cards. |
Investments | Investments Short-term investments Short-term investments consist of investments in wealth management products, where certain deposits with variable interest rates or where principal amounts are not guaranteed, are placed with certain financial institutions. The Group accounts for short-term investments in debt in accordance with ASC topic 320, Investments — Debt investments not classified as trading or as held-to-maturity are classified as available-for-sale securities. Available-for-sale investments are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income. Realized gains or losses are included in earnings during the period in which the gain or loss is realized. An impairment loss on the available-for-sale securities is recognized in the consolidated statements of income when the decline in value is determined to be other-than-temporary. The Group accounts for its investments in equity securities in accordance with ASC Subtopic 321 (“ASC 321”), Investments – Equity Securities. These securities are generally held for resale in anticipation of short-term market movements and therefore the Group classifies them as investment in equity securities in current assets which are carried at fair value at each balance sheet date. Gains and losses, both realized and unrealized, are included in gains (losses) from these securities in the consolidated statements of comprehensive income. The realized losses of RMB 22,565,408 was recognized for the year ended December 31, 2017 and the realized gains of RMB 14,381,423 and RMB 70,390,093(USD 10,110,904) were recognized for the years ended December 31, 2018 and 2019, respectively. For the years ended December 31, 2017, 2018 and 2019, there were unrealized losses of RMB 36,599,813, RMB72,156,375 and RMB29,832,919 (USD 4,285,231) respectively. Long-term investments The Group’s long-term investments consist of equity-method investments, equity investments with readily determinable fair values and equity investments without readily determinable fair values. Investments in entities in which the Group can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC Topic 323, Investments-Equity Method and Joint Ventures Investments in equity securities that have readily determinable fair values (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) are measured at fair value, with unrealized gains and losses from fair value changes recognized in net income in the consolidated statements of comprehensive income. As of December 31, 2018 and 2019, there were unrealized gains of nil and RMB 6,473,358 (USD929,840) respectively. For investments in equity securities without readily determinable fair values, the Group elected to use the measurement alternative to measure such investments at cost minus impairment adjusted by observable price changes in orderly transactions for the identical or a similar investment of the same issuer. These investments are measured at fair value on a nonrecurring basis when there are events or changes in circumstances that may have a significant adverse effect. An impairment loss is recognized in the consolidated statements of comprehensive income equal to the amount by which the carrying value exceeds the fair value of the investment. Prior to the adoption of ASU 2016-01 on January 1, 2019, these investments were accounted for using the cost method of accounting, measured at cost less other-than-temporary impairment. As of December 31, 2019, one of the investments was remeasured based on observable price changes in orderly transactions for an identical or similar investment of the same issuer. Accordingly, the Group recognized unrealized gains of RMB 8,223,212 (USD1,181,190). No impairment loss was recognized in any of the periods presented. |
Accounts Receivable, Net of Allowance for Doubtful Accounts | Accounts receivable, net of allowance for doubtful accounts Trade receivables mainly consist of franchise fees receivable, rental amounts due from individual and corporate customers and travel agents, and sublease rental receivables due from third-party merchandisers, which are recognized and carried at the original invoice amounts less an allowance for doubtful accounts. The Group establishes an allowance for doubtful accounts primarily based on the age of the receivables and factors surrounding the credit risk of specific franchisees, customers, and merchandisers. Accounts receivable balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. |
Inventories | Inventories Inventories mainly consist of small appliances, bedding and daily consumables. Small appliances and bedding are stated at cost, less accumulated amortization, and are amortized over their estimated useful lives, generally one year, from the time they are put into use. Daily consumables are expensed when used. |
Loans Receivable | Loans receivable Loans receivable are carried at the original loan principal and accrued interest based on the contract rate, less an allowance for uncollectible accounts, as appropriate. The allowance for uncollectible accounts is estimated based on an assessment of the payment history, the existence of collateral, current information and events, and the facts and circumstances around the credit risk of the debtors. |
Property and Equipment, Net | Property and equipment, net Property and equipment, net are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment is provided using the straight-line method over the following expected useful lives: Leasehold improvements Over the shorter of the lease term or estimated useful lives Buildings 20 years Furniture, fixtures and equipment 3-5 years Motor vehicles 5 years Construction in progress represents leasehold improvements under construction or being installed and is stated at cost. Cost comprises original cost of property and equipment, installation, construction and other direct costs. Construction in progress is transferred to leasehold improvements and depreciation commences when the asset is ready for its intended use. Expenditures for repairs and maintenance are expensed as incurred, whereas the costs of betterments that extend the useful life of property and equipment are capitalized as additions to the related assets |
Intangible Assets | Intangible assets Intangible assets are carried at cost less accumulated amortization and any recorded impairment. Intangible assets acquired through business combinations are recognized as assets separate from goodwill if they satisfy either the “contractual-legal” or “separability” criterion, and are measured at fair value upon acquisition. Favorable leases from such business combination transactions are amortized over the remaining operating lease term. Reacquired rights represent the franchise right the Group previously granted to the acquiree through franchise agreements and are amortized over the next renewal date in the applicable agreement. Amortization is computed using the straight-line method over the following estimated useful lives: Trademark 10 years or indefinite life Technology 10 years Network rights 10 years Purchased software 5 years Favorable leases the remaining lease term Reacquired rights the remaining franchise term The trademarks acquired in the acquisition of Argyle Group and Urban Hotel Group (Note 3) can be renewed without substantial obstacles. As a result, the useful life is determined to be indefinite. The Group evaluates the trademark at the end of each reporting period to determine whether events and circumstances continue to support an indefinite useful life. Impairment is tested annually or more frequently if events or changes in circumstances indicate that it might be impaired. |
Business Combinations | Business combinations The Group accounts for all business combinations under the purchase method in accordance with ASC 805, Business Combinations The determination and allocation of fair values to the identifiable net assets acquired, liabilities assumed and noncontrolling interest is based on various assumptions and valuation methodologies requiring considerable judgment. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Group determines discount rates to be used based on the risk inherent in the acquiree’s current business model and industry comparisons. Although the Group believes that the assumptions applied in the determination are reasonable based on information available at the date of acquisition, actual results may differ from forecasted amounts and the differences could be material. |
Goodwill | Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the identifiable assets acquired less liabilities assumed of an acquired business. The Group’s goodwill at December 31, 2018 and 2019 was related to its acquisition of subsidiaries and business. The Group follows ASC subtopic 350-20, Intangibles-Goodwill and Other: Goodwill. Goodwill and business acquired in a business combination are not amortized, but instead tested for impairment at least annually, or more frequently if certain circumstances indicate a possible impairment may exist. In accordance to ASC 350-20, the Group has assigned and assessed goodwill for impairment at the reporting unit level. A reporting unit is an operating segment or one level below the operating segment. The Group has determined that it has one reporting unit, which is also its only reportable segment. The Group has the option to first assess qualitative factors to determine whether it is necessary to perform the two-step test in accordance with ASC 350-20, Testing Goodwill for Impairment. If the Group believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the two-step quantitative impairment test described above is required. Otherwise, no further testing is required. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. In performing the two-step quantitative impairment test, the first step compares the carrying amount of the reporting unit to the fair value of the reporting unit based on either quoted market prices of the ordinary shares or estimated fair value using a combination of the income approach and the market approach. If the fair value of the reporting unit exceeds the carrying value of the reporting unit, goodwill is not impaired and the Group is not required to perform further testing. If the carrying value of the reporting unit exceeds the fair value of the reporting unit, then the Group must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. The fair value of the reporting unit is allocated to its assets and liabilities in a manner similar to a purchase price allocation in order to determine the implied fair value of the reporting unit goodwill. If the carrying amount of the goodwill is greater than its implied fair value, the excess is recognized as an impairment loss. In 2017, 2018 and 2019, the Group performed a qualitative assessment for the reporting unit. Based on the requirements of ASC350-20, the Group evaluated all relevant factors, weighed all factors in their entirety and concluded that it was not more-likely-than-not the fair value was less than the carrying amount of the reporting unit, and further impairment testing on goodwill was not necessary. |
Impairment of Long-lived Assets | Impairment of long-lived assets The Group evaluates impairment of its long-lived assets to be held and used, including property and equipment, definite-lived intangible assets and other non-current assets, when events or changes in circumstances indicate, in management’s judgment, that the carrying value of such assets may not be recoverable in accordance with ASC subtopic 360-10, Property, Plant and Equipment-Overall |
Revenue Recognition | Revenue recognition Leased and owned hotel revenues Revenues from leased-and-operated hotels are primarily derived from hotel operations, including the rental of rooms and food and beverage sales. Each of these products and services represents an individual performance obligation and, in exchange for these services, the Group receives fixed amounts based on fixed rates or fixed standalone selling price. Revenue is recognized when rooms are occupied, and food and beverages are sold as the respective performance obligations are satisfied. Sublease rental revenues are derived from subleasing partial space of the leased-and-operated hotels to third-parties, which are recognized on a straight-line basis over the contractual lease term. The sublease rental revenue is recorded in leased-and-operated hotels revenue in the consolidated statements of comprehensive income amounted to RMB42,218,264, Franchise and managed hotel revenues The franchise and managed agreement contains the following promised services: • Intellectual Property (“IP”) license grant the right to access the Group’s hotel system IP, including brand names. • Pre-opening services include providing services (e.g., property design, leasehold improvement, construction project management, systems installation, personnel recruiting and training, etc.) to the franchisees to assist in preparing for the hotel opening. • System maintenance services include providing standardization hotel property management system (PMS), central reservation system (CRS) and other internet related services. • Hotel management services include providing day-to-day management services of the hotels for the franchisees. The promises to provide pre-opening services and system maintenance services are not distinct performance obligation because they are attendant to the license of IP. Therefore, the promises to provide pre-opening services and system maintenance services are combined with the license of IP to form a single performance obligation. Hotel management services forms a single distinct performance obligation. Revenues from franchised-and-managed hotels are derived from franchise agreements where the franchisees are required to pay (i) an initial one-time non-refundable franchise fee, and (ii) continuing franchise fees, which mainly consist of on-going management and service fees based on a certain percentage of the room revenues of the franchised-and-managed hotels and central reservation system (“CRS”) usage fee based on a fixed rate per transaction. For franchised-and-managed hotels, we have a performance obligation to provide franchisees a license to our hotel system intellectual property for use of certain of our brand names. The one-time franchise fees are fixed consideration payable upon submission of a franchise application or renewal and are recognized on a straight-line basis over the initial or renewal term of the franchise agreements. The Group does not consider this advance consideration to include a significant financing component, since it is used to protect the Group from the franchisees failing to adequately complete some or all of its obligations under the contract. The continuing fees represent variable consideration, as the transaction price is based on a percentage of underlying service revenue is recognized by the franchisees’ operations. The Group recognizes continuing franchise fees on a monthly basis over the term of the agreement as those amounts become payable. In addition, the Group designates hotel managers to certain hotels and accounts for hotel manager fees related to the hotels under the franchise program as revenues. Pursuant to the franchise-and-management agreements, the Group charges the franchisees fixed hotel manager fees to compensate the Group for the franchised-and-managed hotel managers’ salaries, social welfare benefits and certain other out-of-pocket expenses as incurred. The hotel manager fee is recognized as revenue on a monthly basis. During the years ended 2017, 2018 and 2019, the hotel manager fees that were recognized as part of franchised-and-managed hotels revenue were RMB83,482,652, RMB99,185,965 and RMB115,638,242 (USD 16,610,394), respectively. |
Membership Program | Membership Program The Group invites its customers to participate in a membership program with four tiers of membership – E-membership, R-membership, gold membership and platinum membership. A one-time membership fee is charged for new members except for the E-membership. The membership automatically expires after two years in the event of non-usage and is automatically renewed if used at least once within a two-year period. Members enjoy discounts on room rates, priority in hotel reservation, and accumulate membership points for their paid stays, which can be redeemed for membership upgrades, room night awards and other gifts within two years after the points are earned. Membership Program (continued) Membership fees from the Group’s membership program are earned and recognized on a straight-line basis over the expected membership duration of the different membership levels. Such duration is estimated based on the Group’s and management’s experience and is adjusted on a periodic basis to reflect changes in membership retention. The membership duration is estimated to be three to five years depending on membership level. Membership points earned by members represent a material right to free or discounted goods or services in the future. The membership program has one performance obligation that consists of marketing and managing the program and arranging for award redemptions by members. . The amount of revenue the Group recognize upon point redemption is impacted by the estimate of the “breakage” for points that members will never redeem . The Group estimates breakage based on the Group’s historical experience and expectations of future member behavior and will true up the estimated breakage at end of each period. |
PRC Value-Added Taxes and Related Tax Surcharges | PRC Value-Added Taxes and related tax surcharges Starting from May 2016, the accommodation services of the Group are subject to 6% of Value-Added Taxes. The Group is subject to education surtax and urban maintenance and construction tax, on the services provided in the PRC. |
Advertising and Promotional Expenses | Advertising and promotional expenses Advertising related expenses, including promotion expenses and production costs of marketing materials, are charged to the consolidated statements of comprehensive income as incurred, and amounted to RMB11,369,822, RMB15,654,573 and RMB 23,934,351 (USD3,437,954) for the years ended December 31, 2017, 2018 and 2019, respectively. |
Government Subsidies | Government subsidies Government subsidies are received from provincial and local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. Such subsidies allow the Group full discretion to utilize the funds and are used by the Group for general corporate purposes. During the years ended December 31, 2017, 2018 and 2019, the Group received financial subsidies of RMB10,220,995, RMB15,150,107 and RMB9,880,735(USD1,419,279), respectively, from various local PRC government authorities. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. Such amounts are recorded as other operating income when received as the amount of the subsidies and the timing of payment are determined solely at the discretion of the relevant government authorities and there is no assurance that the Group will continue to receive any or similar subsidies in the future. |
Interest Income and Other, Net | Interest income and other, net Interest income and other, net consists primarily of interest income, and to a much lesser extent foreign exchange gains or losses. Interest income is mainly generated from bank deposits and other interest earning financial assets and is recognized on an accrual basis using the effective interest method. |
Leases | Leases Leases are classified as capital or operating leases. A lease that transfers to the lessee substantially all the benefits and risks incidental to ownership is classified as a capital lease. The Group did not have any leases that qualified as capital leases for the years ended December 31, 2018 and 2019. The Group leases hotel space under certain operating lease agreements. Certain of the lease agreements contain rent holidays and rent escalation provisions. Rent holidays and rent escalation provisions are considered in determining straight-line rent expense to be recorded over the lease term. The lease term begins on the date of initial possession of the lease property for purposes of recognizing lease expense on a straight-line basis over the term of the lease. The excess of rent expense and rent paid, as the case may be for respective leases, is recorded as deferred rent. Rental expenses amounted to RMB60,839,102, RMB78,272,335 and RMB81,379,034 (USD11,689,367) for the years ended December 31, 2017, 2018 and 2019, respectively. |
Income Taxes | Income taxes Income taxes are provided for using the liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or change in tax status is recognized in income in the period the change in tax status occurs or the change in tax rates or tax law is enacted. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some or all of the deferred tax assets will not be realized. In accordance with ASC subtopic 740-10, Income Taxes, Overall The Group estimates its liability for unrecognized tax benefits which are periodically assessed and may be affected by changing interpretations of laws, rulings by tax authorities, changes and/or developments with respect to tax audits, and expiration of the statute of limitations. The ultimate outcome for a particular tax position may not be determined with certainty prior to the conclusion of a tax audit or appeal or litigation process. The actual benefits ultimately realized may differ from the Group’s estimates. As each tax audit is concluded, adjustments, if any, are recorded in the Group’s financial statements. Additionally, in future periods, changes in facts, circumstances and new information may require the Group to adjust the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recognized in the period in which the changes occur. The Group has elected to include interest and penalties related to an uncertain tax position in “income tax expense (benefit)” in the consolidated statements of comprehensive income. For the annual period ended December 31, 2018, the Company adopted ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, and classified all deferred income tax assets as noncurrent on the consolidated balance sheets on a prospectively basis. |
Foreign Currency Translation and Transactions | Foreign currency translation and transactions The reporting currency of the Group is the Renminbi (“RMB”). The functional currency of the Company, GreenTree Samoa, GreenTree Suites, PHI and the entities incorporated in Hong Kong is the United States dollar (“USD”). The financial records of PRC subsidiaries of the Company are maintained in the local currency, the Renminbi (“RMB”), which is their functional currency. Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Nonmonetary assets and liabilities are re-measured into the applicable functional currencies at historical exchange rates. Transactions in currencies other than the applicable functional currencies during the year are converted into the functional currencies at the applicable rates of exchange prevailing on the transaction dates. Transaction gains and losses are recognized in “interest income and other, net” in the consolidated statements of comprehensive income. Assets and liabilities are translated into RMB at the exchange rate at the balance sheet date. Equity accounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income (loss) in the consolidated statements of comprehensive income. |
Convenience Translation | Convenience translation Translations of amounts from RMB into U.S. dollars and HKD into U.S. dollars are solely for the convenience of the reader and were calculated at the noon buying rate of USD1 to RMB6.9618 and USD1 to HKD7.7894 on December 31, 2019, as set forth in H.10 statistical release of the Federal Reserve Board. The translation is not intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into U.S. dollars at that rate on December 31, 2019, or at any other rate. |
Fair Value | 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Fair value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Group follows ASC subtopic 820-10, Fair Value Measurements and Disclosures, which establishes a three-tier fair value hierarchy, and prioritizes the inputs used in measuring fair value as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Investments in equity securities with readily determinable fair values are measured using quoted market prices, and are recorded at fair values at each balance sheet date. The Group measures equity investments without readily determinable fair value and elected to use the measurement alternative at fair value on a nonrecurring basis, in the cases of an impairment charge is recognized, fair value of an investment is remeasured in an acquisition/a disposal, and an orderly transaction for identical or similar investments of the same issuer was identified. The non-recurring fair value measurements to the carrying amount of an investment usually requires management to estimate a price adjustment for the different rights and obligations between a similar instrument of the same issuer with an observable price change in an orderly transaction and the investment held by the Company. The valuation methodologies involved require management to use the observable transaction price at the transaction date and other unobservable inputs (level 3) such as volatility of comparable companies and probability of exit events as it relates to liquidation and redemption preferences. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Fair value (continued) The payable for contingent consideration and the returnable consideration from Urban Hotel Group are classified within Level 3, which are based on the achievement of certain financial targets in accordance with the acquisition agreements for the various periods. The carrying values of other financial instruments, which consist of cash and cash equivalents, accounts receivable, loans receivable, amounts due from related parties, accounts payable and amounts due to related parties are recorded at cost which approximates their fair value due to the short-term nature of these instruments. The Group does not use derivative instruments to manage risks. The following table summarizes the Company’s financial assets and liabilities measured and recorded at fair value as of December 31, 2018 and 2019: Fair Value Measurements at Reporting Date Using Description As of December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investments in equity securities with readily determinable fair value 307,693,782 307,693,782 Short-term investments 685,512,063 685,512,063 993,205,845 307,693,782 685,512,063 Fair Value Measurements at Reporting Date Using Description As of December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Returnable consideration from Urban Hotel Group (Note 3) 3,333,421 3,333,421 Investments in equity securities with readily determinable fair value 207,007,926 207,007,926 Short-term investments 437,279,026 437,279,026 Long-term investments – equity securities with readily determinable fair values 262,833,287 262,833,287 Payables for contingent consideration from Urban Hotel Group (Note 3) 4,027,207 4,027,207 914,480,867 469,841,213 437,279,026 7,360,628 |
Comprehensive Income | Comprehensive income Comprehensive income is defined as the increase in equity of the Group during a year from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Accumulated other comprehensive gain of the Group includes the foreign currency translation adjustments. |
Segment Reporting | Segment reporting The Group operates and manages its business as a single segment. The Group’s chief operating decision maker has been identified as the CEO of the Group. The results of operations of the Group are regularly reviewed by the Chief Executive Officer on a consolidated basis. The Group primarily generates its revenues from customers in the PRC. Accordingly, no geographical segments are presented. Substantially all of the Group’s long-lived assets are located in the PRC. |
Comparative Information | Comparative information Certain of the prior year comparative figures have been reclassified to conform to the current year’s presentation. |
Employee Benefits | Employee benefits The full-time employees of the Group’s PRC subsidiaries participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the PRC subsidiary of the Group to make contributions to the government for these benefits beyond the contribution made. The total amounts for such employee benefits, which were expensed as incurred, RMB22,859,925, RMB22,289,686 and RMB28,700,397 (USD4,122,554) for the years ended December 31, 2017, 2018 and 2019, respectively. |
Share-based Compensation | Share-based compensation Share based awards granted to employees are accounted for under ASC 718, “Compensation—Stock Compensation”, which requires that such equity awards granted to employees be measured based on the grant date fair value and recognized as compensation expense a) immediately at grant date if no vesting conditions are required; or b) using accelerated method, net of estimated forfeitures, over the requisite service period, which is the vesting period. |
Earnings Per Share | Earnings per share Class A and Class B ordinary shares have the same rights with regard to dividends and distributions upon liquidation of the Group. Net income is allocated on a pro rata basis to the Class A and Class B ordinary shares to the extent that each class shares in income for the period. Basic EPS for each class of ordinary shares is computed by dividing net income attributable to that class by the weighted average number of ordinary shares outstanding of that class for the period. Diluted earnings per share is calculated by dividing net income attributable to the Class A and Class B ordinary shares as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary share equivalents are excluded from the computation of diluted per share if their effects would be anti-dilutive. Contingently issuable shares relating to shares to be issued as a part of purchase consideration associated with business combinations, are included in the computation of basic earnings per share only when there is no circumstance under which those shares would not be issued. Contingently issuable shares are included in the denominator of the diluted EPS calculation as of the beginning of the period or as of the inception date of the contingent share arrangement, if later, only when dilutive and when all the necessary conditions have been satisfied as of the reporting period end. |
Concentration of Credit Risk | Concentration of credit risk Financial instruments that potentially expose the Group to concentration of credit risk consist primarily of cash and cash equivalents, restricted cash, accounts receivable, amounts due from related and loans receivable. As of December 31, 2018, the Group had RMB538,780,644, RMB 721,573,480 and RMB5,621,368 held in cash and bank deposits by entity located in the PRC, Cayman Island and Hong Kong, respectively. As of December 31, 2019, the Group had RMB 267,063,036 (USD38,361,205), RMB72,645,289 (USD10,434,843), RMB410,523 (USD58,968) and RMB 165,850 (USD23,823) held in cash and bank deposits by entity located in the PRC, Cayman Island and Hong Kong, respectively. Management believes that these financial institutions are of high credit quality and continually monitors the credit worthiness of these financial institutions. The Group conducts credit evaluations on its customers and generally does not require collateral or other security from such customers. The Group periodically evaluates the creditworthiness of the existing customers in determining an allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific customers. The Group made loans to existing franchisees, third-party individuals and corporates under loan agreements and is exposed to credit risk in case of defaults by the debtors. The maximum amount of loss due to credit risk is limited to the total outstanding principal plus accrued interest on the balance sheet date. As of December 31, 2018 and 2019, there were RMB106,549,431 and RMB218,875,943 (USD31,439,562) of loans receivable outstanding. The Group evaluates and monitors the credit worthiness of the debtors and records an allowance for uncollectible accounts based on an assessment of the payment history, the existence of collateral, current information and events, and the facts and circumstances around the credit risk of the debtor. During the years ended December 31, 2017, 2018 and 2019, the Group recognized an allowance of doubtful debts of nil, nil and RMB15,000,000 (USD2,154,615), respectively. |
Currency Convertibility Risk | Currency Convertibility Risk Substantially all of the Group’s operating activities are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized by the PRC government to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts. |
Foreign Currency Exchange Rate Risk | Foreign Currency Exchange Rate Risk The functional currency of the Company is USD, and the reporting currency is RMB. Since July 21, 2005, RMB has been permitted by the PRC government to fluctuate within a managed band against a basket of certain foreign currencies. The appreciation of the USD against RMB in 2018 was approximately 5.7% and the appreciation is 1.3% in 2019, respectively. Any significant revaluation of RMB may materially and adversely affect the cash flows, operating results and financial position of the Group. As a result, an appreciation of RMB against USD would result in foreign currency translation loss when translating the net assets of the Group from USD into RMB. For the years ended December 31, 2017, 2018 and 2019, the net foreign currency translation gain resulting from the translation from USD to RMB reporting currency recorded in other comprehensive income was RMB1,317,020, RMB66,453,841 and RMB2,933,162 (USD421,322), respectively. |
Adopted Accounting Standards | Adopted Accounting Standards As a company with less than USD1.07 billion in revenue for the last fiscal year, the company qualifies as an “emerging growth company” pursuant to the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). An emerging growth company may take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to public companies. These provisions include a provision that an emerging growth company does not need to comply with any new or revised financial accounting standards until such date that a private company is otherwise required to comply with such new or revised accounting standards. The Company has adopted the extended transition period. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Adopted Accounting Standards (continued) The Group adopted the ASU 2014-09 and all related ASUs (collectively, the “new revenue standards”) on January 1, 2019 utilizing the full retrospective basis in the consolidated financial statements, which required the Group to adjust each prior reporting period presented. The adoption of new revenue standards impacted the timing of revenue recognition related to initial franchise fee from upon the opening of hotels to over the term of the franchise contract. In addition, the adoption of new revenue standards also impacted the accounting of the membership program. Under previous guidance, the Group adopted the incremental cost model to account for membership program. The estimated incremental costs are accrued and recorded as accruals for membership program as members accumulate points and are recognized as selling and marketing expense in the accompanying consolidated statements of comprehensive income. Upon adoption of new revenue standards, membership program is considered a separate performance obligation and the consideration allocated to the membership program will be recognized as revenue upon point redemption, net of any cost paid to the franchisees and other third parties. The impact of the changes made to the Group’s consolidated financial statements as a result of the adoption of new revenue standards was as follows: For the Year ended December 31, 2017 For the Year ended December 31, 2018 As Reported Effect of the Adoption of New Revenue Standards As Adjusted As Reported Effect of the Adoption of New Revenue Standards As Adjusted Revenues: Leased-and-operated hotels 193,542,455 (500,000 ) 193,042,455 213,172,025 (500,095 ) 212,671,930 Franchised-and-managed hotels 584,589,358 (34,456,414 ) 550,132,944 731,833,909 (38,891,170 ) 692,942,739 Total revenues 778,131,813 (34,956,414 ) 743,175,399 945,005,934 (39,391,265 ) 905,614,669 Operating costs and expenses: Hotel operating costs (233,646,052 ) 6,779,023 (226,867,029 ) (280,954,345 ) 6,535,082 (274,419,263 ) Selling and marketing expenses (45,032,441 ) 12,229,540 (32,802,901 ) (50,393,151 ) 2,995,384 (47,397,767 ) Total operating costs and expenses (405,965,433 ) 19,008,563 (386,956,870 ) (432,554,874 ) 9,530,466 (423,024,408 ) Income from operations 387,450,208 (15,947,851 ) 371,502,357 535,021,866 (29,860,799 ) 505,161,067 Income before income taxes 472,602,371 (15,947,851 ) 456,654,520 562,100,340 (29,860,799 ) 532,239,541 Income tax expense (186,651,155 ) 4,082,893 (182,568,262 ) (160,185,845 ) 7,467,177 (152,718,668 ) Net income 285,051,632 (11,864,958 ) 273,186,674 393,613,911 (22,393,622 ) 371,220,289 Net income attributable to ordinary shareholders 285,400,182 (11,864,958 ) 273,535,224 394,104,841 (22,393,622 ) 371,711,219 Earnings per share: Basic 3.12 (0.13 ) 2.99 3.97 (0.22 ) 3.75 Diluted 3.12 (0.13 ) 2.99 3.97 (0.22 ) 3.75 As of December 31, 2018 As Reported Effect of the Adoption of New Revenue Standards As Adjusted Deferred tax assets 67,909,969 65,390,997 133,300,966 Total assets 3,014,390,010 65,390,997 3,079,781,007 Deferred revenue – current 153,389,895 57,195,709 210,585,604 Accrued expenses and other current liabilities 264,058,985 (22,651,006 ) 241,407,979 Deferred revenue – noncurrent 145,545,929 234,627,656 380,173,585 Total liabilities 1,151,261,579 269,172,359 1,420,433,938 Retained earnings 456,398,812 (203,781,362 ) 252,617,450 Total equity 1,863,128,431 (203,781,362 ) 1,659,347,069 Total liabilities and equity 3,014,390,010 65,390,997 3,079,781,007 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Recently issued accounting pronouncements (continued) In January 2016, the FASB issued ASU No. 2016-01, which improves the recognition and measurement of financial instruments. The new guidance requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income and separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2018, including interim periods beginning after December 15, 2019. The Group adopted the ASU effective January 1, 2019. No cumulative impact was recognized as of January 1, 2019. In November 2016, the FASB issued ASU 2016-18, which amends ASC 230 to add or clarify guidance on the classification and presentation of restricted cash in the statement of cash flows. Under ASU 2016-18, restricted cash and restricted cash equivalents are included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statements of cash flows. The amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. As a result of this update, restricted cash are included within cash and cash equivalents on the statements of consolidated cash flows. The Group adopted the ASU 2016-18 effective January 1, 2019 retrospectively and presented restricted cash within the ending cash, cash equivalents, and restricted cash balance on the Group’s consolidated statements of cash flows for all of the years presented. The balance of restricted cash of RMB3,000,000, RMB3,300,000 and RMB22,312,522 are included within the beginning balance of cash, cash equivalents, and restricted cash on the statements of consolidated cash flows for the years ended December 31, 2017, 2018 and 2019, respectively. In January 2017, the FASB issued ASU 2017-01, Business Combinations Accounting Standards Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases which modifies lease accounting for lessees to increase transparency and comparability by recording lease assets and liabilities for operating leases and disclosing key information about leasing arrangements In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, or ASU 2018-10, to supersede ASU 2016-02. In addition, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements , that provide entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with current GAAP (Topic 840, Leases). pdated guidance is In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Accounting Standards Not Yet Adopted (continued) In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment Accounting Standards Not Yet Adopted (continued) In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This guidance removes certain exceptions to the general principles in Topic 740 and enhances and simplifies various aspects of the income tax accounting guidance, including requirements such as tax basis step-up in goodwill obtained in a transaction that is not a business combination, ownership changes in investments, and interim-period accounting for enacted changes in tax law. This standard is effective for the Group for the annual reporting periods beginning January 1, 2022 and interim periods beginning January 1, 2023. Early adoption is permitted. The Group is in the process of evaluating the impact of adoption of this guidance on the Group’s consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, Investments-Equity Securities Investments-Equity Method and Joint Ventures Derivatives and Hedging |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Group's Major Direct and Indirect Subsidiaries of Investments | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (CONTINUED) The Company and its subsidiaries are hereinafter referred to as the Group. The principal business activities of the Group are to develop leased-and-operated and franchised-and-managed economy hotels under the “GreenTree” brand in the PRC. The Group’s major direct and indirect invested subsidiaries consist of the following as of December 31, 2019: Major subsidiaries Percentage of Ownership Date of Incorporation, Merger or Acquisition Place of Incorporation Major Operation GreenTree Inns Hotel (Shanghai) Management, Inc. 100 % November 30, 2004 PRC Hotel management GreenTree Inns Hotel (China) Management, Inc. 100 % June 30, 2005 PRC Hotel management GreenTree Inns Jiangpu Hotel (Shanghai) Company Limited. 100 % August 9, 2005 PRC Hotel management Hexie (Changzhou) Hotel Management Co., Ltd. 100 % September 14, 2006 PRC Hotel management GreenTree Inns Hotel (Jiangsu) Management, Inc. 100 % January 30, 2007 PRC Hotel management GreenTree Inns Hotel (Changning) Management, Inc. 100 % January 30, 2007 PRC Hotel management GreenTree Inns Hotel (Tianjin) Co., Ltd. 100 % August 2, 2007 PRC Hotel management GreenTree Inns Hotel (Zhejiang) Management, Inc. 100 % August 13, 2007 PRC Hotel management GreenTree Inns Hotel (Sichuan) Management, Inc. 100 % January 8, 2008 PRC Hotel management GreenTree Inns Hotel (Beijing) Management, Inc. 100 % March 17, 2008 PRC Hotel management Shiruide Hotel Management (Shanghai) Co., Ltd. 100 % February 16, 2009 PRC Hotel management Jinan Dongrunbao Inns Management Co., Ltd. 100 % April 22, 2009 PRC Hotel management GreenTree Suites Management Corp (“GreenTree Suites”) 100 % June 30, 2009 Cayman Islands Investment holding Pacific Hotel Investment, Inc.(“PHI”) 100 % June 30, 2009 Samoa Investment holding GreenTree Inns Hotel Management Group, Inc. (“GreenTree Samoa”) 100 % October 28, 2010 Samoa Investment holding GreenTree Hotels (Hong Kong), Limited. 100 % February 17, 2011 Hong Kong Investment holding Shanghai Evergreen Technology Co., Ltd. 100 % October 20, 2011 PRC Information (“Shanghai Evergreen”) technology services Shanghai Beifu Industrial Co., Ltd. 100 % February 25, 2014 PRC Hotel management Shenzhen Gegao Investment Management Co., Ltd. 100 % May 7, 2015 PRC Investment holding Yancheng Ruixin Hotel Management Co., Ltd. 70 % June 5, 2015 PRC Hotel management Shanghai Jingjia Hotel Co., Ltd. 100 % February 15, 2017 PRC Hotel management Shanghai Wumian Hotel Management Co., Ltd. 66.7 % January 16, 2018 PRC Hotel management Yancheng Zexin Hotel Management Co., Ltd. 51 % July 1, 2018 PRC Hotel management Foshan Baiqinghui Hotel Management Co., Ltd. 70 % August 31, 2018 PRC Hotel management GreenTree Hotel (Xuzhou) Co., Ltd. 100 % February 5, 2018 PRC Hotel property Banyan Hotel (Xuzhou) Co., Ltd. 100 % May 3, 2018 PRC Hotel property Argyle Beijing 60 % April 1, 2019 PRC Hotel management Shandong Xinghui 70 % November 30,2019 PRC Hotel management |
Summary of Principal Accounti_3
Summary of Principal Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Property and Equipment Net, Expected Useful Lives | Property and equipment, net are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment is provided using the straight-line method over the following expected useful lives: Leasehold improvements Over the shorter of the lease term or estimated useful lives Buildings 20 years Furniture, fixtures and equipment 3-5 years Motor vehicles 5 years Property and equipment, net consists of the following: As of December 31, 2018 2019 2019 RMB RMB USD Buildings 191,222,937 543,500,662 78,068,985 Leasehold improvements 254,720,926 289,710,814 41,614,355 Furniture, fixtures and equipment 40,771,896 57,302,434 8,230,980 Motor vehicles 2,486,375 2,912,805 418,398 Total 489,202,134 893,426,715 128,332,718 Less: Accumulated depreciation (265,449,689 ) (295,096,805 ) (42,388,004 ) Impairment (5,008,677 ) – – 218,743,768 598,329,910 85,944,714 Construction in progress 3,645,805 16,606,595 2,385,388 Property and equipment, net 222,389,573 614,936,505 88,330,102 |
Amortization of Intangible Assets, Estimated Useful Lives | Amortization is computed using the straight-line method over the following estimated useful lives: Trademark 10 years or indefinite life Technology 10 years Network rights 10 years Purchased software 5 years Favorable leases the remaining lease term Reacquired rights the remaining franchise term |
Summary of Financial Assets and Liabilities Measured and Recorded at Fair Value | The following table summarizes the Company’s financial assets and liabilities measured and recorded at fair value as of December 31, 2018 and 2019: Fair Value Measurements at Reporting Date Using Description As of December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investments in equity securities with readily determinable fair value 307,693,782 307,693,782 Short-term investments 685,512,063 685,512,063 993,205,845 307,693,782 685,512,063 Fair Value Measurements at Reporting Date Using Description As of December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Returnable consideration from Urban Hotel Group (Note 3) 3,333,421 3,333,421 Investments in equity securities with readily determinable fair value 207,007,926 207,007,926 Short-term investments 437,279,026 437,279,026 Long-term investments – equity securities with readily determinable fair values 262,833,287 262,833,287 Payables for contingent consideration from Urban Hotel Group (Note 3) 4,027,207 4,027,207 914,480,867 469,841,213 437,279,026 7,360,628 |
ASU 2014-09 | |
Adoption of New Revenue Standards Impact of Changes to Consolidated Financial Statements | The impact of the changes made to the Group’s consolidated financial statements as a result of the adoption of new revenue standards was as follows: For the Year ended December 31, 2017 For the Year ended December 31, 2018 As Reported Effect of the Adoption of New Revenue Standards As Adjusted As Reported Effect of the Adoption of New Revenue Standards As Adjusted Revenues: Leased-and-operated hotels 193,542,455 (500,000 ) 193,042,455 213,172,025 (500,095 ) 212,671,930 Franchised-and-managed hotels 584,589,358 (34,456,414 ) 550,132,944 731,833,909 (38,891,170 ) 692,942,739 Total revenues 778,131,813 (34,956,414 ) 743,175,399 945,005,934 (39,391,265 ) 905,614,669 Operating costs and expenses: Hotel operating costs (233,646,052 ) 6,779,023 (226,867,029 ) (280,954,345 ) 6,535,082 (274,419,263 ) Selling and marketing expenses (45,032,441 ) 12,229,540 (32,802,901 ) (50,393,151 ) 2,995,384 (47,397,767 ) Total operating costs and expenses (405,965,433 ) 19,008,563 (386,956,870 ) (432,554,874 ) 9,530,466 (423,024,408 ) Income from operations 387,450,208 (15,947,851 ) 371,502,357 535,021,866 (29,860,799 ) 505,161,067 Income before income taxes 472,602,371 (15,947,851 ) 456,654,520 562,100,340 (29,860,799 ) 532,239,541 Income tax expense (186,651,155 ) 4,082,893 (182,568,262 ) (160,185,845 ) 7,467,177 (152,718,668 ) Net income 285,051,632 (11,864,958 ) 273,186,674 393,613,911 (22,393,622 ) 371,220,289 Net income attributable to ordinary shareholders 285,400,182 (11,864,958 ) 273,535,224 394,104,841 (22,393,622 ) 371,711,219 Earnings per share: Basic 3.12 (0.13 ) 2.99 3.97 (0.22 ) 3.75 Diluted 3.12 (0.13 ) 2.99 3.97 (0.22 ) 3.75 As of December 31, 2018 As Reported Effect of the Adoption of New Revenue Standards As Adjusted Deferred tax assets 67,909,969 65,390,997 133,300,966 Total assets 3,014,390,010 65,390,997 3,079,781,007 Deferred revenue – current 153,389,895 57,195,709 210,585,604 Accrued expenses and other current liabilities 264,058,985 (22,651,006 ) 241,407,979 Deferred revenue – noncurrent 145,545,929 234,627,656 380,173,585 Total liabilities 1,151,261,579 269,172,359 1,420,433,938 Retained earnings 456,398,812 (203,781,362 ) 252,617,450 Total equity 1,863,128,431 (203,781,362 ) 1,659,347,069 Total liabilities and equity 3,014,390,010 65,390,997 3,079,781,007 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisition, Pro Forma Information | The following table summarizes unaudited pro forma results of operation for the years ended December 31, 2018 and 2019 assuming that the acquisition occurred as of January 1, 2018. The pro forma results have been prepared for comparative purpose only based on management’s best estimate and do not purport to be indicative of the results of operations which actually would have resulted had the acquisition occurred as of January 1, 2018. 2018 2019 Proforma net revenue 991,089,437 1,189,828,873 Proforma net income 395,817,977 468,408,130 |
2018 Business Combinations | |
Business Acquisition [Line Items] | |
Schedule of Fair Values of the Assets Acquired and Liabilities Assumed | The following is a summary of the fair values of the assets acquired and liabilities assumed: 2018 Amortization Period Current assets (i) 11,520,969 Property and equipment 32,618,088 3 - 17 years Intangible assets Favorable leases 20,095,000 Remaining lease terms Trademark 1,530,000 Remaining beneficial period Goodwill 2,827,885 Current liabilities (18,636,959 ) Deferred tax liabilities (5,406,250 ) Noncontrolling interest (8,509,857 ) Total 36,038,876 (i) Current assets acquired primarily included cash and cash equivalent of RMB1,177,106, other receivables of RMB1,438,641 and loans receivable of RMB7,500,000. |
Argyle Group | |
Business Acquisition [Line Items] | |
Schedule of Fair Values of the Assets Acquired and Liabilities Assumed | The following is a summary of the fair values of the assets acquired and liabilities assumed: 2019 Amortization Period Current assets 3,777,860 Property and equipment 1,013,378 3 - 17 years Intangible assets Purchased software 669,206 4 – 7 years Trademark 230,500,000 Indefinite life Goodwill 42,198,903 Current liabilities (7,618,079 ) Deferred tax liabilities (57,625,000 ) Non current liabilities (15,642,000 ) Noncontrolling interest (70,455,096 ) Total 126,819,172 |
Urban Hotel Group | |
Business Acquisition [Line Items] | |
Schedule of Fair Values of the Assets Acquired and Liabilities Assumed | The following is a summary of the fair values of the assets acquired and liabilities assumed: 2019 Amortization Period Current assets (i) 50,482,296 Property and equipment 6,913,189 3 - 10 years Intangible assets Favorable leases 20,100,000 Remaining lease terms Trademark 212,800,000 Indefinite life Purchased software 34,739 2 years Deferred tax assets 4,000,000 Other assets 4,537,000 Goodwill 49,037,577 Current liabilities (19,831,341 ) Non current liabilities (11,517,000 ) Deferred tax liabilities (58,225,000 ) Noncontrolling interest (67,981,964 ) Total 190,349,496 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenues Disaggregated by Type of Services | The following tables present our revenues disaggregated by the type of the services: Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB USD Leased and owned hotels revenue 193,042,455 212,671,930 253,420,676 36,401,602 Franchise and managed hotel revenues 550,132,944 692,942,739 838,372,459 120,424,669 Initial franchise fee 35,140,250 42,806,330 54,930,266 7,890,239 Continuing franchise fees 514,992,694 650,136,409 783,442,193 112,534,430 Total 743,175,399 905,614,669 1,091,793,135 156,826,271 |
Summary of Contract Liabilities | Payments received in advance of performance under the contract are classified as current or non-current contract liabilities on the Group’s consolidated balance sheets and are recognized as revenue as the Group performs under the contract. Years Ended December 31, 2018 2019 2019 RMB RMB USD Advance from customers 36,370,325 40,105,627 5,760,813 Deferred revenue-current 210,585,604 231,925,272 33,313,981 Deferred revenue-non current 380,173,585 410,807,248 59,008,769 Total contract liabilities 627,129,514 682,838,147 98,083,563 |
Schedule of Components of Deferred Revenue | The deferred revenue balances above, as of December 31, 2018 and 2019 were comprised of the following: Years Ended December 31, 2018 2019 2019 RMB RMB USD Initial fees received from franchisees owners 274,637,959 295,443,732 42,437,837 Cash received for membership fees and not recognized as revenue 238,496,707 257,351,279 36,966,198 Cash received for prepaid card and sublease 53,356,062 58,075,704 8,342,053 Deferred revenue related to the membership program 24,268,461 31,861,805 4,576,662 Total contract liabilities 590,759,189 642,732,520 92,322,750 |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Summary of Loans Receivable, Net | Loans receivable, net is comprised of the following: As of December 31, 2018 2019 2019 RMB RMB USD Loans receivable, current portion Franchisees 18,757,404 79,572,201 11,429,831 Third parties 48,439,164 17,740,000 2,548,192 Less: bad debt provision - (15,000,000 ) (2,154,616 ) Total 67,196,568 82,312,201 11,823,407 Loans receivable, non-current portion Franchisees 39,352,863 113,963,742 16,369,867 Third parties - 7,600,000 1,091,672 39,352,863 121,563,742 17,461,539 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment Net, Expected Useful Lives | Property and equipment, net are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment is provided using the straight-line method over the following expected useful lives: Leasehold improvements Over the shorter of the lease term or estimated useful lives Buildings 20 years Furniture, fixtures and equipment 3-5 years Motor vehicles 5 years Property and equipment, net consists of the following: As of December 31, 2018 2019 2019 RMB RMB USD Buildings 191,222,937 543,500,662 78,068,985 Leasehold improvements 254,720,926 289,710,814 41,614,355 Furniture, fixtures and equipment 40,771,896 57,302,434 8,230,980 Motor vehicles 2,486,375 2,912,805 418,398 Total 489,202,134 893,426,715 128,332,718 Less: Accumulated depreciation (265,449,689 ) (295,096,805 ) (42,388,004 ) Impairment (5,008,677 ) – – 218,743,768 598,329,910 85,944,714 Construction in progress 3,645,805 16,606,595 2,385,388 Property and equipment, net 222,389,573 614,936,505 88,330,102 |
Schedule of Depreciation Expense | Depreciation expense was RMB24,076,465, RMB23,919,015 and RMB37,340,304 (USD5,363,599) for the years ended December 31, 2017, 2018 and 2019, respectively, and were included in the following captions: For the years ended December 31, 2017 2018 2019 2019 RMB RMB RMB USD Hotel operating costs 22,978,585 21,313,405 31,671,274 4,549,294 General and administrative costs 1,097,880 2,605,610 5,669,030 814,305 Total 24,076,465 23,919,015 37,340,304 5,363,599 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net consist of the following: As of December 31, 2018 2019 2019 RMB RMB USD Intangible assets with indefinite life: Trademark – 443,300,000 63,676,061 Intangible assets with definite life: Trademark 4,724,493 4,724,493 678,631 Technology – 4,200,000 603,292 Network rights 259,048 390,317 56,066 Purchased software 10,980,093 14,339,844 2,059,790 Reacquired rights 2,531,418 2,531,418 363,615 Favorable leases 20,498,648 41,600,548 5,975,545 Others 435,185 435,185 62,510 Total 39,428,885 511,521,805 73,475,510 Less: Accumulated amortization (12,215,494 ) (15,241,489 ) (2,189,303 ) Total. 27,213,391 496,280,316 71,286,207 |
Schedule of Estimated Aggregate Amortization Expense | The estimated aggregate amortization expense for each of the five succeeding years is as follows: Year ending December 31, RMB USD 2020 6,655,671 956,027 2021 6,621,247 951,083 2022 6,548,904 940,691 2023 6,162,554 885,196 2024 6,067,685 871,568 Thereafter 20,924,255 3,005,581 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2017, 2018 and 2019 were as follows: For the years ended December 31, 2017 2018 2019 2019 RMB RMB RMB USD Balance as of January 1 2,959,183 2,959,183 5,787,068 831,260 Acquisitions (note 3) - 2,827,885 94,291,168 13,544,079 Balance as of December 31 2,959,183 5,787,068 100,078,236 14,375,339 |
Long-Term Investments (Tables)
Long-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Long Term Investments [Abstract] | |
Schedule of Long-Term Investments | As at December 31, 2017, 2018 and 2019, long-term investments consisted of the following: As of December 31, 2018 2019 2019 RMB RMB USD Equity method investments Shanghai Wiselong Enterprise Management Co., Ltd. - 23,579,728 3,387,016 Others 8,217,986 - - Equity securities with readily determinable fair values China Gingko Education Group Company Limited - 70,193,934 10,082,728 Zhejiang New Century Hotel Management Co., Ltd. - 192,639,353 27,670,912 Equity securities without readily determinable fair values Yibon Hotel Group Co., Ltd ("Yibon") 103,701,474 103,701,474 14,895,785 Others 300,000 8,523,212 1,224,282 Total 112,219,460 398,637,701 57,260,723 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets Noncurrent Disclosure [Abstract] | |
Schedule of Other Assets | As of December 31, 2018 2019 2019 RMB RMB USD Acquisition deposits 18,120,615 38,869,400 5,583,240 Rental deposit 5,065,000 6,685,000 960,240 Interest receivable - 17,326,910 2,488,855 Returnable consideration from the acquisition of Urban Hotel Group (Note 3) - 3,333,421 478,816 Others 2,515,908 10,743,261 1,543,173 Total 25,701,523 76,957,992 11,054,324 |
Short-Term Debt (Tables)
Short-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Short Term Borrowings [Abstract] | |
Schedule of Short-term Debt | As of December 31, 2018 2019 2019 RMB RMB USD Short-term bank borrowings 60,000,000 60,000,000 8,618,461 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | As of December 31, 2018 2019 2019 RMB RMB USD Other payables 169,470,083 210,561,540 30,245,273 Business taxes and related tax surcharge 52,639,207 64,345,243 9,242,616 Accrued rental 2,151,623 2,250,443 323,256 Accrued utilities 3,307,734 2,306,796 331,351 Other accrued expenses 3,839,332 2,180,632 313,228 Payables for contingent consideration (Note 3) - 4,027,207 578,472 Consideration payables for acquisitions 10,000,000 16,776,500 2,409,793 Total 241,407,979 302,448,361 43,443,989 |
Hotel Operating Costs (Tables)
Hotel Operating Costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Operating Expenses [Abstract] | |
Schedule Of Hotel Operating Costs | Hotel operating costs include all direct costs incurred in the operation of the leased-and-operated hotels and cost of providing franchise services and consist of the following: Year ended December 31, 2017 2018 2019 2019 RMB RMB RMB USD Rental 60,252,952 76,055,484 79,597,408 11,433,452 Utilities 16,692,172 19,264,487 19,119,300 2,746,316 Personnel cost 27,546,240 33,715,007 38,277,298 5,498,190 Depreciation and amortization 22,978,585 21,313,405 34,727,153 4,988,243 Consumable, food and beverage 13,470,072 19,275,688 27,666,436 3,974,035 Costs of hotel manager of franchised-and-managed hotels 54,291,625 70,480,306 96,565,044 13,870,701 Other costs of franchised-and-managed hotels 16,718,827 22,353,424 29,192,923 4,193,301 Others 14,916,556 11,961,462 13,680,917 1,965,140 Total 226,867,029 274,419,263 338,826,479 48,669,378 |
Share Based Compensation (Table
Share Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Assumptions Used to Estimate Fair Value of Share Options | The fair value of share options was estimated using the following significant assumptions: Granted in 2018 Granted in 2019 Risk-free interest rate 2.42 % 1.60%-2.60% Volatility 34.00 % 35.66%-37.98% Dividend yield – 2.5 % Life of option 6 years 6 years |
Summary of Share Option Activity Under Option Plans | The following table summarized the Group’s share option activity under the option plans: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value USD Years USD Share options outstanding at December 31, 2018 1,591,500 12.94 3.11 1,180,080 Granted 96,000 12.00 Forfeited (327,500 ) 15.19 Expired (203,000 ) 12.00 Exercised (135,000 ) 12.00 Share options outstanding at December 31, 2019 1,022,000 12.28 3.96 - Vested and expected to vest at December 31, 2019 898,665 12.28 3.87 - Exercisable as of December 31, 2019 289,500 12.35 3.21 - |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Current and Deferred Components of Income Tax Expense | The current and deferred components of income tax expense appearing in the consolidated statements of comprehensive income are as follows: As of December 31, 2017 2018 2019 2019 RMB RMB RMB USD Current tax 193,428,603 153,947,310 197,233,190 28,330,775 Deferred tax (10,860,341 ) (1,228,642 ) (7,665,373 ) (1,101,062 ) Total 182,568,262 152,718,668 189,567,817 27,229,713 |
Reconciliation Between Effective Income Tax Rate and PRC Statutory Income Tax Rate | Reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows: Years ended December 31 2017 2018 2019 PRC statutory tax rate 25 % 25 % 25 % Withholding tax on the PRC earnings distribution 14 % 4 % 3 % Effect of international rate difference 2 % (1 %) 0 % Effect of preferential tax rate (3 %) (3 %) (5 %) Tax effect of expenses that are not deductible in determining taxable profit 1 % 4 % 7 % Effective tax rate 39 % 29 % 30 % |
Components of Deferred Income Tax Assets and Liabilities | The principal components of the Group’s deferred income tax assets and liabilities as of December 31,2017, 2018 and 2019 are as follows: As of December 31, 2018 2019 2019 RMB RMB USD Deferred tax assets: Net loss carryforward 3,378,686 15,741,149 2,261,075 Deferred revenue 117,236,504 146,046,006 20,978,196 Deferred rent 6,235,277 5,683,389 816,368 Bad debt expenses 1,608,304 5,268,134 756,720 Accrued expenses 7,874,804 7,368,561 1,058,427 Impairment of long-lived assets 1,252,169 - - Valuation allowance (4,284,778 ) (19,619,046 ) (2,818,099 ) Total deferred tax assets 133,300,966 160,488,193 23,052,687 Deferred tax liabilities: Depreciation of property and equipment (4,028,230 ) (3,864,132 ) (555,048 ) Unrealized gains from equity securities (10,312,983 ) (4,304,431 ) (618,293 ) Intangible assets arising from acquisition (5,851,517 ) (143,943,382 ) (20,676,173 ) Withholding tax on PRC earnings to be distributed (23,345,894 ) (43,191,602 ) (6,204,085 ) Total deferred tax liabilities (43,538,624 ) (195,303,547 ) (28,053,599 ) |
Schedule of Unrecognized Tax Benefits | Unrecognized tax benefits — January 1, 2018 113,299,633 Increases — tax positions in the current period 58,693,484 Decreases — tax positions in prior period (2,373,708 ) Unrecognized tax benefits — December 31, 2018 169,619,409 Unrecognized tax benefits — January 1, 2019 169,619,409 Increases — tax positions in the current period 104,031,858 Decreases — tax positions in prior period (12,009,550 ) Unrecognized tax benefits — December 31, 2019 261,641,717 |
Related Party Transactions an_2
Related Party Transactions and Balances (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions or Balances with the Group | The related parties that had transactions or balances with the Group in 2018 and 2019 consisted of: Related Party Nature of the party Relationship with the Group Alex S. Xu Individual Founder and CEO Hui Xu Individual Brother of Alex S. Xu Yan Zhang Individual Executive officer for catering management entities controlled by GTI Wen Qi Individual Vice president, human resources and administration of the Group GTI Investment holding Shareholder of the Group, controlled by Alex S. Xu Da Niang Dumpling Catering Group Co., Ltd, together with its subsidiaries (“Da Niang Group”) Catering management Controlled by GTI Shanghai Aotao Industrial Co., Ltd, together with its subsidiaries and VIE (“Aotao”) **** Catering management Controlled by GTI Shanghai JYHM Restaurant Management Co., Ltd. (“JYHM”) Catering management Controlled by GTI 1250 Bayshore Highway, LLC (“Bayshore”) Hotel management Controlled by Alex S. Xu 519 Information Technology (Shanghai) Inc. (“519”) Wine distributor Controlled by Hui Xu Napa Infinity Winery (Shanghai) Inc. (“Napa”) Wine distributor Controlled by Hui Xu Pacific Hotel Management (Rongcheng) Co., Ltd. (“Rongcheng”) Hotel management Controlled by Hui Xu Yibon Hotel management Equity investee of the Group TB* Franchised hotels Equity investee of the Group Shiquanmeiwei (Beijing) Catering and Management Co., Ltd.(“Shiquanmeiwei”) **** Catering management Controlled by GTI Steigenberger** Franchised hotels Equity investee of the Group Yancheng Zexin Hotel Co., Ltd Hotel management Equity investee of the Group * TB ceased to be related party due to liquidation in August 2019. ** Steigenberger ceased to be related party due to disposal in September 2019. *** As the Group acquired Ze Xin on July 1, 2018, Ze Xin was included as a subsidiary of the Group and ceased to be a related party. **** Aotao became a related party as it was acquired by a company controlled by GTI in January 2019. Shiquanmeiwei is also included in Aotao in 2019. |
Schedule of Related Party Balances | (a) Related party balances Due from related parties: As of December 31, 2018 2019 2019 RMB RMB USD Current: Aotao - 20,086,504 2,885,246 GTI - 8,424,629 1,210,122 Napa - 2,506,484 360,034 Yibon - 722,114 103,725 Steigenberger 225,000 - - Shiquanmeiwei 3,600 - - 228,600 31,739,731 4,559,127 Due to related parties: As of December 31, 2018 2019 2019 RMB RMB USD Yibon - 3,205,890 460,498 JYHM 221,028 312,141 44,836 TB 64,550 - - 285,578 3,518,031 505,334 |
Schedule of Related Party Transactions | (b) Related party transactions During the years ended December 31, 2017, 2018 and 2019, related party transactions consisted of the following: As of December 31, 2017 2018 2019 2019 RMB RMB RMB USD Loan to Aotao - - (167,279,750 ) (24,028,233 ) Repayment from Aotao - - 157,279,750 22,591,823 Interest income from Aotao - - 1,316,854 189,154 Franchise management fee to Aotao - - (24,941 ) (3,583 ) Loan to GTI (including a loan settled with dividend payable in December) - - (192,558,675 ) (27,659,323 ) Repayment from GTI and settlement with dividend payable to GTI in December 9,730,276 1,717,539 184,134,046 26,449,201 Interest income from GTI - - 907,880 130,409 Loan to Da Niang Group - - (274,800,000 ) (39,472,550 ) Repayment from Da Niang Group - - 274,800,000 39,472,550 Interest income from Da Niang Group - - 875,315 125,731 Service purchased from Da Niang Group - - (339,121 ) (48,712 ) Sublease revenue from JYHM - - 385,355 55,353 Advance from JYHM - 221,028 312,141 44,836 Service purchased from JYHM - - (18,418 ) (2,646 ) Revenue from Napa - - 2,358,491 338,776 Purchase from Napa (4,035,262 ) - (3,576,659 ) (513,755 ) Franchised revenue from Yibon - - 681,239 97,854 Advance from Rongcheng 141,380 - - - Franchised revenue from TB 400,639 389,583 - - Advance from TB 294,193 - - - Advance to Shiquanmeiwei - (3,600 ) - - Loan to Steigenberger (225,000 ) - - - Repayment from Bayshore 8,671,250 - - - Repayment from Yan Zhang 128,110,474 - - - Interest income from Yan Zhang 3,515,358 - - - Franchised revenue from Ze Xin 232,766 44,763 - - Loan to Ze Xin (3,500,000 ) (4,300,000 ) - - Repayment from Ze Xin 367,488 - - - Interest income from Ze Xin 75,460 263,366 - - Repayment to 519 (4,100 ) - - - |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments under Non-Cancellable Operating Lease Agreements | Future minimum lease payments under non-cancellable operating lease agreements at December 31, 2019 were as follows: Year Ended December 31, 2019 2019 RMB USD 2020 95,832,417 13,765,465 2021 98,443,524 14,140,527 2022 84,716,637 12,168,784 2023 77,391,692 11,116,621 2024 66,291,320 9,522,152 Thereafter 346,317,562 49,745,405 Total 768,993,152 110,458,954 |
Schedule of Future Minimum Lease Receivables under Non-Cancellable Operating Leases with Tenants | At 31 December 2019, the Group had total future minimum lease receivables under non-cancellable operating leases with its tenants falling due as follows: Year Ended December 31, 2019 2019 RMB USD 2020 68,958,773 9,905,308 2021 59,328,993 8,522,077 2022 56,454,340 8,109,159 2023 51,396,861 7,382,697 2024 48,665,175 6,990,315 Thereafter 270,004,257 38,783,685 Total 554,808,399 79,693,241 |
Earnings Per Share (Table)
Earnings Per Share (Table) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earning Per Share | Basic and diluted earnings per share for each of the years presented is calculated as follows: Year Ended December 31, 2017 2018 2019 2019 RMB RMB RMB USD Numerator: Net income used in calculating earnings per share-basic and diluted 273,535,224 371,711,219 442,718,263 63,592,500 Denominator: Weighted average number of Class A ordinary shares outstanding used in calculating basic and diluted earnings per share 48,635,252 62,860,578 67,315,727 67,315,727 Weighted average number of Class B ordinary shares outstanding used in calculating basic and diluted earnings per share 42,716,957 36,288,343 34,762,909 34,762,909 Allocation of undistributed earnings — basic and diluted: To Class A Shares 145,628,165 235,665,522 291,950,431 41,936,056 To Class B Shares 127,907,059 136,045,697 150,767,832 21,656,444 Basic and diluted earnings per share: To Class A Shares 2.99 3.75 4.34 0.62 To Class B Shares 2.99 3.75 4.34 0.62 |
Parent Company Only Condensed_2
Parent Company Only Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheets | Condensed balance sheets As of December 31, 2018 2019 2019 RMB RMB USD ASSETS Current assets Cash and cash equivalents 721,573,493 22,137,640 3,179,873 Amounts due from subsidiaries - 6,271,868 900,898 Amounts due from a related party - 8,424,629 1,210,122 Other current assets 4,117,311 2,416,728 347,141 Total current assets 725,690,804 39,250,865 5,638,034 Non-current assets: Investments in subsidiaries 925,492,357 1,577,484,393 226,597,450 Equity securities with readily determinable fair values - 262,833,287 37,747,645 Other assets 6,875,561 - - TOTAL ASSETS 1,658,058,722 1,879,568,545 269,983,129 LIABILITIES AND EQUITY Current liabilities: Other payable - 6,000,000 861,846 Amounts due to subsidiaries 7,090,700 4,924,176 707,314 Other long-term liabilities - 7,475,856 1,073,839 Total liabilities 7,090,700 18,400,032 2,642,999 Shareholders’ Equity: Class A ordinary shares (USD0.50 par value per share; 400,000,000 and 400,000,000 shares authorized as of December 31, 2018 and 2019; 66,789,300 and 67,416,046 shares issued and outstanding as of December 31, 2018 and 2019, respectively) 217,421,867 219,526,699 31,533,037 Class B ordinary shares (USD0.50 par value per share; 100,000,000 and 100,000,000 shares authorized as of December 31, 2018 and 2019; 34,762,909 and 34,762,909 shares issued and outstanding as of December 31, 2018 and 2019, respectively) 115,534,210 115,534,210 16,595,451 Additional paid-in capital 1,003,026,803 1,152,108,217 165,489,991 Retained earnings 252,617,450 308,698,533 44,341,770 Accumulated other comprehensive (loss) income 62,367,692 65,300,854 9,379,881 Total Shareholders’ Equity 1,650,968,022 1,861,168,513 267,340,130 TOTAL LIABILITIES AND EQUITY 1,658,058,722 1,879,568,545 269,983,129 |
Condensed Statements of Operations | Condensed statements of operations As of December 31, 2017 2018 2019 2019 RMB RMB RMB USD General and administrative expenses – (1,307,753 ) (33,538,433 ) (4,817,495 ) interest income 13,785,679 5,970,063 857,546 Interest expense – – (646,315 ) (92,837 ) Gains on investments in equity securities – – 6,473,358 929,840 Share of profit in subsidiaries, net (Note a) 273,535,224 359,233,293 464,459,590 66,715,446 Income before tax and net income 273,535,224 371,711,219 442,718,263 63,592,500 Other comprehensive income, net of tax - Foreign currency translation adjustments 1,317,020 66,453,841 2,933,162 421,322 Comprehensive income 274,852,244 438,165,060 445,651,425 64,013,822 |
Condensed Statements of Cash Flows | Condensed statements of cash flows As of December 31, 2017 2018 2019 2019 RMB RMB RMB USD Operating activities: Net income 273,535,224 371,711,219 442,718,263 63,592,500 Adjustments to reconcile net income to net cash used in operating activities: Share-based compensation - 1,307,753 26,490,395 3,805,107 Gains from investments in equity securities - - (6,473,358 ) (929,840 ) Share of profit in subsidiaries, net (273,535,224 ) (359,233,293 ) (464,459,590 ) (66,715,446 ) Changes in operating assets and liabilities: Other current assets - (4,117,311 ) 1,700,582 244,273 Amounts due from subsidiaries - - (6,271,868 ) (900,897 ) Amounts due to subsidiaries - 7,090,700 (2,166,524 ) (311,202 ) Other long-term liabilities - - 7,475,856 1,073,840 Net cash provided by (used in) operating activities - 16,759,068 (986,244 ) (141,665 ) Investing activities: Advances for acquisitions - (6,875,561 ) - - Payment for acquisitions - - (52,903,471 ) (7,599,108 ) Investment to subsidiaries - - (2,938,656 ) (422,112 ) Purchases of investments in equity securities - - (247,415,003 ) (35,538,941 ) Loan to a related party - - (192,558,675 ) (27,659,323 ) Repayment from a related party - - 26,672,779 3,831,305 Net cash used in investing activities - (6,875,561 ) (469,143,026 ) (67,388,179 ) Financing activities: Proceeds from issuance of Class A ordinary shares (note 1) - 837,505,007 - - Payment for initial public offering costs - (30,827,578 ) - - Distribution to the shareholders (note 1) (579,042,699 ) (200,532,021 ) (226,951,236 ) (32,599,505 ) Dividends from subsidiaries 579,042,699 39,691,103 - - Net cash generated from financing activities - 645,836,511 (226,951,236 ) (32,599,505 ) Effect of exchange rate changes on cash and cash equivalents and restricted cash - 65,853,475 (2,355,347 ) (338,325 ) Net decrease in cash and cash equivalents and restricted cash - 721,573,493 (699,435,853 ) (100,467,674 ) Cash and cash equivalents and restricted cash at beginning of the year - - 721,573,493 103,647,547 Cash and cash equivalents and restricted cash at end of the year - 721,573,493 22,137,640 3,179,873 |
Organization and Principal Ac_3
Organization and Principal Activities - Additional Information (Details) | Jan. 15, 2020shares | Jun. 27, 2019shares | Jan. 25, 2019shares | Mar. 27, 2018CNY (¥)shares | Mar. 27, 2018USD ($)$ / sharesshares | Mar. 11, 2018shares | Dec. 31, 2019CNY (¥) | Jan. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Feb. 28, 2018USD ($) | Dec. 31, 2019 | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2017CNY (¥)shares | Nov. 30, 2019 | Jun. 03, 2019 | Apr. 04, 2019 |
Organization And Principal Activities [Line Items] | ||||||||||||||||
Entity incorporation date | Oct. 18, 2017 | |||||||||||||||
Proceeds from issuance of shares | ¥ | ¥ 837,505,007 | |||||||||||||||
Payment for initial public offering costs | ¥ | ¥ 30,827,578 | |||||||||||||||
Business acquisition, equity interest acquired | 100.00% | |||||||||||||||
Leased And Operated Hotels | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Lease description | The Group typically receives rental holidays of three to twenty-four months and pays fixed rent on a monthly or quarterly basis for the first three or five years of the lease term, after which the rental payments may be subject to an increase every three to five years. The Group recognizes rental expense on a straight-line basis over the lease term | |||||||||||||||
Frequency of fixed rent payment | monthly or quarterly | |||||||||||||||
Leased And Operated Hotels | Minimum | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Lease term | 10 years | 10 years | ||||||||||||||
Rental holidays receivable term | 3 months | |||||||||||||||
Fixed rent payable term | 3 years | |||||||||||||||
Period subject to increase in rent value | 3 years | |||||||||||||||
Leased And Operated Hotels | Maximum | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Lease term | 20 years | 20 years | ||||||||||||||
Rental holidays receivable term | 24 months | |||||||||||||||
Fixed rent payable term | 5 years | |||||||||||||||
Period subject to increase in rent value | 5 years | |||||||||||||||
Franchised And Managed Hotels | Minimum | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Lease term | 5 years | 5 years | ||||||||||||||
Franchised And Managed Hotels | Maximum | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Lease term | 20 years | 20 years | ||||||||||||||
Argyle Beijing | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Business acquisition, equity interest acquired | 60.00% | 60.00% | 60.00% | |||||||||||||
Shandong Xinghui | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Business acquisition, equity interest acquired | 70.00% | |||||||||||||||
Initial Public Offering | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Payment for initial public offering costs | ¥ 30,827,578 | $ 4,483,685 | ||||||||||||||
Class B Ordinary Shares to Class A Ordinary Shares | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Number of shares were redesignated | 7,594,048 | |||||||||||||||
GreenTree Inns Hotel Management Group, Inc. | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Dividend declared to fund the repurchase of ordinary shares | ¥ | ¥ 30,382,838 | |||||||||||||||
Dividend declared in conjunction to the Reorganization | ¥ | ¥ 588,350,964 | |||||||||||||||
GreenTree Inns Hotel Management Group, Inc. | Dividend Declared | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Cash dividend | ¥ 25,544,739 | $ 30,559,675 | $ 25,578,618 | $ 25,578,618 | ||||||||||||
Common Class A | Argyle Beijing | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Business acquisition, shares issued | 626,746 | 626,746 | ||||||||||||||
Common Class A | Shandong Xinghui | Subsequent Event | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Business acquisition, shares issued | 870,908 | |||||||||||||||
Business acquisition, equity interest acquired | 70.00% | |||||||||||||||
Common Class A | Initial Public Offering | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Stock issued during period | 10,200,000 | 10,200,000 | 10,200,000 | |||||||||||||
Shares issued price per share | $ / shares | $ 14 | |||||||||||||||
Proceeds from issuance of shares | $ | $ 133,518,000 | |||||||||||||||
Common Class A | GreenTree Inns Hotel Management Group, Inc. | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Shares issued for services contributed by founders | 48,635,252 | |||||||||||||||
Common Class B | GreenTree Inns Hotel Management Group, Inc. | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Shares issued for services contributed by founders | 42,716,957 | |||||||||||||||
Alex S. Xu (CEO) | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Percentage of ownership interest hold by founder | 74.23% | 74.23% |
Organization and Principal Ac_4
Organization and Principal Activities - Summary of Group's Major Direct and Indirect Subsidiaries of Investments (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Organization And Principal Activities [Line Items] | |
Entity incorporation date | Oct. 18, 2017 |
Entity Incorporation, State or Country Code | E9 |
GreenTree Inns Hotel (Shanghai) Management, Inc. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Nov. 30, 2004 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Hotel (China) Management, Inc. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Jun. 30, 2005 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Jiangpu Hotel (Shanghai) Company Limited | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Aug. 9, 2005 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Hexie (Changzhou) Hotel Management Co., Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Sep. 14, 2006 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Hotel (Jiangsu) Management, Inc. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Jan. 30, 2007 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Hotel (Changning) Management, Inc. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Jan. 30, 2007 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Hotel (Tianjin) Co., Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Aug. 2, 2007 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Hotel (Zhejiang) Management, Inc | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Aug. 13, 2007 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Hotel (Sichuan) Management, Inc. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Jan. 8, 2008 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Hotel (Beijing) Management, Inc. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Mar. 17, 2008 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Shiruide Hotel Management (Shanghai) Co., Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Feb. 16, 2009 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Jinan Dongrunbao Inns Management Co., Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Apr. 22, 2009 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Suites | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Jun. 30, 2009 |
Entity Incorporation, State or Country Code | E9 |
Major Operation | Investment holding |
PHI | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Jun. 30, 2009 |
Entity Incorporation, State or Country Code | Y0 |
Major Operation | Investment holding |
GreenTree Inns Hotel Management Group, Inc. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Oct. 28, 2010 |
Entity Incorporation, State or Country Code | Y0 |
Major Operation | Investment holding |
GreenTree Hotels (Hong Kong), Limited. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Feb. 17, 2011 |
Entity Incorporation, State or Country Code | K3 |
Major Operation | Investment holding |
Shanghai Evergreen Technology Co., Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Oct. 20, 2011 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Information technology services |
Shanghai Beifu Industrial Co., Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Feb. 25, 2014 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Shenzhen Gegao Investment Management Co., Ltd | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | May 7, 2015 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Investment holding |
Yancheng Ruixin Hotel Management Co., Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 70.00% |
Entity incorporation date | Jun. 5, 2015 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Shanghai Jingjia Hotel Co., Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Feb. 15, 2017 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Shanghai Wumian Hotel Management Co,.Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 66.70% |
Entity incorporation date | Jan. 16, 2018 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Yancheng Zexin Hotel Management Co., Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 51.00% |
Entity incorporation date | Jul. 1, 2018 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Foshan Baiqinghui Hotel Management Co,.Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 70.00% |
Entity incorporation date | Aug. 31, 2018 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Hotel (Xuzhou) Co.Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Feb. 5, 2018 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel property |
Banyan Hotel (Xuzhou) Co.Ltd | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | May 3, 2018 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel property |
Argyle Beijing | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 60.00% |
Entity incorporation date | Apr. 1, 2019 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Shandong Xinghui | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 70.00% |
Entity incorporation date | Nov. 30, 2019 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Summary of Principal Accounti_4
Summary of Principal Accounting Policies - Additional Information (Details) | 12 Months Ended | |||||
Dec. 31, 2019CNY (¥)SegmentTier | Dec. 31, 2019USD ($)SegmentTier | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | May 31, 2016 | |
Significant Accounting Policies [Line Items] | ||||||
Equity securities, realized loss | ¥ 70,390,093 | $ 10,110,904 | ¥ 14,381,423 | ¥ 22,565,408 | ||
Equity securities, unrealized gain (loss) | 72,156,375 | $ 4,285,231 | 29,832,919 | 36,599,813 | ||
Impairment loss | ¥ 0 | |||||
Number of reporting unit | Segment | 1 | 1 | ||||
Impairment of long-lived assets | 5,008,677 | |||||
Sublease rental revenue | ¥ 74,893,930 | $ 10,757,840 | 53,852,195 | 42,218,264 | ||
Hotel manager fees | ¥ 115,638,242 | $ 16,610,394 | 99,185,965 | 83,482,652 | ||
Number of tiers membership | Tier | 4 | 4 | ||||
Expiration period of non usage membership program | 2 years | 2 years | ||||
Membership program of renewal period | 2 years | 2 years | ||||
VAT rate | 6.00% | |||||
Advertising and promotional expenses | ¥ 23,934,351 | $ 3,437,954 | 15,654,573 | 11,369,822 | ||
Government subsidies | 9,880,735 | 1,419,279 | 15,150,107 | 10,220,995 | ||
Operating lease rental expenses | 81,379,034 | 11,689,367 | 78,272,335 | 60,839,102 | ||
Employee benefits | 28,700,397 | 4,122,554 | 22,289,686 | 22,859,925 | ||
Concentration of credit risk | 165,850 | $ 23,823 | ||||
Loans receivable, allowance | 15,000,000 | 2,154,616 | ||||
Foreign currency translation adjustments | 2,933,162 | 421,322 | 66,453,841 | 1,317,020 | ||
Revenues | 1,091,793,135 | $ 156,826,271 | 905,614,669 | 743,175,399 | ||
Restricted cash | 22,312,522 | 3,300,000 | 3,204,993 | |||
Loans Receivable | ||||||
Significant Accounting Policies [Line Items] | ||||||
Receivables outstanding | 218,875,943 | 106,549,431 | 31,439,562 | |||
Loans receivable, allowance | ¥ 15,000,000 | ¥ 0 | 0 | 2,154,615 | ||
Loans Receivable | Credit Concentration Risk | ||||||
Significant Accounting Policies [Line Items] | ||||||
Appreciation in functional currency | 5.70% | |||||
Appreciation in functional currency | 1.30% | 1.30% | ||||
PRC | ||||||
Significant Accounting Policies [Line Items] | ||||||
Concentration of credit risk | ¥ 267,063,036 | ¥ 538,780,644 | 38,361,205 | |||
Cayman Island | ||||||
Significant Accounting Policies [Line Items] | ||||||
Concentration of credit risk | 72,645,289 | 721,573,480 | 10,434,843 | |||
Hong Kong | ||||||
Significant Accounting Policies [Line Items] | ||||||
Concentration of credit risk | ¥ 410,523 | 5,621,368 | $ 58,968 | |||
RMB | ||||||
Significant Accounting Policies [Line Items] | ||||||
Foreign currency exchange rate | 6.9618 | 6.9618 | ||||
HKD | ||||||
Significant Accounting Policies [Line Items] | ||||||
Foreign currency exchange rate | 7.7894 | 7.7894 | ||||
Other Operating Expenses | ||||||
Significant Accounting Policies [Line Items] | ||||||
Impairment of long-lived assets | ¥ 0 | 5,008,677 | 0 | |||
ASC Topic 323 | ||||||
Significant Accounting Policies [Line Items] | ||||||
Equity securities, unrealized gain | 6,473,358 | $ 929,840 | 0 | |||
ASU 2016-01 | ||||||
Significant Accounting Policies [Line Items] | ||||||
Equity securities, unrealized gain | ¥ 8,223,212 | $ 1,181,190 | 0 | |||
Minimum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated life of paid membership program | 3 years | 3 years | ||||
Long term, maturity period | 1 year | 1 year | ||||
Maximum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated life of paid membership program | 5 years | 5 years | ||||
Long term, maturity period | 3 years | 3 years | ||||
Revenues | $ | $ 1,070,000,000 | |||||
Restricted cash | ¥ 22,312,522 | ¥ 3,300,000 | ¥ 3,000,000 |
Summary of Principal Accounti_5
Summary of Principal Accounting Policies - Summary of Property and Equipment Net, Expected Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Leasehold Improvements | |
Summary Of Principle Accounting Policies [Line Items] | |
Property and equipment net, expected useful lives, description | Over the shorter of the lease term or estimated useful lives |
Buildings | |
Summary Of Principle Accounting Policies [Line Items] | |
Property and equipment net, expected useful lives | 20 years |
Furniture, Fixture and Equipment | Minimum | |
Summary Of Principle Accounting Policies [Line Items] | |
Property and equipment net, expected useful lives | 3 years |
Furniture, Fixture and Equipment | Maximum | |
Summary Of Principle Accounting Policies [Line Items] | |
Property and equipment net, expected useful lives | 5 years |
Motor Vehicles | |
Summary Of Principle Accounting Policies [Line Items] | |
Property and equipment net, expected useful lives | 5 years |
Summary of Principal Accounti_6
Summary of Principal Accounting Policies - Amortization of Intangible Assets, Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Trademark | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 10 years |
Intangible assets estimated useful lives, description | indefinite life |
Network Rights | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 10 years |
Technology | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 10 years |
Purchased Software | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 5 years |
Favorable Leases | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | the remaining lease term |
Reacquired Rights | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | the remaining franchise term |
Summary of Principal Accounti_7
Summary of Principal Accounting Policies - Summary of Financial Assets and Liabilities Measured and Recorded at Fair Value (Details) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Returnable consideration from Urban Hotel Group (Note 3) | ¥ 3,333,421 | ||
Investments in equity securities with readily determinable fair value | 207,007,926 | $ 29,734,828 | ¥ 307,693,782 |
Short-term investments | 437,279,026 | 685,512,063 | |
Long-term investments – equity securities with readily determinable fair values | 262,833,287 | ||
Payables for contingent consideration from Urban Hotel Group (Note 3) | 4,027,207 | ||
Fair Value Measurements | 914,480,867 | 993,205,845 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Investments in equity securities with readily determinable fair value | 207,007,926 | 307,693,782 | |
Long-term investments – equity securities with readily determinable fair values | 262,833,287 | ||
Fair Value Measurements | 469,841,213 | 307,693,782 | |
Significant Other Observable Inputs (Level 2) | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Short-term investments | 437,279,026 | 685,512,063 | |
Fair Value Measurements | 437,279,026 | ¥ 685,512,063 | |
Significant Unobservable Inputs (Level 3) | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Returnable consideration from Urban Hotel Group (Note 3) | 3,333,421 | ||
Payables for contingent consideration from Urban Hotel Group (Note 3) | 4,027,207 | ||
Fair Value Measurements | ¥ 7,360,628 |
Summary of Principal Accounti_8
Summary of Principal Accounting Policies - Adoption of New Revenue Standards Impact of Changes to Consolidated Financial Statements (Details) | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥)¥ / shares | Dec. 31, 2017CNY (¥)¥ / shares | Dec. 31, 2019USD ($) | |
Revenues: | |||||
Total revenues | ¥ 1,091,793,135 | $ 156,826,271 | ¥ 905,614,669 | ¥ 743,175,399 | |
Operating costs and expenses: | |||||
Hotel operating costs | (338,826,479) | (48,669,378) | (274,419,263) | (226,867,029) | |
Selling and marketing expenses | (84,970,401) | (12,205,234) | (47,397,767) | (32,802,901) | |
Total operating costs and expenses | (612,072,856) | (87,918,764) | (423,024,408) | (386,956,870) | |
Income from operations | 504,552,548 | 72,474,439 | 505,161,067 | 371,502,357 | |
Income before income taxes | 626,079,555 | 89,930,701 | 532,239,541 | 456,654,520 | |
Income tax expenses | (189,567,817) | (27,229,713) | (152,718,668) | (182,568,262) | |
Net income (loss) | 437,774,169 | 62,882,325 | 371,220,289 | 273,186,674 | |
Net income attributable to ordinary shareholders | 442,718,263 | 63,592,500 | ¥ 371,711,219 | ¥ 273,535,224 | |
Net earnings per share: | |||||
Basic | ¥ / shares | ¥ 3.75 | ¥ 2.99 | |||
Diluted | ¥ / shares | ¥ 3.75 | ¥ 2.99 | |||
Deferred tax assets | 160,488,193 | ¥ 133,300,966 | $ 23,052,687 | ||
Total assets | 3,816,479,417 | 3,079,781,007 | 548,202,967 | ||
Deferred revenue | 231,925,272 | 210,585,604 | 33,313,981 | ||
Accrued expenses and other current liabilities | 302,448,361 | 241,407,979 | 43,443,989 | ||
Deferred revenue | 410,807,248 | 380,173,585 | 59,008,769 | ||
Total liabilities | 1,798,719,410 | 1,420,433,938 | 258,369,877 | ||
Retained earnings | 308,698,533 | 252,617,450 | 44,341,770 | ||
Total equity | 2,017,760,007 | 1,659,347,069 | 289,833,090 | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 3,816,479,417 | 3,079,781,007 | $ 548,202,967 | ||
As Reported | ASU 2014-09 | |||||
Revenues: | |||||
Total revenues | 945,005,934 | ¥ 778,131,813 | |||
Operating costs and expenses: | |||||
Hotel operating costs | (280,954,345) | (233,646,052) | |||
Selling and marketing expenses | (50,393,151) | (45,032,441) | |||
Total operating costs and expenses | (432,554,874) | (405,965,433) | |||
Income from operations | 535,021,866 | 387,450,208 | |||
Income before income taxes | 562,100,340 | 472,602,371 | |||
Income tax expenses | (160,185,845) | (186,651,155) | |||
Net income (loss) | 393,613,911 | 285,051,632 | |||
Net income attributable to ordinary shareholders | ¥ 394,104,841 | ¥ 285,400,182 | |||
Net earnings per share: | |||||
Basic | ¥ / shares | ¥ 3.97 | ¥ 3.12 | |||
Diluted | ¥ / shares | ¥ 3.97 | ¥ 3.12 | |||
Deferred tax assets | ¥ 67,909,969 | ||||
Total assets | 3,014,390,010 | ||||
Deferred revenue | 153,389,895 | ||||
Accrued expenses and other current liabilities | 264,058,985 | ||||
Deferred revenue | 145,545,929 | ||||
Total liabilities | 1,151,261,579 | ||||
Retained earnings | 456,398,812 | ||||
Total equity | 1,863,128,431 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 3,014,390,010 | ||||
Effect of the Adoption of New Revenue Standards | ASU 2014-09 | |||||
Revenues: | |||||
Total revenues | (39,391,265) | ¥ (34,956,414) | |||
Operating costs and expenses: | |||||
Hotel operating costs | 6,535,082 | 6,779,023 | |||
Selling and marketing expenses | 2,995,384 | 12,229,540 | |||
Total operating costs and expenses | 9,530,466 | 19,008,563 | |||
Income from operations | (29,860,799) | (15,947,851) | |||
Income before income taxes | (29,860,799) | (15,947,851) | |||
Income tax expenses | 7,467,177 | 4,082,893 | |||
Net income (loss) | (22,393,622) | (11,864,958) | |||
Net income attributable to ordinary shareholders | ¥ (22,393,622) | ¥ (11,864,958) | |||
Net earnings per share: | |||||
Basic | ¥ / shares | ¥ (0.22) | ¥ (0.13) | |||
Diluted | ¥ / shares | ¥ (0.22) | ¥ (0.13) | |||
Deferred tax assets | ¥ 65,390,997 | ||||
Total assets | 65,390,997 | ||||
Deferred revenue | 57,195,709 | ||||
Accrued expenses and other current liabilities | (22,651,006) | ||||
Deferred revenue | 234,627,656 | ||||
Total liabilities | 269,172,359 | ||||
Retained earnings | (203,781,362) | ||||
Total equity | (203,781,362) | ||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 65,390,997 | ||||
Leased And Operated Hotels | |||||
Revenues: | |||||
Total revenues | 253,420,676 | 36,401,602 | 212,671,930 | ¥ 193,042,455 | |
Leased And Operated Hotels | As Reported | ASU 2014-09 | |||||
Revenues: | |||||
Total revenues | 213,172,025 | 193,542,455 | |||
Leased And Operated Hotels | Effect of the Adoption of New Revenue Standards | ASU 2014-09 | |||||
Revenues: | |||||
Total revenues | (500,095) | (500,000) | |||
Franchised And Managed Hotels | |||||
Revenues: | |||||
Total revenues | ¥ 838,372,459 | $ 120,424,669 | 692,942,739 | 550,132,944 | |
Franchised And Managed Hotels | As Reported | ASU 2014-09 | |||||
Revenues: | |||||
Total revenues | 731,833,909 | 584,589,358 | |||
Franchised And Managed Hotels | Effect of the Adoption of New Revenue Standards | ASU 2014-09 | |||||
Revenues: | |||||
Total revenues | ¥ (38,891,170) | ¥ (34,456,414) |
Business Combinations - Additio
Business Combinations - Additional Information (Details) | Nov. 30, 2019CNY (¥)shares | Nov. 30, 2019USD ($)shares | Jun. 03, 2019CNY (¥) | Jun. 03, 2019USD ($) | Apr. 04, 2019CNY (¥)shares | Apr. 04, 2019USD ($)shares | Jul. 01, 2018CNY (¥) | Aug. 31, 2018CNY (¥)Acquisition | Aug. 31, 2018USD ($)Acquisition | Jul. 31, 2018CNY (¥) | Dec. 31, 2019CNY (¥)SegmentAcquisition | Dec. 31, 2019USD ($)SegmentAcquisition | Dec. 31, 2018CNY (¥)Acquisition | Nov. 30, 2019USD ($) | Jul. 01, 2019CNY (¥) | Jul. 01, 2019USD ($) | Jan. 31, 2015 |
Business Acquisition [Line Items] | |||||||||||||||||
Business acquisition, equity interest acquired | 100.00% | 100.00% | |||||||||||||||
Business acquisition, cash consideration paid | ¥ 183,555,000 | $ 26,366,026 | |||||||||||||||
Business acquisitions, net revenue of acquiree | ¥ 6,832,148 | $ 981,377 | |||||||||||||||
Business acquisitions, net loss of acquiree | 362,260 | $ 52,035 | |||||||||||||||
Payables for contingent consideration from Urban Hotel Group (Note 3) | ¥ 4,027,207 | ||||||||||||||||
Number of reporting unit | Segment | 1 | 1 | |||||||||||||||
2018 Business Combinations | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Business acquisition, number of acquisitions completed | Acquisition | 4 | ||||||||||||||||
Business acquisitions, net revenue of acquiree | ¥ 14,148,551 | ||||||||||||||||
Business acquisitions, net loss of acquiree | 332,960 | ||||||||||||||||
Business Combination, recognized identifiable current assets | 11,520,969 | ||||||||||||||||
Yancheng Zexin Hotel Management Co., Ltd. | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Business acquisition, equity interest acquired | 1.00% | 50.00% | |||||||||||||||
Business acquisition, cash consideration paid | ¥ 80,000 | ||||||||||||||||
Business acquisition, acquisition closing date | Jul. 1, 2018 | ||||||||||||||||
Business acquisition, total equity interest acquired | 51.00% | ||||||||||||||||
Business acquisition, fair value of previously held equity interest | ¥ 3,333,000 | ||||||||||||||||
Business acquisition, gain related to revaluation of previously held equity interest | ¥ 1,344,212 | ||||||||||||||||
Business acquisition, gain, related to revaluation of previously held equity interest, recorded in consolidated statement of comprehensive income | Other income, net | ||||||||||||||||
Hotel Chain, Acquired in July 2018 | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Business acquisition, equity interest acquired | 100.00% | ||||||||||||||||
Business acquisition, cash consideration paid | ¥ 10,000,000 | ||||||||||||||||
Individual Hotel, Acquired in July 2018 | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Business acquisition, equity interest acquired | 70.00% | ||||||||||||||||
Business acquisition, cash consideration paid | ¥ 13,000,000 | ||||||||||||||||
Individual Hotel, Acquired in August 2018 | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Business acquisition, equity interest acquired | 70.00% | 70.00% | |||||||||||||||
Business acquisition, cash consideration paid | ¥ 1,400,000 | ||||||||||||||||
2019 Business Combinations | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Business acquisition, number of acquisitions completed | Acquisition | 4 | 4 | |||||||||||||||
2019 Business Combinations | General And Administrative Expenses | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Business combination, acquisition related costs | ¥ 2,589,034 | $ 371,892 | |||||||||||||||
Argyle Group | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Business acquisition, cash consideration paid | ¥ 65,779,032 | $ 9,448,567 | |||||||||||||||
Business acquisitions, net revenue of acquiree | 11,882,976 | 1,706,883 | |||||||||||||||
Business acquisitions, net loss of acquiree | ¥ 7,694,834 | 1,105,294 | |||||||||||||||
Business acquisition, Total consideration amount | ¥ 126,819,172 | $ 18,216,434 | |||||||||||||||
Equity interests issued for acquisition, shares | shares | 626,746 | 626,746 | |||||||||||||||
Business acquisition, consideration liabilities incurred | ¥ 6,000,000 | $ 861,846 | |||||||||||||||
Business Combination, recognized identifiable current assets | ¥ 3,777,860 | ||||||||||||||||
Argyle Beijing | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Business acquisition, equity interest acquired | 60.00% | 60.00% | |||||||||||||||
Urban Hotel Group | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Business acquisition, cash consideration paid | ¥ 126,000,000 | $ 18,098,768 | |||||||||||||||
Business acquisition, Total consideration amount | ¥ 190,349,496 | $ 27,341,994 | |||||||||||||||
Equity interests issued for acquisition, shares | shares | 870,908 | 870,908 | |||||||||||||||
Business acquisition, consideration liabilities incurred | ¥ 10,500,000 | 1,508,231 | |||||||||||||||
Business acquisition, returnable consideration | ¥ 3,333,421 | $ 478,816 | |||||||||||||||
Payables for contingent consideration from Urban Hotel Group (Note 3) | 4,027,207 | $ 578,472 | |||||||||||||||
Business Combination, recognized identifiable current assets | 50,482,296 | ||||||||||||||||
Urban Hotel Group | Maximum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Business acquisition, estimated contingent consideration | 105,000,000 | $ 15,000,000 | |||||||||||||||
Business acquisition, estimated returnable consideration | ¥ 69,000,000 | $ 10,000,000 | |||||||||||||||
Shandong Xinghui | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Business acquisition, equity interest acquired | 70.00% | 70.00% | |||||||||||||||
Others | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Business acquisition, number of acquisitions completed | Acquisition | 1 | 1 | |||||||||||||||
Business acquisition, cash consideration paid | ¥ 5,530,000 | $ 794,335 | |||||||||||||||
Business acquisition, consideration liabilities incurred | ¥ 276,500 | $ 39,717 | |||||||||||||||
Business Combination, recognized identifiable current assets | ¥ 37,255,016 | $ 5,351,348 |
Business Combinations - Summary
Business Combinations - Summary of Fair Values of the Assets Acquired and Liabilities (Details) | Nov. 30, 2019CNY (¥) | Apr. 04, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Intangible assets | ||||||||
Goodwill | ¥ 5,787,068 | ¥ 100,078,236 | $ 14,375,339 | $ 831,260 | ¥ 2,959,183 | ¥ 2,959,183 | ||
2018 Business Combinations | ||||||||
Business Acquisition [Line Items] | ||||||||
Current assets | 11,520,969 | |||||||
Property and equipment | 32,618,088 | |||||||
Intangible assets | ||||||||
Goodwill | 2,827,885 | |||||||
Current liabilities | (18,636,959) | |||||||
Deferred tax liabilities | (5,406,250) | |||||||
Noncontrolling interest | (8,509,857) | |||||||
Total | ¥ 36,038,876 | |||||||
2018 Business Combinations | Minimum | ||||||||
Intangible assets | ||||||||
Amortization Period | 3 years | |||||||
2018 Business Combinations | Maximum | ||||||||
Intangible assets | ||||||||
Amortization Period | 17 years | |||||||
2018 Business Combinations | Favorable Leases | ||||||||
Intangible assets | ||||||||
Intangible assets | ¥ 20,095,000 | |||||||
Amortization Period | Remaining lease terms | |||||||
2018 Business Combinations | Trademark | ||||||||
Intangible assets | ||||||||
Intangible assets | ¥ 1,530,000 | |||||||
Amortization Period | Remaining beneficial period | |||||||
Argyle Group | ||||||||
Business Acquisition [Line Items] | ||||||||
Current assets | ¥ 3,777,860 | |||||||
Property and equipment | 1,013,378 | |||||||
Intangible assets | ||||||||
Goodwill | 42,198,903 | |||||||
Current liabilities | (7,618,079) | |||||||
Deferred tax liabilities | (57,625,000) | |||||||
Non current liabilities | (15,642,000) | |||||||
Noncontrolling interest | (70,455,096) | |||||||
Total | ¥ 126,819,172 | |||||||
Argyle Group | Minimum | ||||||||
Intangible assets | ||||||||
Amortization Period | 3 years | |||||||
Argyle Group | Maximum | ||||||||
Intangible assets | ||||||||
Amortization Period | 17 years | |||||||
Argyle Group | Trademark | ||||||||
Intangible assets | ||||||||
Intangible assets | ¥ 230,500,000 | |||||||
Amortization Period | Indefinite life | |||||||
Argyle Group | Purchased Software | ||||||||
Intangible assets | ||||||||
Intangible assets | ¥ 669,206 | |||||||
Argyle Group | Purchased Software | Minimum | ||||||||
Intangible assets | ||||||||
Amortization Period | 4 years | |||||||
Argyle Group | Purchased Software | Maximum | ||||||||
Intangible assets | ||||||||
Amortization Period | 7 years | |||||||
Urban Hotel Group | ||||||||
Business Acquisition [Line Items] | ||||||||
Current assets | ¥ 50,482,296 | |||||||
Property and equipment | 6,913,189 | |||||||
Intangible assets | ||||||||
Goodwill | 49,037,577 | |||||||
Current liabilities | (19,831,341) | |||||||
Deferred tax liabilities | (58,225,000) | |||||||
Non current liabilities | (11,517,000) | |||||||
Noncontrolling interest | (67,981,964) | |||||||
Total | 190,349,496 | |||||||
Deferred tax assets | 4,000,000 | |||||||
Other assets | ¥ 4,537,000 | |||||||
Urban Hotel Group | Minimum | ||||||||
Intangible assets | ||||||||
Amortization Period | 3 years | |||||||
Urban Hotel Group | Maximum | ||||||||
Intangible assets | ||||||||
Amortization Period | 10 years | |||||||
Urban Hotel Group | Favorable Leases | ||||||||
Intangible assets | ||||||||
Intangible assets | ¥ 20,100,000 | |||||||
Amortization Period | Remaining lease terms | |||||||
Urban Hotel Group | Trademark | ||||||||
Intangible assets | ||||||||
Intangible assets | ¥ 212,800,000 | |||||||
Amortization Period | Indefinite life | |||||||
Urban Hotel Group | Purchased Software | ||||||||
Intangible assets | ||||||||
Intangible assets | ¥ 34,739 | |||||||
Amortization Period | 2 years |
Business Combinations - Summa_2
Business Combinations - Summary of Fair Values of the Assets Acquired and Liabilities (Parenthetical) (Details) - CNY (¥) | Nov. 30, 2019 | Dec. 31, 2018 |
2018 Business Combinations | ||
Business Acquisition [Line Items] | ||
Cash and cash equivalents | ¥ 1,177,106 | |
Other receivables | 1,438,641 | |
Loans/accounts receivable | ¥ 7,500,000 | |
Urban Hotel Group | ||
Business Acquisition [Line Items] | ||
Cash and cash equivalents | ¥ 28,162,864 | |
Other receivables | 16,928,966 | |
Loans/accounts receivable | ¥ 5,116,320 |
Business Combinations - Summa_3
Business Combinations - Summary of Business Acquisition, Pro Forma Information (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition, Pro Forma Information | ||
Proforma net revenue | ¥ 1,189,828,873 | ¥ 991,089,437 |
Proforma net income | ¥ 468,408,130 | ¥ 395,817,977 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Summary of Revenues Disaggregated by Type of Services (Details) | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Disaggregation Of Revenue [Line Items] | ||||
Revenues | ¥ 1,091,793,135 | $ 156,826,271 | ¥ 905,614,669 | ¥ 743,175,399 |
Leased and Owned Hotels | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 253,420,676 | 36,401,602 | 212,671,930 | 193,042,455 |
Franchise and Managed Hotel | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 838,372,459 | 120,424,669 | 692,942,739 | 550,132,944 |
Initial Franchise Fee | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 54,930,266 | 7,890,239 | 42,806,330 | 35,140,250 |
Continuing Franchise Fees | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | ¥ 783,442,193 | $ 112,534,430 | ¥ 650,136,409 | ¥ 514,992,694 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Contract Liabilities (Details) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Contract With Customer Asset And Liability [Abstract] | |||
Advance from customers | ¥ 40,105,627 | $ 5,760,813 | ¥ 36,370,325 |
Deferred revenue-current | 231,925,272 | 33,313,981 | 210,585,604 |
Deferred revenue-non current | 410,807,248 | 59,008,769 | 380,173,585 |
Total contract liabilities | ¥ 682,838,147 | $ 98,083,563 | ¥ 627,129,514 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Schedule of Components of Deferred Revenue (Details) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||
Deferred revenue | ¥ 642,732,520 | $ 92,322,750 | ¥ 590,759,189 |
Initial Franchise Fee | |||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||
Deferred revenue | 295,443,732 | 42,437,837 | 274,637,959 |
Membership Fees | |||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||
Deferred revenue | 257,351,279 | 36,966,198 | 238,496,707 |
Cash Received for Prepaid Card and Sublease | |||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||
Deferred revenue | 58,075,704 | 8,342,053 | 53,356,062 |
Greentree Reward Membership Program | |||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||
Deferred revenue | ¥ 31,861,805 | $ 4,576,662 | ¥ 24,268,461 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2019USD ($) | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||
Contract liabilities, revenues recognized | ¥ 212,226,297 | $ 30,484,400 | ¥ 139,641,810 | |
Deferred revenues, expected to be recognized as revenues | 642,732,520 | 590,759,189 | $ 92,322,750 | |
Initial Franchise Fee | ||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||
Deferred revenues, expected to be recognized as revenues | 295,443,732 | 274,637,959 | 42,437,837 | |
Membership Fees | ||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||
Deferred revenues, expected to be recognized as revenues | 257,351,279 | 238,496,707 | 36,966,198 | |
Greentree Reward Membership Program | ||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||
Deferred revenues, expected to be recognized as revenues | 31,861,805 | 24,268,461 | 4,576,662 | |
Cash Received for Prepaid Card and Sublease | ||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||
Deferred revenues, expected to be recognized as revenues | ¥ 58,075,704 | ¥ 53,356,062 | $ 8,342,053 |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Additional Information (Details 1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | Dec. 31, 2019 |
Initial Franchise Fee | Minimum | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Deferred revenues, remaining contract periods | 1 year |
Initial Franchise Fee | Maximum | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Deferred revenues, remaining contract periods | 27 years |
Membership Fees | Minimum | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Deferred revenues, remaining contract periods | 1 year |
Membership Fees | Maximum | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Deferred revenues, remaining contract periods | 5 years |
Greentree Reward Membership Program | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Deferred revenues, remaining contract periods | 2 years |
Loans Receivable, Net - Summary
Loans Receivable, Net - Summary of Loans Receivable, Net (Details) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Accounts Notes And Loans Receivable [Line Items] | |||
Loans receivable, current portion | ¥ 82,312,201 | $ 11,823,407 | ¥ 67,196,568 |
Less: bad debt provision | (15,000,000) | (2,154,616) | |
Loans receivable, non-current portion | 121,563,742 | 17,461,539 | 39,352,863 |
Franchisees | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans receivable, current portion | 79,572,201 | 11,429,831 | 18,757,404 |
Loans receivable, non-current portion | 113,963,742 | 16,369,867 | 39,352,863 |
Third Parties | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans receivable, current portion | 17,740,000 | 2,548,192 | 48,439,164 |
Less: bad debt provision | (15,000,000) | (2,154,616) | ¥ 0 |
Loans receivable, non-current portion | ¥ 7,600,000 | $ 1,091,672 |
Loans Receivable, Net - Additio
Loans Receivable, Net - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Accounts Notes And Loans Receivable [Line Items] | |||
Loan amount | ¥ 82,312,201 | $ 11,823,407 | ¥ 67,196,568 |
Debt instrument, interest rate | 4.60% | 4.60% | |
Loans receivable, allowance | ¥ 15,000,000 | $ 2,154,616 | |
Minimum | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Long term, maturity period | 1 year | ||
Maximum | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Long term, maturity period | 3 years | ||
Franchisees | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loan amount | ¥ 79,572,201 | 11,429,831 | 18,757,404 |
Third Parties | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loan amount | 17,740,000 | 2,548,192 | 48,439,164 |
Loans receivable, allowance | 15,000,000 | 2,154,616 | ¥ 0 |
Loan Agreement | Franchisees | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loan amount | ¥ 157,411,151 | $ 22,610,697 | |
Loan Agreement | Franchisees | Minimum | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Long term, maturity period | 1 year | ||
Debt instrument, interest rate | 7.70% | 7.70% | |
Loan Agreement | Franchisees | Maximum | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Long term, maturity period | 3 years | ||
Debt instrument, interest rate | 9.90% | 9.90% | |
Loan Agreement | Third Parties | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loan amount | ¥ 10,340,000 | $ 1,485,249 | |
Loan Agreement | Third Parties | Minimum | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Debt instrument, interest rate | 6.50% | 6.50% | |
Loan Agreement | Third Parties | Maximum | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Debt instrument, interest rate | 10.00% | 10.00% |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) | 12 Months Ended | ||
Dec. 31, 2018CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | |
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | ¥ 489,202,134 | ¥ 893,426,715 | $ 128,332,718 |
Less: Accumulated depreciation | (265,449,689) | (295,096,805) | (42,388,004) |
Impairment | (5,008,677) | ||
Net book value | 218,743,768 | 598,329,910 | 85,944,714 |
Construction in progress | 3,645,805 | 16,606,595 | 2,385,388 |
Property and equipment, net | 222,389,573 | 614,936,505 | 88,330,102 |
Buildings | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 191,222,937 | 543,500,662 | 78,068,985 |
Leasehold Improvements | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 254,720,926 | 289,710,814 | 41,614,355 |
Furniture, Fixture and Equipment | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 40,771,896 | 57,302,434 | 8,230,980 |
Motor Vehicles | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | ¥ 2,486,375 | ¥ 2,912,805 | $ 418,398 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) | Jun. 03, 2019CNY (¥) | Jun. 03, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Property Plant And Equipment [Line Items] | ||||||
Business acquisition, equity interest acquired | 100.00% | 100.00% | ||||
Business acquisition, cash consideration paid | ¥ 183,555,000 | $ 26,366,026 | ||||
Depreciation expense | ¥ 37,340,304 | $ 5,363,599 | ¥ 23,919,015 | ¥ 24,076,465 | ||
Impairment charges | 5,008,677 | |||||
Property and Equipment | ||||||
Property Plant And Equipment [Line Items] | ||||||
Impairment charges | ¥ 0 | ¥ 5,008,677 | ¥ 0 |
Property and Equipment, Net -_2
Property and Equipment, Net - Schedule of Depreciation Expense (Details) | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Property Plant And Equipment [Line Items] | ||||
Depreciation expense | ¥ 37,340,304 | $ 5,363,599 | ¥ 23,919,015 | ¥ 24,076,465 |
Hotel Operating Costs | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation expense | 31,671,274 | 4,549,294 | 21,313,405 | 22,978,585 |
General And Administrative Expenses | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation expense | ¥ 5,669,030 | $ 814,305 | ¥ 2,605,610 | ¥ 1,097,880 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Intangible Assets, Net (Details) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Intangible assets with definite life: | |||
Finite-Lived Intangible Assets, Gross | ¥ 511,521,805 | $ 73,475,510 | ¥ 39,428,885 |
Less: Accumulated amortization | (15,241,489) | (2,189,303) | (12,215,494) |
Total. | 496,280,316 | 71,286,207 | 27,213,391 |
Trademark | |||
Intangible assets with indefinite life: | |||
Indefinite lives Intangible Assets, Gross | 443,300,000 | 63,676,061 | |
Trademark | |||
Intangible assets with definite life: | |||
Finite-Lived Intangible Assets, Gross | 4,724,493 | 678,631 | 4,724,493 |
Network Rights | |||
Intangible assets with definite life: | |||
Finite-Lived Intangible Assets, Gross | 390,317 | 56,066 | 259,048 |
Purchased Software | |||
Intangible assets with definite life: | |||
Finite-Lived Intangible Assets, Gross | 14,339,844 | 2,059,790 | 10,980,093 |
Reacquired Rights | |||
Intangible assets with definite life: | |||
Finite-Lived Intangible Assets, Gross | 2,531,418 | 363,615 | 2,531,418 |
Favorable Leases | |||
Intangible assets with definite life: | |||
Finite-Lived Intangible Assets, Gross | 41,600,548 | 5,975,545 | 20,498,648 |
Technology | |||
Intangible assets with definite life: | |||
Finite-Lived Intangible Assets, Gross | 4,200,000 | 603,292 | |
Others | |||
Intangible assets with definite life: | |||
Finite-Lived Intangible Assets, Gross | ¥ 435,185 | $ 62,510 | ¥ 435,185 |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization expense of intangible | ¥ 3,025,995 | $ 434,657 | ¥ 1,630,950 | ¥ 879,968 |
Impairment charges recognized | ¥ 0 | ¥ 0 | ¥ 0 |
Intangible Assets, Net - Sche_2
Intangible Assets, Net - Schedule of Estimated Aggregate Amortization Expense (Details) - Dec. 31, 2019 | CNY (¥) | USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2020 | ¥ 6,655,671 | $ 956,027 |
2021 | 6,621,247 | 951,083 |
2022 | 6,548,904 | 940,691 |
2023 | 6,162,554 | 885,196 |
2024 | 6,067,685 | 871,568 |
Thereafter | ¥ 20,924,255 | $ 3,005,581 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Carrying Amount of Goodwill (Details) | 12 Months Ended | ||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Balance as of January 1 | ¥ 5,787,068 | $ 831,260 | ¥ 2,959,183 |
Acquisitions (note 3) | 94,291,168 | 13,544,079 | 2,827,885 |
Balance as of December 31 | ¥ 100,078,236 | $ 14,375,339 | ¥ 5,787,068 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Goodwill, impairment loss | ¥ 0 | $ 0 | ¥ 0 | ¥ 0 |
Long-Term Investments - Schedul
Long-Term Investments - Schedule of Long-Term Investments (Details) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Schedule Of Investments [Line Items] | |||
Equity securities with readily determinable fair values | ¥ 207,007,926 | $ 29,734,828 | ¥ 307,693,782 |
Long-term investments | 398,637,701 | 57,260,723 | 112,219,460 |
Shanghai Wiselong Enterprise Management Co., Ltd. | |||
Schedule Of Investments [Line Items] | |||
Equity method investments | 23,579,728 | 3,387,016 | |
Others | |||
Schedule Of Investments [Line Items] | |||
Equity method investments | 8,217,986 | ||
China Gingko Education Group Company Limited | |||
Schedule Of Investments [Line Items] | |||
Equity securities with readily determinable fair values | 70,193,934 | 10,082,728 | |
Zhejiang New Century Hotel Management Co., Ltd. | |||
Schedule Of Investments [Line Items] | |||
Equity securities with readily determinable fair values | 192,639,353 | 27,670,912 | |
Yibon Hotel Group Co., Ltd | |||
Schedule Of Investments [Line Items] | |||
Equity securities without readily determinable fair values | 103,701,474 | 14,895,785 | 103,701,474 |
Others | |||
Schedule Of Investments [Line Items] | |||
Equity securities without readily determinable fair values | ¥ 8,523,212 | $ 1,224,282 | ¥ 300,000 |
Long-Term Investments - Additio
Long-Term Investments - Additional Information (Details) $ in Thousands, $ in Thousands | Mar. 11, 2019USD ($) | Jan. 31, 2019USD ($)shares | Apr. 30, 2017CNY (¥) | Jan. 31, 2019HKD ($) |
Yibon Hotel Group Co., Ltd | ||||
Schedule Of Investments [Line Items] | ||||
Equity securities without readily determinable fair values, percentage | 30.00% | |||
Payment to acquire, equity securities without readily determinable fair values | ¥ | ¥ 103,701,474 | |||
Zhejiang New Century Hotel Management Co [Member] | ||||
Schedule Of Investments [Line Items] | ||||
Percentage of ownership | 4.95% | |||
Equity interest, ordinary shares | $ | $ 29,200 | |||
China Gingko Education Group Company Limited | Initial Public Offering | ||||
Schedule Of Investments [Line Items] | ||||
Equity interest, percentage | 5.56% | 5.56% | ||
Equity interest, ordinary shares | 27,776,000 | |||
Equity interest | $ 5,190 | $ 40,400 | ||
China Gingko Education Group Company Limited | Secondary Market [Member] | ||||
Schedule Of Investments [Line Items] | ||||
Equity interest, percentage | 2.71% | 2.71% | ||
Equity interest, ordinary shares | 13,560,000 | |||
Equity interest | $ 2,510 | $ 19,530 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Other Noncurrent Assets [Line Items] | |||
Other assets | ¥ 76,957,992 | $ 11,054,324 | ¥ 25,701,523 |
Acquisition Deposits | |||
Other Noncurrent Assets [Line Items] | |||
Other assets | 38,869,400 | 5,583,240 | 18,120,615 |
Rental Deposit | |||
Other Noncurrent Assets [Line Items] | |||
Other assets | 6,685,000 | 960,240 | 5,065,000 |
Interest Receivable | |||
Other Noncurrent Assets [Line Items] | |||
Other assets | 17,326,910 | 2,488,855 | |
Returnable Consideration from the Acquisition of Urban Hotel Group | |||
Other Noncurrent Assets [Line Items] | |||
Other assets | 3,333,421 | 478,816 | |
Others | |||
Other Noncurrent Assets [Line Items] | |||
Other assets | ¥ 10,743,261 | $ 1,543,173 | ¥ 2,515,908 |
Short-term Debt - Schedule of S
Short-term Debt - Schedule of Short-term Debt (Details) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Short Term Borrowings [Abstract] | |||
Short-term bank borrowings | ¥ 60,000,000 | $ 8,618,461 | ¥ 60,000,000 |
Short-term Debt - Additional In
Short-term Debt - Additional Information (Details) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Nov. 30, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Short Term Borrowings [Abstract] | ||||
Aggregate principal amount | ¥ 60,000,000 | |||
Principal amount outstanding | ¥ 60,000,000 | $ 8,618,461 | ¥ 60,000,000 | |
Debt instrument, interest rate | 4.60% | 4.60% |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Payables And Accruals [Abstract] | |||
Other payables | ¥ 210,561,540 | $ 30,245,273 | ¥ 169,470,083 |
Business taxes and related tax surcharge | 64,345,243 | 9,242,616 | 52,639,207 |
Accrued rental | 2,250,443 | 323,256 | 2,151,623 |
Accrued utilities | 2,306,796 | 331,351 | 3,307,734 |
Other accrued expenses | 2,180,632 | 313,228 | 3,839,332 |
Payables for contingent consideration (Note 3) | 4,027,207 | 578,472 | |
Consideration payables for acquisitions | 16,776,500 | 2,409,793 | 10,000,000 |
Total | ¥ 302,448,361 | $ 43,443,989 | ¥ 241,407,979 |
Ordinary Shares - Additional In
Ordinary Shares - Additional Information (Details) | Dec. 31, 2019 |
Common Class A | |
Class Of Stock [Line Items] | |
Voting rights, percentage | 39.00% |
Common Class B | |
Class Of Stock [Line Items] | |
Voting rights, percentage | 61.00% |
Hotel Operating Costs - Schedul
Hotel Operating Costs - Schedule of Hotel Operating Costs (Details) | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Operating Expenses [Abstract] | ||||
Rental | ¥ 79,597,408 | $ 11,433,452 | ¥ 76,055,484 | ¥ 60,252,952 |
Utilities | 19,119,300 | 2,746,316 | 19,264,487 | 16,692,172 |
Personnel cost | 38,277,298 | 5,498,190 | 33,715,007 | 27,546,240 |
Depreciation and amortization | 34,727,153 | 4,988,243 | 21,313,405 | 22,978,585 |
Consumable, food and beverage | 27,666,436 | 3,974,035 | 19,275,688 | 13,470,072 |
Costs of hotel manager of franchised-and-managed hotels | 96,565,044 | 13,870,701 | 70,480,306 | 54,291,625 |
Other costs of franchised-and-managed hotels | 29,192,923 | 4,193,301 | 22,353,424 | 16,718,827 |
Others | 13,680,917 | 1,965,140 | 11,961,462 | 14,916,556 |
Total | ¥ 338,826,479 | $ 48,669,378 | ¥ 274,419,263 | ¥ 226,867,029 |
Share Based compensation - Addi
Share Based compensation - Additional Information (Details) | Nov. 11, 2017CNY (¥)shares | Jan. 31, 2018shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥) | Dec. 31, 2018CNY (¥)$ / shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($) |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Issuance of fully vested ordinary shares | 352,500 | |||||||
2018 Share Incentive Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Maximum life of option | 6 years | |||||||
Number of stock options granted | 96,000 | 96,000 | 1,829,000 | |||||
Cash used to settle related share-based compensation | ¥ 1,186,271 | $ 170,398 | ||||||
Weighted-average grant date fair value | $ / shares | $ 3.57 | $ 5.54 | ||||||
Aggregate grant date fair value of the outstanding options | 39,628,188 | ¥ 60,525,042 | $ 60,525,042 | ¥ 39,628,188 | $ 5,692,233 | |||
Fair value of share options vested | 11,316,415 | $ 1,625,501 | 5,431,798 | |||||
Unrecognized compensation expense related to unvested options, net | ¥ 12,314,260 | ¥ 42,791,057 | $ 42,791,057 | ¥ 12,314,260 | $ 1,768,833 | |||
Weighted-average period | 2 years 6 months 29 days | 2 years 6 months 29 days | 3 years 1 month 9 days | |||||
2018 Share Incentive Plan | Common Class A | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of authorized shares purchased by participants | 9,000,000 | |||||||
General And Administrative Expenses | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Share-based compensation expense | ¥ | ¥ 38,048,000 | |||||||
General And Administrative Expenses | 2018 Share Incentive Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Share-based compensation expense | ¥ 27,676,666 | $ 3,975,504 | ¥ 16,108,951 |
Share Based Compensation - Sche
Share Based Compensation - Schedule of Assumptions Used to Estimate Fair Value of Share Options (Details) - 2018 Share Incentive Plan | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 2.42% | |
Volatility | 34.00% | |
Dividend yield | 2.50% | |
Life of option | 6 years | 6 years |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 2.60% | |
Volatility | 37.98% | |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 1.60% | |
Volatility | 35.66% |
Share Based Compensation - Summ
Share Based Compensation - Summary of Share Option Activity Under Option Plans (Details) - 2018 Share Incentive Plan - USD ($) | 12 Months Ended | 24 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of options, Beginning balance | 1,591,500 | ||
Number of options, Granted | 96,000 | 1,829,000 | |
Number of options, Forfeited | (327,500) | ||
Number of options, Expired | (203,000) | ||
Number of options, Exercised | (135,000) | ||
Number of options, Ending balance | 1,022,000 | 1,591,500 | 1,022,000 |
Number of options, Vested and expected to vest | 898,665 | 898,665 | |
Number of options, Exercisable | 289,500 | 289,500 | |
Weighted average exercise price, Beginning balance | $ 12.94 | ||
Weighted average exercise price, Granted | 12 | ||
Weighted average exercise price, Forfeited | 15.19 | ||
Weighted average exercise price, Expired | 12 | ||
Weighted average exercise price, Exercised | 12 | ||
Weighted average exercise price, Ending balance | 12.28 | $ 12.94 | $ 12.28 |
Weighted average exercise price, Vested and expected to vest | 12.28 | 12.28 | |
Weighted average exercise price, Exercisable | $ 12.35 | $ 12.35 | |
Weighted average remaining contractual life, Outstanding | 3 years 11 months 15 days | 3 years 1 month 9 days | |
Weighted average remaining contractual life, Vested and expected to vest | 3 years 10 months 13 days | ||
Weighted average remaining contractual life, Exercisable | 3 years 2 months 15 days | ||
Aggregate intrinsic value, Outstanding | $ 1,180,080 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | Jan. 01, 2008 | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017 | Dec. 31, 2019USD ($)$ / shares |
Income Taxes [Line Items] | ||||||
Statutory tax rate | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |
Preferential income tax rate | 15.00% | |||||
Operating loss carryforwards | ¥ 62,964,595 | $ 9,044,298 | ||||
Withholding income tax on dividends distributed to holding company outside of China | 10.00% | 10.00% | ||||
PRC withholding tax liability accrued | ¥ 43,191,602 | ¥ 23,345,894 | $ 6,204,085 | |||
Ordinary Shares | Board of Directors | ||||||
Income Taxes [Line Items] | ||||||
Payment of cash dividend per ordinary shares | $ / shares | $ 0.25 | |||||
Earliest Tax Year | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforwards, expiration date | 2020 | 2020 | ||||
Latest Tax Year | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforwards, expiration date | 2024 | 2024 | ||||
Shanghai Evergreen Technology Co., Ltd. | ||||||
Income Taxes [Line Items] | ||||||
Preferential income tax rate | 15.00% | 15.00% | ||||
Shanghai Evergreen Technology Co., Ltd. | Earliest Tax Year | ||||||
Income Taxes [Line Items] | ||||||
Preferential Income Tax Rate Period | 2017 | 2017 | ||||
Shanghai Evergreen Technology Co., Ltd. | Latest Tax Year | ||||||
Income Taxes [Line Items] | ||||||
Preferential Income Tax Rate Period | 2019 | 2019 | ||||
Inland Revenue, Hong Kong | GreenTree Hotels (Hong Kong), Limited. | ||||||
Income Taxes [Line Items] | ||||||
Statutory tax rate | 16.50% | 16.50% | 16.50% | 16.50% | ||
PRC Subsidiaries | ||||||
Income Taxes [Line Items] | ||||||
Undistributed earnings of Groups PRC subsidiaries | ¥ 511,830,950 | $ 73,519,916 | ||||
Uncertain tax positions | 261,641,717 | 37,582,481 | ||||
Interest expense | 26,499,488 | $ 3,806,413 | ||||
Accumulated interest expense | 69,301,971 | ¥ 42,802,483 | $ 9,954,605 | |||
Accumulated tax penalty recorded | ¥ | ¥ 0 | ¥ 0 |
Income Taxes - Summary of Curre
Income Taxes - Summary of Current and Deferred Components of Income Tax Expense (Details) | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Income Tax Expense Benefit Continuing Operations [Abstract] | ||||
Current tax | ¥ 197,233,190 | $ 28,330,775 | ¥ 153,947,310 | ¥ 193,428,603 |
Deferred tax | (7,665,373) | (1,101,062) | (1,228,642) | (10,860,341) |
Total | ¥ 189,567,817 | $ 27,229,713 | ¥ 152,718,668 | ¥ 182,568,262 |
Income Taxes - Reconciliation B
Income Taxes - Reconciliation Between Effective Income Tax Rate and PRC Statutory Income Tax Rate (Details) | Jan. 01, 2008 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | ||||
PRC statutory tax rate | 25.00% | 25.00% | 25.00% | 25.00% |
Withholding tax on the PRC earnings distribution | 3.00% | 4.00% | 14.00% | |
Effect of international rate difference | 0.00% | (1.00%) | 2.00% | |
Effect of preferential tax rate | (5.00%) | (3.00%) | (3.00%) | |
Tax effect of expenses that are not deductible in determining taxable profit | 7.00% | 4.00% | 1.00% | |
Effective tax rate | 30.00% | 29.00% | 39.00% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Tax Assets and Liabilities (Details) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Deferred tax assets: | |||
Net loss carryforward | ¥ 15,741,149 | $ 2,261,075 | ¥ 3,378,686 |
Deferred revenue | 146,046,006 | 20,978,196 | 117,236,504 |
Deferred rent | 5,683,389 | 816,368 | 6,235,277 |
Bad debt expenses | 5,268,134 | 756,720 | 1,608,304 |
Accrued expenses | 7,368,561 | 1,058,427 | 7,874,804 |
Impairment of long-lived assets | 1,252,169 | ||
Valuation allowance | (19,619,046) | (2,818,099) | (4,284,778) |
Total deferred tax assets | 160,488,193 | 23,052,687 | 133,300,966 |
Deferred tax liabilities: | |||
Depreciation of property and equipment | (3,864,132) | (555,048) | (4,028,230) |
Unrealized gains from equity securities | (4,304,431) | (618,293) | (10,312,983) |
Intangible assets arising from acquisition | (143,943,382) | (20,676,173) | (5,851,517) |
Withholding tax on PRC earnings to be distributed | (43,191,602) | (6,204,085) | (23,345,894) |
Total deferred tax liabilities | ¥ (195,303,547) | $ (28,053,599) | ¥ (43,538,624) |
Income Taxes - Summary of Unrec
Income Taxes - Summary of Unrecognized Tax Benefit (Details) | 12 Months Ended | ||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits beginning balance | ¥ 169,619,409 | ¥ 113,299,633 | |
Increases — tax positions in the current period | 104,031,858 | 58,693,484 | |
Decreases — tax positions in prior period | (12,009,550) | (2,373,708) | |
Unrecognized tax benefits — ending balance | ¥ 261,641,717 | $ 37,582,481 | ¥ 169,619,409 |
Mainland and China Contributi_2
Mainland and China Contribution Plan and Profit Appropriation - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Compensation And Retirement Disclosure [Abstract] | ||||
Employee benefits | ¥ 28,700,397 | $ 4,122,554 | ¥ 22,289,686 | ¥ 22,859,925 |
Statutory Reserves and Restri_2
Statutory Reserves and Restricted Net Assets - Additional Information (Details) - PRC | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Statutory Accounting Practices [Line Items] | |||
Statutory reserve funds | ¥ 63,030,266 | $ 9,053,731 | ¥ 57,726,641 |
Restricted net assets | ¥ 509,435,466 | $ 73,175,826 | ¥ 394,424,291 |
Related Party Transactions an_3
Related Party Transactions and Balances - Schedule of Related Party Transactions or Balances with the Group (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Alex S. Xu | |
Related Party Transaction [Line Items] | |
Related Party | Alex S. Xu |
Nature of the party | Individual |
Relationship with the Group | Founder and CEO |
Hui Xu | |
Related Party Transaction [Line Items] | |
Related Party | Hui Xu |
Nature of the party | Individual |
Relationship with the Group | Brother of Alex S. Xu |
Yan Zhang | |
Related Party Transaction [Line Items] | |
Related Party | Yan Zhang |
Nature of the party | Individual |
Relationship with the Group | Executive officer for catering management entities controlled by GTI |
Wen Qi | |
Related Party Transaction [Line Items] | |
Related Party | Wen Qi |
Nature of the party | Individual |
Relationship with the Group | Vice president, human resources and administration of the Group |
GTI | |
Related Party Transaction [Line Items] | |
Related Party | GTI |
Nature of the party | Investment holding |
Relationship with the Group | Shareholder of the Group, controlled by Alex S. Xu |
Da Niang Group | |
Related Party Transaction [Line Items] | |
Related Party | Da Niang Dumpling Catering Group Co., Ltd, together with its subsidiaries (“Da Niang Group”) |
Nature of the party | Catering management |
Relationship with the Group | Controlled by GTI |
Aotao | |
Related Party Transaction [Line Items] | |
Related Party | Shanghai Aotao Industrial Co., Ltd, together with its subsidiaries and VIE (“Aotao”) **** |
Nature of the party | Catering management |
Relationship with the Group | Controlled by GTI |
JYHM | |
Related Party Transaction [Line Items] | |
Related Party | Shanghai JYHM Restaurant Management Co., Ltd. (“JYHM”) |
Nature of the party | Catering management |
Relationship with the Group | Controlled by GTI |
Bayshore | |
Related Party Transaction [Line Items] | |
Related Party | 1250 Bayshore Highway, LLC (“Bayshore”) |
Nature of the party | Hotel management |
Relationship with the Group | Controlled by Alex S. Xu |
519 | |
Related Party Transaction [Line Items] | |
Related Party | 519 Information Technology (Shanghai) Inc. (“519”) |
Nature of the party | Wine distributor |
Relationship with the Group | Controlled by Hui Xu |
Napa | |
Related Party Transaction [Line Items] | |
Related Party | Napa Infinity Winery (Shanghai) Inc. (“Napa”) |
Nature of the party | Wine distributor |
Relationship with the Group | Controlled by Hui Xu |
Rongcheng | |
Related Party Transaction [Line Items] | |
Related Party | Pacific Hotel Management (Rongcheng) Co., Ltd. (“Rongcheng”) |
Nature of the party | Hotel management |
Relationship with the Group | Controlled by Hui Xu |
Yibon | |
Related Party Transaction [Line Items] | |
Related Party | Yibon |
Nature of the party | Hotel management |
Relationship with the Group | Equity investee of the Group |
TB | |
Related Party Transaction [Line Items] | |
Related Party | TB* |
Nature of the party | Franchised hotels |
Relationship with the Group | Equity investee of the Group |
Shiquanmeiwei | |
Related Party Transaction [Line Items] | |
Related Party | Shiquanmeiwei (Beijing) Catering and Management Co., Ltd.(“Shiquanmeiwei”) **** |
Nature of the party | Catering management |
Relationship with the Group | Controlled by GTI |
Steigenberger | |
Related Party Transaction [Line Items] | |
Related Party | Steigenberger** |
Nature of the party | Franchised hotels |
Relationship with the Group | Equity investee of the Group |
Ze Xin | |
Related Party Transaction [Line Items] | |
Related Party | Yancheng Zexin Hotel Management Co., Ltd. (“Ze Xin”) *** |
Nature of the party | Hotel management |
Relationship with the Group | Equity investee of the Group |
Related Party Transactions an_4
Related Party Transactions and Balances - Schedule of Related Party Balances (Details) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Current: | |||
Due from related parties, current | ¥ 31,739,731 | $ 4,559,127 | ¥ 228,600 |
Due to related parties: | |||
Amounts due to related parties | 3,518,031 | 505,334 | 285,578 |
Aotao | |||
Current: | |||
Due from related parties, current | 20,086,504 | 2,885,246 | |
GTI | |||
Current: | |||
Due from related parties, current | 8,424,629 | 1,210,122 | |
Napa | |||
Current: | |||
Due from related parties, current | 2,506,484 | 360,034 | |
Yibon | |||
Current: | |||
Due from related parties, current | 722,114 | 103,725 | |
Due to related parties: | |||
Amounts due to related parties | 3,205,890 | 460,498 | |
Steigenberger | |||
Current: | |||
Due from related parties, current | 225,000 | ||
Shiquanmeiwei | |||
Current: | |||
Due from related parties, current | 3,600 | ||
JYHM | |||
Due to related parties: | |||
Amounts due to related parties | ¥ 312,141 | $ 44,836 | 221,028 |
TB | |||
Due to related parties: | |||
Amounts due to related parties | ¥ 64,550 |
Related Party Transactions an_5
Related Party Transactions and Balances - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Related Party Transaction [Line Items] | |||
Interest rate percentage | 4.60% | 4.60% | |
Due from related parties, current | ¥ 31,739,731 | $ 4,559,127 | ¥ 228,600 |
GTI | |||
Related Party Transaction [Line Items] | |||
Long term, maturity period | 1 year | ||
Interest rate percentage | 4.35% | 4.35% | |
Due from related parties, current | ¥ 8,424,629 | $ 1,210,122 | |
Aotao | |||
Related Party Transaction [Line Items] | |||
Long term, maturity period | 1 year | ||
Interest rate percentage | 4.35% | 4.35% | |
Yibon | |||
Related Party Transaction [Line Items] | |||
Due from related parties, current | ¥ 722,114 | $ 103,725 |
Related Party Transactions an_6
Related Party Transactions and Balances - Schedule of Related Party Transactions (Details) | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | |
Related Party Transaction [Line Items] | |||||
Loan to related parties (including loan to a related party settled with dividend payable in December) | ¥ (634,638,425) | $ (91,160,105) | ¥ (4,300,000) | ¥ (3,500,000) | |
Sublease revenue from related party | 74,893,930 | 10,757,840 | 53,852,195 | 42,218,264 | |
Aotao | |||||
Related Party Transaction [Line Items] | |||||
Loan to related parties (including loan to a related party settled with dividend payable in December) | (167,279,750) | (24,028,233) | |||
Repayment from related party | 157,279,750 | 22,591,823 | |||
Interest income from related party | 1,316,854 | 189,154 | |||
Franchise management fee to related party | (24,941) | (3,583) | |||
GTI | |||||
Related Party Transaction [Line Items] | |||||
Loan to related parties (including loan to a related party settled with dividend payable in December) | (192,558,675) | (27,659,323) | |||
Repayment from related party | 184,134,046 | 26,449,201 | 1,717,539 | 9,730,276 | |
Interest income from related party | 907,880 | 130,409 | |||
Da Niang Group | |||||
Related Party Transaction [Line Items] | |||||
Loan to related parties (including loan to a related party settled with dividend payable in December) | (274,800,000) | (39,472,550) | |||
Repayment from related party | 274,800,000 | 39,472,550 | |||
Interest income from related party | 875,315 | 125,731 | |||
Purchase from related party | (339,121) | $ (48,712) | |||
JYHM | |||||
Related Party Transaction [Line Items] | |||||
Purchase from related party | (18,418) | (2,646) | |||
Sublease revenue from related party | 385,355 | 55,353 | |||
Advance from/(Repayment to) related party | 312,141 | 44,836 | 221,028 | ||
Napa | |||||
Related Party Transaction [Line Items] | |||||
Purchase from related party | (3,576,659) | (4,035,262) | $ (513,755) | ||
Revenue from related party | 2,358,491 | 338,776 | |||
Yibon | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related party | ¥ 681,239 | $ 97,854 | |||
Rongcheng | |||||
Related Party Transaction [Line Items] | |||||
Advance from/(Repayment to) related party | 141,380 | ||||
TB | |||||
Related Party Transaction [Line Items] | |||||
Advance from/(Repayment to) related party | 294,193 | ||||
Revenue from related party | 389,583 | 400,639 | |||
Shiquanmeiwei | |||||
Related Party Transaction [Line Items] | |||||
Purchase from related party | (3,600) | ||||
Steigenberger | |||||
Related Party Transaction [Line Items] | |||||
Loan to related parties (including loan to a related party settled with dividend payable in December) | (225,000) | ||||
Bayshore | |||||
Related Party Transaction [Line Items] | |||||
Repayment from related party | 8,671,250 | ||||
Yan Zhang | |||||
Related Party Transaction [Line Items] | |||||
Repayment from related party | 128,110,474 | ||||
Interest income from related party | 3,515,358 | ||||
Ze Xin | |||||
Related Party Transaction [Line Items] | |||||
Loan to related parties (including loan to a related party settled with dividend payable in December) | (4,300,000) | (3,500,000) | |||
Repayment from related party | 367,488 | ||||
Interest income from related party | 263,366 | 75,460 | |||
Revenue from related party | ¥ 44,763 | 232,766 | |||
519 | |||||
Related Party Transaction [Line Items] | |||||
Advance from/(Repayment to) related party | ¥ (4,100) |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Lease Payments under Non-Cancellable Operating Lease Agreements (Details) - Dec. 31, 2019 | CNY (¥) | USD ($) |
Commitments And Contingencies Disclosure [Abstract] | ||
2020 | ¥ 95,832,417 | $ 13,765,465 |
2021 | 98,443,524 | 14,140,527 |
2022 | 84,716,637 | 12,168,784 |
2023 | 77,391,692 | 11,116,621 |
2024 | 66,291,320 | 9,522,152 |
Thereafter | 346,317,562 | 49,745,405 |
Total | ¥ 768,993,152 | $ 110,458,954 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) | Dec. 31, 2019 |
Minimum | |
Operating Leased Assets [Line Items] | |
Lease agreement period | 1 year |
Maximum | |
Operating Leased Assets [Line Items] | |
Lease agreement period | 20 years |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Future Minimum Lease Receivables under Non-Cancellable Operating Leases with Tenants (Details) - Dec. 31, 2019 | CNY (¥) | USD ($) |
Commitments And Contingencies Disclosure [Abstract] | ||
2020 | ¥ 68,958,773 | $ 9,905,308 |
2021 | 59,328,993 | 8,522,077 |
2022 | 56,454,340 | 8,109,159 |
2023 | 51,396,861 | 7,382,697 |
2024 | 48,665,175 | 6,990,315 |
Thereafter | 270,004,257 | 38,783,685 |
Total | ¥ 554,808,399 | $ 79,693,241 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earning Per Share (Details) | 12 Months Ended | |||
Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net income used in calculating earnings per share-basic and diluted | ¥ 442,718,263 | $ 63,592,500 | ¥ 371,711,219 | ¥ 273,535,224 |
Common Class A | ||||
Weighted average shares outstanding | ||||
Weighted average shares outstanding basic and diluted | 67,315,727 | 67,315,727 | 62,860,578 | 48,635,252 |
Allocation of undistributed earnings — basic and diluted: | ||||
Allocation of undistributed earnings - basic | ¥ 291,950,431 | $ 41,936,056 | ¥ 235,665,522 | ¥ 145,628,165 |
Basic and diluted earnings per share: | ||||
Basic and diluted earnings per share | (per share) | ¥ 4.34 | $ 0.62 | ¥ 3.75 | ¥ 2.99 |
Common Class B | ||||
Weighted average shares outstanding | ||||
Weighted average shares outstanding basic and diluted | 34,762,909 | 34,762,909 | 36,288,343 | 42,716,957 |
Allocation of undistributed earnings — basic and diluted: | ||||
Allocation of undistributed earnings - basic | ¥ 150,767,832 | $ 21,656,444 | ¥ 136,045,697 | ¥ 127,907,059 |
Basic and diluted earnings per share: | ||||
Basic and diluted earnings per share | (per share) | ¥ 4.34 | $ 0.62 | ¥ 3.75 | ¥ 2.99 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - Urban Hotel Group - shares | Jan. 15, 2020 | Nov. 30, 2019 |
Earnings Per Share [Line Items] | ||
Business acquisition, shares issued | 870,908 | |
Common Class A | Subsequent Event | ||
Earnings Per Share [Line Items] | ||
Business acquisition, shares issued | 870,908 |
Parent Company Only Condensed_3
Parent Company Only Condensed Financial Information - Condensed Balance Sheets (Details) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Current assets: | ||||
Cash and cash equivalents | ¥ 319,847,701 | $ 45,943,248 | ¥ 1,264,025,785 | ¥ 161,963,665 |
Amounts due from a related party | 31,739,731 | 4,559,127 | 228,600 | |
Other current assets | 66,004,017 | 9,480,884 | 53,969,039 | |
Total current assets | 1,265,224,210 | 181,738,086 | 2,450,516,163 | |
Non-current assets: | ||||
Equity securities with readily determinable fair values | 207,007,926 | 29,734,828 | 307,693,782 | |
Other assets | 76,957,992 | 11,054,324 | 25,701,523 | |
TOTAL ASSETS | 3,816,479,417 | 548,202,967 | 3,079,781,007 | |
Current liabilities: | ||||
Other payables | 210,561,540 | 30,245,273 | 169,470,083 | |
Other long-term liabilities | 118,112,511 | 16,965,801 | 96,573,810 | |
Total liabilities | 1,798,719,410 | 258,369,877 | 1,420,433,938 | |
Shareholders’ equity: | ||||
Additional paid-in capital | 1,152,108,217 | 165,489,991 | 1,003,026,803 | |
Retained earnings | 308,698,533 | 44,341,770 | 252,617,450 | |
Accumulated other comprehensive (loss) income | 65,300,854 | 9,379,881 | 62,367,692 | |
Total GreenTree Hospitality Group Ltd. shareholders’ equity | 1,861,168,513 | 267,340,130 | 1,650,968,022 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 3,816,479,417 | 548,202,967 | 3,079,781,007 | |
Common Class A | ||||
Shareholders’ equity: | ||||
Ordinary shares, value | 219,526,699 | 31,533,037 | 217,421,867 | |
Common Class B | ||||
Shareholders’ equity: | ||||
Ordinary shares, value | 115,534,210 | 16,595,451 | 115,534,210 | |
Parent Company | ||||
Current assets: | ||||
Cash and cash equivalents | 22,137,640 | 3,179,873 | 721,573,493 | |
Amounts due from subsidiaries | 6,271,868 | 900,898 | ||
Amounts due from a related party | 8,424,629 | 1,210,122 | ||
Other current assets | 2,416,728 | 347,141 | 4,117,311 | |
Total current assets | 39,250,865 | 5,638,034 | 725,690,804 | |
Non-current assets: | ||||
Investments in subsidiaries | 1,577,484,393 | 226,597,450 | 925,492,357 | |
Equity securities with readily determinable fair values | 262,833,287 | 37,747,645 | ||
Other assets | 6,875,561 | |||
TOTAL ASSETS | 1,879,568,545 | 269,983,129 | 1,658,058,722 | |
Current liabilities: | ||||
Other payables | 6,000,000 | 861,846 | ||
Amounts due to subsidiaries | 4,924,176 | 707,314 | 7,090,700 | |
Other long-term liabilities | 7,475,856 | 1,073,839 | ||
Total liabilities | 18,400,032 | 2,642,999 | 7,090,700 | |
Shareholders’ equity: | ||||
Additional paid-in capital | 1,152,108,217 | 165,489,991 | 1,003,026,803 | |
Retained earnings | 308,698,533 | 44,341,770 | 252,617,450 | |
Accumulated other comprehensive (loss) income | 65,300,854 | 9,379,881 | 62,367,692 | |
Total GreenTree Hospitality Group Ltd. shareholders’ equity | 1,861,168,513 | 267,340,130 | 1,650,968,022 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 1,879,568,545 | 269,983,129 | 1,658,058,722 | |
Parent Company | Common Class A | ||||
Shareholders’ equity: | ||||
Ordinary shares, value | 219,526,699 | 31,533,037 | 217,421,867 | |
Parent Company | Common Class B | ||||
Shareholders’ equity: | ||||
Ordinary shares, value | ¥ 115,534,210 | $ 16,595,451 | ¥ 115,534,210 |
Parent Company Only Condensed_4
Parent Company Only Condensed Financial Information - Condensed Balance Sheets (Parenthetical) (Details) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Common Class A | ||||
Common stock, par value | $ 0.50 | $ 0.50 | ||
Common stock, authorized | 400,000,000 | 400,000,000 | ||
Common stock, issued | 67,416,046 | 66,789,300 | ||
Common stock, outstanding | 67,416,046 | 66,789,300 | 48,635,252 | 48,635,252 |
Common Class B | ||||
Common stock, par value | $ 0.50 | $ 0.50 | ||
Common stock, authorized | 100,000,000 | 100,000,000 | ||
Common stock, issued | 34,762,909 | 34,762,909 | ||
Common stock, outstanding | 34,762,909 | 34,762,909 | 42,716,957 | 42,716,957 |
Parent Company | Common Class A | ||||
Common stock, par value | $ 0.50 | $ 0.50 | ||
Common stock, authorized | 400,000,000 | 400,000,000 | ||
Common stock, issued | 67,416,046 | 66,789,300 | ||
Common stock, outstanding | 67,416,046 | 66,789,300 | ||
Parent Company | Common Class B | ||||
Common stock, par value | $ 0.50 | $ 0.50 | ||
Common stock, authorized | 100,000,000 | 100,000,000 | ||
Common stock, issued | 34,762,909 | 34,762,909 | ||
Common stock, outstanding | 34,762,909 | 34,762,909 |
Parent Company Only Condensed_5
Parent Company Only Condensed Financial Information - Condensed Statements of Operations (Details) | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
General and administrative expenses | ¥ (184,989,324) | $ (26,572,054) | ¥ (95,261,152) | ¥ (121,657,492) |
Interest expenses | (2,505,904) | (359,951) | (541,876) | (1,442,709) |
Share of profit in subsidiaries, net (Note a) | 140,564 | 20,191 | (8,300,584) | (899,584) |
Income before income taxes and share of (losses) gains in equity investees | 626,079,555 | 89,930,701 | 532,239,541 | 456,654,520 |
Other comprehensive income, net of tax - Foreign currency translation adjustments | 2,933,162 | 421,322 | 66,453,841 | 1,317,020 |
Comprehensive income attributable to ordinary shareholders | 445,651,425 | 64,013,822 | 438,165,060 | 274,852,244 |
Parent Company | ||||
General and administrative expenses | (33,538,433) | (4,817,495) | (1,307,753) | |
interest income | 5,970,063 | 857,546 | 13,785,679 | |
Interest expenses | (646,315) | (92,837) | ||
Gains on investments in equity securities | 6,473,358 | 929,840 | ||
Share of profit in subsidiaries, net (Note a) | 464,459,590 | 66,715,446 | 359,233,293 | 273,535,224 |
Income before income taxes and share of (losses) gains in equity investees | 442,718,263 | 63,592,500 | 371,711,219 | 273,535,224 |
Other comprehensive income, net of tax - Foreign currency translation adjustments | 2,933,162 | 421,322 | 66,453,841 | 1,317,020 |
Comprehensive income attributable to ordinary shareholders | ¥ 445,651,425 | $ 64,013,822 | ¥ 438,165,060 | ¥ 274,852,244 |
Parent Company Only Condensed_6
Parent Company Only Condensed Financial Information - Condensed Statements of Cash Flows (Details) | Jun. 03, 2019CNY (¥) | Jun. 03, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Operating activities: | ||||||
Net income (loss) | ¥ 437,774,169 | $ 62,882,325 | ¥ 371,220,289 | ¥ 273,186,674 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Share-based compensation | 26,490,395 | 3,805,107 | 16,108,950 | 38,048,000 | ||
Share of profit in subsidiaries, net | (140,564) | (20,191) | 8,300,584 | 899,584 | ||
Changes in operating assets and liabilities: | ||||||
Other current assets | 10,990,176 | 1,578,641 | (13,933,400) | (5,892,325) | ||
Other long-term liabilities | 21,538,701 | 3,093,841 | 22,636,533 | 10,672,479 | ||
Net cash provided by operating activities | 513,939,897 | 73,822,847 | 554,949,643 | 469,465,920 | ||
Investing activities: | ||||||
Advance for acquisitions | (38,869,400) | (5,583,240) | (18,121,700) | |||
Payment for acquisitions | ¥ (183,555,000) | $ (26,366,026) | ||||
Loan to related parties (including loan to a related party settled with dividend payable in December) | (634,638,425) | (91,160,105) | (4,300,000) | (3,500,000) | ||
Repayment from related parties | 458,752,530 | 65,895,678 | 136,781,724 | |||
Net cash used in investing activities | (1,219,956,395) | (175,235,772) | (181,756,342) | (744,856,135) | ||
Financing activities: | ||||||
Proceeds from issuance of Class A ordinary shares (Note 1) | 837,505,007 | |||||
Payment for initial public offering costs | (30,827,578) | |||||
Distribution to the shareholders (Note 1) | (226,951,236) | (32,599,505) | (200,532,021) | (579,042,699) | ||
Net cash (used in) generated from financing activities | (212,231,755) | (30,485,184) | 663,145,408 | (645,161,217) | ||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (6,917,309) | (993,609) | 66,023,411 | (1,467,838) | ||
Net increase (decrease) in cash and cash equivalents and restricted cash | (925,165,562) | (132,891,718) | 1,102,362,120 | (922,019,270) | ||
Cash and cash equivalents and restricted cash at the beginning of the year | 1,267,325,785 | 182,039,959 | 164,963,665 | 1,086,982,935 | ||
Cash and cash equivalents and restricted cash at the end of the year | 342,160,223 | 49,148,241 | 1,267,325,785 | 164,963,665 | ||
Parent Company | ||||||
Operating activities: | ||||||
Net income (loss) | 442,718,263 | 63,592,500 | 371,711,219 | 273,535,224 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Share-based compensation | 26,490,395 | 3,805,107 | 1,307,753 | |||
Gains from investments in equity securities | (6,473,358) | (929,840) | ||||
Share of profit in subsidiaries, net | (464,459,590) | (66,715,446) | (359,233,293) | (273,535,224) | ||
Changes in operating assets and liabilities: | ||||||
Other current assets | 1,700,582 | 244,273 | (4,117,311) | |||
Amounts due from subsidiaries | (6,271,868) | (900,897) | ||||
Amounts due to subsidiaries | (2,166,524) | (311,202) | 7,090,700 | |||
Other long-term liabilities | 7,475,856 | 1,073,840 | ||||
Net cash provided by operating activities | (986,244) | (141,665) | 16,759,068 | |||
Investing activities: | ||||||
Advance for acquisitions | (6,875,561) | |||||
Payment for acquisitions | (52,903,471) | (7,599,108) | ||||
Investment to subsidiaries | (2,938,656) | (422,112) | ||||
Purchases of investments in equity securities | (247,415,003) | (35,538,941) | ||||
Loan to related parties (including loan to a related party settled with dividend payable in December) | (192,558,675) | (27,659,323) | ||||
Repayment from related parties | 26,672,779 | 3,831,305 | ||||
Net cash used in investing activities | (469,143,026) | (67,388,179) | (6,875,561) | |||
Financing activities: | ||||||
Payment for initial public offering costs | (30,827,578) | |||||
Distribution to the shareholders (Note 1) | (226,951,236) | (32,599,505) | (200,532,021) | (579,042,699) | ||
Dividends from subsidiaries | 39,691,103 | ¥ 579,042,699 | ||||
Net cash (used in) generated from financing activities | (226,951,236) | (32,599,505) | 645,836,511 | |||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (2,355,347) | (338,325) | 65,853,475 | |||
Net increase (decrease) in cash and cash equivalents and restricted cash | (699,435,853) | (100,467,674) | 721,573,493 | |||
Cash and cash equivalents and restricted cash at the beginning of the year | 721,573,493 | 103,647,547 | ||||
Cash and cash equivalents and restricted cash at the end of the year | ¥ 22,137,640 | $ 3,179,873 | 721,573,493 | |||
Parent Company | Common Class A | ||||||
Financing activities: | ||||||
Proceeds from issuance of Class A ordinary shares (Note 1) | ¥ 837,505,007 |