GreenTree Hospitality Group Ltd. (NYSE:GHG) announced preliminary results of the first quarter of 2023, where revenues are expected to be $54 million-$56.7 million.

During the first quarter, the company opened 91 hotels, an increase of three hotels from the year-ago quarter. Of these, 12 were in the mid-to-up-scale segment, 50 were in the mid-scale segment, and 29 were in the economy segment.

Total revenues from organic hotels increased by 16.8% year over year to $36.8 million.

Income from operations are estimated to be $8.1 million-$8.8 million.

Income from operations of organic hotels are expected to jump by 397.4% Y/Y to $8.3 million.

In the first quarter, 4,084 hotels (all organic hotels) were operational, higher than 3,907 organic hotels in the year-ago period.

The average daily room rate, or ADR, for all organic hotels in operation increased 8.1% year over year.

The revenue per available room, or RevPAR, jumped 24.8% year over year.

"RevPAR recovered to 94.3% of its first quarter of 2019 level," said Mr. Alex Xu, Chairman and Chief Executive Officer of GreenTree.

The restaurant business is estimated to have generated a combined unaudited revenue of about $17.3 million to $19.9 million in the first quarter of 2023.

GreenTree expects to release its first quarter together with the second quarter of 2023 financial results around mid-September of 2023.

"As we entered the second quarter, RevPAR during the national Labor Day holiday in early May reached more than 120% of its level in the same period in 2019, capitalizing on the popularity of travel during the national holiday period," Xu added.

Price Action: GHG shares are trading higher by 2.85% to $5.42 on the last check Wednesday.