7 Cheap Travel Stocks to Buy According to Analysts

4) GreenTree Hospitality Group Ltd. (NYSE:GHG)

Average Upside Potential: 11.46%

Forward P/E as of September 27: 6.53x

Number of Hedge Fund Holdings: 2

GreenTree Hospitality Group Ltd. (NYSE:GHG) develops leased-and-operated, and franchised-and-managed hotels and restaurants in the People’s Republic of China.

GreenTree Hospitality Group Ltd. (NYSE:GHG) continues to enjoy a broad portfolio of diverse brands, that span from the economy to mid-scale, up-scale, and luxury segments of the hospitality industry primarily in China. Moving forward, its strong membership base, expansive booking network, and superior system management with moderate charges should act as principal growth enablers. Also, the company has been targeting closer relationships with all of its clients and partners through offering a diverse brand portfolio.

GreenTree Hospitality Group Ltd. (NYSE:GHG) continues to focus on maintaining its growth trajectory, primarily in Tier 3 and lower cities in South China. The leisure travel demand continues to increase, mainly in third-tier cities, which should act as a tailwind over the near term. In Q2 2024, GreenTree Hospitality Group Ltd. (NYSE:GHG) saw its total revenue coming at RMB 329.7 million (US$45.4 million), which implies a decline of 20.5% on a YoY basis. The company witnessed challenges as China’s economy continued to recover. Notably, consumers and businesses were cautious in discretionary spending, impacting its overall performance.

However, GreenTree Hospitality Group Ltd. (NYSE:GHG) continued to execute its strategy to return its restaurant business to profitability by moving away from leased-and-operated restaurants in supermarkets and regional shopping centers towards franchised street stores. Therefore, its net income turned positive in Q2 2024 after breaking even last quarter as compared to losses in both corresponding quarters a year ago.

The company’s growth is expected to be driven by its focus on growing the number of franchised street stores and stores with stable consumer traffic.

Insider Monkey’s Q2 2024 data revealed that 2 hedge funds (out of 912 hedge funds tracked by Insider Monkey) held stakes in GreenTree Hospitality Group Ltd. (NYSE:GHG).