And now with the COVID and post COVID and we have transitioned into focusing more on the traditional and fundamental approach to the hotel operations, the hotel management. That is – our objective is to deliver a consistent service and products to our customers. And we need to upgrade our little bit aging portfolios. So we have taken a larger number of hotels and giving our franchisee 6 months and most of the time, to almost 1 year time to renovate to a newer standard, which we find that we can substantially then increase the ADR occupancy and therefore, RevPAR. And we’ll continue to build our team to be more proficient and more efficient in both their career growth and their productivities and delivering a consistent service quality to our customers.
And then thirdly, we will try to implement and upgrade our existing technology platform to incorporate the new features, especially some of new applications in the technology industries to further improve or enhance our frontline employees’ ability to serve our customers. And then combined, we also have a restaurant, 2 great brands. There are – not many brands can withstand the pressure and competition in the restaurant business for over 20 years. And fortunately, we have 2 great brands. That’s Bellagio and Da Niang Dumplings. And so we have started to build the brand and to use the core experience, understand that to expand in the franchised and managed models. So we have managed to increase that, which will further increase, I think, our profitability in the restaurant business.
And slowly, we are already seeing the seed and trend, and they were not obvious from the previous year. But now with the travel trend to be more leisure and also more family oriented, we find that the leisure element such as the dine-ins becomes more essential part of the future hotels. So we do see more opportunities for synergies between the hotels and the restaurants. And so that’s our business strategy. We will continue to focus on the fundamentals. We’ll find that the hotels we have built and we have established with our franchisees continue to perform very robust and that our service quality, we can see slowly becoming – increasingly become more satisfactory to our customers, and the customer satisfaction scores are improving. So after the – even after this post-COVID transition period, where there’s a lot of hotels coming out of that has wear and tears, that even with that conditions, we slowly improve our customer service scores.
So we do see a great fundamental to be built in the last year, this year and next 1 to 2 years for a stronger growth in the near future.
Operator: [Operator Instructions] Your next question comes from Simon Cheung from Goldman Sachs.
Simon Cheung: I have three quick questions. Just on your Slide 8, where you laid out the leased and owned and the franchised RevPAR performance individually, I can’t help to basically observe that the leased and owned restaurant performance is much stronger than the franchised. So when — Alex, you mentioned that you’re modeling or expecting a 2% RevPAR growth, just wondering that, obviously, the franchise exposure is going to keep increasing. The weaker performance of the franchised, RevPAR performance, would that be — any way that would drag your overall RevPAR performance 2 percentage point? On an individual basis, let’s say, just from your observations, are you seeing any possibility that the franchised are starting to do better?
Just generally wanted to get a sense how you’re thinking of the respective segments and the equity overall. That’s the first question. And then the second one is in relation to the profitability of your both business. Great to see you do have some leverage in the last 1 to 2 quarters. But wanted to — and you also mentioned some synergy benefits between the 2 business. Can you just briefly chat about how you’re seeing the margins in the — maybe in the medium term for respective business maybe in a 2-, 3-year time? And equally, just also wanted to get a sense how you’re thinking about the top line growth or the — actually, the number of hotel and restaurant because, obviously, for restaurants, for example, you already reduced your restaurant count quite significantly over the last 1 year or so.
Just — and then that hotel count 4,000s, is that some medium-term target that you have in your mind?
Alex Xu: Okay. Great questions. The — I will leave the third question to Selina about the restaurant business revenue change because the restaurant business, the revenue has a sharp drop because we have closed many direct owned, leased and operated restaurants due to the impact from the traffic — lower traffic to the shopping malls and the supermarket anchored malls. So even though the number of restaurant, the segment changed, and we have a little bit increased number of franchised and managed restaurants, while the number of directly owned dropped, but the impact to the revenue was much larger. But going back to the first question, leased and operated and the franchised, the RevPAR trend, as we have said earlier, we built the leased and operated at the showcase hotels.
So naturally, with the showcase hotels, they tend to perform the — ADR-wise, which has a service element, more complementary services to the family, to the businesses. So as a result, the ADR has been improved much higher than the balance of the larger base of franchised restaurants — franchised hotel. But we do see that trend will be probably similar because many, many franchised hotels are going through the renovations. Once — after the renovations is done and the ADR — we expect the ADR will grow at the same level. And we — our focus and the strategy right now has been focusing on the ADR-driven growth strategy because you have and — you always have an option of lower your price a little bit, increase the occupancy and thereby, taking the higher — a little bit different market shares resulted in an increase of the same level of ADR but with — RevPAR.
