Unidentified Company Representative: Thanks. This is a good question that the consumer trend has been rapidly changing. For instance, in the past, a substantial number of our Da Niang Dumplings restaurants are located in supermarket more, the street shopping malls with the anchored by the supermarket. And we see the foot traffic to the supermarket more have substantially reduced. I think this leads to the closure of most of the 64 restaurants. And we are actually finding the new consumer patterns of consumption and finding the strategically located for instance, a street branded stores. And they’re trying to reorganize our team, especially the developers. And that because the trend has been shifting, and then with that new format, and then we’re able to open more and develop more restaurants in this new format. Thanks.
Simon Cheung: Sorry, can I quickly follow up just on the two respective? So on the two respective segment, hotel and restaurant, do you have a sense of okay, can you give us a target of you know, the addition of the stores for example, for the full year, how many hotels you’re expecting to add, and equally for the restaurants, I saw, obviously, it has dropped a lot? Do you have an indication maybe in medium term, what sort of store count you’re expecting?
Alex Xu: For the hotel side, we have actually moved to more focus on those high quality hotels, and that we think that will build a better foundation for future. So this year, I think the signing of the new contracts is going to be more of that 600. But because of the openings takes more time, and that we calculated in the pipelines from the number of new stores, new hotels can be around 420 for the year of 2023. And for the Bill, I’ll give you for the new restaurants.
Unidentified Company Representative: For new restaurant, we have target like 20 to 30 restaurant for this year. Thank you.
Alex Xu: And for the restaurant side, it’s easy to add more I think that we focus on more high quality growth and making sure it doesn’t burn a lot of cash and to make sure that we can catch the consumer trend and the inside of this day growing the number of locations. And so that’s all strategy for the remaining of the next year. Simon.
Simon Cheung: Thanks a lot, Alex. Thanks.
Operator: [Operator Instructions] Your next question comes from Adam Sue with China Ascendas Securities. Please go ahead.
Unidentified Analyst: Hello management. Can you hear me?
Alex Xu: Yes, very clearly Adam.
Unidentified Analyst: Okay. Sorry for the bad line. My first question is how do you like the competition and the market structure below our tiered [ph] city market. For the first reason is that as I understand the recovery of the lower Tier city market is not as good as Tier 1 city this year. The second reason is as I saw so many players coming into this lower Tier city market, and how do you like the competition in this market? And the second reason, — and for my second question, is that, what is the attitude from our franchisees partners over the past segment of [indiscernible], is there any changes from their attitude? That’s all. Thank you.
Alex Xu: Okay. Thanks, Adam. The competition in the lower tier cities has grown this — has been growing stronger in the past few years. But we do not see it become stronger this year. I think that some players went to the third Tier 4 cities. I think the performance due to the challenge of managing them closely and effectively, we see some changes of the brand that changes the closure, we see more closures and changes the brand in the Tier 3, Tier 4 cities. But we — I think our strength has always been managing remotely, we’re managing third, fourth Tier cities very effectively. So our hotels have been performing really well. And during the COVID, and after the COVID and they’ve been very stable, and generating a substantial cash flow to our franchisees.
And we think that our strengths have been there a leading player in those diversified building lower Tier 3 in the lower Tier cities. In terms of attitude our franchisees, it takes a little more time for our franchisees to adapt to the new environment. Because the first few months, they have many, many issues, we have to solve that accumulated during the pre — during the pandemic era. And secondly, that we also have experienced substantial boom in the number of travelers, especially in the first and second Tier cities. So, we’ve been busy in terms of our franchisees being busy in terms of forgetting everything, getting our people along with the GreenTree higher that we trend to meet the new demand. So the first few months has been very busy.
And but I think but I will use the word, it will take a little bit more time for a franchisee attitude towards the expansion and growth compared with the pre-pandemic levels, but we see the more and more confidence come into the market, especially on the hotel side. I think the restaurant there will be because there’s a trend that’s been shifting very quickly, you know, the track footprint, especially the foot traffic has been changing. And so, we do see the franchisee a little more, you know, reserved conservative in the restaurant segment. And but in the long run, we have a — we have been pretty confident that our franchisees we already see some of our existing franchisees and they started reaching out to you know, researching additional properties and working with us, so we have more lot more products in the pipeline, and especially high quality ones.
Under that — on the competition of the property side that is a little bit less so which is good for our franchisees because the rent pressure is somewhat reduced compared with 2019 level. So Adam those are the sentiment that we have experienced.
Operator: [Operator Instructions] There are no further questions at this time. This concludes our question and answer session. I would like to turn the conference back over to Ms. Selina Yang, for any closing remarks.
Selina Yang: Thank you, including on behalf of the entire GreenTree management team, we thank you for your interest in GreenTree and your participation in today’s call. If you require any further information or have time to reach us, please feel free to contact us. Thank you all. Thank you, operator.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
