Atour Lifestyle Holdings Ltd
NASDAQ:ATAT
Atour Lifestyle Holdings Ltd
Atour Lifestyle Holdings Ltd., founded in 2013, emerged as a pioneering force in the Chinese hospitality industry, creating a unique niche by seamlessly integrating a strong lifestyle brand with its hotel operations. Unlike traditional hotel chains, Atour transcends the conventional model by building a community around its brand, focusing on lifestyle experiences that resonate with a new generation of travelers. These experiences emphasize not just accommodation, but a holistic engagement with local culture, fitness, and personalized service, thereby crafting an immersive environment that extends beyond the typical hotel stay.
The company generates its revenue through a diversified model that combines room bookings with ancillary services designed to enhance the customer experience. By leveraging its strong brand identity, Atour attracts a loyal customer base willing to pay premium rates for its offerings. It also capitalizes on cross-selling opportunities within its ecosystem, including retail products like its own range of lifestyle goods, in-room technology enhancements, and themed events. This comprehensive approach enables Atour to not only rise above the intense competition in China's hospitality sector, but also to generate multiple streams of income, fostering sustainable growth and profitability.
Atour Lifestyle Holdings Ltd., founded in 2013, emerged as a pioneering force in the Chinese hospitality industry, creating a unique niche by seamlessly integrating a strong lifestyle brand with its hotel operations. Unlike traditional hotel chains, Atour transcends the conventional model by building a community around its brand, focusing on lifestyle experiences that resonate with a new generation of travelers. These experiences emphasize not just accommodation, but a holistic engagement with local culture, fitness, and personalized service, thereby crafting an immersive environment that extends beyond the typical hotel stay.
The company generates its revenue through a diversified model that combines room bookings with ancillary services designed to enhance the customer experience. By leveraging its strong brand identity, Atour attracts a loyal customer base willing to pay premium rates for its offerings. It also capitalizes on cross-selling opportunities within its ecosystem, including retail products like its own range of lifestyle goods, in-room technology enhancements, and themed events. This comprehensive approach enables Atour to not only rise above the intense competition in China's hospitality sector, but also to generate multiple streams of income, fostering sustainable growth and profitability.
Revenue Growth: Net revenues rose 38.4% year-over-year and 6.5% quarter-over-quarter to RMB 2,628 million, with robust hotel expansion and retail business momentum.
Hotel Expansion: Atour opened 152 new hotels in Q3, a record for a single quarter, reaching 1,948 hotels in operation and on track to exceed the 2,000 target by year-end.
Retail Business Surge: Retail revenue jumped 76.4% year-over-year to RMB 846 million, with GMV up 75.5% and management raising full-year retail revenue growth guidance to at least 65%.
Profitability: Adjusted net income climbed 27% year-over-year to RMB 488 million, and adjusted EBITDA rose 28.7% year-over-year to RMB 685 million.
Shareholder Returns: Atour declared a second cash dividend for 2025 (~USD 50 million); total 2025 dividends now exceed 62% of last year's net income, above their minimum commitment.
Guidance Raised: 2025 full-year revenue growth guidance was raised to 35% year-over-year, reflecting confidence in continued expansion.
Stable Hotel Metrics: RevPAR, OCC, and ADR for the hotel portfolio mostly recovered to 2024 levels, with mature hotels at 95% of prior-year RevPAR.
