Core Insights - Atar Group reported Q1 2025 revenue of 1.906 billion yuan, a year-on-year increase of 29.8% [2] - Adjusted net profit for the same period was 345 million yuan, up 32.3% year-on-year [2] - The company raised its full-year revenue guidance, expecting a growth of 25% to 30% for 2025 [2] Financial Performance - Q1 adjusted EBITDA reached 474 million yuan, reflecting a 33.8% year-on-year growth [2] - The total number of hotels operated by Atar Group reached 1,727, with 194,559 rooms [2] - The company opened 121 new hotels in Q1, a 24.7% increase compared to the previous year [2] Shareholder Returns - Atar Group announced a total dividend payout of approximately 58 million USD for 2025 [2] - A three-year share repurchase plan was also announced, with a total buyback amount not exceeding 400 million USD [2] Retail Business Growth - The retail business GMV for Q1 was 845 million yuan, a significant year-on-year increase of 70.9% [3] - Online channels accounted for over 90% of the retail sales [3] - The registered member count surpassed 96 million, marking a 35.4% year-on-year growth [3] Product Development - The company launched new products "Atar 3.6" and "Light Stay 3.3" to enhance the accommodation experience [3] - A one-stop renewal solution "Atar 3.5SE" was introduced to further tap into growth potential in the accommodation sector [2][3] Strategic Vision - The CEO emphasized the commitment to the "Chinese Experience" strategy, aiming to enhance brand and product strength [3] - The focus is on deepening the integration of accommodation and retail businesses to provide superior customer experiences [3]

Core Insights - Atour Group reported a revenue of 1.906 billion yuan for Q1 2025, representing a year-on-year growth of 29.8% [1] - The adjusted net profit for the same period was 345 million yuan, up 32.3% year-on-year [1] - Adjusted EBITDA reached 474 million yuan, reflecting a 33.8% increase compared to the previous year [1] Financial Performance - Average revenue per available room (RevPAR) was 304 yuan, at 92.8% of the level from the same period in 2024 [1] - Daily average room rate (ADR) stood at 418 yuan, which is 97.2% of the level from the same period in 2024 [1] - Occupancy rate (OCC) was 70.2%, compared to 95.8% in the same period of 2024 [1] Business Expansion - As of March 31, 2025, Atour had 1,727 operating hotels, marking a 32.6% year-on-year increase [1] - The company is progressing towards its strategic goal of reaching "two thousand good stores" [1] Retail Business Growth - The gross merchandise volume (GMV) for Atour's retail business reached 845 million yuan, showing a year-on-year growth of 70.9% [1] - The membership system has been enhanced, promoting the integration of accommodation and retail businesses, leading to increased cross-consumption [1] - The number of registered members surpassed 96 million, reflecting a 35.4% year-on-year growth [1] Future Outlook - Atour has raised its full-year performance guidance, expecting a revenue growth of 25%-30% for 2025 [1] - The company announced a share repurchase plan of up to 400 million USD over three years and a dividend plan for 2025, totaling approximately 58 million USD [1] Strategic Vision - The founder and CEO of Atour emphasized the commitment to the "Chinese experience" strategy, aiming to enhance brand and product strength while deepening the integration of accommodation and retail businesses [2]

Group 1 - The core viewpoint of the articles highlights Atour Group's strong financial performance in Q1 2025, with significant year-on-year growth in revenue and profit metrics [1][2] - In Q1 2025, Atour Group achieved revenue of 1.906 billion yuan, a year-on-year increase of 29.8%, and an adjusted net profit of 345 million yuan, up 32.3% [1] - The adjusted EBITDA for the same period was 474 million yuan, reflecting a growth of 33.8% year-on-year [1] Group 2 - The average revenue per available room (RevPAR) for Atour Group was 304 yuan, which is 92.8% of the level from the same period in 2024 [1] - The average daily rate (ADR) was 418 yuan, representing 97.2% of the previous year's level, while the occupancy rate (OCC) was 70.2%, down from 95.8% year-on-year [1] - During the reporting period, Atour Group opened 121 new hotels, marking a 24.7% increase compared to the previous year, bringing the total number of operating hotels to 1,727 with approximately 194,600 rooms [1] Group 3 - In the retail segment, Atour Group's gross merchandise volume (GMV) reached 845 million yuan in Q1 2025, a substantial year-on-year increase of 70.9%, with online channels accounting for over 90% of this figure [1] - The company has been enhancing its membership system to drive synergy between accommodation and retail businesses, resulting in a registered member count exceeding 96 million, a 35.4% increase year-on-year [1] Group 4 - Based on the strong performance in retail and expectations for stable growth throughout the year, Atour Group has raised its full-year revenue guidance, projecting a year-on-year increase of 25%-30% for 2025 [2] - Atour Group announced a shareholder return plan, with an expected total dividend payout of approximately 58 million USD for 2025, alongside a three-year share repurchase plan with a total amount not exceeding 400 million USD [2]

Financial Data and Key Metrics Changes - The company's net revenues for Q1 2025 grew by 29.8% year over year but fell by 8.6% quarter over quarter [28] - Adjusted net income for Q1 2025 was RMB 345 million, representing a 32.3% increase year over year [33] - Adjusted EBITDA for Q1 2025 was up by 33.8% year over year [33] - Gross margin of hotel businesses expanded to 36.6% in Q1 2025 from 34.1% in the same period of 2024 [30] - Gross margin of retail business expanded to 51.4% in Q1 2025 from 50.5% in the same period of 2024 [31] Business Line Data and Key Metrics Changes - Hotel operating costs increased by 11.2% year over year due to variable costs associated with hotel network expansion [30] - Revenues from monetized hotels were RMB 1,032 million, up by 23.5% year over year [28] - Retail business revenue reached RMB 845 million, up 70.9% year over year [17] Market Data and Key Metrics Changes - RevPAR reached RMB 304.4 in Q1 2025, representing 92.8% of its level in the same period of 2024 [7] - Occupancy rate (OCC) reached 95.8% and Average Daily Rate (ADR) stood at 97.2% compared to the same period in 2024 [8] Company Strategy and Development Direction - The company is committed to advancing the strategic initiative of establishing 2,000 premier hotels, enhancing brand awareness and product offerings [6][7] - Focus on product innovation and experiential upgrades to cater to younger consumers in the midscale segment [14][15] - The company aims to maintain a balance between quality and expansion, ensuring sustainable high-quality growth [10][47] Management's Comments on Operating Environment and Future Outlook - The management noted fluctuations in China's domestic travel market amid a complex macro environment, presenting both challenges and opportunities [6] - There is an expectation of easing RevPAR pressure in Q2 compared to Q1, but considerable uncertainty remains for the full year [40] - The company plans to adopt a more balanced revenue management strategy to build long-term brand value [41] Other Important Information - The company declared its first cash dividend in 2025 of US$0.14 per ordinary share, totaling approximately US$58 million [34] - A three-year share repurchase program was announced, allowing for repurchases of up to US$400 million [34] Q&A Session Summary Question: Performance of RevPAR since Q2 and outlook for the full year - Management indicated that RevPAR decreased by 7.2% year over year in Q1, with expectations of easing pressure in Q2, but full-year performance remains uncertain [38][40] Question: New signings momentum and hotel openings for 2025 - Management confirmed a positive signing momentum and maintained a full-year opening guidance of 500 new hotels [43][46] Question: Update on retail business revenue growth and full-year guidance - Management raised the full-year retail revenue growth forecast to 50% year over year, citing strong performance and product launches [50][52] Question: Considerations behind dividend and share buyback program - Management emphasized a commitment to long-term value creation and rewarding shareholders through dividends and share repurchases [55][57] Question: Progression of upscale brands and new product strategies - Management announced the upcoming opening of the Sahe flagship hotel and detailed strategies for the upper midscale and midscale segments [61][63]

Financial Data and Key Metrics Changes - The company's net revenues for Q1 2025 grew by 29.8% year over year but fell by 8.6% quarter over quarter [27] - Revenues from monetized hotels were RMB 1,032 million, up by 23.5% year over year but down 6.7% quarter over quarter [27] - Adjusted net income for Q1 2025 was RMB 345 million, representing a 32.3% increase year over year [33] - Adjusted EBITDA for Q1 2025 was up by 33.8% year over year [33] - Gross margin of hotel businesses expanded to 36.6% from 34.1% year over year [30] Business Line Data and Key Metrics Changes - RevPAR reached RMB 304.4 in Q1 2025, representing 92.8% of the level in the same period of 2024 [7] - The hotel network expanded with 121 new hotels opened, a 24.7% year over year increase, totaling 1,727 hotels in operation [9] - Retail business GMV reached RMB 845 million, up 70.9% year over year [17] - Revenues from the retail business were up by 66.5% year over year [29] Market Data and Key Metrics Changes - The overall market experienced volatility, affecting travel demand, with RevPAR decreasing by 7.2% year over year [38] - The retail business maintained strong growth momentum, driven by rising brand strength and customer loyalty [17] Company Strategy and Development Direction - The company is committed to advancing the strategic initiative of establishing 2,000 premier hotels, enhancing brand awareness and product offerings [7] - Focus on product innovation and experiential upgrades to cater to younger consumers in the midscale segment [14] - The company aims to maintain quality standards while expanding its hotel network [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the domestic travel market is facing fluctuations amid a complex macro environment, presenting both challenges and opportunities [6] - There is uncertainty regarding RevPAR performance for the full year, but management anticipates easing pressure in Q2 compared to Q1 [39] - The company is raising its full year retail revenue growth forecast to 50% year over year [50] Other Important Information - The company declared its first cash dividend in 2025 of US$0.14 per ordinary share, totaling approximately US$58 million [34] - A three-year share repurchase program was announced, allowing for repurchases of up to US$400 million [34] Q&A Session Summary Question: Performance of RevPAR since Q2 and outlook for the full year - Management indicated that RevPAR decreased by 7.2% year over year in Q1, with expectations of easing pressure in Q2, but considerable uncertainty remains for the full year [38][39] Question: New signings momentum and new hotel openings for 2025 - Management confirmed a positive signing momentum and maintained a full year opening guidance of 500 new hotels, aiming for 2,000 premier hotels by year-end [44][45] Question: Update on retail business revenue growth guidance - Management raised the full year retail revenue growth forecast to 50% year over year, driven by strong product performance and brand awareness [50] Question: Considerations behind dividend and share buyback program - Management emphasized a commitment to long-term value creation and rewarding shareholders through dividends and share repurchase initiatives [54][55] Question: Update on upscale brands and new product strategies - Management announced the upcoming opening of the Sahe flagship hotel and discussed strategies for the upper midscale and midscale segments, focusing on quality and diverse consumer needs [58][60]

NASDAQ: ATAT Atour Lifestyle Holdings Limited 1Q25 Results Presentation May 2025 This presentation does not constitute an offer to sell or issue or an invitation to purchase or subscribe for any securities of the Company for sale in the United States or anywhere else. No securities of the Company may be sold in the United States without registration with the United States Securities and Exchange Commission or an exemption from such registration pursuant to the Securities Act of 1933, as amended (the "Securi ...

Core Viewpoint - Atour Lifestyle Holdings Limited has declared a cash dividend and authorized a share repurchase program as part of its strategy to enhance shareholder value [1]. Dividend - The Board declared a cash dividend of US$0.14 per ordinary share, or US$0.42 per American depositary share (ADS), amounting to approximately US$58 million in total [2]. - The cash dividend will be payable on or around June 18, 2025, to holders of record as of June 2, 2025 [3]. - The Annual Dividend Policy, adopted in August 2024, stipulates that the company plans to distribute dividends amounting to no less than 50% of its net income for the preceding financial year over three years starting from 2024 [4]. Share Repurchase Program - The Board authorized a three-year Share Repurchase Program allowing the company to repurchase up to US$400 million in value of its ordinary shares and/or ADSs [5]. - Repurchases may occur on the open market, in privately negotiated transactions, or through other legally permissible means, subject to market conditions and regulatory requirements [6]. - As of March 31, 2025, the company had approximately RMB3.1 billion (US$434 million) in cash, cash equivalents, and restricted cash available for funding the repurchases [7].

Core Viewpoint - Atour Lifestyle Holdings Limited reported strong financial results for the first quarter of 2025, demonstrating significant growth in both hotel and retail segments despite market volatility. The company continues to expand its hotel network and enhance its retail offerings, aiming for sustainable, high-quality growth in the hospitality industry in China [7][9]. Financial Performance - Net revenues for Q1 2025 increased by 29.8% year-over-year to RMB1,906 million (US$263 million) [8][10]. - Net income for Q1 2025 decreased by 5.5% year-over-year to RMB244 million (US$34 million) [25]. - Adjusted net income (non-GAAP) for Q1 2025 increased by 32.3% year-over-year to RMB345 million (US$48 million) [25]. - EBITDA (non-GAAP) for Q1 2025 increased by 6.1% year-over-year to RMB372 million (US$51 million) [27]. - Adjusted EBITDA (non-GAAP) for Q1 2025 increased by 33.8% year-over-year to RMB474 million (US$65 million) [27]. Operational Highlights - As of March 31, 2025, Atour operated 1,727 hotels with a total of 194,559 hotel rooms, reflecting year-over-year increases of 32.6% in the number of hotels and 31.3% in hotel rooms [2]. - The company had 755 manachised hotels under development in its pipeline [2]. - The average daily room rate (ADR) was RMB418 for Q1 2025, a slight decrease from RMB430 in Q1 2024 [3]. - The occupancy rate was 70.2% for Q1 2025, down from 73.3% in Q1 2024 [3]. - Revenue per available room (RevPAR) was RMB304 for Q1 2025, compared to RMB328 for the same period in 2024 [3]. Retail Business Performance - Gross merchandise value (GMV) from the retail business was RMB845 million for Q1 2025, representing a year-over-year increase of 70.9% [6][9]. - Revenues from retail increased by 66.5% year-over-year to RMB694 million (US$96 million) [14]. Cost and Expense Management - Operating costs and expenses for Q1 2025 totaled RMB1,565 million (US$216 million), including RMB102 million in share-based compensation expenses [17]. - Hotel operating costs increased to RMB736 million (US$101 million) for Q1 2025, accounting for 63.4% of manachised and leased hotels' revenues [18]. - Selling and marketing expenses rose to RMB283 million (US$39 million), reflecting increased investment in brand recognition [21]. Future Outlook - For the full year of 2025, the company expects total net revenues to increase by 25% to 30% compared to 2024 [30].

Core Viewpoint - Atour Lifestyle Holdings Limited (ATAT) is expected to report strong first-quarter 2025 results, with earnings per share estimated at 32 cents, reflecting a 23.1% increase year-over-year, and revenues projected at approximately $259.1 million, indicating a 27.4% growth from the previous year [1][2]. Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for ATAT's first-quarter earnings per share is 32 cents, up from 26 cents in the same quarter last year [1]. - Revenue expectations are set at nearly $259.1 million, which represents a 27.4% increase compared to the prior-year quarter [2]. Group 2: Factors Influencing Performance - The company's performance is likely to benefit from robust hotel network expansion, strong brand momentum, and growth in its retail business, supported by high franchisee engagement and strategic hotel rollouts [3]. - Disciplined hotel development, strong occupancy trends, and effective revenue management strategies are expected to contribute positively to performance [4]. - The retail segment, particularly the Atour PLANET brand, is anticipated to drive revenue growth, with management projecting at least a 35% year-over-year increase in retail revenues for 2025 [5]. Group 3: Challenges and Risks - Seasonal factors and adverse weather conditions may lead to volatility in RevPAR performance, with a projected year-over-year decline in the mid- to high-single-digit range [6]. - Macroeconomic challenges such as inflation and increased marketing expenditures could negatively impact margins in the first quarter [6]. Group 4: Earnings Prediction Model - The current model does not predict a definitive earnings beat for ATAT, as the Earnings ESP stands at 0.00% and the company holds a Zacks Rank of 3 (Hold) [7][8].

Group 1: Stock Recommendations - Recommended stocks include Geely Automobile, Xpeng Motors, Zoomlion, Sany Heavy Industry, Atour Group, Luckin Coffee, and Proya, all rated as "Buy" with target price increases ranging from 12% to 37%[5] - The average market capitalization of the recommended stocks is approximately $25 billion for Geely Automobile and $19.7 billion for Xpeng Motors[5] - The average daily trading volume for these stocks varies, with Geely Automobile at $200.2 million and Xpeng Motors at $248.2 million[5] Group 2: Financial Metrics - Price-to-earnings (P/E) ratio for FY24A shows Geely Automobile at 10.90, while Xpeng Motors is not available (N/A)[5] - Return on equity (ROE) for FY24A is highest for Atour Group at 47.5%, while Xpeng Motors is N/A[5] - Dividend yield for FY24A is 1.7% for Geely Automobile and 5.4% for Xpeng Motors[5] Group 3: Performance Review - The basket of 22 stocks listed in the previous report had an average return of 6.0%, compared to the MSCI China Index return of 8.1%[9] - Out of the 22 stocks, 6 outperformed the benchmark index[9]