Group 1: Overall Industry Insights - The overall tourism demand remained robust during the recent Golden Week, with positive growth in Average Daily Rate (ADR) and Revenue per Available Room (RevPAR) for hotels, showing a mid to high single-digit growth in the industry [1] - Experts predict that the increase in hotel franchise supply will continue to exert pressure, particularly in the mid to high-end market segment [1] - The competition among online travel platforms is moderate, as smaller or newly entered operators lack supply chain and scale advantages, limiting their competition to specific niche areas [1] Group 2: Company Preferences - The company remains optimistic about the hotel sector, particularly for Huazhu Group (01179, HTHT.US) and Atour (ATAT.US), anticipating that the slowdown in competition from online travel platforms and hotel supply growth will lead to continued improvement in RevPAR [1] - The Macau gaming industry is expected to benefit from wealth effects and a low base of total gaming revenue, with a favorable outlook for Sands China (01928) and Galaxy Entertainment (00027) [1] - The company suggests buying Ctrip Group (09961, TCOM.US) and Air China (601111) (00753, 601111.SH), as both are expected to benefit from recent long-haul outbound travel demand and better-than-expected ticket prices [1]

Core Viewpoint - The article discusses a controversy surrounding Atour Hotel, where a room was allegedly used as a live streaming space, raising concerns about privacy and the use of glass walls in hotel rooms [3][5]. Group 1: Privacy Concerns - The incident has sparked discussions about privacy in hotel rooms, particularly regarding the use of glass and whether it adequately protects guests' privacy [3][5]. - There is confusion among users about the nature of the glass used in the hotel, with debates on whether it resembles a mirror and the implications for privacy [5][9]. Group 2: User Experience - The article emphasizes that as a normal adult, one should understand the need to draw curtains for privacy, regardless of the setting, including hotels [6][8]. - It questions the logic of guests not recognizing the need for privacy measures in hotel rooms, especially when there are clear indicators like curtains and window frames [9].

Summary of the Conference Call on Atour Hotel Industry Company Overview - **Company**: Atour Hotel - **Industry**: Hotel Industry Key Points and Arguments Store Opening and Closing Plans - Atour Hotel expects to reach approximately 2,050 stores by the end of 2025, with plans to open 100-105 new stores in Q4 2025, aiming for nearly 500 new openings for the entire year [1][2][3] - As of Q3 2025, Atour has opened a total of 1,970 stores, with 146 new openings in Q3 alone, marking a quarterly high [2] - The company has closed 41 stores so far in 2025, with an expected total closure of 70-80 stores for the year, indicating better-than-expected operational performance [4][10] Revenue Per Available Room (RevPAR) and Market Performance - RevPAR showed a slight decline in July and August 2025, with July at 366 RMB and August at 396 RMB, reflecting a year-on-year decrease [7][8] - In September, RevPAR dropped to 300 RMB, down approximately 3.2% year-on-year, attributed to the end of summer traffic and insufficient business flow [9] - During the National Day holiday, RevPAR increased, primarily driven by Average Daily Rate (ADR) [13] Market Conditions and Competitive Landscape - The hotel industry is experiencing intense competition, which has led to actual performance falling short of initial budget expectations [10] - The company has adopted a conservative approach in its 2025 budget, based on 2024 benchmarks, but is still striving to meet its targets despite market challenges [10] Membership Growth and Retail Performance - Atour's membership base grew rapidly, adding 8.5 million members in Q3 2025, although the number of effective members has slightly decreased [3][25] - The retail segment has seen significant growth, with a record online sales performance during the 618 shopping festival, driven by new product launches and increased repurchase rates [19][21] Future Outlook and Strategic Planning - For 2026, Atour aims for a growth target of at least 1.5%, with plans to finalize the budget by late November or early December [15][16] - The company has a pipeline of 787 store projects as of Q3 2025, indicating ongoing expansion efforts [17] Marketing and Sales Strategies - Atour is optimistic about its marketing strategies for the upcoming Double Eleven shopping festival, having prepared in advance to capitalize on potential revenue opportunities [22][23] - The company is leveraging synergies between its retail and hotel businesses, enhancing customer experience and driving sales through cross-promotional strategies [24] Regional Performance Insights - Post-holiday performance in East China remained stable compared to the previous year, with expectations of increased demand due to upcoming large events [14] Additional Important Information - The average daily rate (ADR) in August 2025 was 460 RMB, down 3% from the previous year, while occupancy rates increased to 86% [9] - The company has implemented a traffic light system for internal assessments based on budget performance, which may impact employee incentives [11][12]

Market Performance - The three major U.S. stock indices collectively rose, with the Dow Jones up 0.6%, S&P 500 up 1%, and Nasdaq up 1.32% [1] - The Philadelphia Semiconductor Index surged over 3%, with notable gains from companies like Supermicro (up over 8%) and Kioxia (up over 6%) [2] Technology Sector Highlights - Apple officially launched its M5 chip, which utilizes a third-generation 3nm process, achieving over four times the peak performance in AI computing compared to the previous M4 chip [2] - The M5 chip is now integrated into the new 14-inch MacBook Pro, iPad Pro, and Apple Vision Pro, with pre-orders already open [2] Chinese Stocks Performance - The Nasdaq Golden Dragon China Index rose over 2%, with significant increases from New Oriental and WeRide, both up over 7% [3] - Major Chinese tech stocks like Alibaba, JD.com, and Baidu also saw gains of over 2% [3] Commodity Market - Spot gold prices exceeded $4,210 per ounce, marking a new historical high with a year-to-date increase of over 60% [5] - Spot silver prices broke through $53 per ounce, also reaching a new historical high [5] Cryptocurrency Market - Bitcoin rose to $113,451.1, with a 24-hour increase of 1.35%, while Ethereum reached $4,202.2, up 5.18% in the same period [6]

Market Performance - The Hang Seng Index (HSI) closed at 26,290, down 1.7% for the day but up 31.1% year-to-date (YTD) [2] - The MSCI China index decreased by 2.4% for the day, with a YTD increase of 35.7% [2] - The CSI 300 index fell by 2.0% for the day, with a YTD increase of 17.3% [2] Commodity Prices - Brent Crude oil price is at US$63 per barrel, down 12.0% YTD [3] - Gold prices increased by 54.2% YTD, currently at US$4,047 per ounce [3] - Copper prices decreased by 3.2% for the day, with a YTD increase of 20.0%, currently at US$10,518 per ton [3] Economic Indicators - The NFIB Small Business Optimism Index reported a slight increase to 100.8, above the consensus of 100.6 [4] - US Initial Jobless Claims were reported at 218,000, lower than the consensus of 229,500 [4] - The US Producer Price Index (PPI) for Final Demand YoY is at 2.6%, matching the consensus [4] Corporate Insights - Atour Lifestyle Holdings (ATAT) is rated as a BUY with a target price of US$46.40, expecting a 20% CAGR in hotel numbers from 2024 to 2027 [10][11] - Great Wall Motor (GWM) is rated as HOLD with a target price of HK$16, forecasting a net profit of over RMB3.5 billion for Q3 2025 [14][15]

Core Insights - The 2025 Mid-Autumn and National Day holiday saw record-high travel volume and tourism revenue, but the average spending per trip did not increase significantly [1][2] - There is a notable shift towards self-driving tourism and staggered travel patterns, with a significant increase in non-commercial small vehicle usage [2] - The retail and dining sectors experienced stable growth during the holiday, driven by policies encouraging consumption and rising gold prices [4] Group 1: Travel and Tourism Trends - During the 2025 holiday, 888 million domestic trips were made, an increase of 123 million trips compared to 2024, with total spending reaching 809 billion yuan, up 108.2 billion yuan [1] - Daily average travel volume was 111 million trips, a 1.6% increase year-on-year, while daily average spending was 101.1 billion yuan, a 1% increase [1] - The peak travel flow occurred on the third day of the holiday for outbound trips and the seventh day for return trips, indicating a trend towards staggered travel [2] Group 2: Scenic Spots and Consumer Behavior - Key scenic areas maintained growth above the industry average, with the Yangtze River Three Gorges cruise products experiencing high demand, leading to sold-out tickets during the holiday [3] - The average passenger load factor for cruises was 81.6%, a 9.1 percentage point increase from the previous year [3] - The retail and dining sectors saw a 2.7% year-on-year increase in sales, with significant growth in energy-efficient appliances and smart home products [4] Group 3: Investment Opportunities - Companies to watch include Sanxia Tourism, Xiangyuan Cultural Tourism, Jiuhua Tourism, Huangshan Tourism, Huazhu, Atour, and China Duty Free [5]

Core Insights - The article discusses how hotels have transformed into emotional sanctuaries for middle-aged individuals, providing them with a space to escape from daily responsibilities and stress [2][34] - It explores the dual phenomenon of middle-aged people seeking refuge in hotels and the hotel industry adapting to meet this emerging demand [34] Group 1: Hotels as Emotional Sanctuaries - Hotels have become a refuge for middle-aged individuals, allowing them to wash clothes, exercise, and find solitude, thus redefining their purpose from mere temporary lodging to emotional outlets [2][3] - The trend of using hotel facilities for laundry has gained traction, particularly among young adults, as hotel washing machines offer superior efficiency compared to home appliances [3][4] - The hotel gym serves as a preferred space for middle-aged individuals seeking a quiet and luxurious environment for exercise, contrasting with the crowded and commercialized atmosphere of traditional gyms [8][9] Group 2: The Role of Women - Middle-aged women are increasingly seeking personal space in hotels, using them as a secret escape from their multiple societal roles [12][13] - Hotels like Atour, known for their warm ambiance and personalized service, have become popular among women looking for a comfortable and affordable retreat [12] Group 3: Hotel Industry Adaptation - The hotel industry is strategically targeting local residents to increase occupancy rates and revenue, moving away from solely relying on travelers [26][28] - Hotels are redefining their marketing strategies by associating themselves with trending topics and emotional needs, thus enhancing brand visibility and consumer engagement [23][24] - The evolution of hotel branding emphasizes emotional value and lifestyle, transforming hotels into spaces that offer comfort, self-care, and a sense of belonging [30][31] Group 4: Conclusion - The interaction between middle-aged individuals seeking emotional relief and the hotel industry's adaptation signifies a new era of emotional value exchange, where hotels are evolving from functional spaces to emotional service providers [34]

Group 1 - The Beijing government has approved the release of 61 local standards, including the "Service Evaluation Standards for Laundry Enterprises," which emphasizes the need for visualized and traceable management of fabric washing in public textile washing companies [1] - The incident involving Atour Hotel using hospital pillowcases has raised public concern, leading to the establishment of specific regulatory requirements for public textiles used in accommodations and medical facilities [1] - The new standards require laundry enterprises to implement a traceable service process, including establishing a consumer safety monitoring system and maintaining video or documentation for key operational stages [1] Group 2 - In addition to laundry standards, Beijing has also introduced three new standards related to food safety, including the "Quality Management Standards for Food Production Enterprises," which outlines specific requirements for low-temperature pasteurized milk and roasted coffee supplier management [2] - The total number of effective local standards in Beijing has reached 2,374, covering various aspects of urban governance and public services [2]

Investment Rating - The report maintains an "Overweight" rating for the consumer discretionary sector [7] Core Insights - The report highlights robust growth in consumption during the National Day and Mid-Autumn Festival holidays, driven by overlapping holidays and increased travel intentions, with daily cross-regional passenger flow reaching 304 million, a year-on-year increase of 6.2% [2][16] - The report identifies structural opportunities in the consumption sector, particularly in emotional consumption, the rise of domestic brands, and AI-driven consumer experiences [2][5] Retail Sector Summary - Retail sales for key retail and catering enterprises increased by 3.3% year-on-year during the first four days of the holiday [2] - Popular tourist provinces and lower-tier cities showed strong performance, with cities like Qingdao (+8.2%) and Nanjing (+5.9%) leading the way [2][11] - Emotional consumption trends are emerging, with significant sales increases in products like projectors and gaming consoles, which saw year-on-year growth of 245% and 292% respectively [2][12] Tourism Sector Summary - The long holiday period has amplified travel intentions, with long-distance and cross-border travel demand remaining strong [3][16] - Domestic long-distance travel orders increased by 3 percentage points year-on-year, with popular tourist destinations experiencing significant visitor growth [3][17] - Outbound tourism to Hong Kong and Macau saw daily visitor numbers increase by 6.4% and 7.8% respectively [22] Dining and Hospitality Summary - The dining and hotel sectors experienced moderate growth, with average prices remaining stable [4][37] - The average daily sales for duty-free shopping in Hainan reached approximately 1.2 billion yuan, reflecting an 11% year-on-year increase [27] - Hotel revenue per available room (RevPAR) showed a year-on-year increase of 6.27%, driven by growth in average daily rates (ADR) [37] Investment Recommendations - The report emphasizes institutional investment opportunities in the consumer sector for 2025, recommending four main investment themes: the rise of domestic brands, high-growth emotional consumption, the silver economy, and AI-driven consumer experiences [5][9]

Summary of Hotel Industry Conference Call Industry Overview - The hotel industry experienced a strong performance during the National Day holiday in 2025, with chain hotel Average Daily Rate (ADR) increasing due to high consumer trust in chain brands, stable pricing strategies, and a preference for family travel [2][3][6] - Mid-range hotels like Atour and Hilton Garden Inn performed exceptionally well, while the economy segment saw HanTing leading [2][7] - The peak booking period was from October 1 to 4, 2025, extending one day compared to the previous year [2][8] - The industry is expected to see a positive RevPAR year-on-year only by the second half of 2026 due to multiple factors including a slowdown in new contracts and strong demand [2][9] Key Performance Metrics - During the National Day period, Huazhu Group reported an ADR of 393 RMB, an occupancy rate (OCC) of 88.2%, and a RevPAR of 346.6 RMB, reflecting a year-on-year increase of 4%, 1.1 percentage points, and 5.1% respectively [3] - Jinjiang Group's ADR was 366 RMB, with an OCC of 85.5% and a RevPAR of 312 RMB, showing increases of 4.5%, 4 percentage points, and 8.6% respectively [3] - The overall performance was strong despite a decline compared to the May Day holiday due to the longer duration of the National Day holiday [3] Regional Performance - Key cities such as Beijing, Shanghai, Chengdu, Nanjing, Hangzhou, Suzhou, Chongqing, and Tianjin showed strong hotel performance, while Shenzhen and Guangzhou's RevPAR was weaker due to typhoon impacts [5] - The North China region, including Beijing-Tianjin-Hebei and Shanxi, saw RevPAR increases of 100% to 120% [5] - Southwest and Northwest regions benefited from rich tourism resources and relatively low hotel supply, enhancing their pricing power [5] Future Outlook - The hotel supply side is expected to decrease in the second half of 2026, with many poorly performing hotels facing closure or rebranding [10][11] - The industry is experiencing a cleansing phenomenon, particularly affecting single hotels, with about 80% of the affected being independent hotels [13] - Major hotel groups like Huazhu and Jinjiang continue to expand despite overall supply slowing down, focusing on increasing market share [16] Investment and Financial Metrics - Full Season hotels have the best investment return rate, with a payback period of approximately 4 to 4.5 years, translating to a return rate of 23-24% [15] - HanTing leads in the economy segment with a payback period of about 5 years in high-tier cities and slightly shorter in lower-tier cities [15] - The investment landscape is shifting, with a growing proportion of younger investors and those with government connections entering the market [24][25] Booking Trends - The proportion of bookings through Central Reservation Systems (CRS) is increasing, with Huazhu at approximately 65% and Atour at around 60% [4][19] - The trend is moving towards enhancing member contribution rates, aiming for a 70% self-owned channel and 30% OTA channel [4][19] Key Challenges - The hotel industry faces challenges such as increased competition, saturation in key markets, and the need for strategic rebranding to attract customers [17][18] - The overall demand for business travelers has increased in absolute terms but decreased as a percentage of total guests due to the growing number of hotels [12] Conclusion - The hotel industry is poised for a complex recovery, with strong performance indicators during peak seasons but facing challenges in supply and market saturation. The focus on strategic expansion and rebranding will be crucial for navigating the evolving landscape.