Core Viewpoint - Atour Lifestyle Holdings Limited reported strong financial results for the fourth quarter and full year of 2024, showcasing significant growth in revenues, net income, and operational metrics, driven by the expansion of its hotel network and retail business. Financial Performance - Net revenues for Q4 2024 increased by 38.5% to RMB2,084 million (US$286 million) compared to RMB1,505 million in Q4 2023 [7] - For the full year 2024, net revenues rose by 55.3% to RMB7,248 million (US$993 million) from RMB4,666 million in 2023 [7] - Net income for Q4 2024 was RMB331 million (US$45 million), a 50.5% increase from RMB220 million in Q4 2023 [19] - Full year net income for 2024 reached RMB1,273 million (US$174 million), up 72.2% from RMB739 million in 2023 [19] Operational Highlights - As of December 31, 2024, Atour operated 1,619 hotels with 183,184 rooms, marking year-over-year increases of 33.8% in hotels and 32.8% in rooms [2] - The average daily room rate (ADR) for Q4 2024 was RMB420, down from RMB438 in Q4 2023 [3] - The occupancy rate for Q4 2024 was 77.0%, slightly lower than 78.4% in Q4 2023 [4] - Revenue per available room (RevPAR) for Q4 2024 was RMB337, down from RMB358 in Q4 2023 [5] Retail Business Growth - Gross merchandise value (GMV) from retail was RMB912 million for Q4 2024, an increase of 84.5% year-over-year [5] - For the full year 2024, retail GMV surged by 127.7% to RMB2,592 million from RMB1,139 million in 2023 [5] Cost and Expense Management - Total operating costs and expenses for Q4 2024 were RMB1,701 million (US$233 million), reflecting increased costs associated with hotel network expansion [12] - Selling and marketing expenses for Q4 2024 rose to RMB355 million (US$49 million), up from RMB207 million in Q4 2023, driven by enhanced brand investment [14] Future Outlook - The company anticipates a 25% increase in total net revenues for the full year 2025 compared to 2024 [28]

Core Viewpoint - Atour Lifestyle Holdings Limited (ATAT) is expected to report strong fourth-quarter results driven by domestic travel demand and strategic expansion efforts, with earnings anticipated to grow by 42.9% year over year and revenues by 26% [2][3]. Group 1: Financial Performance Expectations - The Zacks Consensus Estimate for ATAT's earnings is set at 30 cents per share, reflecting a year-over-year growth of 42.9% [2]. - The consensus revenue estimate for the fourth quarter is $267.2 million, indicating a 26% increase compared to the previous year [2]. Group 2: Growth Drivers - The company's performance is expected to benefit from strong domestic travel demand, an expanding membership base, and enhancements in brand offerings [3]. - ATAT's aggressive hotel expansion strategy, including the addition of Atour Light properties, has broadened its market reach, particularly appealing to younger and female travelers [4]. - Strong franchisee confidence and a robust development pipeline are expected to reinforce ATAT's revenue streams and operational efficiencies [5]. Group 3: Earnings Prediction Model - The current model does not predict a definitive earnings beat for ATAT, as it has an Earnings ESP of 0.00% and a Zacks Rank of 2 (Buy) [6].

SHANGHAI, March 11, 2025 (GLOBE NEWSWIRE) -- Atour Lifestyle Holdings Limited (“Atour” or the “Company”) (NASDAQ: ATAT), a leading hospitality and lifestyle company in China, today announced that it will report its unaudited financial results for the fourth quarter and full year of 2024 on Tuesday, March 25, 2025, before the U.S. markets open. The Company will host a conference call at 7:00 AM U.S. Eastern time on Tuesday, March 25, 2025 (or 7:00 PM Beijing/Hong Kong time on the same day). A live webcast of ...

Investment Rating - The report initiates coverage with an "Outperform" rating for the company [5][6]. Core Insights - The company is positioned as the No. 1 domestic mid-to-high-end hotel brand, creating a new growth paradigm of "accommodation + retail" [2][19]. - The company has demonstrated strong growth in both hotel operations and retail segments, with a significant increase in revenue and adjusted earnings [4][40]. - The report highlights the potential for brand concentration and structural improvement in the domestic mid-to-high-end hotel market, drawing parallels with the U.S. market [3][44]. Summary by Sections Company Overview - Founded in 2013, the company has rapidly established itself as a leader in the domestic mid-to-high-end hotel sector by focusing on differentiated positioning and user experience [19][24]. - The company has expanded its hotel portfolio to 1,210 locations by 2023, with a revenue CAGR of 30.3% from 2019 to 2023 [2][34]. Growth Analysis - The report anticipates a stable RevPAR for the hotel industry in 2025, with a slight decline expected for the company’s overall RevPAR in the coming years [3][38]. - The company is projected to achieve a hotel store CAGR of 25-30% from 2024 to 2026, driven by ongoing expansion efforts [3][34]. Retail Segment - The retail business is expected to generate significant revenue growth, with projections of 20 billion RMB+ in retail income by 2024, reflecting a CAGR of 110-130% from 2020 to 2024 [4][39]. - Retail revenue accounted for 21% of total income in 2023, with expectations to rise to approximately 29% in 2024 [4][39]. Financial Projections - The company’s revenue is forecasted to reach 69.7 billion RMB in 2024, with a year-on-year growth of 49.3% [5][8]. - Adjusted net profit is expected to grow to 12.9 billion RMB by 2024, reflecting a 42.5% increase [5][8]. Valuation - The report estimates a reasonable market value range for the company between 316.6 billion RMB and 339.2 billion RMB, indicating a potential upside of 22-31% from the current price [5][6].

For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Atour Lifestyle Holdings Limited Sponsored ADR (ATAT) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question.Atour Lifestyle Holdings Limited Sponsored ADR is one of 272 individual stocks in the Consumer Discretionary se ...

At the moment, the Zacks Leisure and Recreation Services Industry is in the top 7% out of 250 Zacks industries. Furthermore, a few Chinese ADRs (American Depository Receipts) are standing out among this top-rated industry in particular.  Starting to benefit from the holiday travel season, here’s a look at two of these leisure stocks that currently boast a Zacks Rank #1 (Strong Buy).Atour Lifestyle Holdings - ATATOperating the largest midscale hotel chain in China, Atour Lifestyle Holdings (ATAT)  is worthy ...

Investment Rating - The report maintains a "Buy" rating for Atour Hotel (ATAT.US) with a target price of $34.8, representing a potential upside of 37.3% from the current stock price of $25.4 [2][6]. Core Insights - Atour Hotel continues to expand rapidly, focusing on high-end hotel brands, with a total of 1,533 stores as of Q3, including 12 self-operated stores and 1,504 franchise stores [2][6]. - The company reported Q3 revenue of 190 million yuan, a year-on-year decrease of 20.4%, but net profit exceeded Bloomberg consensus expectations, with a GAAP net profit of 38 million yuan, up 45.3% year-on-year [2][6]. - The company has a strong membership growth, with registered members reaching 83 million, a year-on-year increase of 53.7% [2][6]. Financial Overview - For FY24, the company expects revenue growth of 51.9% year-on-year, with projected revenues of 7.09 billion yuan, 8.86 billion yuan in FY25, and 10.57 billion yuan in FY26 [2][6]. - The adjusted net profit is forecasted to be 1.285 billion yuan in FY24, 1.591 billion yuan in FY25, and 1.991 billion yuan in FY26, reflecting significant growth rates [2][6]. - The report highlights a strong retail performance, with GMV reaching 566 million yuan in Q3, a year-on-year increase of 108% [2][6]. Store Expansion and Market Position - The company opened a record number of new stores in Q3, with 140 new openings and a total of 732 stores in the pipeline, indicating a robust expansion strategy [2][6]. - Atour Hotel's RevPAR (Revenue per Available Room) faced pressure due to high base effects from last year's summer travel boom, with a year-on-year decline of 10.5% [2][6]. - The company is enhancing its multi-brand matrix with the introduction of a new high-end service brand, aiming to improve its market share in the mid-range segment [2][6].

I am a conservative yet opportunistic value investor who has been investing since 2005. I am fact-driven, preferring to let financial data inform me of a company's health, followed by qualitative analysis to fill in the gaps to paint a holistic picture of a company's growth prospects.My work is published on two platforms, Seeking Alpha and FAST Graphs (https://fastgraphs.com/blog/category/research-articles/).I appreciate everyone who reads my research and especially those who drop me questions and comments ...

Financial Data and Key Metrics Changes - The company's net revenues for Q3 2024 grew by 46.7% year-over-year and 5.7% quarter-over-quarter, reaching RMB1,899 million, driven by growth in the manachised hotel and retail businesses [37][38] - Adjusted net income for Q3 2024 was RMB384 million, representing a 41.2% increase year-over-year, with an adjusted net profit margin of 20.2%, a decrease of 0.8 percentage points year-over-year [50] - Adjusted EBITDA for Q3 2024 was RMB532 million, up by 40% year-over-year, with an adjusted EBITDA margin of 28.0%, which decreased by 1.4 percentage points year-over-year [51] Business Line Data and Key Metrics Changes - Revenues from manachised hotels for Q3 2024 were RMB1,179 million, up by 51.0% year-over-year and 14.8% quarter-over-quarter, with RevPAR reaching RMB376 [38][39] - Revenues from leased hotels were RMB190 million, reflecting a 20.4% year-over-year decline, attributed to a decrease in the number of leased hotels [40] - Retail business revenues for Q3 2024 were RMB408 million, reflecting a 104% year-over-year increase, although there was a 10.6% quarter-over-quarter decline due to seasonality [41] Market Data and Key Metrics Changes - The total number of manachised hotels increased to 1,504 as of September 30, 2024, up by 39.3% year-over-year [39] - The number of hotels under development reached 732, indicating strong franchisee confidence and brand recognition [13] - The membership base exceeded 83 million, marking a 53.7% increase year-over-year [28] Company Strategy and Development Direction - The company aims to innovate and elevate hotel offerings while strengthening service advantages to enhance customer experience [8] - The strategy includes expanding the hotel network with a target of 2,000 premier hotels by next year, focusing on quality over quantity in new signings [68][76] - The launch of the upscale brand SAVHE Hotel aims to inject new vitality into the upscale hotel market in China, with a focus on quality and user experience [75][76] Management's Comments on Operating Environment and Future Outlook - Management noted steady growth in domestic travel demand and highlighted the resilience of the service consumption market [7] - The full-year RevPAR is expected to decline by a mid-to-high single-digit year-on-year, with revenue growth guidance maintained at 48% to 52% [60] - The retail business is projected to continue growing faster than the hotel business, with a focus on the sleep economy market [105] Other Important Information - The company has established over 1,500 Bambook libraries in more than 200 cities across China, promoting cultural exchange and community engagement [34] - The company is committed to maintaining a healthy cash position, with cash and cash equivalents totaling RMB2,741 million as of September 30, 2024 [52] Q&A Session Summary Question: Insights on Q3 and Q4 RevPAR performances and guidance - Management indicated that Q3 RevPAR was impacted by high base effects and external factors, but showed improvement in October, with expectations of a mid-to-high single-digit decline for full-year RevPAR [57][59] Question: Guidance on hotel openings and new signings - The company raised its full-year new openings guidance from 400 to 450 hotels, citing strong franchisee confidence despite RevPAR fluctuations [65][66] Question: Details on the new upscale brand SAVHE - SAVHE is positioned as a premium-end hotel with a RevPAR target of RMB550 to RMB650, with a focus on quality and long-term growth in the upscale segment [77][78] Question: Updates on Atour 4.0 and Atour Light 3.0 - Atour 4.0 has six hotels in operation with plans to exceed ten by year-end, while Atour Light 3.0 signed 38 new projects in Q3, expected to exceed 100 hotels in operation by year-end [84][85] Question: Plans for hotel closures and leased hotels - The company expects to close around 50 hotels this year based on quality evaluations, with a focus on maintaining high standards [94][95] Question: Growth potential in the retail business - Management sees significant growth potential in the sleep economy market, maintaining a revenue growth forecast of doubling year-on-year for the retail segment [105]

Core Viewpoint - Atour Lifestyle Holdings Limited Sponsored ADR (ATAT) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based on the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years [2]. - Changes in earnings estimates are strongly correlated with near-term stock price movements, making the Zacks rating system valuable for investors [3][5]. Impact of Institutional Investors - Institutional investors utilize earnings estimates to calculate the fair value of a company's shares, leading to stock price movements based on their buying or selling activities [5]. Business Improvement Indicators - The rising earnings estimates and the Zacks rating upgrade for Atour Lifestyle Holdings Limited indicate an improvement in the company's underlying business, suggesting that investors may push the stock price higher [6]. Earnings Estimate Revisions - For the fiscal year ending December 2024, Atour Lifestyle Holdings Limited is expected to earn $1.23 per share, reflecting a 33.7% increase from the previous year [9]. - Over the past three months, the Zacks Consensus Estimate for the company has increased by 11.9% [9]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [8]. - The upgrade to Zacks Rank 2 positions Atour Lifestyle Holdings Limited in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [12].