Financial Data and Key Metrics Changes - The company's net revenues for Q3 2025 grew by 38.4% year-over-year and 6.5% quarter-over-quarter to RMB 2,628 million [31] - Adjusted net income for Q3 2025 was RMB 488 million, representing a 27.0% increase year-over-year, with an adjusted net profit margin of 18.6% [35] - Adjusted EBITDA for Q3 2025 was RMB 685 million, up by 28.7% year-over-year, with an adjusted EBITDA margin of 26.1% [35] Business Line Data and Key Metrics Changes - In the hotel business, ROPA was RMB 371.3 million, representing 97.8% of its level in the same period of 2024, with OCC at 99.9% and ADR at 98.1% of the prior year [8] - The retail business achieved GMV of RMB 994 million, reflecting a 75.5% year-over-year increase, with online channels contributing over 90% of total GMV [20] Market Data and Key Metrics Changes - The hotel sector showed moderate recovery with robust travel and leisure demand, while the retail market increasingly focused on experiential offerings and quality-of-life upgrades [5][6] - The company opened 152 new hotels in Q3 2025, a record high for a single quarter, bringing the total to 1,948 hotels, a 27.1% year-over-year increase [10] Company Strategy and Development Direction - The company emphasizes quality-first principles in its expansion strategy, focusing on premier hotels in core locations while maintaining operational quality [47] - Atour Planet aims to lead the sleep industry with innovative product standards based on sensory science, differentiating itself from competitors [54] Management's Comments on Operating Environment and Future Outlook - Management noted a shift in consumer behavior towards value and rational purchasing decisions amid macroeconomic volatility [5] - The company expects continued divergence in market performance but remains optimistic about long-term growth through quality offerings and user engagement [42] Other Important Information - The company declared a second cash dividend for 2025 totaling approximately USD 50 million, representing about 29% of last year's net income [61] - The company maintains a healthy cash position with cash and cash equivalents totaling RMB 2,670 million as of September 30, 2025 [35] Q&A Session Summary Question: Could the management share the REFPA trend since October? - Management indicated that REFPA has shown progressive improvement year-over-year, with expectations for easing pressure in Q4 due to strong demand in core cities [40][41] Question: Could you share more about the recent new hotel signing trends? - Management confirmed that new hotel signings are in line with last year, maintaining a steady development pace, with a target of 500 new openings for the year [49] Question: Could the management share your perspective on the competition in the retail business? - Management acknowledged increasing competition but emphasized a focus on evolving user needs and the introduction of innovative product standards to maintain a competitive edge [53][54] Question: Could management provide an update on the planning and progress regarding shareholder returns? - Management stated that the cumulative dividend for the year reaches about USD 108 million, exceeding their commitment of at least 50% of net income [61][62] Question: Could you share your plan for the Atour Lite brand in the next steps? - Management expressed optimism about Atour Lite's long-term development, focusing on solidifying operational foundations and aiming for 1,000 hotels in the future [69]

Financial Data and Key Metrics Changes - The company's net revenues for Q3 2025 grew by 38.4% year-over-year and 6.5% quarter-over-quarter to RMB 2,628 million [34] - Adjusted net income for Q3 2025 was RMB 488 million, representing a 27.0% increase year-over-year, with an adjusted net profit margin of 18.6% [39] - Adjusted EBITDA for Q3 2025 was RMB 685 million, up by 28.7% year-over-year, with an adjusted EBITDA margin of 26.1% [39] Business Line Data and Key Metrics Changes - In the hotel business, RevPAR was RMB 371.3, representing 97.8% of its level in the same period of 2024, with OCC nearly recovering to 99.9% and ADR reaching 98.1% [8] - Revenues from managed hotels for Q3 2025 were RMB 1,560 million, up 32.3% year-over-year, while revenues from leased hotels were RMB 164 million, down 13.4% year-over-year [34] - Retail business GMV reached RMB 994 million, representing a 75.5% year-over-year increase, although there was a 12.3% quarter-over-quarter decline [22][35] Market Data and Key Metrics Changes - The hotel sector has shown a moderate recovery since Q3, with robust travel and leisure demand, although recovery is uneven across regions [5] - The retail market is increasingly focused on experiential offerings and quality-of-life upgrades, driven by evolving consumer habits and technological advancements [5] Company Strategy and Development Direction - The company aims to achieve a strategic target of 2,000 premier hotels by year-end, having opened 152 new hotels in Q3 2025, marking a 27.1% year-over-year increase in total hotels [10][11] - Atour is focusing on quality-first principles in its rapid expansion, applying rigorous project selection criteria and strict quality standards [11] - The company is committed to enhancing shareholder value through dividends and share repurchase programs, targeting a payout ratio of 100% based on the previous fiscal year's net income [66] Management's Comments on Operating Environment and Future Outlook - Management noted that the market will continue to show divergence, with challenges and uncertainties remaining, but they expect pressure from year-on-year declines in RevPAR to ease in Q4 [44] - The company plans to deepen its understanding of user needs and strengthen foundational capabilities to secure long-term advantages in a volatile market [45] Other Important Information - The company declared a second cash dividend for 2025, totaling approximately USD 50 million, bringing the cumulative dividend total for the year to about USD 108 million [40][66] - The membership base exceeded 108 million by the end of Q3 2025, representing a year-over-year growth of over 30% [30] Q&A Session Summary Question: RevPAR trend since October and outlook for Q4 - Management indicated that RevPAR has shown progressive improvement year-over-year, with expectations for easing pressure in Q4 due to strong demand in core cities [42][44] Question: Recent new hotel signing trends and full-year targets - Management confirmed that new hotel signings are generally in line with last year, with confidence in achieving the full-year guidance of 500 new openings [50][53] Question: Competition in the retail business and revenue guidance adjustments - Management acknowledged increasing competition but emphasized a focus on evolving user needs and raised the full-year retail revenue growth outlook to at least 65% year-on-year [56][60] Question: Update on shareholder returns - Management provided an update on the second dividend distribution and the ongoing share repurchase program, targeting a payout ratio of 100% based on the previous fiscal year's net income [64][66] Question: Plans for Atour Light brand expansion - Management expressed optimism about Atour Light's long-term development and plans to build a dedicated operational system to strengthen its market position [70][73]

Financial Data and Key Metrics Changes - The company's net revenues for Q3 2025 grew by 38.4% year-over-year and 6.5% quarter-over-quarter to RMB 2,628 million [38] - Adjusted net income for Q3 2025 was RMB 488 million, representing a 27.0% increase year-over-year, with an adjusted net profit margin of 18.6% [43] - Adjusted EBITDA for Q3 2025 was RMB 685 million, up by 28.7% year-over-year, with an adjusted EBITDA margin of 26.1% [43] Business Line Data and Key Metrics Changes - In the hotel business, ROPA was RMB 371.3 million, representing 97.8% of its level in the same period of 2024, with OCC at 99.9% and ADR at 98.1% of the prior year [9] - The retail business sustained strong growth, with GMV reaching RMB 994 million, reflecting a 75.5% year-over-year increase [24] - Revenues from miniaturized hotels were RMB 1,560 million, up 32.3% year-over-year, while revenues from leased hotels decreased by 13.4% year-over-year to RMB 164 million [38][39] Market Data and Key Metrics Changes - The hotel sector showed moderate recovery, with travel and leisure demand remaining robust, although recovery was uneven across regions [5] - Online channels contributed over 90% of total GMV in the retail business, indicating a strong shift towards digital sales [24] Company Strategy and Development Direction - The company focuses on quality-first principles in its rapid expansion, emphasizing rigorous project selection and high-quality growth [12][19] - Atour aims to solidify its competitive moat in the upper-mid-scale market by leveraging its product offerings and expanding into core business districts [17] - The company plans to achieve a total of 2,000 premier hotels by year-end 2025, with a pipeline of 754 hotels under development [11][12] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing volatility in the macro environment, with consumers prioritizing value and rational purchasing decisions [5] - The company expects continued divergence in market performance, with challenges remaining, but is confident in its ability to attract users with high-quality products [50] Other Important Information - The company declared a second cash dividend for 2025 totaling approximately USD 50 million, representing about 29% of last year's net income [44][68] - The company raised its full-year retail revenue growth outlook to at least 65% year-on-year, adjusting the group's full-year revenue guidance to a growth of 35% year-on-year [64] Q&A Session Summary Question: Could the management share the REFPA trend since October? - Management indicated that REFPA has shown a trend of progressive improvement year-over-year, with expectations for easing pressure in Q4 due to strong demand in core cities [46][49] Question: Could you please share more about the recent new hotel signing trends? - Management confirmed that new hotel signings are in line with last year, maintaining a steady development pace, with a focus on quality over scale [53][55] Question: Could the management share your perspective on the competition in the retail business? - Management acknowledged increasing competition but emphasized a focus on evolving user needs and the establishment of a new standard for product quality [59][61] Question: Could management provide an update on the planning and progress regarding shareholder returns? - Management confirmed a cumulative dividend total for the year of approximately USD 108 million, exceeding their commitment of no less than 50% of net income [67][69] Question: Could you share your plan for Atour Lite in the next steps? - Management expressed optimism about Atour Lite's long-term development, focusing on solidifying operational foundations and systematic capabilities [71][75]

Core Insights - Atour Group (NASDAQ: ATAT) reported Q3 2025 financial results with revenue of 2.628 billion RMB, a year-on-year increase of 38.4% [1] - Adjusted net profit reached 488 million RMB, up 27.0% year-on-year [1] - Adjusted EBITDA was 685 million RMB, reflecting a 28.7% year-on-year growth [1] Hotel Business Performance - The number of operating hotels reached 1,948, progressing towards the strategic goal of "2,000 good hotels" [1] - A record 152 new hotels opened in Q3, marking the highest quarterly opening in history [1] - Key operational metrics showed resilience, with average revenue per available room (RevPAR) at 371.3 RMB, recovering to 97.8% of the same period in 2024 [1] Retail Business Growth - The retail segment continued its rapid growth, achieving a GMV of 994 million RMB in Q3, a year-on-year increase of 75.5% [1] - Atour Planet maintained a leading position in the mainstream third-party platform rankings for bedding products [1] - Based on strong retail performance, the company raised its 2025 revenue guidance to a projected 35% year-on-year growth [1] Shareholder Returns - The company announced its second dividend plan for 2025, with a total payout of approximately 108 million USD, representing about 62% of last year's net profit [1] - As of the end of the quarter, Atour's registered members exceeded 108 million, reflecting a year-on-year growth of 30% [1]

Business Performance - 3Q25 RevPAR was 97.8% of 2024's level for the same period[12] - 3Q25 Same-Hotel RevPAR was 95.0% of 2024's level for the same period[15] - Retail GMV increased by 75.5% from RMB 566 million in 3Q24 to RMB 994 million in 3Q25[44] - Online channels contributed to over 90% of retail sales[46] - The number of registered individual members increased by 30% from 83 million in 3Q24 to 108 million in 3Q25[63] Hotel Network Expansion - 152 new hotels opened in 3Q25[19] - The company had 1,948 hotels in operation as of September 30, 2025[19] - The company had 754 hotels in the pipeline as of September 30, 2025[19] Financial Highlights - Net revenues increased by 38.4% year-over-year to RMB 2,627,970 thousand in 3Q25[79] - Adjusted net income increased by 27.0% year-over-year to RMB 488 million in 3Q25[91] - Adjusted EBITDA increased by 28.7% year-over-year to RMB 685 million in 3Q25[94] - The company's cash and cash equivalents were RMB 2,670 million as of September 30, 2025[98] Outlook - The company expects a total net revenues growth rate of 35% year-over-year for full year 2025[106]

Core Points - Atour Lifestyle Holdings Limited has declared a cash dividend of US$0.12 per ordinary share, totaling approximately US$50 million for the second dividend payment in 2025 [2][3] - The total aggregate amount of dividends for 2025 will be approximately US$108 million, including a previous payment of about US$58 million in May 2025 [2] - The company has adopted a three-year Annual Dividend Policy, committing to distribute no less than 50% of its net income from the preceding financial year [4] Financial Overview - As of September 30, 2025, Atour had approximately RMB2.7 billion (US$375 million) in cash, cash equivalents, and restricted cash [5] - The second cash dividend will be payable on or around December 22, 2025, to shareholders of record as of December 5, 2025 [3] Company Profile - Atour Lifestyle Holdings Limited is a leading hospitality and lifestyle company in China, recognized as the upper midscale hotel chain and the first Chinese hotel chain to develop scenario-based retail business [6]

Core Viewpoint - Atour Lifestyle Holdings Limited reported strong financial results for the third quarter of 2025, with significant growth in hotel operations and retail business, despite a volatile market environment [6][7]. Financial Performance - Net revenues for Q3 2025 increased by 38.4% year-over-year to RMB2,628 million (US$369 million) [7][9]. - Net income for Q3 2025 rose by 24.6% year-over-year to RMB474 million (US$67 million) [13][14]. - Adjusted net income (non-GAAP) for Q3 2025 increased by 27.0% year-over-year to RMB488 million (US$69 million) [14][15]. - EBITDA (non-GAAP) for Q3 2025 grew by 27.0% year-over-year to RMB672 million (US$94 million) [15][16]. - Adjusted EBITDA (non-GAAP) for Q3 2025 increased by 28.7% year-over-year to RMB685 million (US$96 million) [15][16]. Operational Highlights - As of September 30, 2025, Atour operated 1,948 hotels with a total of 219,359 hotel rooms, reflecting year-over-year increases of 27.1% and 25.2%, respectively [2][7]. - The average daily room rate (ADR) for Q3 2025 was RMB447, slightly down from RMB456 in Q3 2024 [3]. - The occupancy rate for Q3 2025 was 80.2%, compared to 80.3% in Q3 2024 [3]. - Revenue per available room (RevPAR) was RMB371 for Q3 2025, down from RMB380 in Q3 2024 [3]. Retail Business Performance - Gross merchandise value (GMV) from the retail business reached RMB994 million in Q3 2025, marking a 75.5% increase year-over-year [5][6]. - Revenues from retail for Q3 2025 increased by 76.4% to RMB846 million (US$119 million) compared to RMB480 million in Q3 2024 [11]. Future Outlook - For the full year of 2025, the company expects total net revenues to increase by 35% compared to the full year of 2024 [19].

Market Performance - The three major U.S. stock indices closed higher, with the Dow Jones up 0.44%, the S&P 500 up 1.55%, and the Nasdaq Composite up 2.69% [1] - Large-cap tech stocks saw significant gains, with Tesla and Google both rising over 6% [1] Sector Highlights - Semiconductor stocks performed strongly, with Broadcom's stock increasing by 11%, marking its largest gain since April, adding $178 billion to its market capitalization [1] - The Philadelphia Semiconductor Index rose by 4.6%, with Micron Technology up nearly 8%, AMD up over 5%, and Nvidia up over 2% [1] Chinese Stocks - The Nasdaq Golden Dragon China Index increased by 2.82%, with notable gains in popular Chinese concept stocks [1] - Key performers included WeRide up 14.72%, Pony.ai up 12.51%, and Canadian Solar up 10.16% [1] - Other significant increases were seen in Daqo New Energy up 8.89%, Global Data up 8.38%, Baidu up 7.44%, and Bilibili up 6.80% [1]

Group 1 - A selection of top-performing European bank stocks has recently broken out, with some experiencing returns exceeding 120% this year [2] - NatWest Group (NWG) is highlighted as a member of the global bank stocks group, showing constructive charts [1] - Atour Lifestyle Holdings (ATAT), a Chinese company, is also featured as part of the IBD 50, indicating strong performance and potential investment interest [1][4] Group 2 - The market is currently mixed but positive, with notable stocks like Eli Lilly and Deutsche Bank in focus for potential buy opportunities [4] - Palantir has been elevated to best stock lists, indicating strong market performance and investor interest [4] - The S&P 500 has achieved record gains in 2025, with a specific Chinese stock vaulting 250%, suggesting robust market conditions for certain sectors [4]

Main Points - The report highlights three main investment themes: market recovery and supply-demand balance favoring leading companies, the role of AI in enhancing efficiency and generating secondary revenue, and the complexity of tourism investment driven by resource endowment and product refinement [5][6][17]. Group 1: Market Recovery and Supply-Demand Balance - The hotel market is expected to see a slight recovery, with average daily rates (ADR) showing positive trends [18][25]. - Luxury, mid-range, and economy hotels are experiencing a rebound after supply adjustments, with an increase in chain hotel ratios and mid-range hotel market share [7][26]. - The construction of the Hainan Free Trade Port is anticipated to significantly reduce import costs for businesses, enhancing the attractiveness of the region for tourism and hospitality investments [7]. Group 2: AI Applications in Recruitment - AI applications in recruitment are not solely focused on cost reduction but are increasingly aimed at generating additional revenue through enhanced efficiency [5][45]. - AI technologies are transforming recruitment processes, including job description generation, resume screening, and video interview analysis, leading to improved matching and efficiency [46][50]. - The recruitment service market is expanding rapidly, with high growth potential in the mid-to-high-end online recruitment sector [50]. Group 3: Tourism Investment Dynamics - The tourism investment landscape is complex, requiring a combination of resource endowment and product refinement to navigate economic cycles successfully [6][17]. - The luxury cruise market is gaining traction among older demographics, with high-quality experiences driving demand despite higher pricing [8]. - Policy changes promoting school holidays and flexible work arrangements are expected to boost service consumption, particularly in the tourism sector [8][11]. Group 4: Consumer Trends and Market Potential - The service consumption market is showing structural vitality, with service retail sales growing by 5.3% year-on-year, outpacing goods consumption [11]. - The "new silver-haired" demographic is emerging as a significant consumer group, with a growing focus on travel and leisure spending [68]. - The domestic tourism market is recovering steadily, with a projected 56.2 billion domestic trips in 2024, reflecting a 14.8% year-on-year increase [62].