Atour Lifestyle (ATAT) - 2024 Q2 - Quarterly Report

Financial Performance - Net revenues for Q2 2024 increased by 64.5% year-over-year to RMB1,797 million (US$247 million), up from RMB1,093 million in Q2 2023[2] - Net income for Q2 2024 rose by 27.1% year-over-year to RMB304 million (US$42 million), compared to RMB239 million in Q2 2023[24] - Adjusted net income (non-GAAP) for Q2 2024 increased by 31.6% year-over-year to RMB328 million (US$45 million) from RMB249 million in Q2 2023[25] - EBITDA (non-GAAP) for Q2 2024 was RMB419 million (US$58 million), reflecting a 25.3% increase compared to RMB334 million in Q2 2023[26] - Total comprehensive income for the three months ended June 30, 2024, was RMB 309,528, an increase from RMB 264,227 in the same period of 2023[44] - Cash generated from operating activities for the three months ended June 30, 2024, was RMB 576,641, compared to RMB 519,908 in the same period of 2023, reflecting a 10.9% increase[43] Hotel Operations - As of June 30, 2024, Atour operated 1,412 hotels with a total of 161,686 hotel rooms, representing year-over-year increases of 36.6% and 34.3% respectively[4] - The company opened 123 new managed hotels in Q2 2024 and closed 12, resulting in a net increase of 111 managed hotels[46] - The occupancy rate for all hotels improved from 78.1% in Q2 2023 to 80.3% in Q2 2024[47] - The occupancy rate for managed hotels increased from 77.9% in Q2 2023 to 80.1% in Q2 2024, while leased hotels improved from 83.1% to 83.7%[47] - The total number of rooms across all hotels reached 161,686 as of June 30, 2024[46] Revenue Metrics - Revenues for manachised hotels increased by 63.9% year-over-year to RMB 1,026,979, while net revenues rose by 64.4% to RMB 1,797,047 for the three months ended June 30, 2024[42] - Average Daily Rate (ADR) for managed hotels decreased from RMB 471.3 in Q2 2023 to RMB 445.5 in Q2 2024, and for leased hotels, it fell from RMB 613.7 to RMB 572.8[47] - Revenue per Available Room (RevPAR) for managed hotels declined from RMB 384.6 in Q2 2023 to RMB 370.8 in Q2 2024, while leased hotels saw a decrease from RMB 540.0 to RMB 503.1[47] Financial Position - The company had a total cash and cash equivalents balance of RMB3.3 billion (US$457 million) as of June 30, 2024[28] - Total outstanding borrowings as of June 30, 2024, were RMB92 million (US$13 million), with an unutilized credit facility of RMB450 million[28] - Atour Lifestyle Holdings reported total assets of RMB 7,285,080 thousand as of June 30, 2024, up from RMB 6,587,025 thousand as of December 31, 2023, representing an increase of approximately 10.6%[40] - The company's cash and cash equivalents increased to RMB 3,322,879 thousand in June 2024 from RMB 2,840,807 thousand in December 2023, reflecting a growth of about 16.9%[40] - Total current liabilities rose to RMB 2,538,054 thousand as of June 30, 2024, compared to RMB 2,377,851 thousand at the end of 2023, marking an increase of approximately 6.7%[40] - Shareholders' equity increased to RMB 2,661,861 thousand in June 2024 from RMB 2,060,089 thousand in December 2023, indicating a growth of around 29.2%[41] Strategic Focus - The company is focused on expanding its lifestyle hotel brands and enhancing its scenario-based retail business model in China[37] - Atour Lifestyle Holdings is committed to innovation in the hospitality industry, aiming to develop new lifestyle brands around hotel offerings[37] - Future growth strategies include potential market expansion and the development of new products and technologies within the hospitality sector[37] - The company continues to focus on expanding its market presence and enhancing its brand offerings through new hotel openings and strategic positioning[49] - The company reported an adjusted net income that excludes share-based compensation expenses, providing a clearer view of its financial performance[34] - Atour's EBITDA is highlighted as a key performance measure, which helps in comparing financial performance across periods by excluding depreciation and amortization costs[34] - The company emphasizes the importance of non-GAAP financial measures for better transparency and internal performance assessment[35] Market Conditions - No hotels were requisitioned for quarantine needs in Q2 2024, indicating a return to normal operations[50] - The number of manachised hotels increased significantly, contributing to the overall revenue growth[45]