Atour Lifestyle (US:ATAT) Guan Cha Zhe Wang·2025-06-05 00:36Core Viewpoint - The incident involving Atour Hotel's use of hospital bed linens has raised significant concerns about hygiene standards in the hotel industry, leading to public outcry and potential reputational damage for the brand [1][2][4]. Company Overview - Atour Hotel, part of Atour Group established in 2013, operates 1,619 hotels with 183,184 rooms and over 89 million registered members as of December 2024 [2]. - By the first quarter of 2025, Atour is expected to have 1,727 hotels and 194,559 rooms, leading the domestic mid-to-high-end hotel sector [2]. - In Q1 2025, Atour reported revenue of approximately 1.906 billion yuan, a year-on-year increase of 29.8%, with adjusted net profit rising by 32.3% to 345 million yuan [2]. Financial Performance - Atour's retail GMV reached 845 million yuan, showing a significant year-on-year growth of 70.9%, indicating a shift towards retail as a key revenue source [2]. - Despite overall revenue growth, core accommodation metrics have declined, with average revenue per available room down by 7.2% to 304 yuan, average daily rate down by 2.8% to 418 yuan, and occupancy rate decreasing by 3.1 percentage points to 70.2% [2]. Industry Context - The hotel industry is facing intense competition, with Atour attempting to leverage a "deep sleep ecosystem" to drive growth [4]. - The incident reflects broader issues in the hotel sector regarding hygiene practices, with previous reports of similar hygiene lapses in other hotel brands [5][12]. - The reliance on outsourced laundry services for bed linens raises concerns about compliance with hygiene standards, as many hotels do not have in-house laundry facilities [6][13]. Regulatory and Management Issues - Experts highlight the need for stricter regulations and oversight in the hotel laundry process to prevent the mixing of hospital and hotel linens, which poses health risks [7][12]. - The incident has prompted calls for improved management practices within hotels to ensure hygiene standards are met consistently [12][13].