Atour Lifestyle (US:ATAT) BambooWorks·2025-12-03 04:53Core Viewpoint - Atour's revenue for Q3 increased by 38.4% year-on-year, prompting the company to raise its full-year revenue growth guidance from 25% to 35% [1][3][7] Revenue Growth - The primary driver of this growth is the retail business, which allows guests to purchase various products used in their rooms through Atour's online store. Notably, bedding products, including pillows, have significantly contributed to this growth [3][7] - Q3 revenue reached 2.63 billion yuan (approximately 372 million USD), with a cumulative revenue increase of 35.5% for the first nine months of the year [7] RevPAR Performance - Average Revenue Per Available Room (RevPAR) continued to decline in Q3, down 2.4% year-on-year to 371 yuan, reflecting adjustments in pricing strategies that have begun to stabilize demand [4][6] - Despite the decline, there are signs of recovery, particularly during the "Golden Week" holiday, which is expected to positively impact Q4 results [6] Retail Business Impact - The retail segment saw a remarkable 76.4% increase in revenue, rising from 479 million yuan to 846 million yuan year-on-year [7] - The retail business's contribution to total revenue has increased from about one-quarter to nearly one-third, highlighting its growing importance within the company's revenue structure [7][8] Expansion and Future Outlook - Atour opened 152 new hotels in Q3, bringing the total number of hotels to 1,948 by the end of September, maintaining a steady pace of expansion [6] - The company remains confident in achieving its goal of operating 2,119 hotels by the end of 2025, with plans to open an additional 171 hotels in Q4 [6] Profitability and Market Sentiment - Net profit for the company increased by 24.6% to 474 million yuan, although the growth rate is slower compared to revenue due to increased tax expenses [8] - Analysts are generally optimistic about Atour, with all 19 analysts covering the stock rating it as "Buy" or "Strong Buy," despite the stock's price-to-earnings ratio being lower than competitors [5][8]