Core Viewpoint - Atour, a leading mid-to-high-end hotel chain in China, is considering a secondary listing in Hong Kong to raise several hundred million dollars [2][5]. Company Overview - Atour was founded in 2013 and has grown to become the largest mid-to-high-end hotel chain in China, with 1,727 hotels as of Q1 2025 [3][4]. - The company targets China's 400 million middle-class consumers, focusing on lifestyle hotels that offer a unique experience beyond traditional budget accommodations [3][4]. - The founder, Wang Haijun, has a background in hotel management and previously co-founded Hanting Hotels [3]. Business Performance - Atour went public on NASDAQ in November 2022, with a market capitalization of $4.9 billion [5]. - In 2024, Atour reported total revenue of 7.248 billion yuan, a year-on-year increase of 55.3%, with adjusted net profit rising 44.6% to 1.306 billion yuan [8]. - Hotel business revenue accounted for approximately 4.851 billion yuan, representing about 67% of total revenue, with a year-on-year growth of 36.8% [9]. Retail Business Development - Atour launched the "Atour Planet" brand in 2021, focusing on sleep products aimed at the new middle class suffering from insomnia [6]. - The retail business is rapidly growing, with a GMV of 2.592 billion yuan in 2024, a year-on-year increase of 127.7% [9]. - Despite the growth in retail, Atour plans to maintain its focus on hotel operations, as the core hotel business faces growth challenges [9]. Market Challenges - Average room revenue for Atour decreased by 7.3% to 304 yuan in Q1 2025, with daily room rates down 2.8% to 418 yuan and occupancy rates declining [9]. - The company is responding to economic pressures by reducing procurement prices for hotel supplies to alleviate franchisees' operating costs [10]. - The current economic environment is markedly different from when Atour was founded, with middle-class consumers becoming more cautious in their discretionary spending [10].