Core Viewpoint - Atour Group (NASDAQ: ATAT), known as "the first stock of China's new accommodation economy," reported strong financial performance for the first half of the year, with revenue and net profit both showing significant growth, continuing the trend from the previous year [1][2]. Financial Performance - In the first half of the year, Atour achieved revenue of 4.374 billion yuan, a year-on-year increase of nearly 34% [1]. - Adjusted net profit reached 772 million yuan, up 31% compared to the same period last year, setting a new record for the company since its IPO [1]. - Retail business revenue surged by 74% year-on-year, accounting for 38% of total revenue, compared to only 11% in 2022 [2]. Business Model and Strategy - Atour has adopted a unique dual-driven business model combining accommodation and retail, which has proven to be a strong support for its performance amid a challenging hotel industry environment [1]. - The expansion of the light-asset hotel franchise business contributed significantly to Atour's profitability, with franchise hotel revenue increasing by 25% year-on-year [4]. - The company plans to open 500 new hotels by the end of the year, with a long-term goal of establishing 2,000 high-quality hotels by the end of 2025 [5][6]. Market Position and Brand Development - Atour focuses on the mid-to-high-end hotel market, maintaining a strong position with 1,824 hotels as of the first half of the year [5]. - The company has introduced new brands, such as the mid-range "Light Stay" and the high-end "Saha," to explore different market segments [6]. - Despite the challenges in the hotel industry, Atour's new retail business has become a significant revenue driver, with retail GMV reaching 1.144 billion yuan in the second quarter, a year-on-year increase of 84.6% [8]. Marketing and Future Outlook - Atour has invested heavily in marketing to enhance its retail brand, with sales and marketing expenses rising nearly 70% year-on-year to 670 million yuan [9]. - The company has raised its revenue guidance for 2025 to a 30% year-on-year increase, reflecting confidence in the growth of its retail business [9].

Core Viewpoint - Atour Group reported significant growth in both revenue and net profit for the year 2024, driven by its dual business model of hotel management and retail, particularly the success of its new retail business focused on sleep products [3][4][10]. Financial Performance - In 2024, Atour Group achieved a revenue of 7.248 billion yuan, representing a year-on-year increase of 55.3%, and an adjusted net profit of 1.306 billion yuan, up 44.6% [3][5]. - The adjusted EBITDA for the year was 1.772 billion yuan, reflecting a growth of 46.8% [3]. Revenue Structure - The revenue from hotel management and franchise operations was 4.149 billion yuan, a year-on-year increase of 53.32% [5]. - Retail revenue surged to 2.198 billion yuan, marking a 126% increase compared to 2023, and accounted for 30.33% of total revenue [5][11]. Hotel Expansion - Atour opened and signed a record 471 new hotels in 2024, a 63% increase year-on-year, bringing the total number of operating hotels to 1,619, which is a 33.8% increase [5][6]. Market Challenges - The hotel industry faced pressure on room prices and occupancy rates, with Atour's average daily rate (ADR) dropping to 437 yuan from 463.6 yuan in 2023, and occupancy rate (OCC) slightly declining to 77.4% from 77.8% [6]. - The average revenue per available room (RevPAR) fell to 351 yuan, down from 376.8 yuan in 2023, indicating challenges in maintaining pricing power [6]. Retail Business Growth - The retail segment, particularly sleep products, has become a significant revenue driver for Atour, with the gross merchandise volume (GMV) reaching 2.592 billion yuan in 2024, a 127.7% increase [11][12]. - The sales of sleep products, including the deep sleep memory pillow and temperature control blankets, have shown remarkable growth, with the latter category's GMV increasing over 300% [12]. Brand Development - Atour is expanding its brand portfolio, with the launch of the "Light Stay" mid-range brand and the high-end "Saha" brand, aiming to enhance market penetration and brand recognition [8][9].