Investment Rating - The report assigns a "Buy" rating for the company, Atour [1] Core Insights - Atour is a leading lifestyle brand group in the domestic mid-to-high-end hotel sector, focusing on high-quality accommodation and retail business, driving growth through a dual model of "Accommodation + Retail" [2][8] - The company is expected to see significant revenue growth, with projections of 93.3 billion, 115.4 billion, and 136.4 billion yuan for 2025, 2026, and 2027 respectively, alongside net profits of 15.2 billion, 20.8 billion, and 26.2 billion yuan [3][69] Company Overview - Atour is recognized as the top player in the domestic mid-to-high-end hotel market, with a focus on providing high-quality accommodation experiences and a strong emphasis on mid-to-high-end users [2][8] - The retail segment, particularly in the deep sleep category, has seen rapid growth, with retail revenue share increasing from 9% in 2021 to 30% in 2024 [20][25] Industry Analysis - The hotel industry is experiencing continuous supply growth and structural upgrades, with a notable increase in the number of mid-range and high-end hotel rooms [2][37] - The chain hotel development trend is evident, with the chain rate rising from 19% in 2018 to 41% in 2023, indicating a shift towards more standardized hotel operations [37][46] Competitive Advantages - Atour's brand strength in the mid-to-high-end segment is significant, with a focus on personalized service and standardized methods to enhance user experience [3][54] - The company has rapidly expanded its membership base, growing from 35 million in 2022 to 89 million in 2024, indicating strong customer loyalty and engagement [3][60] Financial Performance - The company's revenue has grown from 1.57 billion yuan in 2020 to 7.25 billion yuan in 2024, with a compound annual growth rate (CAGR) of 46.7% [25][70] - The gross profit margin has improved from 26% in 2021 to 42% in 2024, driven by a shift in revenue composition towards higher-margin retail sales [30][70] Profitability Forecast - The report forecasts a steady increase in gross profit, with expectations of 40.2 billion, 51.6 billion, and 62.3 billion yuan for 2025, 2026, and 2027 respectively [69][70] - The net profit margin is projected to improve, with net profit rates of 16.3%, 18.0%, and 19.2% for the years 2025, 2026, and 2027 [70] Valuation Analysis - Atour's price-to-earnings (P/E) ratios are projected to be 23.1, 17.0, and 13.4 for 2025, 2026, and 2027, respectively, indicating potential for valuation improvement compared to peers [72]

Core Viewpoint - In 2024, Atour Group achieved remarkable financial results with a revenue of 7.248 billion yuan, reflecting a year-on-year growth of 55.3%, showcasing the unique value of its "Chinese Experience" strategy amidst a recovering tourism market [1][3][4] Financial Performance - Atour Group's revenue for 2024 reached 7.248 billion yuan, a significant increase of 55.3% year-on-year, with adjusted net profit at 1.306 billion yuan, up 44.6% [3] - In Q4 2024, revenue was 2.084 billion yuan, a 38.5% increase year-on-year, with adjusted net profit of 333 million yuan, marking a 49.9% growth [3] - The adjusted EBITDA for 2024 was 1.772 billion yuan, reflecting a 46.8% increase [3] Market Environment - The tourism industry in China saw a full recovery in 2024, with domestic and inbound tourism contributing to a robust hotel consumption market [4] - Average Revenue Per Available Room (RevPAR) for Atour was 351 yuan, achieving 93.2% of the previous year's level, with an occupancy rate of 77.4% [4] Strategic Developments - Atour opened 471 new hotels in 2024, a 63% increase year-on-year, with a total of 1,619 operating hotels by the end of the year, up 33.8% [4] - The company’s retail business saw a GMV of 2.592 billion yuan, a substantial growth of 127.7% year-on-year, with over 90% of sales from online channels [7] Competitive Advantage - Atour has established a differentiated competitive advantage through its focus on "cultural experience," leveraging IP collaborations and localized services [7] - The company’s strategic focus on user experience rather than just room occupancy has allowed it to thrive in a competitive market [10] Industry Insights - The hotel industry in China has seen a significant increase in chain hotel penetration, rising from 26% in 2019 to 40.95% [9] - Mid-range and upscale hotels have become the mainstay in new hotel openings, with a notable increase in the number of new mid-range chain hotels in major cities [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].