Summary of Atour's Q3 2025 Conference Call Company Overview - **Company**: Atour - **Industry**: Hospitality and Retail Key Financial Performance - **RevPAR**: Q3 2025 RevPAR reached RMB 371.3, 97.8% of Q3 2024 levels [2][4] - **Occupancy Rate**: Occupancy at 99.9%, indicating near-full recovery [2][4] - **ADR**: Average Daily Rate (ADR) at 98.1% compared to Q3 2024 [2][4] - **Net Revenues**: Grew by 38.4% YoY to RMB 2,628 million [23] - **Adjusted Net Income**: RMB 488 million, a 27.0% YoY increase [24] - **Cash Position**: Cash and cash equivalents totaled RMB 2,670 million as of September 30, 2025 [25] Hotel Network Expansion - **New Openings**: 152 new hotels opened in Q3 2025, bringing the total to 1,948, a 27.1% YoY increase [2][4] - **Future Target**: On track to exceed 2,000 hotels by year-end [2][4] Brand Performance - **Atour3.6 Hotels**: Gaining market traction with meticulous design; operational for over three months with RevPAR exceeding RMB 500 [2][5][6] - **Sahe Hotel**: Upscale lifestyle brand with RevPAR exceeding RMB 900; third hotel soft opened in Guangzhou [2][8] - **Atour Lite**: Continued strong performance with RevPAR surpassing year-ago levels; upgraded version 3.3 received positive feedback [2][9] Retail Business Growth - **GMV**: Retail business GMV reached RMB 994 million, a 75.5% YoY increase [2][10] - **Online Contribution**: Online channels contributed over 90% of total GMV [2][10] - **Product Performance**: Deep Sleep Memory Foam Pillow Pro 3.0 achieved over RMB 100 million GMV in 25 days [2][13] Consumer Behavior Insights - **Value Prioritization**: Consumers are prioritizing value and making more rational purchasing decisions due to macroeconomic volatility [3] - **Experiential Focus**: Retail market consumption is increasingly focused on experiential offerings and quality of life upgrades [3] Strategic Focus Areas - **User-Centric Approach**: Focus on enhancing user experiences and emotional connections [21] - **Employee Development**: Attention to employee growth and redefining promotion paths [21][22] - **Operational Efficiency**: Leveraging digital solutions for comprehensive upgrades in efficiency and customer experience [22] Future Outlook - **RevPAR Trends**: Expectation of further easing pressure from year-on-year declines in RevPAR during Q4 2025 [26] - **Long-Term Goals**: Aiming for 1,000 hotels under the "Tour Light" brand in the long term [39] Shareholder Returns - **Dividend Distribution**: Announced second dividend distribution of approximately $50 million, totaling about $108 million for the year [35] - **Share Repurchase Program**: Commenced in September, aligned with a three-year plan [35][36] Conclusion Atour demonstrates strong recovery and growth in both its hotel and retail segments, with strategic expansions and a focus on user experience and operational efficiency. The company is well-positioned to navigate the evolving market landscape while maintaining a commitment to shareholder returns.