Core Insights - Atour Lifestyle has upgraded its Atour 4.0 brand to an independent brand called Atour Origin, which aims to blend business-travel functionality with a vacation-like atmosphere [1] - The company reported a significant increase in hotel operations, with 488 new hotels opened in 2025, bringing the total to 2,015, a 24.5% year-over-year increase [2] - Atour's retail business generated RMB 3.67 billion in revenue for 2025, reflecting a 67% year-over-year growth, and is positioned for continued innovation-driven growth [8][11] Hotel Operations - RevPAR for Atour Origin hotels exceeded RMB 430 for full-year 2025, with 55 hotels in operation and over 50 projects in the pipeline [1] - In the fourth quarter, Atour reported a RevPAR of RMB 335.7, which is 99.6% of the level in the same period of 2024, with occupancy reaching 98.8% of the prior-year level [3] - For mature hotels operating for more than 18 months, RevPAR was 96% of the prior-year level, with occupancy at 97% and ADR at 99.6% [3] Strategic Initiatives - The company launched a new three-year strategic plan titled "Chinese Experience, Brand-Led Excellence," focusing on enhancing user experience and brand development [4] - Atour completed its "Chinese Experience, 2,000 Premier Hotels" initiative, achieving a target of 2,000 premier hotels [5] - Management aims to deepen synergy between hotel and retail businesses and strengthen emotional connections with users through multi-scenario offerings [4] Financial Performance - Revenue from managed hotels increased by 28.1% in Q1 and 28.0% for the full year of 2025, totaling RMB 5.3 billion [10] - Retail revenue increased by 52.4% in Q4 to RMB 1.2 billion, contributing to the full-year revenue of RMB 3.67 billion [11] - The adjusted net profit margin for 2025 was 17.9%, with an adjusted EBITDA margin of 25.5% in Q4 [13] Future Outlook - For 2026, management expects total net revenues to increase by 20% to 24% compared to 2025, with a slight decline in net profit margin anticipated due to resource allocation under the new strategy [14] - The company plans to maintain a similar scale of new hotel openings in 2026 as in 2025, focusing on quality growth rather than purely scale-driven expansion [15] - Management anticipates retail revenue to grow by 25% to 30% year-over-year in 2026, emphasizing product differentiation and brand-building [9]

Financial Data and Key Metrics Changes - Revenues from managed hotels for the full year of 2025 grew by 28.0% year-over-year to RMB 5.3 billion, driven by ongoing expansion [29] - Revenues from retail businesses increased by 67.0% year-over-year to RMB 3.7 billion, reflecting strong brand recognition and product innovation [30] - Adjusted net profit margin for the full year of 2025 was approximately 17.9%, with expectations for a slight decline in 2026 due to increased expenses [58] Business Line Data and Key Metrics Changes - Hotel business achieved a RevPAR of RMB 335.7 in Q4 2025, representing 99.6% of the level in the same period of 2024 [9] - Retail business's gross margin improved to 52.6% for both Q4 and full year 2025, indicating a growing contribution from higher margin products [30] - RevPAR for Atour Origin hotels exceeded RMB 430, while Atour Light series three hotels saw a RevPAR recovery of over 100% year-on-year [11][16] Market Data and Key Metrics Changes - The retail business sustained strong growth momentum, with full year revenue reaching RMB 3.67 billion, representing a 67% year-over-year growth [21] - The cumulative sales volume of the Atour Planet Deep Sleep Memory Foam Pillow Pro exceeded 10 million units since launch, marking a significant sales milestone [22] - Registered individual members reached 112 million by the end of 2025, representing a year-over-year growth of over 25% [26] Company Strategy and Development Direction - The company launched a new three-year strategic plan, "Chinese Experience, Brand-Led Excellence," focusing on enhancing user experience and brand value [8] - The strategic direction emphasizes high-quality growth rather than purely scale-driven expansion, with a focus on core cities and key commercial areas for new hotel openings [38][40] - The retail business aims for revenue growth of 25%-30% year-on-year in 2026, focusing on consolidating core competitiveness and product strength [53] Management's Comments on Operating Environment and Future Outlook - The management noted considerable market uncertainty but remains optimistic about the signing momentum for 2026, emphasizing the importance of quality in new hotel projects [38] - The hotel industry is expected to experience a moderate recovery in 2026, with strong leisure demand and improved RevPAR trends anticipated [45] - The company plans to deepen its membership operations and enhance digital capabilities to support long-term development [27] Other Important Information - The company declared aggregate cash dividends of approximately $108 million for the full year of 2025 and has repurchased $46 million in shares [34] - The number of hotels in operation reached 2,015 by the end of Q4 2025, representing a 24.5% year-over-year increase [10] Q&A Session Summary Question: Recent sentiments among franchisees regarding new signings and guidance on new openings in 2026 - Management observed a shift towards more rational decision-making among franchisees, which is seen as positive for long-term industry health. They expect signing momentum to remain strong in 2026 [36][38] Question: Outlook for the hotel industry in 2026 and RevPAR performance - Management expects continued improvement in RevPAR for Q1 2026, driven by strong leisure demand and favorable market conditions [44][46] Question: Plans for the retail business and revenue targets for 2026 - The retail business aims for revenue growth of 25%-30% in 2026, focusing on product strength and brand power [51][53] Question: Expected trend for net profit margin in 2026 - Management anticipates a slight decline in net profit margin for 2026 due to increased G&A and R&D expenses [56][58] Question: Company's plan on hotel closures for 2026 - The company plans to close around 80 hotels in 2026 to maintain operational quality, a decrease from 92 closures in 2025 [61][63]

Financial Data and Key Metrics Changes - Revenues from managed hotels for the full year of 2025 grew by 28.0% year-over-year to RMB 5.3 billion, driven by ongoing expansion [29] - Revenues from retail businesses for the full year of 2025 increased by 67.0% year-over-year to RMB 3.7 billion, reflecting strong brand recognition and product innovation [30] - Adjusted net profit margin for the full year of 2025 was approximately 17.9%, with expectations for a slight decline in 2026 due to increased expenses [56][57] Business Line Data and Key Metrics Changes - Hotel business achieved a RevPAR of RMB 335.7 in Q4 2025, representing 99.6% of the level in the same period of 2024, with occupancy at 98.8% [9] - Retail business revenue reached RMB 3.67 billion in 2025, with a gross margin of 52.6%, reflecting the growing contribution from higher-margin products [30][21] Market Data and Key Metrics Changes - The retail business maintained strong growth momentum, with the Atour Planet brand consistently ranking among the top in the bedding category on major platforms [21] - The hotel industry is experiencing a moderate recovery, with leisure demand remaining strong, particularly during peak seasons like the Spring Festival [45] Company Strategy and Development Direction - The company launched a new three-year strategic plan focused on "Chinese Experience, Brand-Led Excellence," emphasizing user experience and brand value [8] - The company aims to deepen the synergy between hotel and retail businesses, leveraging brand connections to enhance customer experiences [8] Management's Comments on Operating Environment and Future Outlook - Management noted considerable market uncertainty entering 2026 but remains optimistic about signing momentum and the quality of new projects [38] - The company anticipates a slight decline in net profit margin for 2026 due to increased operational and R&D expenses [57] Other Important Information - The company declared aggregate cash dividends of approximately $108 million for the full year of 2025 and has repurchased $46 million in shares [34] - By the end of 2025, registered individual members reached 112 million, representing a year-over-year growth of over 25% [26] Q&A Session Summary Question: Sentiments among franchisees regarding new signings and guidance on new openings in 2026 - Management observed that franchisees are becoming more rational and discerning, which is positive for long-term industry health, and expects a similar scale of openings as last year [36][40] Question: Outlook for the hotel industry in 2026 and RevPAR performance - Management expects RevPAR in Q1 2026 to continue improving, driven by strong leisure demand and favorable policies [45][46] Question: Plans for the retail business and revenue targets for 2026 - The company expects retail revenue to grow by 25%-30% year-on-year in 2026, focusing on consolidating competitive advantages [52] Question: Expected trend for net profit margin in 2026 - Management anticipates a slight decline in net profit margin for 2026 due to evolving business dynamics and increased expenses [57] Question: Plans for hotel closures in 2026 - The company plans to close around 80 hotels in 2026 to maintain quality standards, a decrease from 92 closures in 2025 [62]

Financial Data and Key Metrics Changes - The company's net revenues for Q3 2025 grew by 38.4% year-over-year and 6.5% quarter-over-quarter to RMB 2,628 million [34] - Adjusted net income for Q3 2025 was RMB 488 million, representing a 27.0% increase year-over-year, with an adjusted net profit margin of 18.6% [39] - Adjusted EBITDA for Q3 2025 was RMB 685 million, up by 28.7% year-over-year, with an adjusted EBITDA margin of 26.1% [39] Business Line Data and Key Metrics Changes - In the hotel business, RevPAR was RMB 371.3, representing 97.8% of its level in the same period of 2024, with OCC nearly recovering to 99.9% and ADR reaching 98.1% [8] - Revenues from managed hotels for Q3 2025 were RMB 1,560 million, up 32.3% year-over-year, while revenues from leased hotels were RMB 164 million, down 13.4% year-over-year [34] - Retail business GMV reached RMB 994 million, representing a 75.5% year-over-year increase, although there was a 12.3% quarter-over-quarter decline [22][35] Market Data and Key Metrics Changes - The hotel sector has shown a moderate recovery since Q3, with robust travel and leisure demand, although recovery is uneven across regions [5] - The retail market is increasingly focused on experiential offerings and quality-of-life upgrades, driven by evolving consumer habits and technological advancements [5] Company Strategy and Development Direction - The company aims to achieve a strategic target of 2,000 premier hotels by year-end, having opened 152 new hotels in Q3 2025, marking a 27.1% year-over-year increase in total hotels [10][11] - Atour is focusing on quality-first principles in its rapid expansion, applying rigorous project selection criteria and strict quality standards [11] - The company is committed to enhancing shareholder value through dividends and share repurchase programs, targeting a payout ratio of 100% based on the previous fiscal year's net income [66] Management's Comments on Operating Environment and Future Outlook - Management noted that the market will continue to show divergence, with challenges and uncertainties remaining, but they expect pressure from year-on-year declines in RevPAR to ease in Q4 [44] - The company plans to deepen its understanding of user needs and strengthen foundational capabilities to secure long-term advantages in a volatile market [45] Other Important Information - The company declared a second cash dividend for 2025, totaling approximately USD 50 million, bringing the cumulative dividend total for the year to about USD 108 million [40][66] - The membership base exceeded 108 million by the end of Q3 2025, representing a year-over-year growth of over 30% [30] Q&A Session Summary Question: RevPAR trend since October and outlook for Q4 - Management indicated that RevPAR has shown progressive improvement year-over-year, with expectations for easing pressure in Q4 due to strong demand in core cities [42][44] Question: Recent new hotel signing trends and full-year targets - Management confirmed that new hotel signings are generally in line with last year, with confidence in achieving the full-year guidance of 500 new openings [50][53] Question: Competition in the retail business and revenue guidance adjustments - Management acknowledged increasing competition but emphasized a focus on evolving user needs and raised the full-year retail revenue growth outlook to at least 65% year-on-year [56][60] Question: Update on shareholder returns - Management provided an update on the second dividend distribution and the ongoing share repurchase program, targeting a payout ratio of 100% based on the previous fiscal year's net income [64][66] Question: Plans for Atour Light brand expansion - Management expressed optimism about Atour Light's long-term development and plans to build a dedicated operational system to strengthen its market position [70][73]

Business Performance - 3Q25 RevPAR was 97.8% of 2024's level for the same period[12] - 3Q25 Same-Hotel RevPAR was 95.0% of 2024's level for the same period[15] - Retail GMV increased by 75.5% from RMB 566 million in 3Q24 to RMB 994 million in 3Q25[44] - Online channels contributed to over 90% of retail sales[46] - The number of registered individual members increased by 30% from 83 million in 3Q24 to 108 million in 3Q25[63] Hotel Network Expansion - 152 new hotels opened in 3Q25[19] - The company had 1,948 hotels in operation as of September 30, 2025[19] - The company had 754 hotels in the pipeline as of September 30, 2025[19] Financial Highlights - Net revenues increased by 38.4% year-over-year to RMB 2,627,970 thousand in 3Q25[79] - Adjusted net income increased by 27.0% year-over-year to RMB 488 million in 3Q25[91] - Adjusted EBITDA increased by 28.7% year-over-year to RMB 685 million in 3Q25[94] - The company's cash and cash equivalents were RMB 2,670 million as of September 30, 2025[98] Outlook - The company expects a total net revenues growth rate of 35% year-over-year for full year 2025[106]

Core Viewpoint - Atour Lifestyle Holdings Limited (ATAT) reported mixed first-quarter 2025 results, with earnings missing estimates while net revenues exceeded expectations, indicating a solid performance in a challenging market environment [1][4]. Financial Performance - The company reported earnings per share (EPS) of 24 cents, missing the Zacks Consensus Estimate of 32 cents by 25%, and down from 26 cents in the prior-year quarter [4]. - Net revenues reached $263 million, surpassing the consensus mark of $259 million by 1.4%, and increased by 6.5% year over year [4]. - The Manachised hotels segment saw revenues increase by 23.5% year over year to $142 million, with the total number of hotels rising to 1,702 from 1,271 [5]. - Revenues from the Retail segment grew significantly by 66.5% year over year to $96 million, driven by effective product innovation [6]. - Total operating costs and expenses rose to $216 million from $160 million in the prior-year period, with hotel operating costs increasing to $101 million [7]. Operational Highlights - The company opened 121 new hotels during the quarter, expanding its operational portfolio to 1,727 properties [2]. - Atour Lifestyle introduced Atour 3.6 and launched Atour Light 3.3, aiming to reach 1,000 Atour Light hotels [2]. - Selling and marketing expenses increased to $39 million from $24 million, reflecting enhanced investment in brand recognition [8]. Cash Position and Outlook - As of March 31, 2025, cash and cash equivalents were $434 million, down from $496 million at the end of 2024, while total outstanding borrowings increased to $10 million from $8.5 million [9]. - The company expects net revenues to grow by 25-30% year over year in 2025 [11].

Financial Data and Key Metrics Changes - The company's net revenues for Q1 2025 grew by 29.8% year over year but fell by 8.6% quarter over quarter [28] - Adjusted net income for Q1 2025 was RMB 345 million, representing a 32.3% increase year over year [33] - Adjusted EBITDA for Q1 2025 was up by 33.8% year over year [33] - Gross margin of hotel businesses expanded to 36.6% in Q1 2025 from 34.1% in the same period of 2024 [30] - Gross margin of retail business expanded to 51.4% in Q1 2025 from 50.5% in the same period of 2024 [31] Business Line Data and Key Metrics Changes - Hotel operating costs increased by 11.2% year over year due to variable costs associated with hotel network expansion [30] - Revenues from monetized hotels were RMB 1,032 million, up by 23.5% year over year [28] - Retail business revenue reached RMB 845 million, up 70.9% year over year [17] Market Data and Key Metrics Changes - RevPAR reached RMB 304.4 in Q1 2025, representing 92.8% of its level in the same period of 2024 [7] - Occupancy rate (OCC) reached 95.8% and Average Daily Rate (ADR) stood at 97.2% compared to the same period in 2024 [8] Company Strategy and Development Direction - The company is committed to advancing the strategic initiative of establishing 2,000 premier hotels, enhancing brand awareness and product offerings [6][7] - Focus on product innovation and experiential upgrades to cater to younger consumers in the midscale segment [14][15] - The company aims to maintain a balance between quality and expansion, ensuring sustainable high-quality growth [10][47] Management's Comments on Operating Environment and Future Outlook - The management noted fluctuations in China's domestic travel market amid a complex macro environment, presenting both challenges and opportunities [6] - There is an expectation of easing RevPAR pressure in Q2 compared to Q1, but considerable uncertainty remains for the full year [40] - The company plans to adopt a more balanced revenue management strategy to build long-term brand value [41] Other Important Information - The company declared its first cash dividend in 2025 of US$0.14 per ordinary share, totaling approximately US$58 million [34] - A three-year share repurchase program was announced, allowing for repurchases of up to US$400 million [34] Q&A Session Summary Question: Performance of RevPAR since Q2 and outlook for the full year - Management indicated that RevPAR decreased by 7.2% year over year in Q1, with expectations of easing pressure in Q2, but full-year performance remains uncertain [38][40] Question: New signings momentum and hotel openings for 2025 - Management confirmed a positive signing momentum and maintained a full-year opening guidance of 500 new hotels [43][46] Question: Update on retail business revenue growth and full-year guidance - Management raised the full-year retail revenue growth forecast to 50% year over year, citing strong performance and product launches [50][52] Question: Considerations behind dividend and share buyback program - Management emphasized a commitment to long-term value creation and rewarding shareholders through dividends and share repurchases [55][57] Question: Progression of upscale brands and new product strategies - Management announced the upcoming opening of the Sahe flagship hotel and detailed strategies for the upper midscale and midscale segments [61][63]

Financial Data and Key Metrics Changes - The company's net revenues for Q1 2025 grew by 29.8% year over year but fell by 8.6% quarter over quarter [27] - Revenues from monetized hotels were RMB 1,032 million, up by 23.5% year over year but down 6.7% quarter over quarter [27] - Adjusted net income for Q1 2025 was RMB 345 million, representing a 32.3% increase year over year [33] - Adjusted EBITDA for Q1 2025 was up by 33.8% year over year [33] - Gross margin of hotel businesses expanded to 36.6% from 34.1% year over year [30] Business Line Data and Key Metrics Changes - RevPAR reached RMB 304.4 in Q1 2025, representing 92.8% of the level in the same period of 2024 [7] - The hotel network expanded with 121 new hotels opened, a 24.7% year over year increase, totaling 1,727 hotels in operation [9] - Retail business GMV reached RMB 845 million, up 70.9% year over year [17] - Revenues from the retail business were up by 66.5% year over year [29] Market Data and Key Metrics Changes - The overall market experienced volatility, affecting travel demand, with RevPAR decreasing by 7.2% year over year [38] - The retail business maintained strong growth momentum, driven by rising brand strength and customer loyalty [17] Company Strategy and Development Direction - The company is committed to advancing the strategic initiative of establishing 2,000 premier hotels, enhancing brand awareness and product offerings [7] - Focus on product innovation and experiential upgrades to cater to younger consumers in the midscale segment [14] - The company aims to maintain quality standards while expanding its hotel network [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the domestic travel market is facing fluctuations amid a complex macro environment, presenting both challenges and opportunities [6] - There is uncertainty regarding RevPAR performance for the full year, but management anticipates easing pressure in Q2 compared to Q1 [39] - The company is raising its full year retail revenue growth forecast to 50% year over year [50] Other Important Information - The company declared its first cash dividend in 2025 of US$0.14 per ordinary share, totaling approximately US$58 million [34] - A three-year share repurchase program was announced, allowing for repurchases of up to US$400 million [34] Q&A Session Summary Question: Performance of RevPAR since Q2 and outlook for the full year - Management indicated that RevPAR decreased by 7.2% year over year in Q1, with expectations of easing pressure in Q2, but considerable uncertainty remains for the full year [38][39] Question: New signings momentum and new hotel openings for 2025 - Management confirmed a positive signing momentum and maintained a full year opening guidance of 500 new hotels, aiming for 2,000 premier hotels by year-end [44][45] Question: Update on retail business revenue growth guidance - Management raised the full year retail revenue growth forecast to 50% year over year, driven by strong product performance and brand awareness [50] Question: Considerations behind dividend and share buyback program - Management emphasized a commitment to long-term value creation and rewarding shareholders through dividends and share repurchase initiatives [54][55] Question: Update on upscale brands and new product strategies - Management announced the upcoming opening of the Sahe flagship hotel and discussed strategies for the upper midscale and midscale segments, focusing on quality and diverse consumer needs [58][60]

NASDAQ: ATAT Atour Lifestyle Holdings Limited 1Q25 Results Presentation May 2025 This presentation does not constitute an offer to sell or issue or an invitation to purchase or subscribe for any securities of the Company for sale in the United States or anywhere else. No securities of the Company may be sold in the United States without registration with the United States Securities and Exchange Commission or an exemption from such registration pursuant to the Securities Act of 1933, as amended (the "Securi ...