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 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]

NASDAQ: ATAT Atour Lifestyle Holdings Limited 4Q25 Results Presentation March 2026 2 Chinese Experience, 2000 Premier Hotels 中国体验，两千好店 3 Chinese Experience, Brand-Led Excellence 中国体验，品牌领航 Disclaimer 免责声明 This presentation has been prepared by Atour Lifestyle Holdings Limited (the "Company") solely for informational purposes and has not been independently verified. No representations, warranties or undertakings, express or implied, are made by the Company or any of its affiliates, advisers or representatives ...

Core Viewpoint - Atour Lifestyle Holdings Limited (NASDAQ:ATAT) is recognized as a high-growth Chinese stock, with CLSA initiating coverage and assigning an Outperform rating along with a price target of $49, emphasizing its unique features and services in the premium hotel sector [1]. Group 1: Business Model and Strategy - Atour's asset-light strategy and robust supply chain capabilities contribute to a more stable net profit, reducing volatility during periods of low revenue per available room (RevPar) [2]. - The company is leveraging its brand value through a strategic retail operation, which is expected to enhance profitability [3]. Group 2: Growth Projections - CLSA forecasts that Atour's hotel count will grow at a compound annual growth rate (CAGR) of 23% over the next five years, driven by the expansion of the Atour Light and Savhe brands [3]. - The company's EBITDA is projected to achieve a CAGR of 28% over the next three years, indicating strong financial growth potential [3]. Group 3: Company Overview - Atour Lifestyle Holdings Limited operates a rapidly expanding network of hotels and is noted as the first Chinese hotel chain to develop a scenario-based retail business, positioning itself uniquely in the hospitality and lifestyle sector [4].

Core Viewpoint - Atour Lifestyle Holdings Ltd. expects a significant revenue growth of 35% for 2025, an increase from the earlier forecast of 25%, driven primarily by its retail business performance [2][4]. Financial Performance - In the third quarter, Atour reported a revenue growth of 38.4% year-on-year, reaching 2.63 billion yuan ($372 million), which is an improvement from the previous two quarters [10]. - The company's retail business revenue surged by 76.4% to 846.3 million yuan, while revenue from the core hotel business grew by 25.5% to 1.72 billion yuan [11]. - Atour's profit increased by 24.6% year-on-year to 474 million yuan, with the slower growth attributed to higher tax expenses [15]. Business Strategy - The retail segment has become a crucial part of Atour's growth strategy, now accounting for nearly one-third of total revenue, up from a quarter a year earlier [11]. - Atour opened 152 new hotels in the third quarter, bringing the total to 1,948, and aims to operate 2,119 hotels by the end of 2025 [9]. Market Context - The hotel sector is experiencing a moderate recovery, although the overall market is characterized by uneven recovery across regions [7]. - Despite a decline in revenue per available room (revpar), Atour's revpar decline has moderated, falling by 2.4% year-on-year to 371 yuan in the third quarter [6]. Investor Sentiment - Following the positive financial report, Atour's stock rose by 8.5% over five trading days, with all 19 analysts rating the stock as either "buy" or "strong buy" [5]. - Atour's shares trade at a forward P/E ratio of 20, which is lower compared to its competitor H World Group, which has a P/E ratio of 35 [16].

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]

Business Performance - 2Q25 RevPAR was 95.7% of 2024's level for the same period[11] - 2Q25 Same-Hotel RevPAR was 94.4% of 2024's level for the same period[14] - The number of new hotel openings in 2Q25 was 118[18] - The number of hotels in operation reached 1,824 as of June 30, 2025[19] - The number of hotels in the pipeline reached 816 as of June 30, 2025[19] Retail Business - Retail GMV increased by 84.6% from RMB 620 million in 2Q24 to RMB 1,144 million in 2Q25[43] - 618 Shopping Festival GMV increased by 86.1% from RMB 310 million in 2024 to RMB 578 million in 2025[43] - The company ranked No 1 in sales in the pillow category on major third-party platforms[47] Membership - The number of registered individual members increased by 34.7% from 76.2 million in 2Q24 to 102.6 million in 2Q25[55] - Core CRS channel accounted for 61.5% of total room-nights sold[57] - Corporate members' contribution accounted for 20.0% of total room nights sold[57] Financial Performance - Net revenues increased by 37.4% YoY from RMB 1,797,047 thousand in 2Q24 to RMB 2,468,549 thousand in 2Q25[66] - Adjusted net income increased by 30.2% from RMB 328 million in 2Q24 to RMB 427 million in 2Q25[79] - Adjusted EBITDA increased by 37.7% from RMB 443 million in 2Q24 to RMB 610 million in 2Q25[82] Outlook - The company expects a total net revenues growth rate of 30% YoY for full year 2025[87]