Atour Lifestyle (ATAT)2024-11-22 17:28Financial Data and Key Metrics Changes - The company's net revenues for Q3 2024 grew by 46.7% year-over-year and 5.7% quarter-over-quarter, reaching RMB1,899 million, driven by growth in the manachised hotel and retail businesses [37][38] - Adjusted net income for Q3 2024 was RMB384 million, representing a 41.2% increase year-over-year, with an adjusted net profit margin of 20.2%, a decrease of 0.8 percentage points year-over-year [50] - Adjusted EBITDA for Q3 2024 was RMB532 million, up by 40% year-over-year, with an adjusted EBITDA margin of 28.0%, which decreased by 1.4 percentage points year-over-year [51] Business Line Data and Key Metrics Changes - Revenues from manachised hotels for Q3 2024 were RMB1,179 million, up by 51.0% year-over-year and 14.8% quarter-over-quarter, with RevPAR reaching RMB376 [38][39] - Revenues from leased hotels were RMB190 million, reflecting a 20.4% year-over-year decline, attributed to a decrease in the number of leased hotels [40] - Retail business revenues for Q3 2024 were RMB408 million, reflecting a 104% year-over-year increase, although there was a 10.6% quarter-over-quarter decline due to seasonality [41] Market Data and Key Metrics Changes - The total number of manachised hotels increased to 1,504 as of September 30, 2024, up by 39.3% year-over-year [39] - The number of hotels under development reached 732, indicating strong franchisee confidence and brand recognition [13] - The membership base exceeded 83 million, marking a 53.7% increase year-over-year [28] Company Strategy and Development Direction - The company aims to innovate and elevate hotel offerings while strengthening service advantages to enhance customer experience [8] - The strategy includes expanding the hotel network with a target of 2,000 premier hotels by next year, focusing on quality over quantity in new signings [68][76] - The launch of the upscale brand SAVHE Hotel aims to inject new vitality into the upscale hotel market in China, with a focus on quality and user experience [75][76] Management's Comments on Operating Environment and Future Outlook - Management noted steady growth in domestic travel demand and highlighted the resilience of the service consumption market [7] - The full-year RevPAR is expected to decline by a mid-to-high single-digit year-on-year, with revenue growth guidance maintained at 48% to 52% [60] - The retail business is projected to continue growing faster than the hotel business, with a focus on the sleep economy market [105] Other Important Information - The company has established over 1,500 Bambook libraries in more than 200 cities across China, promoting cultural exchange and community engagement [34] - The company is committed to maintaining a healthy cash position, with cash and cash equivalents totaling RMB2,741 million as of September 30, 2024 [52] Q&A Session Summary Question: Insights on Q3 and Q4 RevPAR performances and guidance - Management indicated that Q3 RevPAR was impacted by high base effects and external factors, but showed improvement in October, with expectations of a mid-to-high single-digit decline for full-year RevPAR [57][59] Question: Guidance on hotel openings and new signings - The company raised its full-year new openings guidance from 400 to 450 hotels, citing strong franchisee confidence despite RevPAR fluctuations [65][66] Question: Details on the new upscale brand SAVHE - SAVHE is positioned as a premium-end hotel with a RevPAR target of RMB550 to RMB650, with a focus on quality and long-term growth in the upscale segment [77][78] Question: Updates on Atour 4.0 and Atour Light 3.0 - Atour 4.0 has six hotels in operation with plans to exceed ten by year-end, while Atour Light 3.0 signed 38 new projects in Q3, expected to exceed 100 hotels in operation by year-end [84][85] Question: Plans for hotel closures and leased hotels - The company expects to close around 50 hotels this year based on quality evaluations, with a focus on maintaining high standards [94][95] Question: Growth potential in the retail business - Management sees significant growth potential in the sleep economy market, maintaining a revenue growth forecast of doubling year-on-year for the retail segment [105]