Atour Lifestyle (ATAT)2025-05-22 12:02Financial 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 US58 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]