Atour Lifestyle (US:ATAT)2024-05-23 13:38Financial Data and Key Metrics Changes - The company's net revenues for Q1 2024 grew by 89.7% year-over-year to RMB1,468 million, but decreased by 2.5% quarter-over-quarter [19] - Adjusted net income for Q1 2024 was RMB261 million, up by 63.4% year-over-year, with an adjusted net profit margin of 17.8%, a decrease of 2.9 percentage points year-over-year [27] - Adjusted EBITDA for Q1 2024 was RMB354 million, up by 53.1% year-over-year, with an adjusted EBITDA margin of 24.1%, a decrease of 5.8 percentage points year-over-year [27] Business Line Data and Key Metrics Changes - Hotel business RevPAR reached RMB328 in Q1 2024, representing 97.4% of the same period in 2023, with occupancy (OCC) growth at 101.1% of 2023's level [6][19] - Revenue from manachised hotels was RMB836 million, up by 87.1% year-over-year, while leased hotel revenues were RMB168 million, down by 10.3% year-over-year [20][21] - Retail business revenues reached RMB417 million, up by 268.9% year-over-year, with online sales accounting for over 90% of total GMV [11][21] Market Data and Key Metrics Changes - The number of hotels in operation increased to 1,302, a 34.5% year-over-year growth, with 97 new hotel openings in Q1 2024 [7][8] - The number of hotels under development reached 674 as of March 31, 2024, indicating strong franchisee confidence [8] Company Strategy and Development Direction - The company aims to have 2,000 premier hotels by 2025, focusing on quality alongside quantity in its expansion strategy [31] - The Atour Light 3.0 brand continues to gain traction, with 30 new signings in Q1 2024, and plans to reach about 100 operational hotels by the end of the year [44][45] - The company is committed to enhancing its ACARD membership ecosystem, integrating accommodation and retail memberships for a unified customer experience [16] Management's Comments on Operating Environment and Future Outlook - Management noted subdued recovery in business travel but sustained growth in leisure tourism, emphasizing the need to adapt to changing market conditions [5][6] - The company raised its revenue guidance for 2024 from 30% to 40% year-on-year growth, driven by strong retail performance and hotel network expansion [32] - Management expressed caution regarding RevPAR forecasts for 2024 due to uncertainties in the operating environment [37] Other Important Information - The company published its inaugural ESG report, highlighting its commitment to environmental, social, and governance practices [17] - The retail business is expected to achieve high double-digit year-over-year revenue growth for the full year, with ongoing investments in branding and channels [42] Q&A Session Summary Question: Will the company adjust the full year opening revenue and profit guidance? - Management confirmed confidence in achieving the target of 360 new hotel openings for the full year and raised revenue guidance to 40% year-on-year growth [31][32] Question: Can management share the recent blended RevPAR trend and expectations for 2024? - Management indicated Q1 RevPAR was RMB328, with expectations of pressure in Q2 due to various factors affecting performance [36][37] Question: What are the expectations for Atour's revenue and expenditures in the retail business? - Management expects high double-digit revenue growth for the retail business and stable sales expenditures for the year [42] Question: What are the opening goals for Atour Light 3.0 and updates on Atour 4.0 hotels? - Management expects about 100 Atour Light 3.0 hotels in operation by year-end and confirmed the first Atour 4.0 hotel is in preparation [44][46] Question: Are there any plans for returns to shareholders? - Management emphasized the importance of shareholder returns and indicated plans to consider dividends based on overall performance and cash position [47]