Atour Lifestyle Holdings Reports Record Growth Amid Challenges

Atour Lifestyle Holdings Limited ((ATAT)) has held its Q3 earnings call. Read on for the main highlights of the call.

Atour Lifestyle Holdings Limited recently held its earnings call, showcasing a mix of achievements and challenges. The company celebrated significant milestones in hotel expansion and retail growth, alongside improved financial performance. However, concerns were raised about declines in leased hotel revenues and quarter-over-quarter retail revenues. Despite these hurdles, the company’s increased shareholder returns and membership growth contribute positively to the overall outlook.

Record Number of New Hotel Openings

In the third quarter, Atour Lifestyle Holdings Limited achieved a record high by opening 152 new hotels, marking a 27.1% year-over-year increase. This expansion brings the total number of hotels in operation to 1,948, reflecting the company’s aggressive growth strategy in the hospitality sector.

Strong Retail Business Growth

The retail segment of Atour Lifestyle Holdings Limited demonstrated impressive growth, with GMV reaching RMB 994 million, representing a 75.5% year-over-year increase. Notably, online channels contributed over 90% of the total GMV, highlighting the company’s successful digital transformation efforts.

Increased Membership Base

Atour’s membership base saw substantial growth, with registered individual members exceeding 108 million, a year-over-year increase of over 30%. This growth underscores the company’s ability to attract and retain a loyal customer base.

Improved Financial Performance

The company reported a 38.4% year-over-year increase in net revenues for 2025, totaling RMB 2,628 million. Adjusted net income also rose by 27% year-over-year to RMB 488 million, indicating strong financial health and operational efficiency.

Enhanced Shareholder Returns

Atour announced a second cash dividend for 2025, amounting to approximately USD 50 million. The company is committed to a payout ratio of 100% based on the previous fiscal year’s GAAP net income, reflecting its dedication to delivering value to shareholders.

Decline in Leased Hotel Revenues

Despite overall growth, revenues from leased hotels decreased by 13.4% year-over-year. This decline is attributed to a decrease in the number of leased hotels due to product mix optimization, indicating a strategic shift in the company’s portfolio.

Quarter-over-Quarter Decline in Retail Revenues

The retail business experienced a 12.3% quarter-over-quarter decline in revenues, primarily due to the seasonality of the retail market. This fluctuation is a common challenge in the retail industry, which the company aims to address in future quarters.

Increase in Selling and Marketing Expenses

Selling and marketing expenses rose to RMB 355 million in 2025, compared to RMB 218 million in the same period of 2024. This increase is attributed to investments in brand recognition and online channel development, which are crucial for sustaining long-term growth.

Forward-Looking Guidance

Atour Lifestyle Holdings Limited provided comprehensive guidance for the remainder of the year. The company reported a RevPAR of RMB 371.3, achieving 97.8% of its level in the same period of 2024, with OCC and ADR reaching 99.9% and 98.1%, respectively. Atour raised its full-year retail revenue growth outlook to at least 65% year-on-year and adjusted the group’s full-year revenue guidance to a growth of 35% year-on-year. The company also announced a second cash dividend for 2025 and maintained a healthy cash position.

In summary, Atour Lifestyle Holdings Limited’s earnings call presented a balanced view of achievements and challenges. While the company faces some revenue declines in specific segments, its overall growth strategy, increased shareholder returns, and robust membership growth paint a positive picture for the future.