Atour Lifestyle Holdings Limited ( (ATAT) ) has released its Q1 earnings. Here is a breakdown of the information Atour Lifestyle Holdings Limited presented to its investors.
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Atour Lifestyle Holdings Limited is a prominent hospitality and lifestyle company in China, known for its diverse portfolio of lifestyle hotel brands and its pioneering approach to scenario-based retail business within the hospitality sector.
In the first quarter of 2025, Atour Lifestyle Holdings Limited reported a significant increase in net revenues, reaching RMB1,906 million, marking a 29.8% year-over-year growth. Despite this revenue growth, the company’s net income saw a slight decline of 5.5% year-over-year, amounting to RMB244 million.
Key financial highlights include a robust 32.3% increase in adjusted net income to RMB345 million and a 33.8% rise in adjusted EBITDA to RMB474 million. The company expanded its hotel network significantly, with 1,727 hotels and 194,559 rooms in operation, reflecting a 32.6% increase in the number of hotels. The retail segment also showed strong performance, with a 70.9% increase in GMV to RMB845 million.
The company faced challenges with a decrease in occupancy rates and average daily room rates, which impacted revenue per available room. However, the retail business’s growth and strategic hotel expansions helped offset these challenges.
Looking forward, Atour aims to continue its growth trajectory by enhancing brand awareness and integrating its hotel and retail businesses. The company expects total net revenues to increase by 25% to 30% for the full year of 2025, driven by its commitment to delivering elevated customer experiences and solidifying its position as a leading lifestyle group.