Atour Lifestyle Holdings Limited ((ATAT)) has held its Q2 earnings call. Read on for the main highlights of the call.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Atour Lifestyle Holdings Limited recently held its second quarter 2025 earnings call, revealing a generally positive sentiment characterized by significant revenue growth and expansion in both the retail and hotel sectors. However, the company also acknowledged challenges such as slower RevPAR recovery, increased competition, and a higher effective tax rate impacting profit margins.
Strong Revenue Growth
The company reported a robust increase in net revenues for Q2 2025, with a 37.4% year-over-year growth and a 29.5% increase quarter-over-quarter, reaching RMB 2,469 million. This impressive growth underscores Atour’s successful strategies in expanding its market presence and enhancing its revenue streams.
Retail Business Expansion
Atour’s retail business demonstrated remarkable growth, with GMV increasing by 84.6% year-over-year to RMB 1,144 million. Notably, online channels accounted for over 90% of the total GMV, highlighting the company’s effective digital strategy and strong online market penetration.
Hotel Network Expansion
The company made significant strides in its hotel network, opening 118 new hotels in Q2 2025, bringing the total to 1,824 hotels in operation. This represents a 29.2% year-over-year increase, reflecting Atour’s aggressive expansion strategy in the hospitality sector.
Membership Growth
Atour’s membership program saw substantial growth, with registered individual members surpassing 102 million, marking a 34.7% year-over-year increase. This growth in membership is a testament to the company’s ability to attract and retain a loyal customer base.
Expansion of SAVHE Hotel Brand
The launch of the first SAVHE flagship hotel in Shenzhen was a notable highlight, achieving a RevPAR exceeding RMB 800 in its first month. This successful launch indicates strong market interest and potential for the SAVHE brand.
Challenges in Hotel RevPAR Recovery
Despite the overall growth, Atour faced challenges in RevPAR recovery, with Q2 2025 figures at 95.7% of the same period in 2024. This slow recovery suggests ongoing challenges in maximizing revenue per available room.
Increased Competition and Market Challenges
The company acknowledged the increased supply and competition in the market, which could pose challenges to its future development plans. Navigating these market dynamics will be crucial for sustaining growth.
High Effective Tax Rate
Atour anticipates an adjusted comprehensive tax rate increase to 30% in 2025, up from 25% last year. This rise in the effective tax rate is expected to affect the company’s net profit margin, posing a financial challenge.
Forward-Looking Guidance
Looking ahead, Atour aims to reach 2,000 premier hotels by the end of 2025, building on its current total of 1,824 hotels. The company also expects a 30% increase in total net revenues for the full year 2025 compared to 2024, driven by continued network expansion and retail growth. These ambitious goals reflect Atour’s confidence in its growth strategies and market position.
In conclusion, Atour Lifestyle Holdings Limited’s earnings call highlighted a positive trajectory in revenue and expansion efforts, despite facing some market and financial challenges. The company’s strategic focus on growth in both the retail and hotel sectors, along with its forward-looking guidance, positions it well for continued success in the coming years.