Atour Lifestyle initiated with a Buy at Goldman Sachs

Goldman Sachs analyst Simon Cheung initiated coverage of Atour Lifestyle (ATAT) with a Buy rating and $34.40 price target The firm notes that having a relatively short history, Atour is one of the fastest-growing chain hotel operators in China, with its hotel count more than tripled, or +30% CAGR from 420 at end-FY19 before the pandemic to 1.5k as of end-Q3 2024, covering close to 200 cities nationwide. Goldman believes the company is well-positioned to benefit from accelerating industry consolidation trend as smaller, independent hotel operators want to stay competitive through product upgrades and joining chain hotels.