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Atour Lifestyle Holdings Limited (ATAT)
:ATAT
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Atour Lifestyle Holdings
(NASDAQ:ATAT)
Rating:77Outperform
Price Target:
$44.00
▲(13.90% Upside)
Positive Factors
Market Share
Analyst reiterates a Buy rating as ATAT is expected to continue gaining market share through decent execution.
Revenue Growth
Management slightly raised FY25 total revenue guidance to up 30% YoY, with retail revenue up 60% YoY.
Negative Factors
RevPAR Uncertainty
RevPAR uncertainty remains, with blended RevPAR declining due in part to unfavorable weather and weak macro conditions.
Tax Rate Increase
Management expects the tax rate to increase to 30% from 25% due to dividend withholding taxes.
Atour Lifestyle Holdings (ATAT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.38B
Dividend Yield3.3%
Average Volume (3M)1.28M
Price to Earnings (P/E)28.1
Beta (1Y)0.39
Revenue Growth37.98%
EPS Growth32.17%
CountryUS
Employees5,488
SectorConsumer Cyclical
Sector Strength80
IndustryTravel Lodging
Share Statistics
EPS (TTM)0.43
Shares Outstanding113,625,650
10 Day Avg. Volume1,745,068
30 Day Avg. Volume1,275,432
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.75
Enterprise Value/Revenue0.49
Enterprise Value/Gross Profit1.11
Enterprise Value/Ebitda2.06
Forecast
1Y Price Target
$41.65Price Target Upside7.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Atour Lifestyle Holdings Business Overview & Revenue Model
Company DescriptionAtour Lifestyle Holdings (ATAT) is a leading hospitality company in China, specializing in the operation of upscale and midscale hotels. The company operates a portfolio of unique lifestyle hotel brands that target young, trendy travelers who appreciate design, comfort, and a seamless digital experience. Atour's hotels are known for their distinctive interior designs, high-quality services, and integration of technology to enhance customer experience.
How the Company Makes MoneyAtour Lifestyle Holdings generates revenue primarily through the operation and management of its hotels. The company earns money from room bookings, offering a range of accommodations from standard to premium suites. Additionally, Atour generates income through ancillary services such as food and beverage offerings, conference and event hosting, and retail sales within its hotel premises. The company also benefits from its brand value and customer loyalty programs which help drive repeat business. Strategic partnerships with online travel agencies and corporate clients further bolster its occupancy rates and revenue streams.
Atour Lifestyle Holdings Earnings Call Summary
Earnings Call Date:Aug 26, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Neutral
The earnings call presented significant revenue growth and expansion in the retail and hotel sectors. However, there were challenges with RevPAR recovery, increased competition, and a higher effective tax rate impacting profit margins.Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Net revenues for Q2 2025 grew by 37.4% year-over-year and 29.5% quarter-over-quarter to RMB 2,469 million.
Retail Business Expansion
Retail business GMV increased by 84.6% year-over-year to RMB 1,144 million, with online channels accounting for over 90% of total GMV.
Hotel Network Expansion
Opened 118 new hotels in Q2 2025, totaling 1,824 hotels in operation, representing a 29.2% year-over-year increase.
Membership Growth
Registered individual members surpassed 102 million, a 34.7% year-over-year increase.
Expansion of SAVHE Hotel Brand
First SAVHE flagship hotel opened in Shenzhen, achieving a RevPAR exceeding RMB 800 in its first month.
Negative Updates
Challenges in Hotel RevPAR Recovery
RevPAR in Q2 2025 was 95.7% of its level in the same period of 2024, indicating a slow recovery in hotel revenue per available room.
Increased Competition and Market Challenges
The market faces increased supply and competition which could impact future development plans.
High Effective Tax Rate
Adjusted comprehensive tax rate expected to rise to 30% in 2025 compared to last year's 25%, affecting net profit margin.
Company Guidance
During Atour Lifestyle Holdings' second quarter 2025 earnings call, the company provided several key metrics and guidance for the future. The company reported a total of 1,824 hotels in operation by the end of the second quarter, marking a 29.2% year-over-year increase. RevPAR for the second quarter was RMB 343, representing 95.7% of its level in the same period of 2024, with occupancy (OCC) at 97.4% and average daily rate (ADR) at 98.2% of their levels in 2024. Atour opened 118 hotels in the quarter and aims to reach 2,000 premier hotels by the end of 2025. Additionally, the retail business maintained robust growth, with GMV rising 84.6% year-over-year to RMB 1,144 million. The company anticipates a 30% increase in total net revenues for the full year 2025 compared to 2024, driven by ongoing network expansion and retail growth.Atour Lifestyle Holdings Financial Statement Overview
Summary
Atour Lifestyle Holdings shows strong financial health with robust revenue growth, profitability, and efficient cash flow management. The income statement reflects a positive growth trajectory, while the balance sheet indicates a stable capital structure with manageable leverage. Cash flow metrics support operational and financial flexibility.Income Statement
Atour Lifestyle Holdings demonstrates strong revenue growth with an 8.74% increase in the TTM period, supported by a solid gross profit margin of 42.79%. The company maintains a healthy net profit margin of 16.41%, indicating effective cost management. EBIT and EBITDA margins are robust at 22.81% and 22.99%, respectively, showcasing operational efficiency. Overall, the income statement reflects a positive growth trajectory and profitability.85
Very Positive
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio of 0.53, indicating manageable leverage. Return on equity is impressive at 43.78%, reflecting strong profitability relative to shareholder equity. The equity ratio stands at 39.45%, suggesting a stable capital structure. While the company has improved its leverage position over time, maintaining this trend will be crucial for financial stability.78
Positive
Cash Flow
Cash flow analysis reveals a healthy free cash flow growth rate of 11.89% in the TTM period, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.63, and the free cash flow to net income ratio is 0.96, both reflecting efficient cash conversion. The company has demonstrated consistent improvement in cash flow metrics, supporting its operational and financial flexibility.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.36B | 7.25B | 4.67B | 2.26B | 2.15B | 1.57B |
| Gross Profit | 3.66B | 3.06B | 1.91B | 682.99M | 564.67M | 337.70M |
| EBITDA | 1.97B | 1.79B | 1.07B | 275.62M | 305.74M | 150.81M |
| Net Income | 1.38B | 1.28B | 737.14M | 98.10M | 145.05M | 42.05M |
Balance Sheet | ||||||
| Total Assets | 8.36B | 7.88B | 6.59B | 4.76B | 2.25B | 1.99B |
| Cash, Cash Equivalents and Short-Term Investments | 5.20B | 4.88B | 3.59B | 1.75B | 1.04B | 824.55M |
| Total Debt | 1.70B | 1.73B | 1.95B | 2.30B | 109.44M | 121.43M |
| Total Liabilities | 5.07B | 4.93B | 4.53B | 3.57B | 1.68B | 2.30B |
| Stockholders Equity | 3.30B | 2.96B | 2.07B | 1.20B | 579.43M | -306.17M |
Cash Flow | ||||||
| Free Cash Flow | 1.70B | 1.67B | 1.95B | 244.45M | 351.91M | 4.70M |
| Operating Cash Flow | 1.77B | 1.73B | 1.99B | 283.68M | 417.88M | 118.67M |
| Investing Cash Flow | -1.50B | -520.55M | -600.52M | -192.22M | -42.23M | -105.53M |
| Financing Cash Flow | -846.45M | -426.60M | -146.92M | 456.31M | -161.08M | 48.01M |
Atour Lifestyle Holdings Technical Analysis
Positive
38.63
Price Trends
35.14
Positive
31.60
Positive
29.53
Positive
Market Momentum
1.09
Negative
68.88
Neutral
83.57
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATAT, the sentiment is Positive. The current price of 38.63 is above the 20-day moving average (MA) of 35.89, above the 50-day MA of 35.14, and above the 200-day MA of 29.53, indicating a bullish trend. The MACD of 1.09 indicates Negative momentum. The RSI at 68.88 is Neutral, neither overbought nor oversold. The STOCH value of 83.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATAT.
Atour Lifestyle Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $5.38B | 28.14 | 46.30% | 3.30% | 37.98% | 32.17% | |
77 Outperform | $11.14B | 22.91 | 30.38% | 4.24% | 4.43% | 1.61% | |
74 Outperform | $6.61B | 20.24 | 56.16% | 1.84% | 3.65% | 38.50% | |
65 Neutral | $213.20M | 14.22 | 7.89% | 3.97% | ― | ― | |
61 Neutral | $17.59B | 13.29 | -5.28% | 3.05% | 1.25% | -14.67% | |
59 Neutral | $5.53B | 17.93 | -661.94% | 0.98% | 1.67% | 35.34% | |
54 Neutral | $1.72B | ― | 49.70% | ― | 7.89% | 67.07% |
* Consumer Cyclical Sector Average
Performance Comparison
ATAT
Atour Lifestyle Holdings
39.04
20.32
108.55%
HTHT
H World Group
36.64
7.82
27.13%
CHH
Choice Hotels
117.17
-5.99
-4.86%
GHG
Greentree Hospitality Group
2.13
-0.40
-15.81%
WH
Wyndham Hotels & Resorts
86.05
10.39
13.73%
SHCO
Soho House & Co
8.85
3.27
58.60%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.