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Atour Lifestyle Holdings Limited (ATAT)
:ATAT
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Atour Lifestyle Holdings
(NASDAQ:ATAT)
Rating:80Outperform
Price Target:
$41.00
▲(18.91% Upside)
Positive Factors
Retail Growth
Atour delivered another set of strong results marked by store expansion and retail growth.
Revenue Guidance
Management lifted 2025 revenue guidance due to a better retail outlook.
Share Repurchase
Atour announced a three-year share repurchase program of up to US$400 million.
Negative Factors
Guidance Challenges
Management finds it challenging to provide guidance for FY25 RevPAR due to uncertainties and expects first quarter RevPAR to decline.
RevPAR Decline
Forecasting a MSD to HSD drop in RevPAR in overall 1Q25, mostly driven by the drop in room rates.
RevPAR Uncertainty
RevPAR uncertainty remains, with blended RevPAR declining due in part to unfavorable weather and weak macro conditions.
Atour Lifestyle Holdings (ATAT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.76B
Dividend Yield3.74%
Average Volume (3M)1.27M
Price to Earnings (P/E)27.5
Beta (1Y)0.42
Revenue Growth42.60%
EPS Growth27.14%
CountryUS
Employees5,488
SectorConsumer Cyclical
Sector Strength75
IndustryTravel Lodging
Share Statistics
EPS (TTM)0.34
Shares Outstanding113,625,650
10 Day Avg. Volume1,127,493
30 Day Avg. Volume1,265,596
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.74
Enterprise Value/Revenue0.46
Enterprise Value/Gross Profit1.07
Enterprise Value/Ebitda1.99
Forecast
1Y Price Target
$38.95Price Target Upside12.96% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Atour Lifestyle Holdings Business Overview & Revenue Model
Company DescriptionAtour Lifestyle Holdings Limited, through its subsidiaries, operates a chain of hotels in China. The company operates a series of themed hotels, including music hotels, basketball hotels, and literary hotels catering to the various lifestyles across different age groups with varied interests. As of March 31, 2021, its hotel network covered 608 hotels spanning 131 cities in China, with a total of 71,121 hotel rooms, including 575 manachised hotels with a total of 66,267 manachised hotel rooms, as well as a pipeline of 299 hotels with a total of 32,825 rooms under development. The company also provides hotel management services, including day-to-day management services of the hotels for the franchisees; and sells hotel supplies and other products. Atour Lifestyle Holdings Limited was incorporated in 2012 and is headquartered in Shanghai, China.
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:May 22, 2025
(Q1-2025)
| % Change Since: 15.70%|
Next Earnings Date:Aug 26, 2025
Earnings Call Sentiment Positive
The earnings call presented a mix of strong growth in hotel network expansion and retail business, as well as improved financial performance. However, challenges such as a decrease in RevPAR and increased marketing expenses were noted. Overall, the highlights of growth and strategic initiatives suggest a positive outlook, although some areas require attention.Q1-2025 Updates
Positive Updates
Expansion of Hotel Network
In the first quarter of 2025, Atour opened 121 new hotels, representing a 24.7% year-over-year increase. By the end of the first quarter, the total number of hotels in operation reached 1,727, a 32.6% year-over-year increase.
Strong Retail Business Growth
The retail business maintained strong growth momentum with GMV reaching RMB 845 million, up 70.9% year-over-year. This growth was driven by rising brand strength and growing customer loyalty, with online channels contributing over 90% of total GMV.
Financial Performance Improvement
Net revenues for the first quarter of 2025 grew by 29.8% year-over-year. Adjusted net income increased by 32.3% year-over-year to RMB 345 million, and adjusted EBITDA increased by 33.8% year-over-year to RMB 474 million.
Dividend and Share Repurchase Program
Atour announced a cash dividend of USD 0.14 per ordinary share and a 3-year share repurchase program with an aggregate value of up to USD 400 million.
Membership Growth
Registered individual members surpassed 96 million by the end of the first quarter, representing a 35.4% year-over-year increase.
Negative Updates
RevPAR Decrease
RevPAR decreased by 7.2% year-over-year in Q1 2025. Occupancy (OCC) and Average Daily Rate (ADR) also showed declines compared to the previous year.
Challenges in Leased Hotels
Revenues from leased hotels decreased by 23.5% year-over-year and 21.6% quarter-over-quarter due to a decrease in the number of leased hotels as a result of product mix optimization.
Selling and Marketing Expenses Increase
Selling and marketing expenses accounted for 14.8% of net revenues in Q1 2025, compared to 11.9% in Q1 2024, mainly due to investments in brand recognition and online channel development.
Company Guidance
During the Atour Lifestyle Holdings First Quarter 2025 Earnings Call, management provided guidance focusing on several key metrics. The company's first-quarter RevPAR reached RMB 304.4, equating to 92.8% of the previous year's level, with occupancy (OCC) at 95.8% and average daily rate (ADR) at 97.2% compared to the first quarter of 2024. The hotel network also expanded significantly, with 121 new hotels opened, marking a 24.7% year-over-year increase and bringing the total to 1,727 hotels, a 32.6% rise. The retail business showed strong growth, with GMV hitting RMB 845 million, up 70.9%, and online channels accounting for over 90% of this total. Total net revenue for the first quarter rose by 29.8% year-over-year to RMB 1,906 million, while adjusted net income increased by 32.3% to RMB 345 million. The company anticipates full-year 2025 total net revenue growth of 25% to 30% compared to 2024, reflecting a robust outlook despite a volatile market environment.Atour Lifestyle Holdings Financial Statement Overview
Summary
Atour Lifestyle Holdings exhibits strong financial health with a significant revenue increase of 55.3% and high profitability margins. The balance sheet shows moderate leverage and high returns on equity. Cash flow generation is strong, although there has been a slight decline in operating cash flow. Overall, the financial outlook is positive, supporting future expansion.Income Statement
Atour Lifestyle Holdings has demonstrated robust growth in its revenue, with a significant increase of 55.3% in 2024 compared to 2023. The company maintains strong profitability, as evidenced by its high gross profit margin of 42.2% and a net profit margin of 17.6% in 2024. Additionally, both EBIT and EBITDA margins are healthy, at 22.4% and 24.7% respectively. The company shows a consistent upward trajectory in financial performance.88
Very Positive
Balance Sheet
The company's balance sheet reflects a solid equity base, with the equity ratio standing at 37.5% in 2024. The debt-to-equity ratio is manageable at 0.59, indicating moderate leverage. Return on equity is impressive at 43.1%, showcasing efficient utilization of equity in generating profits. Despite these positives, the company's total liabilities have increased, which could pose risks if not managed carefully.75
Positive
Cash Flow
Atour Lifestyle Holdings has strong cash flow management, with a substantial free cash flow of 1.67 billion in 2024. The free cash flow to net income ratio is 1.31, indicating strong cash generation relative to net earnings. However, the operating cash flow has seen a slight decline compared to the previous year. The company should focus on maintaining or improving its cash flow generation to support ongoing investments and debt management.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.69B | 7.25B | 4.67B | 2.26B | 2.15B | 1.57B |
| Gross Profit | 3.29B | 3.06B | 1.91B | 682.99M | 564.67M | 337.70M |
| EBITDA | 1.77B | 1.79B | 1.07B | 275.62M | 305.74M | 150.81M |
| Net Income | 1.26B | 1.28B | 737.14M | 98.10M | 145.05M | 42.05M |
Balance Sheet | ||||||
| Total Assets | 7.92B | 7.88B | 6.59B | 4.76B | 2.25B | 1.99B |
| Cash, Cash Equivalents and Short-Term Investments | 4.88B | 4.88B | 3.59B | 1.75B | 1.04B | 824.55M |
| Total Debt | 1.76B | 1.73B | 1.95B | 2.30B | 109.44M | 121.43M |
| Total Liabilities | 4.63B | 4.93B | 4.53B | 3.57B | 1.68B | 2.30B |
| Stockholders Equity | 3.29B | 2.96B | 2.07B | 1.20B | 579.43M | -306.17M |
Cash Flow | ||||||
| Free Cash Flow | 1.52B | 1.67B | 1.95B | 244.45M | 351.91M | 4.70M |
| Operating Cash Flow | 1.58B | 1.73B | 1.99B | 283.68M | 417.88M | 118.67M |
| Investing Cash Flow | -1.04B | -520.55M | -600.52M | -192.22M | -42.23M | -105.53M |
| Financing Cash Flow | -435.15M | -426.60M | -146.92M | 456.31M | -161.08M | 48.01M |
Atour Lifestyle Holdings Technical Analysis
Positive
34.48
Price Trends
33.81
Positive
30.41
Positive
28.87
Positive
Market Momentum
0.21
Positive
49.39
Neutral
66.11
Neutral
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 34.48 is below the 20-day moving average (MA) of 35.02, above the 50-day MA of 33.81, and above the 200-day MA of 28.87, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 49.39 is Neutral, neither overbought nor oversold. The STOCH value of 66.11 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $4.76B | 27.46 | 44.99% | 3.74% | 42.60% | 27.14% | |
74 Outperform | $6.69B | 20.54 | 56.16% | 1.78% | 3.65% | 38.50% | |
69 Neutral | $9.71B | 23.14 | 28.90% | 4.70% | 5.20% | -11.08% | |
65 Neutral | $218.28M | 14.29 | 7.89% | 3.83% | ― | ― | |
61 Neutral | $17.22B | 11.49 | -5.97% | 3.08% | 1.37% | -15.54% | |
58 Neutral | $5.68B | 18.83 | -661.94% | 0.94% | 1.67% | 35.34% | |
52 Neutral | $1.52B | ― | 49.70% | ― | 7.89% | 67.07% |
* Consumer Cyclical Sector Average
Performance Comparison
ATAT
Atour Lifestyle Holdings
34.48
17.78
106.47%
HTHT
H World Group
33.22
5.30
18.98%
CHH
Choice Hotels
122.71
0.08
0.07%
GHG
Greentree Hospitality Group
2.22
-0.23
-9.39%
WH
Wyndham Hotels & Resorts
88.77
14.74
19.91%
SHCO
Soho House & Co
7.81
2.19
38.97%
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.