In the first quarter, Atour (ATAT, Financial) achieved a revenue of RMB1.91 billion, surpassing analyst expectations of $1.88 billion. The Average Daily Rate (ADR) for the quarter was RMB418, a decrease from RMB430 in the same period last year and RMB420 in the previous quarter. Occupancy rates also saw a decline, registering at 70.2% compared to 73.3% a year earlier and 77.0% in the prior quarter. Revenue per Available Room (RevPAR) was RMB304, down from RMB328 in the first quarter of the previous year and RMB337 in the preceding quarter.
Despite market fluctuations in early 2025, Atour strengthened its hotel and retail segments. The company opened 121 new hotels, bringing its total to 1,727. To enhance its position in the upper-midscale hotel market, Atour introduced the Atour 3.6 iteration and launched Atour Light 3.3 to bolster the Atour Light brand, moving towards their target of 1,000 Atour Light hotels.
The retail segment also flourished with the Atour Planet deep-sleep experience gaining traction, leading to a 70.9% year-over-year growth in Gross Merchandise Volume (GMV) to RMB845 million. The company plans to continue focusing on its ‘Chinese Experience’ strategy, aiming to enhance brand presence and integrate hotel and retail operations for continued growth and customer satisfaction.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for Atour Lifestyle Holdings Ltd (ATAT, Financial) is $35.36 with a high estimate of $38.56 and a low estimate of $21.96. The average target implies an upside of 17.18% from the current price of $30.18. More detailed estimate data can be found on the Atour Lifestyle Holdings Ltd (ATAT) Forecast page.
Based on the consensus recommendation from 17 brokerage firms, Atour Lifestyle Holdings Ltd's (ATAT, Financial) average brokerage recommendation is currently 1.6, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
ATAT Key Business Developments
Release Date: March 25, 2025
- Net Revenue (Q4 2024): RMB2,084 million, up 38.5% year over year and 9.8% quarter over quarter.
- Net Revenue (Full Year 2024): RMB7,248 million, up 55.3% year over year.
- RevPAR (Q4 2024): RMB337, representing 94.1% of 2023's level.
- Occupancy Rate (OCC) (Q4 2024): 98.2% of 2023's level.
- Average Daily Rate (ADR) (Q4 2024): 96% of 2023's level.
- New Hotel Openings (2024): 471 new hotels, a 63% year-over-year increase.
- Total Hotels in Operation (End of Q4 2024): 1,619, a 333.8% year-over-year growth.
- Hotels Under Development (End of Q4 2024): 741, a 20% year-over-year increase.
- Retail GMV (Full Year 2024): RMB2.59 billion, up 127.7% year over year.
- Retail Revenue (Q4 2024): RMB765 million, up 85.6% year over year and 59.5% quarter over quarter.
- Gross Margin (Hotel Business, Full Year 2024): 35.9%, compared to 36.8% in 2023.
- Gross Margin (Retail Business, Full Year 2024): 50.7%, compared to 47.2% in 2023.
- Adjusted Net Income (Q4 2024): RMB333 million, up 49.9% year over year.
- Adjusted EBITDA (Q4 2024): RMB443 million, up 76.5% year over year.
- Cash and Cash Equivalents (End of 2024): RMB3,618 million.
- Net Cash (End of 2024): RMB3,556 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Atour Lifestyle Holdings Ltd (ATAT, Financial) achieved a record high in new hotel openings and signings in 2024, with 471 new hotels opened and 670 new projects signed.
- The company's retail business showed strong growth, with full-year GMV reaching RMB2.59 billion, a 127.7% year-over-year increase.
- Atour 4.0 and Atour Light 3.0 hotel brands have been successful, with Atour Light 3.0 achieving the milestone of 100 hotels in operation.
- The company reported a 55.3% year-over-year increase in net revenues for 2024, driven by growth in both hotel and retail businesses.
- Atour Lifestyle Holdings Ltd (ATAT) maintained a healthy cash position with cash and cash equivalents totaling RMB3,618 million as of December 31, 2024.
Negative Points
- RevPAR for 2024 decreased by 6.8% compared to 2023, and the company expects a year-on-year decline in Q1 2025 RevPAR of mid to high single digits.
- The adjusted net profit margin for 2024 decreased by 1.4 percentage points year over year, primarily due to fluctuations in RevPAR and increased retail business proportion.
- Revenues from leased hotels decreased by 16.4% year over year to RMB702 million in 2024, due to a decrease in the number of leased hotels.
- Selling and marketing expenses increased, accounting for 17% of net revenues in Q4 2024, up from 13.7% in the same period of 2023.
- The company faces uncertainties and challenges in 2025, with a rapidly changing market making it difficult to provide specific forecasts on RevPAR.
