Q3 2024 Atour Lifestyle Holdings Ltd Earnings Call Transcript
Key Points
- Atour Lifestyle Holdings Ltd (ATAT) reported a 46.7% year-over-year increase in net revenues for the third quarter of 2024, driven by strong growth in both the Manachised hotel and retail businesses.
- The company achieved a record pace in hotel network expansion with 140 new hotel openings in the third quarter, marking a 72.8% year-over-year increase.
- Atour's retail business demonstrated robust growth with a 107.7% year-over-year increase in GMV, reaching RMB566 million, with online channels accounting for around 90% of total GMV.
- The membership base expanded rapidly, with registered individual members exceeding 83 million, marking a 53.7% increase year-over-year.
- The launch of the upscale lifestyle brand SAVHE Hotel is expected to inject new vitality into the upscale hotel market in China, with a focus on quality and brand value.
- RevPAR for the third quarter of 2024 was under pressure, reaching only 89.5% of its level for the same period in 2023, due to high comparison base effects and a shift to outbound tourism.
- The gross margin of the hotel business decreased to 36.0% from 39.5% in the same period of 2023, attributed to a decline in RevPAR and increased revenue from lower-margin supply chain business.
- Revenues from leased hotels declined by 20.4% year-over-year, primarily due to a decrease in the number of these hotels and a decrease in RevPAR.
- The company faced increased selling and marketing expenses, which accounted for 11.5% of net revenues, up from 8.7% in the same period of 2023, due to enhanced investments in brand recognition.
- The adjusted net profit margin for the third quarter of 2024 decreased by 0.8 percentage points year-over-year, impacted by a decline in RevPAR and increased selling and marketing expenses.
Ladies and Gentlemen, thank you for standing by, and welcome to the Atour Lifestyle Holdings third-quarter 2024 earnings conference call. (Operator Instructions) Todayâs conference is being recorded.
At this time, I would like to turn the conference over to Mr. Luke Hu, Senior IR manager. Please go ahead, sir.
Thank you, operator. Good morning and good evening, everyone. Welcome to our third quarter 2024 earnings conference call. Today, you will hear from our Founder, Chairman and CEO, Mr. Wang Haijun; and our Co-CFO, Mr. Wu Jianfeng.
Before we continue, please be aware that todayâs discussion will include forward-looking statements under federal securities laws. These statements are subject to various risks and uncertainties, and actual results may differ significantly from what is stated or implied in our comments today. The company is not obligated to update any forward-looking statements except as required by applicable laws.
Additionally, during this call, our
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