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1. Company Snapshot

1.a. Company Description

Atour 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.

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1.b. Last Insights on ATAT

Atour Lifestyle Holdings Limited's recent performance was driven by strong Q3 2025 results, with a 38% revenue growth and 27% net profit increase, surpassing expectations. The company raised its full-year revenue expansion guidance to 35% and retail segment's sales growth outlook to 65%. Aspex Management HK Ltd also boosted its stake in the company by 17.8%. Additionally, Atour announced a cash dividend under its three-year annual dividend policy, demonstrating its commitment to enhancing shareholder value. The company's expanding product offerings and strong performance in its retail business support its growth prospects.

1.c. Company Highlights

2. Atour Lifestyle Holdings Limited's Q3 2025 Earnings: Strong Revenue Growth and Expanding Hotel Portfolio

Atour Lifestyle Holdings Limited reported net revenues of RMB 2,628 million, up 38.4% year over year, driven by the growth in both hotel and retail businesses. Adjusted net income was RMB 488 million, up 27% year over year, with an adjusted net profit margin of 18.6%. The company's EPS came in at 0.4894, beating estimates of 0.45. Adjusted EBITDA was RMB 685 million, up 28.7% year over year, with an adjusted EBITDA margin of 26.1%. The company's financial performance was robust, with revenue growth driven by the expansion of its hotel portfolio and strong growth in its retail business.

Publication Date: Nov -26

📋 Highlights
  • RevPAR Recovery:: Q3 RevPAR reached RMB 371.3, 97.8% of 2024 levels, with occupancy (OCC) at 99.9% and ADR at 98.1%.
  • Hotel Expansion:: Opened 152 new hotels in Q3, a record, totaling 1,948 hotels in operation, a 27.1% YoY increase.
  • Retail Growth:: GMV surged to RMB 994 million, up 75.5% YoY, with online channels contributing over 90% of total GMV.
  • Financial Performance:: Net revenues rose 38.4% YoY to RMB 2,628 million; adjusted net income grew 27% to RMB 488 million with an 18.6% margin.
  • Dividend & Guidance:: Declared a USD 50 million dividend and raised full-year revenue growth guidance to 35% YoY, aiming for 500 new hotel openings by 2025.

Hotel Business Performance

The hotel sector showed moderate recovery, with RevPAR at RMB 371.3, at 97.8% of its 2024 level. The company opened 152 new hotels in the third quarter, a quarterly record, reaching 1,948 hotels in operation, a 27.1% year-over-year increase. Mature hotels' RevPAR was 95% of the 2024 level, with OCC and ADR at 98.5% and 96.6%, respectively. The company's focus on expansion in core business districts of key cities has contributed to its hotel growth.

Retail Business Growth

The retail business saw strong growth, with GMV reaching RMB 994 million, up 75.5% year over year. Online channels contributed over 90% of total GMV. The company is raising its full-year retail revenue growth outlook to at least 65% year-on-year, driven by the outstanding performance of Atour Planet. Consequently, the group's full-year revenue guidance is adjusted to a growth of 35% year-on-year.

Valuation and Outlook

With a P/E Ratio of 26.42 and an ROE of 45.49%, the company's valuation appears to be reasonable. The EV/EBITDA ratio is 18.01, indicating that the company's enterprise value is relatively high compared to its EBITDA. The company's guidance for 35% revenue growth in 2025 is ambitious, but analysts estimate next year's revenue growth at 24.2%. The company declared a second cash dividend for 2025, totaling approximately USD 50 million, and has commenced its share repurchase program, targeting a payout ratio of 100% based on the previous fiscal year's GAAP net income.

Strategic Developments

The company is making progress in its strategic initiatives, including the development of Atour Lite, which has achieved notable results in brand building, operational efficiency, and user experience. The company expects the scale of Atour Lite Series three hotels in operation to reach 170 to 180 by the end of 2025 and is optimistic about its long-term development. As the company continues to expand its hotel portfolio and retail business, its focus on strategic initiatives is expected to drive long-term growth.

3. NewsRoom

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Atour Lifestyle Shares Up After Guidance Raise

Dec -01

Source: benzinga.com

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Atour Lifestyle: Bullish On Beat And Raise Quarter

Nov -27

Source: seekingalpha.com

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Aspex Management HK Ltd Has $172.79 Million Stake in Atour Lifestyle Holdings Limited Sponsored ADR $ATAT

Nov -27

Source: defenseworld.net

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Atour Lifestyle Holdings Limited (ATAT) Q3 2025 Earnings Call Transcript

Nov -25

Source: seekingalpha.com

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Atour Lifestyle Holdings Limited Reports Third Quarter of 2025 Unaudited Financial Results

Nov -25

Source: globenewswire.com

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Atour Lifestyle Holdings Limited Announces Cash Dividend

Nov -25

Source: globenewswire.com

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LTH or ATAT: Which Is the Better Value Stock Right Now?

Nov -24

Source: zacks.com

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Are Consumer Discretionary Stocks Lagging Atour Lifestyle Holdings Limited Sponsored ADR (ATAT) This Year?

Nov -21

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.02%)

6. Segments

Manachised Hotels

Expected Growth: 10.27%

Atour Lifestyle Holdings Limited's managed hotels segment growth of 10.27% is driven by increasing demand for experiential travel, strategic partnerships, and expansion into new markets. Additionally, the company's focus on digitalization, loyalty programs, and personalized services has enhanced customer experience, leading to higher occupancy rates and revenue growth.

Retail

Expected Growth: 10.27%

Atour Lifestyle Holdings Limited's Retail segment growth of 10.27% is driven by increasing consumer spending, expansion into new markets, and strategic partnerships. The company's focus on experiential retail, omnichannel presence, and loyalty programs have also contributed to the growth. Additionally, the company's ability to adapt to changing consumer preferences and its strong brand portfolio have helped to drive sales and revenue.

Leased Hotels

Expected Growth: 8.9%

Atour Lifestyle Holdings Limited's leased hotels segment growth of 8.9% is driven by increasing demand for experiential travel, strategic partnerships with travel agencies, and expansion into high-growth markets. Additionally, the company's focus on digital marketing and loyalty programs has improved customer retention and acquisition, contributing to the segment's growth.

Other

Expected Growth: 10.27%

Atour Lifestyle Holdings Limited's 10.27% growth in 'Other' segment is driven by increasing demand for experiential travel, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation, innovative product offerings, and cost optimization initiatives have contributed to this growth.

7. Detailed Products

Travel Products

Atour Lifestyle Holdings Limited offers a range of travel products, including flights, hotels, and vacation packages, catering to individual and corporate clients.

Insurance Services

The company provides a variety of insurance services, including travel insurance, health insurance, and life insurance, to protect clients from unforeseen risks.

Financial Services

Atour Lifestyle Holdings Limited offers financial services, including payment processing, foreign exchange, and wealth management, to support clients' financial needs.

Lifestyle Products

The company provides lifestyle products, including luxury goods, fashion accessories, and wellness products, to enhance clients' daily lives.

Technology Solutions

Atour Lifestyle Holdings Limited offers technology solutions, including software development, data analytics, and cybersecurity services, to support clients' digital transformation.

8. Atour Lifestyle Holdings Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Atour Lifestyle Holdings Limited is moderate, as there are some alternatives available in the market, but they are not very attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers for Atour Lifestyle Holdings Limited is low, as customers have limited options and the company has a strong brand presence.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Atour Lifestyle Holdings Limited is moderate, as the company relies on a few key suppliers, but has some negotiating power due to its large scale of operations.

Threat Of New Entrants

The threat of new entrants for Atour Lifestyle Holdings Limited is high, as the industry is attractive and there are low barriers to entry, making it easy for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry for Atour Lifestyle Holdings Limited is high, as the industry is highly competitive, with many players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 48.54%
Debt Cost 3.95%
Equity Weight 51.46%
Equity Cost 12.55%
WACC 8.37%
Leverage 94.33%

11. Quality Control: Atour Lifestyle Holdings Limited passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Atour Lifestyle Holdings

A-Score: 6.5/10

Value: 1.8

Growth: 9.6

Quality: 7.9

Yield: 1.7

Momentum: 9.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
InterContinental Hotels

A-Score: 5.4/10

Value: 3.8

Growth: 6.2

Quality: 6.3

Yield: 1.9

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Wyndham Hotels

A-Score: 5.3/10

Value: 3.1

Growth: 5.0

Quality: 6.9

Yield: 4.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Whitbread

A-Score: 5.2/10

Value: 4.4

Growth: 5.9

Quality: 3.8

Yield: 4.4

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Accor

A-Score: 4.8/10

Value: 3.6

Growth: 6.2

Quality: 5.3

Yield: 3.1

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Hyatt Hotels

A-Score: 4.0/10

Value: 1.5

Growth: 7.3

Quality: 4.2

Yield: 0.0

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

42.7$

Current Price

42.7$

Potential

-0.00%

Expected Cash-Flows