ATAT · Atour Lifestyle Holdings Limited

Atour Lifestyle Holdings Limited delivered robust Q1 2026 results, with net revenues surging 47.5% year-over-year to RMB2,811 million, primarily propelled by 51.9% growth in manachised hotel revenues to RMB1,568 million from network expansion (2,069 manachised hotels vs. 1,702) and supply chain development, alongside 54.4% retail revenue increase to RMB1,071 million from brand recognition and product innovation. Leased hotel revenues dipped 8.0% to RMB118 million due to portfolio optimization (19 vs. 25 hotels). Operating income climbed to RMB663 million from higher revenues and other operating income of RMB91 million (up from RMB15 million, driven by government subsidies), despite elevated hotel operating costs at 67.4% of hotel revenues from expansion-related variables. Net income doubled nearly to RMB463 million, with margins expanding on reduced share-based compensation (RMB26 million vs. RMB102 million). Key operational metrics improved with ADR at RMB427 (up from RMB418), occupancy at 70.6% (vs. 70.2%), and RevPAR at RMB312 (vs. RMB304). CEO Haijun Wang highlighted steady hotel and retail performance, 110 new hotel openings, and the 'quality-first' strategy, with retail hitting RMB1.07 billion. Balance sheet remains solid with RMB3.7 billion in cash and low debt of RMB242 million. The company issued its first 2026 dividend under the 2024 Annual Dividend Policy (≥50% of prior year net income), signaling confidence in cash generation. Full-year revenue guidance of 24-28% growth reflects optimism amid industry transformation under the 'Chinese Experience, Brand-Led Excellence' strategy.