ATAT

In August 2026, Atour Lifestyle Holdings Limited reported second-quarter 2026 results showing revenue rising to ¥3,490.35 million from ¥2,468.55 million a year earlier, while net income increased to ¥547.72 million and diluted earnings per share from continuing operations reached ¥3.99. Alongside this earnings release, management forecast full-year 2026 net revenue growth of 30% versus 2025 and highlighted expanding hotel operations and a fast-growing retail segment as key contributors. Next, we will examine how this combination of strong revenue growth and higher retail guidance may reshape Atour Lifestyle’s investment narrative. AI is about to change healthcare. These 41 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. To own Atour Lifestyle, you need to be comfortable with a China-focused, asset light hotel and retail platform where growth depends on disciplined network expansion and brand strength. The latest results show strong revenue and earnings growth alongside higher 2026 revenue guidance, which supports the near term growth catalyst but do not remove the risk that a rising mix of lower margin retail could pressure net profit margins. The most relevant announcement here is management’s updated outlook for 2026, with total net revenues now expected to rise 30% versus 2025. This sits alongside a healthy hotel pipeline and faster retail growth, reinforcing the growth narrative while keeping investors’ attention on whether margins can hold up as the business mix shifts toward retail. Yet behind the strong top line momentum, investors should be aware that rising exposure to lower margin retail could... Read the full narrative on Atour Lifestyle Holdings (it's free!) Atour Lifestyle Holdings' narrative projects CN¥18.1 billion revenue and CN¥3.0 billion earnings by 2029. This requires 19.2% yearly revenue growth and an earnings increase of roughly CN¥1.2 billion from CN¥1.8 billion today. Uncover how Atour Lifestyle Holdings' forecasts yield a $50.50 fair value, a 45% upside to its current price. Four members of the Simply Wall St Community see Atour’s fair value between US$50.50 and US$64.14, underscoring how far views can differ. You should weigh these against the risk that faster growing, lower margin retail sales could pressure profitability and reshape expectations for the business over time. Explore 4 other fair value estimates on Atour Lifestyle Holdings - why the stock might be worth just $50.50! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Atour Lifestyle Holdings research is our analysis highlighting 5 key rewards that could impact your investment decision. Our free Atour Lifestyle Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Atour Lifestyle Holdings' overall financial health at a glance. The market won't wait. These fast-moving stocks are hot now. Grab the list before they run: This technology could replace computers: discover 24 stocks that are working to make quantum computing a reality. Rare earth metals are the new gold rush. Find out which 28 stocks are leading the charge. Invest in the nuclear renaissance through our list of 92 elite nuclear energy infrastructure plays powering the global AI revolution. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ATAT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Thursday, Aug. 20, 2026, at 7 a.m. ET IR Director-Luke Hu Founder, Chairman, and Chief Executive Officer-Wang Haijun Executive Vice President and Co-Chief Financial Officer-Wu Jianfeng Operator: Ladies and gentlemen, thank you for standing by, and welcome to the Atour Lifestyle Holdings Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Today's conference is being recorded. I would now like to turn the conference over to Mr. Luke Hu, IR Director. Please go ahead, sir. Luke Hu: Thank you, operator. Good morning, and good evening, everyone. Welcome to our second quarter 2026 earnings conference call. Today, you will hear from our Founder, Chairman and CEO, Mr. Wang Haijun; and our EVP, Co-CFO, Mr. Wu Jianfeng. Before we continue, please be aware that today's discussion will include forward-looking statements under federal securities laws. These statements are subject to various risks and uncertainties, and the 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 management will discuss certain non-GAAP financial measures solely for comparison purpose. For a clear understanding of these measures and a reconciliation of GAAP to non-GAAP financial results, please refer to the earnings release issued earlier today. Furthermore, a webcast replay of this conference call will be accessible on our website at ir.yaduo.com, where a copy of the results presentation is also available. Now I will turn the call over to Mr. Wang, our CEO. Haijun Wang: [Interpreted] Thank you, Luke. Hello, everyone. Thank you for joining Atour's Second Quarter 2026 Earnings Call today. Please turn to our results presentation. In the first half of 2026, China's consumer market continued to show diverging performance. In both the hotel and retail sectors, we saw a clear split. Homogeneous products and services remained under pressure, while companies that deliver differentiated experiences and have strong brand equity showed greater resilience. More specifically, the hotel industry is shifting from scale-driven expansion to high-quality growth. Competition is increasingly centered on product innovation, service capabilities, and operational efficiency rather than supply growth. In retail, consumers are not only pursuing product quality, but are also placing increasing importance on whether products align with their lifestyles, and the demand for personalization is also growing. This means that under these new consumer trends, brands that consistently invest in quality and build differentiated experiences are better positioned to earn consumer recognition. In the first half, we firmly advanced our new 3-year strategy, Chinese Experience, Brand-Led Excellence, making continuous breakthroughs across hotel and retail businesses. We also consolidated our experience advantage and enhanced brand momentum, driving long-term healthy and sustainable growth. Now I would like to provide more details on our business performance for the second quarter of 2026. Let's begin with our hotel business. In the second quarter, our RevPAR was RMB 345.4, representing 100.7% of the level in the same period of 2025. ADR maintained steady growth, reaching 101.2% of its level in the same period of 2025, while OCC stood at 99.7%. RevPAR for our mature hotels in operation for more than 18 months was RMB 336.8, representing 97% of the level in the same period of 2025. ADR and OCC were 98.3% and 99% of their respective levels in the same period of 2025. As for our hotel network, we continued to follow a quality-first principle and maintain strict standards for project selection and new hotel openings. In the second quarter, we opened 101 new hotels. Product strength and prime locations together enhanced the quality of our hotel presence in core markets. By the end of the second quarter, our total number of hotels in operation reached 2,175, and our pipeline of hotels under development remained at a healthy level of 811. On the hotel channel front, our CRS channel continued its steady performance in the second quarter, accounting for 61.5% of total room-nights sold. The contribution of room-nights sold to corporate members was 20.4%. Next, I would like to share the latest developments across our hotel brands. The upper mid-scale segment has long been Atour's core focus. Over the years, we have established a clear leadership position. Looking back at our development, Atour Hotel was initially perceived by users as a lifestyle brand catering to the needs of upper mid-scale business travelers. As consumer trends and user needs evolved, we continued to upgrade our products. With disciplined investment, the latest Atour 3.6 strikes a balance between the experience it delivers and investment returns. It preserves its strength in business travel while introducing a greater sense of ease. Atour 3.6 again delivered outstanding performance in the second quarter with RevPAR of hotels in operation exceeding RMB 370, further validating market recognition of the product upgrade. Within our upper mid-scale brand portfolio, Atour Origin and Atour Hotel are developing in parallel, further expanding our growth potential in the segment. To date, more than 60 Atour Origin hotels are in operation with over 90 projects in the pipeline. Atour Origin offers a more distinctive experience and commands stronger pricing power. In the second quarter, RevPAR of Atour Origin hotels in operation exceeded RMB 450, highlighting its strong differentiated competitive edge. Atour Origin is designed to reflect the Yaduo Village as it truly is: natural, tranquil, warm, and authentic. In April, we rolled out a series of distinctive experience touchpoints across Atour Origin hotels nationwide. Upon arrival, guests are welcomed by a wilderness-inspired signature scent. In the afternoon, they can enjoy the tea break in the chatting room. At night, they enjoy our deep sleep experience. And in the morning, they are served a breakfast featuring local Yunnan flavors. Through this more complete experience, we want guests to feel closer to nature, feel like they're on vacation, and to rediscover their inner peace. In the mid-scale market, differentiation ultimately rests on a stay experience that customers can truly feel. This has long been Atour Light's focus. After continued refinement, the Atour Light 3.3 cost model has entered a new phase of systematic optimization and scaled rollout. We are concentrating resources more precisely on the core experience areas that customers care about, including sleep and breakfast. Atour Light 3.3 not only provides customers with a more comfortable and relaxing stay, but also improves franchisees' operating efficiencies through a more disciplined investment model. In the second quarter, RevPAR of Atour Light 3.3 hotels in operation exceeded RMB 340, demonstrating strong operational resilience. Atour Light has established more flagship projects in higher-tier cities, which have received positive feedback from franchisees while the brand foundation continues to strengthen. At this stage, Atour Light will continue to take a quality-first approach. As we strengthen our operating capabilities, we will steadily expand Atour Light's city coverage and continue to drive product and experience innovation in the mid-scale hotel market. Meanwhile, we are deepening Atour Light's connection with younger customers. In the second quarter, we introduced exclusive benefits for students and launched distinctive brand collaborations over the summer, further raising brand awareness among younger consumers. Drawing from the vital essence of breath, SAVHE is devoted to creating serene spaces in the city where guests can breathe freely and feel truly at peace. SAVHE has played a role in driving the upward breakthrough of Atour's brand portfolio since its launch. It has advanced our brand philosophy and continues to broaden the value it delivers, setting a new standard for upscale lifestyle. In the second quarter, SAVHE's operating performance reached a new high with RevPAR of hotels in operation exceeding RMB 1,000. On the operations side, we continue to enhance SAVHE's refined management capabilities, gradually developing a replicable experience methodology with a global perspective that covers brand standards, service systems, and talent training. In the second quarter, we also expanded SAVHE's wellness offerings with a broader selection of classes and dining options. Our goal is to provide guests with an even more exceptional experience throughout their stay. Moving on to our retail business. In the second quarter, Atour Planet sustained its strong growth momentum with retail revenue reaching RMB 1.575 billion, up 63% year-over-year. In terms of category mix, we are gradually shifting from a single blockbuster product model to a broader product portfolio. By product category, Atour Planet further consolidated its dominant position in the pillow category with cumulative sales of the Deep Sleep Memory Foam Pillow Pro Series surpassing 12 million units since launch. The Deep Sleep Thermo-Regulating Comforter Pro 3.0 summer season continued to see strong sales, driving rapid growth in the comforter category. GMV of the comforter category increased by more than 80% year-over-year. Fitted sheets and loungewear, 2 strategic categories we introduced last year, maintained outstanding sales momentum, and contributed a larger share of revenue. Over the long term, the continued breakthroughs in our retail businesses are backed by systematic capabilities built across our brand, product, supply chain, and content creation. Together, they form a strong competitive moat. First, in brand building, Atour Planet has firmly established a natural deep sleep in users' mind over the years, while users' trust in our sleep products continues to grow. Second, in product development, we have always innovated to address users' genuine sleep needs. Through continuous iteration, we have built R&D capabilities that deliver breakthroughs in individual products and support expansion into new categories. This has enabled us to steadily broaden our sleep product portfolio. Third, in supply chain capabilities, we have reshaped the industry's supply chain system and set new industry standards for precision across multiple manufacturing processes. We have also established end-to-end quality control from raw materials to finished products with industry-leading product consistency and delivery reliability. Fourth, we have strong capabilities in content creation and user engagement. Our strategy has always been to communicate product value with clarity and precision. By creating content around real sleep scenarios and experiences, we make deep sleep more tangible and deepen the emotional connection between our brand and our users. Building on these capabilities, we recently launched upgraded products in our core categories, including the Deep Sleep Memory Foam Pillow Pro 4.0 and the Deep Sleep Thermo-Regulating Comforter Pro 3.0 All-Season. Both new products are built on the Atour Planet Deep Sleep standard we introduced last year. Through this standard, we aim to translate users' experience of sleeping well into product standards that are more scientific, verifiable, and continuously refinable. Guided by this approach, the Deep Sleep Memory Foam Pillow Pro 4.0 addresses a real pain point of frequent position changes during sleep. With an upgraded dynamic support system, it provides better support across every sleeping position. The Deep Sleep Thermo-Regulating Comforter Pro 3.0 All-Season also addresses the need for sleep comfort under changing temperature and humidity conditions. Its temperature and humidity balancing system improves temperature regulation and moisture management, allowing it to flexibly adapt to seasonal temperature swings and changes in how warm or cool users feel throughout the night. Looking ahead, we will continue developing our retail business with a long-term mindset. Guided by user needs, we will continue to innovate and evolve our product portfolio, further increase our market share in core categories, and consolidate our leadership. We will also continue strengthening Atour Planet's brand value by translating our strength in product development and technology into a lasting competitive moat for the brand. We will consolidate Atour Planet's position as the sleep brand that users choose first and consistently trust. Turning to membership. By the end of the second quarter, Atour had 120 million registered individual members. As our membership base has grown, the strategic growth of our membership ecosystem has become clearer. It is not only a solid foundation for our hotel and retail businesses, but also a platform for retaining long-term users and cultivating user value. At the same time, we are building a more refined system for engaging different user groups. By focusing on their core needs, we deliver more relevant benefits and experiences through segmented engagement and targeted outreach. We aim to deepen our connection with users and build longer-lasting relationships with them throughout the user life cycle. Finally, I would like to share a few thoughts. Recently, we introduced Atour's Six Commitments to Peace of Mind, which further clarify our service standards and safeguards across key touch points of our guest journey. We believe peace of mind is not just a slogan. It should be an experience that guests can clearly feel and consistently enjoy during every stay. By delivering these experiences more reliably, we aim to make peace of mind an integral part of how people perceive the Atour brand. We also hope to set a new benchmark for service standards across the industry. Behind every experience that gives guests peace of mind is the dedication of our service staff. We continue to pay close attention to their development and enhance their experience at work, including launching a public welfare program for hotel housekeeping professionals nationwide, improving the work environment for frontline service staff, and expressing respect and gratitude to them through initiatives such as Service Staff Appreciation Day. We firmly believe that when service staff are seen, respected, and treated with care, their kindness and warmth will reach guests naturally. This creates lasting trust between our brand and our users. With that in mind, we hope to continue advocating for service excellence and leading the industry toward a higher standard of experience. These actions are grounded in Atour's long-term commitment across both our hotel and retail businesses. We have always believed that quality is the foundation of sustainable long-term growth. By improving product quality, refining the user experience, and strengthening organizational capabilities, we can keep creating value for users and build competitive strength that endures through industry cycles. Looking ahead, we will continue to do the right things with warmth. With user experience at the center and organizational capabilities as the foundation, we will carry that warmth through every experience we deliver. This enduring warmth will define Atour as we navigate industry cycles and build for the long term. I will now turn the call over to our Co-CFO, Mr. Wu Jianfeng, who will discuss our financial results. Jianfeng Wu: Thank you, Haijun. Hello, everyone. I would like to present the company's financial performance for the second quarter of 2026. Our net revenues for the second quarter of 2026 grew by 41.4% year-over-year to RMB 3,490 million. Revenues from our manachised hotels for the second quarter of 2026 grew by 32.8% year-over-year to RMB 1,725 million. The increase was primarily fueled by the ongoing expansion of our hotel network as well as supply chain business development. Revenues contributed by our leased hotels for the second quarter of 2026 decreased by 11.8% year-over-year to RMB 132 million. The decline was primarily due to a decrease in the number of leased hotels. The total number of our leased hotels decreased from 24 as of June 30, 2025, to 19 as of June 30, 2026. Revenues for our retail business for the second quarter of 2026 increased by 63.2% year-over-year to RMB 1,575 million. The growth was driven by increasing brand recognition, successful product innovation, and a broadened range of product offerings. Gross profit of our hotel business for the second quarter of 2026 increased by 18.7% year-over-year to RMB 659 million. The decline in the gross margin primarily reflected a shift in the revenue mix as our lower-margin supply chain business grew faster and accounted for a larger share of hotel revenue. Gross profit of our retail business for the second quarter of 2026 increased by 57.4% year-over-year to RMB 809 million. The decrease in gross margin primarily reflected a shift in the product mix. Selling and marketing expenses accounted for 17.4% of net revenues for the second quarter of 2026, compared with 15.9% for the same period of 2025. The increase was mainly due to the investment in brand recognition and the effective development of online channels, in line with the growth of our retail business. G&A expenses, excluding share-based compensation expenses, accounted for 3.5% of net revenues for the second quarter of 2026, compared with 3.6% for the same period of 2025. Technology and development expenses accounted for 1.6% of net revenues for the second quarter of 2026, compared with 1.7% for the same period of 2025. Adjusted net profit margin for the second quarter of 2026 was 16%, representing a decrease of 1.3 percentage points year-over-year. Adjusted EBITDA margin for the second quarter of 2026 was 23.5%, decreased by 1.2 percentage points year-over-year. We maintained a healthy cash position as of June 30, 2026. Cash and cash equivalents totaled RMB 3.9 billion with net cash of RMB 3.7 billion. That concludes our financial highlights for the second quarter of 2026. And for the full year of 2026, we currently expect total net revenues to increase by 30% compared with the full year of 2025. Now let's open the floor for Q&A. Operator: [Operator Instructions] First question comes from Dan Chee from Morgan Stanley. Dan Chee: [Interpreted] Please allow me to translate my question. This is Dan from Morgan Stanley. My question is about hotel opening and signing. So since the beginning of this year, the overall industry supply was seen deceleration. So will this affect the company's upcoming signing interest? And additionally, we would like to ask if the company is keeping or any adjustment to the guidance of full year hotel gross opening and closure? Haijun Wang: [Interpreted] Thank you, Dan. There are multiple factors behind the supply dynamics in the hotel industry, including macroeconomic environment, supply demand relationship and property availabilities. They all lead to cyclical fluctuations. So this is a natural adjustment process as the industry matures. Rather than focusing solely on overall supply volume, we place greater emphasis on truly competitive, the high-quality supply that meets consumers' quality expectations. In the current market environment, franchisees are more focused on a brand's ability to sustain growth and its long-term resilience through market cycles. The leading brands with superior customer experiences strong brand equity, and proven product models and stable investment returns remain at their top choice for those franchisees when making their investment decisions. We believe that the industry adjustment period is precisely a critical phase for leading brands to further consolidate their strength and increasing their market share. We are not pursuing scale expansion alone. Our core goal is to build sustainable brands and strong brand equity across all tiers. And on the foundation of steadily enhancing brand strength, we are expanding our brand presence. Currently, our brand portfolio already cover a broader range of price points and consumption scenarios capable of accommodating diverse property conditions and meeting more varied market demand. In terms of project distribution, we center around user needs and the long-term brand value, with higher tier city core business districts still remaining as our primary focus. At the same time, we are actively expanding into strong third-tier cities, areas surrounding the 5-A rated scenic spots and distinctive property opportunities arising from urban renewal projects as a supplement. In the first half of the year, our signing momentum remained a steady trend and the pipeline achieved solid increase quarter-over-quarter, providing a high-quality reserve for future hotel openings. Thus, we maintain our full year opening target unchanged. In addition, the overall pace of closures has slowed significantly on a sequential basis since the second quarter. Therefore, we are also keeping our full year guidance of approximately 80 hotel closures unchanged. Operator: Next, I have Ronald Leung from Bank of America. Ronald Leung: [Interpreted] Let me translate my question into English. So we have observed a relatively volatile RevPAR trend since Q2. Could management share your view on RevPAR performance in the second half of the year? Haijun Wang: [Interpreted] Thank you, Ronald. And let me address this question. We believe that the long-term demand in the quality accommodation market continues to rise, whether for business travel or leisure tourism, this fundamental logic has not changed. In the short term, due to weather factors such as typhoons and heavy rainfall in some regions during early July, the travel pace during this summer season was slightly delayed compared to previous years. But since the end of July, with the arrival of peak season, summer travel demand has shown signs of stabilizing and picking up. Over the longer term, demand resilience remains intact, and the industry's trend toward higher quality development is clear. In this process, companies with strong brand equity and a solid customer base will continue to capture structural opportunities. We, therefore, hope the market can look beyond short-term data points focus more on the positive adjustment trends within the industry and the ability of leading brands to withstand cycles. Operator: Next question comes from [indiscernible] from Citi. Unknown Analyst: [Interpreted] I will translate my question [indiscernible] . I would like to ask management how you view the current demand structure? Are there any new changes or opportunities in business and leisure travel respectively? Jianfeng Wu: [Interpreted] Thank you, [indiscernible]. First, with business demand, the customer base is becoming more diversified. Before larger KA enterprise clients were a major source of demand. However, as the market landscape evolves, we're now also seeing new opportunities emerging from local core enterprises, universities and research institutions. Therefore, while we continue to serve our core corporate clients well, we are also enhancing our business travel system to tap into new resources of business travelers, thereby strengthening both our demand coverage and the stability of our customer structure. In addition, on the leisure travel demand side, more and more consumers are paying greater attention to the experiential value of their stay beyond simply fulfilling functional accommodation needs. This aligns well with Atour's direction of pursuing high-quality and multi-brand development. Through differentiated positioning, our brand portfolio is able to more precisely match the needs of different customer segments and the consumption scenarios. At the same time, inbound tourism is also a key growth market that we have been focusing on over the long term. With the gradual recovery of the inbound tourism market, we are actively advancing cooperation with overseas distribution channels and brand communications and capture the long-term opportunities brought by the growth of international guests in the future. Thank you. Operator: Next, we have Lydia Ling from Citi. Lydia Ling: [Interpreted] This is Lydia from Citi. I have questions on the retail business, and we continue to see very solid momentum for the retail business in the second quarter. And so what would be the core reason behind this [ stress ]? And given the strong growth in the first half, what's your latest guidance for your retail business for the full year? Haijun Wang: [Interpreted] Thank you, Lydia. Let me answer the first part of your question. In the first half of this year, Atour Planet continued to maintain relatively fast growth. However, for us, growth itself is merely an external reflection of the building of our capabilities. What matters more is the continuous accumulation and improvement of our systematic capabilities across brand, product, supply chain, content and other areas. Atour Planet has never chased short-term trends or run discount promotions. Instead, we focus on product innovation and brand building around users' real sleep needs. We believe that products that truly create user value and deliver consistent quality will ultimately earn long-term recognition from the users. On the product side, as the business developed, we have gradually built a more comprehensive sleep product portfolio. While our pillow category continues to maintain its leading edge, our comforters also achieved rapid growth. New categories, extending from the sleep scenario such as fitted sheet and loungewear are also becoming important growth drivers. Regarding the full year revenue guidance for the retail business, based on the strong performance in the first half of the year and the solid sales momentum following new product launches, we are raising our full year retail revenue growth guidance to 40% year-over-year. Thank you. Operator: Last question comes from Xin Chen from UBS. Xin Chen: [Interpreted] Let me translate to English. This is Xin Chen, from UBS. I'd like to ask questions about financial. Previously, the company indicated the full year expense ratio would increase. Could you please elaborate on whether there has been any change to the full year profit margin guidance at this stage? Second question is about shareholder return. Has there been any change to the company's shareholder return policy? Haijun Wang: [Interpreted] Thank you, Xin Chen. Let me address this question. Currently, we still maintain our initial judgment from the beginning of the year that the full year net profit margin will see a slight year-on-year decline. However, we observed some shifts in the factors affecting our profit margin. At the beginning of the year, we anticipated that increased investments in talent expansion and the technology R&D aimed at supporting long-term capability building would drive up our G&A and R&D expense ratios and exert some pressure on net margin. But based on our actual first half performance, a positive development has emerged. Revenue growth exceeded our initial expectations. So while we continue to invest in capability building, the expense growth has remained broadly aligned with revenue growth. As a result, we now expect the G&A and R&D expense ratios to stay relatively stable. As the full year revenue growth for both our hotel supply chain business, and the retail business is expected to exceed our initial estimates, driving a shift in the group's revenue mix. In addition, as we continue to execute our shareholder return program, the group's effective tax rate is also expected to rise compared to last year, which will have a certain impact on net margin. Considering both the revenue mix shift and the higher tax rate, we anticipate a modest year-over-year decline in the group's full year net profit margin. And as in terms of shareholder returns, we have consistently executed in accordance with our established strategy and pace. Since the initiation of the share repurchase program up to the end of the second quarter, the cumulative repurchase amount has exceeded USD 150 million. In terms of dividends, we are also continuing to steadily implement our existing dividend policy. Thank you. Operator: Thank you. That concludes today's Q&A session. I would now like to turn the conference back to Mr. Luke for any additional or closing comments. Luke Hu: Thank you for joining us today. If you have any further questions, please feel free to contact our IR team. We look forward to speaking with you again next quarter. Thank you, and goodbye. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.] Before you buy stock in Atour Lifestyle, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Atour Lifestyle wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Atour (ATAT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

A total of 2,175 hotels, or 242,526 hotel rooms, in operation as of June 30, 2026. Net revenues for the second quarter of 2026 increased by 41.4% year-over-year to RMB3,490 million (US$514 million). Net income for the second quarter of 2026 increased by 29.0% year-over-year to RMB548 million (US$81 million). Adjusted net income (non-GAAP)1 for the second quarter of 2026 increased by 30.8% year-over-year to RMB558 million (US$82 million). EBITDA (non-GAAP)2 for the second quarter of 2026 increased by 33.3% year-over-year to RMB810 million (US$119 million). Adjusted EBITDA (non-GAAP)3 for the second quarter of 2026 increased by 34.6% year-over-year to RMB821 million (US$121 million). SHANGHAI, China, Aug. 20, 2026 (GLOBE NEWSWIRE) -- Atour Lifestyle Holdings Limited (“Atour” or the “Company”) (NASDAQ: ATAT), a leading lifestyle group in China, today announced its unaudited financial results for the second quarter ended June 30, 2026. Second Quarter of 2026 Highlights As of June 30, 2026, there were 2,175 hotels with a total of 242,526 hotel rooms in operation across Atour’s hotel network, representing increases of 19.2% and 18.4% year-over-year in terms of the number of hotels and hotel rooms, respectively. As of June 30, 2026, there were 811 manachised hotels under development in our pipeline. The average daily room rate4 (“ADR”) was RMB438 for the second quarter of 2026, compared with RMB433 for the same period of 2025 and RMB427 for the previous quarter. The occupancy rate4 was 76.2% for the second quarter of 2026, compared with 76.4% for the same period of 2025 and 70.6% for the previous quarter. The revenue per available room4 (“RevPAR”) was RMB345 for the second quarter of 2026, compared with RMB343 for the same period of 2025 and RMB312 for the previous quarter. The revenue generated from our retail business was RMB1,575 million for the second quarter of 2026, representing an increase of 63.2% year-over-year. _________________1 Adjusted net income (non-GAAP) is defined as net income excluding share-based compensation expenses.2 EBITDA (non-GAAP) is defined as earnings before interest expense, interest income, income tax expense and depreciation and amortization.3 Adjusted EBITDA (non-GAAP) is defined as EBITDA excluding share-based compensation expenses.4 Excludes hotel rooms that became unavailable due to temporary hotel closures. ADR and RevPAR are calculated based on tax-inclusive room rates.“ADR” refers to the average daily room rate, which means room revenue divided by the number of rooms in use for a given period;“Occupancy rate” refers to the number of rooms in use divided by the number of available rooms for a given period; “RevPAR” refers to revenue per available room, which is calculated by total revenues during a period divided by the number of available rooms of our hotels during the same period. “In the second quarter of 2026, we steadily advanced our new three‑year ‘Chinese Experience, Brand-Led Excellence’ strategy, achieving sustained breakthroughs in both our hotel and retail businesses,” said Mr. Haijun Wang, Founder, Chairman and CEO of Atour. “For our hotel business, we adhered to the ‘quality‑first’ principle and strictly controlled project quality. By the end of the second quarter, our total number of hotels in operation reached 2,175. We continued to refine our products and experiences around each brand’s distinct positioning, and our differentiated brand strengths gained broad market recognition. Meanwhile, our retail business sustained its strong growth momentum. Retail revenue was RMB1.57 billion in the second quarter, up 63% year-over-year. Atour Planet further consolidated its advantages in core categories and continued to expand its product portfolio.” “Looking ahead, we remain committed to a long-term approach, continuously improving product quality around user needs, strengthening brand and organizational capabilities, further consolidating the competitiveness of both our hotel and retail businesses, and achieving higher‑quality sustainable development,” concluded Mr. Wang. Second Quarter of 2026 Unaudited Financial Results Net revenues. Our net revenues for the second quarter of 2026 increased by 41.4% to RMB3,490 million (US$514 million) from RMB2,469 million for the same period of 2025. The increase was mainly driven by growth in the manachised hotel and retail businesses. Manachised hotels. Revenues from our manachised hotels for the second quarter of 2026 increased by 32.8% to RMB1,725 million (US$254 million) from RMB1,299 million for the same period of 2025. The increase was primarily driven by our ongoing hotel network expansion and supply chain business development. The total number of our manachised hotels increased from 1,800 as of June 30, 2025 to 2,156 as of June 30, 2026. Leased hotels. Revenues from our leased hotels for the second quarter of 2026 decreased by 11.8% to RMB132 million (US$19 million) from RMB150 million for the same period of 2025. The decrease was primarily due to the decrease in the number of leased hotels as a result of our product mix optimization. The total number of our leased hotels decreased from 24 as of June 30, 2025 to 19 as of June 30, 2026. Retail. Revenues from retail for the second quarter of 2026 increased by 63.2% to RMB1,575 million (US$232 million) from RMB965 million for the same period of 2025. The increase was driven by growing recognition of our retail brands and effective product innovation and development as we successfully broadened our product offerings. Others. Revenues from others for the second quarter of 2026 increased by 6.6% to RMB59 million (US$9 million) from RMB55 million for the same period of 2025. Operating costs and expenses for the second quarter of 2026 were RMB2,761 million (US$407 million), including RMB10 million share-based compensation expenses, compared with RMB1,875 million, including RMB2 million share-based compensation expenses for the same period of 2025. Hotel operating costs for the second quarter of 2026 were RMB1,198 million (US$177 million), compared with RMB893 million for the same period of 2025. The increase was mainly due to the increase in variable costs, such as supply chain costs and hotel manager costs, associated with our ongoing hotel network expansion. Hotel operating costs accounted for 64.5% of manachised and leased hotels’ revenues for the second quarter of 2026, compared with 61.7% for the same period of 2025. Retail costs for the second quarter of 2026 were RMB765 million (US$113 million), compared with RMB451 million for the same period of 2025. The increase was associated with the rapid growth of our retail business. Retail costs accounted for 48.6% of retail revenues for the second quarter of 2026, compared with 46.7% for the same period of 2025. Other operating costs for the second quarter of 2026 were RMB5 million (US$0.8 million), compared with RMB7 million for the same period of 2025. Selling and marketing expenses for the second quarter of 2026 were RMB606 million (US$89 million), compared with RMB393 million for the same period of 2025. The increase was mainly due to our enhanced investment in branding and the effective development of online channels, aligned with the growth of our retail business. Selling and marketing expenses accounted for 17.4% of net revenues for the second quarter of 2026, compared with 15.9% for the same period of 2025. General and administrative expenses for the second quarter of 2026 were RMB130 million (US$19 million), including RMB9 million share-based compensation expenses, compared with RMB90 million, including RMB2 million share-based compensation expenses for the same period of 2025. Excluding the share-based compensation expenses, the increase was primarily due to an increase in labor costs. General and administrative expenses, excluding share-based compensation expenses, accounted for 3.5% of net revenues for the second quarter of 2026, compared with 3.6% for the same period of 2025. Technology and development expenses for the second quarter of 2026 were RMB57 million (US$8 million), compared with RMB43 million for the same period of 2025. The increase was mainly attributable to our increased investments in technology systems and infrastructure to support our expanding hotel network and retail business, and to improve customer experience. Technology and development expenses accounted for 1.6% of net revenues for the second quarter of 2026, compared with 1.7% for the same period of 2025. Other operating income, net for the second quarter of 2026 was RMB44 million (US$6 million), compared with RMB3 million for the same period of 2025. The increase was mainly due to an increase in income from government subsidies. Income from operations for the second quarter of 2026 was RMB773 million (US$114 million), compared with RMB596 million for the same period of 2025. Income tax expense for the second quarter of 2026 was RMB255 million (US$38 million), compared with RMB192 million for the same period of 2025. Net income for the second quarter of 2026 was RMB548 million (US$81 million), representing an increase of 29.0% compared with RMB425 million for the same period of 2025. Adjusted net income (non-GAAP) for the second quarter of 2026 was RMB558 million (US$82 million), representing an increase of 30.8% compared with RMB427 million for the same period of 2025. Basic and diluted income per share/American depositary share (ADS). For the second quarter of 2026, basic income per share was RMB1.35 (US$0.20), and diluted income per share was RMB1.33 (US$0.20). For the second quarter of 2026, basic income per ADS was RMB4.05 (US$0.60), and diluted income per ADS was RMB3.99 (US$0.60). EBITDA (non-GAAP) for the second quarter of 2026 was RMB810 million (US$119 million), representing an increase of 33.3% compared with RMB608 million for the same period of 2025. Adjusted EBITDA (non-GAAP) for the second quarter of 2026 was RMB821 million (US$121 million), representing an increase of 34.6% compared with RMB610 million for the same period of 2025. Cash flows. Operating cash inflow for the second quarter of 2026 was RMB835 million (US$123 million). Investing cash inflow for the second quarter of 2026 was RMB282 million (US$42 million). Financing cash outflow for the second quarter of 2026 was RMB861 million (US$127 million). Cash and cash equivalents and restricted cash. As of June 30, 2026, the Company had a total balance of cash and cash equivalents and restricted cash of RMB3.9 billion (US$582 million). Debt financing. As of June 30, 2026, the Company had total outstanding borrowings of RMB237 million (US$35 million). Outlook For the full year of 2026, the Company currently expects total net revenues to increase by 30% compared with the full year of 2025. This outlook is based on current market conditions and the Company’s preliminary estimates, which are subject to changes. Conference Call The Company will host a conference call at 7:00 AM U.S. Eastern time on Thursday, August 20, 2026 (or 7:00 PM Beijing/Hong Kong time on the same day). A live webcast of the conference call will be available on the Company’s investor relations website at https://ir.yaduo.com, and a replay of the webcast will be available following the session. For participants who wish to join the conference call via telephone, please pre-register using the link provided below. Upon registration, each participant will receive a set of participant dial-in numbers and a personal PIN to join the conference call. Details for the conference call are as follows: Event Title: Atour Second Quarter of 2026 Earnings Conference CallPre-registration Link: https://register-conf.media-server.com/register/BIe8138a580f784759b9c45dda51c9d597 Use of Non-GAAP Financial Measures To supplement the Company’s unaudited consolidated financial results presented in accordance with U.S. Generally-Accepted Accounting Principles (“GAAP”), the Company uses the following non-GAAP measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission: adjusted net income, which is defined as net income excluding share-based compensation expenses; adjusted net income per ordinary share - Diluted, which is defined as net income attributable to the Company excluding share-based compensation expenses divided by the number of weighted average ordinary shares used in calculating net income per ordinary share - Diluted; EBITDA, which is defined as earnings before interest income, interest expense, income tax expense and depreciation and amortization; adjusted EBITDA, which is defined as EBITDA excluding share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of GAAP and non-GAAP results” set forth at the end of this release. The Company believes that EBITDA is widely used by other companies in the hospitality industry and may be used by investors as a measure of the financial performance. Given the significant investments that the Company has made in leasehold improvements and other fixed assets of leased hotels, depreciation and amortization comprises a significant portion of the Company’s cost structure. The Company believes that EBITDA will provide investors with a useful tool for comparability between periods because it eliminates depreciation and amortization attributable to capital expenditures. Adjusted net income, adjusted net income per ordinary share – Diluted, and adjusted EBITDA provide meaningful supplemental information regarding the Company’s performance by excluding share-based compensation expenses, as the investors can better understand the Company’s performance and compare business trends among different reporting periods on a consistent basis. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the Company’s performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to the Company’s historical performance. The Company believes these non-GAAP financial measures are also useful to investors in allowing for greater transparency with respect to supplemental information used regularly by Company management in financial and operational decision-making. The accompanying tables provide more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures. The use of these non-GAAP measures has certain limitations, as the excluded items have been and will be incurred, and are not reflected in the presentation of these non-GAAP measures. Each of these items should also be considered in the overall evaluation of the results. The Company compensates for these limitations by providing the disclosure of the relevant items both in its reconciliations to the U.S. GAAP financial measures and in its consolidated financial statements, all of which should be considered when evaluating the performance of the Company. In addition, these measures may not be comparable to similarly titled measures utilized by other companies, as these companies may not calculate these measures in the same manner as the Company does. About Atour Lifestyle Holdings Limited Atour Lifestyle Holdings Limited (NASDAQ: ATAT) is a leading lifestyle group in China that operates both hospitality and retail businesses. As a leader in quality living, Atour is dedicated to creating an intimate ambiance where people can warmly connect. Guided by its people-serving philosophy, Atour continuously refines its products and services to curate exceptional experiences for every user. For more information, please visit https://ir.yaduo.com. Investor Relations Contact Atour Lifestyle Holdings LimitedEmail: [email protected] Christensen AdvisoryEmail: [email protected]: +86-10-5900-1548 —Financial Tables and Operational Data Follow— _________________1 Translations of balances in the consolidated financial statements from RMB into US$ for the second quarter of 2026 and as of June 30, 2026 are solely for readers’ convenience and were calculated at the rate of US$1.00=RMB 6.7851, representing the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on June 30, 2026. __________________2 The share-based compensation expenses were recorded at entities in PRC. Share-based compensation expenses were non-deductible expenses in PRC. Therefore, there is no tax impact for share-based compensation expenses adjustment for non-GAAP financial measures. Key Operating Data ____________________3 Excludes hotel rooms that became unavailable due to temporary hotel closures. ADR and RevPAR are calculated based on tax-inclusive room rates.4 For any given period, we define “same-hotel” as a hotel that has operated for more than 18 calendar months as of the 15th day (inclusive) of any month within that period. The OCC, ADR and RevPAR presented above represent such metrics generated by “same hotels” in the given period, compared to the corresponding metrics generated by these “same hotels” during the same period in 2025.

This article first appeared on GuruFocus. Net Revenues: RMB3.490 billion, up 41.4% year over year. Manachised Hotel Revenues: RMB1.725 billion, up 32.8% year over year. Leased Hotel Revenues: RMB132 million, down 11.8% year over year. Retail Revenues: RMB1.575 billion, up 63.2% year over year. Hotel Gross Profit: RMB659 million, up 18.7% year over year. Retail Gross Profit: RMB809 million, up 57.4% year over year. Adjusted Net Profit Margin: 16.0%, down 1.3 percentage points year over year. Adjusted EBITDA Margin: 23.5%, down 1.2 percentage points year over year. Cash and Cash Equivalents: RMB3.9 billion as of June 30, 2026, with net cash of RMB3.7 billion. RevPAR: RMB345.4, representing 100.7% of the level in Q2 2025. ADR: 101.2% of the level in Q2 2025. OCC: 99.7% of the level in Q2 2025. Mature Hotel RevPAR: RMB336.8, representing 97% of the level in Q2 2025. New Hotel Openings: 101 hotels opened in Q2 2026. Total Hotels in Operation: 2,175 as of June 30, 2026. Pipeline Hotels: 811 hotels under development. CRS Channel Contribution: 61.5% of total room nights sold. Corporate Member Room Nights: 20.4% contribution. Registered Members: 120 million as of June 30, 2026. Atour 3.6 RevPAR: Exceeded RMB370 in Q2 2026. Atour Origin RevPAR: Exceeded RMB450 in Q2 2026. Atour Light 3.3 RevPAR: Exceeded RMB340 in Q2 2026. SAVHE RevPAR: Exceeded RMB1,000 in Q2 2026. Pillow Category Sales: Cumulative sales of Deep Sleep Memory Foam Pillow Pro series surpassed 12 million units. Comforter Category GMV: Increased by more than 80% year over year. Full-Year 2026 Revenue Guidance: Expected to increase by 30% compared with 2025. Warning! GuruFocus has detected 3 Warning Signs with HAM:PI3. Is ATAT fairly valued? Test your thesis with our free DCF calculator. Release Date: August 20, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Atour Lifestyle Holdings Ltd (NASDAQ:ATAT) reported strong overall revenue growth of 41.4% year-over-year, driven by a 63.2% surge in its Retail business. The company's premium hotel brands are performing well, with Atour Origin and SAVHE achieving RevPAR of over RMB450 and RMB1,000, respectively, in Q2 2026. Atour Planet's retail momentum remains robust, with the company raising its full-year Retail revenue growth guidance to 40% year-over-year. The company maintains a healthy hotel pipeline of 811 hotels under development and has kept its full-year opening target unchanged, indicating confidence in future growth. Atour's membership base continues to expand, reaching 120 million registered individual members, which supports both its hotel and retail businesses. The company maintains a strong balance sheet with RMB3.9 billion in cash and net cash of RMB3.7 billion, and has repurchased over USD150 million in shares. Atour Lifestyle Holdings Ltd (NASDAQ:ATAT)'s overall RevPAR declined slightly, reaching only 100.7% of the level seen in Q2 2025, with mature hotels performing even weaker at 97%. The company's gross margin for its Hotel business declined due to a shift in revenue mix toward its lower-margin supply chain business. Retail gross margin also decreased year-over-year, attributed to a shift in product mix. The company's adjusted net profit margin fell by 1.3 percentage points year-over-year to 16.0%, and it expects a modest full-year decline due to revenue mix shifts and a higher effective tax rate. Selling and marketing expenses increased as a percentage of revenue, rising to 17.4% from 15.9% in the prior year period, due to investments in brand recognition and online channels. The number of leased hotels decreased from 24 to 19 year-over-year, leading to an 11.8% decline in revenue from this segment. Q: What is the company's latest guidance for full-year Retail revenue growth, and what is driving the strong momentum? A: CEO Haijun Wang stated that Atour Planet's growth is driven by systematic capabilities built across brand, product, supply chain, and content creation, rather than short-term promotions. The company is raising its full-year Retail revenue growth guidance to 40% year-over-year, based on strong first-half performance and solid sales momentum following new product launches. Q: Has there been any change to the full-year profit margin guidance, and what is the status of the shareholder return program? A: CEO Haijun Wang explained that the company maintains its initial expectation of a slight year-on-year decline in full-year net profit margin. While G&A and R&D expense ratios are expected to remain stable due to revenue growth exceeding expectations, the shift in revenue mix toward lower-margin supply chain and Retail businesses, along with a higher effective tax rate from the shareholder return program, will impact margins. The cumulative share repurchase amount has exceeded USD150 million, and the dividend policy continues to be implemented steadily. Q: How is the deceleration in industry supply affecting the company's hotel signing and opening plans? A: CEO Haijun Wang noted that the industry adjustment is a natural maturation process, and leading brands with strong customer experiences and proven investment returns are better positioned to consolidate market share. The company maintains its full-year opening target unchanged, as signing momentum remained steady and the pipeline increased quarter-over-quarter. The full-year guidance of approximately 80 hotel closures is also unchanged, as the pace of closures has slowed sequentially since Q2. Q: What is management's view on RevPAR performance in the second half of the year? A: CEO Haijun Wang acknowledged short-term volatility due to weather factors like typhoons and heavy rainfall in early July, which delayed summer travel. However, since the end of July, travel demand has shown signs of stabilizing and picking up. He emphasized that long-term demand for quality accommodation remains intact, and companies with strong brand equity will continue to capture structural opportunities. Q: How is the demand structure evolving in business and leisure travel, and are there new opportunities? A: CEO Haijun Wang highlighted that the business customer base is becoming more diversified, with new opportunities emerging from local core enterprises, universities, and research institutions beyond large KA clients. On the leisure side, consumers are increasingly valuing experiential quality, which aligns with Atour's multi-brand strategy. The company is also actively pursuing inbound tourism growth through overseas distribution channel cooperation and brand communications. Q: What is driving the strong performance of the Atour Origin and SAVHE brands? A: CEO Haijun Wang reported that Atour Origin, with over 60 hotels in operation and 90+ in the pipeline, achieved RevPAR exceeding RMB450 in Q2, driven by its distinctive natural and tranquil experience. SAVHE reached a new high with RevPAR exceeding RMB1,000, supported by refined management capabilities and expanded wellness offerings, positioning it as a new standard for upscale lifestyle. Q: How is the Atour Light brand performing, and what is its strategy in the midscale market? A: CEO Haijun Wang stated that Atour Light 3.3 hotels achieved RevPAR exceeding RMB340 in Q2, demonstrating strong operational resilience. The brand is taking a quality-first approach, focusing on core experience areas like sleep and breakfast, while establishing flagship projects in higher-tier cities. The company is also deepening connections with younger customers through student benefits and summer brand collaborations. Q: What are the key drivers behind the Retail business's product portfolio expansion? A: CEO Haijun Wang highlighted that Atour Planet is shifting from a single-blockbuster product model to a broader portfolio. The pillow category remains dominant with cumulative sales of the Deep Sleep Memory Foam Pillow Pro series surpassing 12 million units. The comforter category grew over 80% year-over-year, and new categories like fitted sheets and loungewear are contributing a larger revenue share, supported by R&D capabilities and supply chain precision. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Atour Lifestyle Holdings Limited Sponsored ADR? Here are five stocks we like better. Atour’s second-quarter revenue rose 41.4% year over year to RMB3.42 billion, driven by managed-hotel expansion and a 63.2% surge in retail revenue. Management maintained its full-year revenue growth target of 30% and raised its retail growth guidance to 40%. Hotel performance remained broadly stable, with overall RevPAR at 100.7% of the prior-year level, while the network expanded to 2,175 hotels after 101 openings. Atour maintained its full-year opening plans and expects about 80 closures. Profit margins weakened as lower-margin supply-chain and retail businesses grew faster and marketing investments increased; adjusted net margin fell to 16.0%. The company still expects a modest full-year decline in net profit margin despite holding RMB3.7 billion in net cash. Why Wyndham Hotels Is The Industry Value Play, An Earnings Story Atour Lifestyle (NASDAQ:ATAT) reported second-quarter 2026 revenue growth of 41.4% year over year, supported by continued expansion in its managed hotel network and a 63.2% increase in retail revenue. Management maintained its full-year revenue outlook for 30% growth while raising its retail revenue growth target to 40%. Net revenues for the quarter reached RMB3.42 billion. EVP and Co-CFO Jianfeng Wu said managed-hotel revenue rose 32.8% to RMB1.73 billion, primarily reflecting hotel-network expansion and supply-chain business development. Revenue from leased hotels declined 11.8% to RMB132 million as the number of leased hotels fell to 19 at June 30, from 24 a year earlier. → Datavault AI Locks Down CyberCatch in $94M Security Rollup Founder, Chairman and CEO Haijun Wang said second-quarter revenue per available room, or RevPAR, was RMB345.4, equal to 100.7% of the level reported in the same quarter of 2025. Average daily rate was 101.2% of the prior-year level, while occupancy was 99.7% of the year-earlier level. For mature hotels operating more than 18 months, RevPAR was RMB336.8, or 97% of the prior-year level. Average daily rate and occupancy at mature hotels were 98.3% and 99.0%, respectively, of their year-earlier levels. → Michael Burry Is Betting Against Palantir Again—Should Investors Care? Atour opened 101 hotels during the quarter, bringing its operating network to 2,175 hotels at quarter-end. Its development pipeline totaled 811 hotels. The company said its central reservation system accounted for 61.5% of room nights sold, including a 20.4% contribution from corporate members. Wang said the company continues to emphasize hotel quality, disciplined project selection and high-quality locations rather than pursuing network scale alone. Atour 3.6 hotels in operation generated RevPAR above RMB370 during the quarter, while Atour Origin generated RevPAR above RMB450. The company said more than 60 Atour Origin hotels were operating, with more than 90 projects in the pipeline. → Home Depot Analysts See a Path to $375 and Beyond In the midscale segment, management said Atour Light 3.0 hotels in operation produced RevPAR above RMB340. SAVHE, the company’s upscale lifestyle offering, generated RevPAR above RMB1,000 at hotels in operation during the period. Responding to questions about a broader industry slowdown in hotel supply growth, Wang said hotel supply is affected by macroeconomic conditions, supply-demand dynamics and property availability, resulting in cyclical fluctuations. He said Atour is focused on competitive supply that meets customer expectations for quality. Wu said signing momentum remained steady during the first half and that the hotel pipeline increased sequentially, providing what management characterized as a high-quality reserve for future openings. The company maintained its full-year hotel-opening target, though it did not provide a numerical opening target on the call. It also maintained guidance for approximately 80 hotel closures for the full year, noting that the pace of closures slowed significantly sequentially beginning in the second quarter. On the second-half lodging outlook, Wu said travel demand was delayed in some regions in early July by typhoons and heavy rainfall. However, he said demand had begun to stabilize and recover since late July as the peak summer travel season arrived. Management said it sees long-term demand for quality accommodations continuing to rise across both business and leisure travel. Retail revenue reached RMB1.58 billion in the second quarter, rising 63.2% from a year earlier. Wu attributed the increase to rising brand recognition, product innovation and a broader product range. Wang said Atour Planet is expanding beyond reliance on individual blockbuster products toward a broader sleep-focused product portfolio. Cumulative sales of the Deep Sleep Memory Foam Pillow Pro series exceeded 12 million units since launch, according to the company. Gross merchandise value in the comforter category increased more than 80% year over year in the second quarter, while fitted sheets and loungewear represented a growing share of revenue. The company recently introduced the Deep Sleep Memory Foam Pillow Pro 4.0 and Deep Sleep Thermo-Regulating Comforter Pro 3.0 All Season. Management said the products were developed using the Atour Planet Deep Sleep standard introduced last year. Given first-half momentum and sales following new product launches, Wu said Atour raised its full-year retail revenue growth guidance to 40% year over year. Gross profit from hotel operations increased 18.7% year over year to RMB659 million. Wu said hotel gross margin declined because lower-margin supply-chain operations grew faster and accounted for a larger share of hotel revenue. Retail gross profit increased 57.4% to RMB809 million, while its gross margin declined due to changes in product mix. Selling and marketing expense represented 17.4% of revenue, compared with 15.9% a year earlier, reflecting brand investments and online-channel development tied to retail growth. General and administrative expense excluding share-based compensation was 3.5% of revenue, compared with 3.6%, while technology and development expense was 1.6%, compared with 1.7%. Adjusted net profit margin was 16.0%, down 1.3 percentage points year over year, and adjusted EBITDA margin was 23.5%, down 1.2 percentage points. At June 30, cash and cash equivalents totaled RMB3.9 billion and net cash was RMB3.7 billion. Wu said Atour still expects a modest year-over-year decline in full-year net profit margin. He said revenue growth from the hotel supply-chain and retail businesses is expected to exceed the company’s initial expectations, shifting revenue mix, while the effective tax rate is also expected to rise year over year. Atour had 120 million registered individual members at the end of the second quarter. The company also said cumulative share repurchases had exceeded $150 million through the end of the quarter and that it continues to implement its existing dividend policy. Atour Lifestyle Holdings Co, Ltd. operates as a hospitality and lifestyle company offering a range of lodging and accommodation services in China. The company's core business includes the development, operation and management of boutique hotels and serviced apartments under its Atour Hotel and Ankora brands. These properties cater primarily to the mid- to upscale segment, delivering a blend of comfort, design-focused interiors and localized services tailored to both business and leisure travelers. In addition to room offerings, Atour Lifestyle provides a suite of ancillary services designed to enhance guest experiences. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Atour Lifestyle Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Image source: The Motley Fool. May 13, 2026, 7 a.m. ET Chief Executive Officer — Haijun Wang Co-Chief Financial Officer — Jianfeng Wu Investor Relations Contact — Luke Hu Need a quote from a Motley Fool analyst? Email [email protected] Haijun Wang: [Interpreted] Thank you, Luke. Hello, everyone. Thank you for joining Atour's First Quarter 2026 Earnings Call today. Please turn to our slides. Entering 2026, China's service consumption is accelerating its transition from scale-driven expansion to value-driven upgrades centered on quality and experience. Supportive policies are being refined and implemented, while industry competition is becoming more rational. Together, these factors are shaping a healthier environment for the consumer market. Against this backdrop, the hotel market has continued its moderate recovery alongside structural upgrades with development focus shifting toward deeper cultivation of refinement and differentiation. Meanwhile, the retail market is also evolving from traditional manufacturing-driven models to an experience-driven approach. Consumers are increasingly prioritizing holistic experiences and emotional value over functionality and value for money. At this pivotal moment, we will firmly seize the innovation opportunities arising from these transformations by embedding innovation across every dimension of our products, operations and organization and converting these opportunities into a long-term sustainable growth engine. We are also more convinced than ever that our user-first philosophy with experience as our cornerstone and brand as our anchor is the fundamental path for Atour to navigate industry cycles. Now I would like to provide more details on our business performance for the first quarter of 2026. Let's begin with our hotel business. In the first quarter, performance across our overall hotel portfolio and our mature hotels continued to improve sequentially. We achieved positive year-over-year RevPAR growth, primarily driven by a steady increase in ADR. This reflects a return to value-based competition in a healthier industry environment alongside the steady compounding of our brand equity. In the first quarter, our RevPAR was RMB 311.6, representing 102.4% of the level in the same period of 2025. Specifically, OCC reached 100.6% and ADR stood at 102.1% of their levels in the same period of 2025. RevPAR for our mature hotels in operation for more than 18 months was 98.3% of the level in the same period of 2025 with OCC and ADR at 99.2% and 99.4%, respectively, of their levels in the same period of 2025. As for our hotel network, we adhered to a quality first principle and maintain strict quality control for every new signing and new hotel opening, ensuring growth is built on a solid quality foundation. In the first quarter, we opened 110 new hotels. By the end of the first quarter, our total number of hotels in operation reached 2,088. As of the same date, our pipeline of hotels under development remained at a healthy level of 751. On the hotel channel front, our CRS channel continued its steady performance, accounting for 63.7% of total room nights sold in the first quarter. The contribution of room nights sold to corporate members was 19.3% during the quarter, at the same time, we are safeguarding the experience of guests who book through our official channels with our price assurance policies, including the price drop refund and a best price guarantee as well as various other practical measures. During the Chinese New Year holiday, in particular, the seamless execution of these safeguards earned widespread positive feedback from users. This reflects our long-term commitment to deepening our membership operations and strengthening member loyalty while also representing our consistent commitment to providing users with a more reassuring experience. As our hotel network expands and our brand strength steadily grows, our supply chain capabilities are advancing in parallel. More high-quality suppliers are joining our supply chain network. The platform's offerings are becoming more diverse and franchisees are increasingly willing to consolidate their procurement with us. We want our supply chain business to consistently deliver long-term value in 2 aspects: first, by empowering our franchisees and suppliers with high-quality products at attractive value, helping them improve procurement efficiency and enhancing the overall franchisee experience. Second, by ensuring a consistent stay experience for users, giving them greater convenience and a peace of mind when using our products. We adhere to our 8 commitments to supply chain procurement, establishing reliable mechanisms across pricing, aftersales service and customer care. At the same time, we are deepening collaborative R&D with upstream suppliers to improve the practical functionality of existing products and develop new ones that deliver greater value. We will take innovation as our driving force to continuously enhance the core capabilities of our supply chain, jointly elevating the value of the Atour brand. Next, I would like to share the latest developments across our hotel brands. In a highly competitive hotel market, Atour pioneered and continues to lead the upper mid-scale segment. Over the past decade, we have earned strong customer word of mouth and steadily built clear, resilient brand mind share. This long-term commitment has enabled us to build differentiated competitive advantages that are difficult to replicate, supporting our resilience and sustainable growth through ever-changing market conditions. Atour 3.6, our latest Atour hotel product, was built around a systematic redesign of the key moments in the guest journey, grounded in an in-depth deconstruction of real guest experiences. This has allowed us to create a verifiable and scalable operational standard and product model. Since its launch over a year ago, Atour 3.6 has continued to receive positive market feedback, validating our product competitiveness in the upper mid-scale market. Atour Origin represents our continued efforts to explore and expand the possibilities of the upper mid-scale segment and marks a concrete step forward in our brand-led excellence strategy. Going forward, we will continue to refine Atour Origin with a long-term mindset while advancing more refined operations and quality upgrades. We will roll out the deep sleep system hotel-wide and further integrate cultural elements and service details from [indiscernible]. We hope Atour Origin will bring the tranquil strength rooted in Yaduo Village to more corners of urban life, further enriching what the Chinese experience represents. In the first quarter, RevPAR of Atour Origin hotels in operation exceeded RMB 400. The 2 upper mid-scale brands developed in parallel, forming a differentiated and complementary price tier. For the upscale brand, SAVHE Hotel continues to build brand visibility and recognition while expanding its development potential. In the first quarter, RevPAR of SAVHE hotels in operation exceeded RMB 910 with ADR surpassing RMB 1,000. Meanwhile, SAVHE has attracted a more diverse customer base with a higher proportion of international customers and family travelers. On overseas review platforms and social media, SAVHE has also received a growing number of organic recommendations and positive reviews from international users. This demonstrates the unique appeal of SAVHE's deep Chinese cultural roots and opens up broader possibilities for its future development. We are taking a long-term view on SAVHE. We will continue to drive brand upgrades, bringing China's homegrown philosophy and expression of upscale living to a broader global audience. SAVHE development calls for patience. We will remain disciplined in scale, pursue continuous refinement in product and service and translate our long-term vision into every tangible experience. For our mid-scale brand, demand for more differentiated stay experiences continues to grow, an opportunity that aligns closely with Atour Light's positioning. Atour Light continued its steady long-term trajectory in the first quarter. On the customer side, Atour Light has been attracting a more diverse customer base, gaining increasing recognition among younger users while steadily broadening its business traveler base. This has further built the brand's differentiated momentum. Atour Light 3.3 has now opened in more than 20 hotels. Its enhanced product experience and more efficient operating model have earned strong recognition from both customers and franchisees. Operationally, Atour Light 3.3 has demonstrated stronger pricing power. In the first quarter, RevPAR of Atour Light 3.3 hotels in operation was more than 10% higher than that of the 3.0 version. We fully recognize that brand development is not built overnight. It requires us to first focus on product refinement and operating system development so that we can build strong brand equity and support healthy, sustainable growth. In 2026, we will continue to comprehensively and systematically enhance Atour Light's operational efficiency and product competitiveness and continue to focus our expansion on second-tier and above cities, pursuing quality-led expansion and laying a more solid foundation for the next stage of Atour Light development. Moving on to our retail business. Entering 2026, Atour's retail business sustained its strong growth momentum with core categories continuing to deliver outstanding performance. Retail revenue reached RMB 1,071 million in the first quarter, representing 54.4% year-over-year growth. Atour Planet also ranked among the top brands in the bedding category on major third-party platforms, with our product and brand strength continuously being validated by the market. We recognize that maintaining long-term competitiveness requires continuous innovation, responding faster and more precisely to meeting the evolving needs and expectations of our users. As our understanding of users' sleep needs deepens, we are steadily turning latent demand into tangible product strength. We approach each product iteration as a systematic solution grounded in scientific testing and validation. As Atour Planet's product capabilities continue to grow, we are proud to enter a new stage defined by the technological innovation and standard setting. In the pillow category, Atour Planet maintained its strong and clear leadership in the first quarter, consistently ranking first in category sales on major third-party platforms. We have remained guided by genuine sleep needs, integrating this principle into every product upgrade within the pillow category, consistently building a strong word of mouth. During the Chinese New Year, we launched a special edition of the Deep Sleep Memory Foam Pillow Pro 3.0 paired with a supporting brand campaign, we sought to turn a sleeping product into a meaningful expression of emotion helping users rest fully in body and mind during the holiday and fall naturally into deep sleep. For our comforter category, market share is steadily increasing, with very strong growth continuing into the first quarter. The Deep Sleep Thermo-Regulating Comforter series has consistently achieved the strong sales and garnered significant user preference with cumulative sales exceeding 3 million units since its launch. At the end of March, we launched the latest upgrade in the series, the Deep Sleep Thermo-Regulating Comforter Pro 3.0 summer season. This new generation delivers systematic improvement in dynamic temperature and humidity control featuring a fully upgraded 2-way temperature regulation technology that helps smooth out temperature fluctuations. Its moisture absorption and permeability have also been enhanced with each innovation cycle in the comforter category, our product strength continues to improve, enabling us to more precisely capture users' pain points and translate them into practical applications through enhanced R&D capabilities. Within just 45 days of launch, the GMV of Deep Sleep Thermo-Regulating Comforter Pro 3.0 summer season exceeded RMB 100 million. For new categories, sales momentum also has been very positive. Recently, we launched the summer edition of the Deep Sleep Loungewear in line with the season and introduced the new color options for the Deep Sleep fitted sheet. As our sleep ecosystem continues to evolve, Atour Planet's product mind share among users is becoming stronger and the trust between the brand and users is reinforced through each experience. Turning to membership. By the end of the first quarter, our registered individual members reached 116 million, representing a 20% year-over-year increase. In 2026, we will continue to focus on Deep Sleep as a core scenario, deepening the synergy between our hotel and retail businesses to enhance members' sense of membership value and benefits. At the same time, we are actively exploring partnerships with like-minded brands jointly creating expanded quality lifestyle experiences. We hope Atour membership will continue to evolve as a lifestyle membership brand that accompanies users with warmth, helping every member find experiences where body and mind return to inner peace. Finally, I would like to share Atour's progress on ESG. We recently released the Atour's Group 2025 ESG report. Atour started from Yaduo Village in [indiscernible], and we have always been dedicated to a founding aspiration of doing good. Over time, this simple goodwill has become the spiritual foundation of Atour's growth. We have embedded ESG principles into our corporate mission and core values, continuously enhancing our ESG governance and advancing environmental responsibility across our hotel and retail operations. Through industry support and social assistance programs, we continue to give back to Yaduo Village and the surrounding communities, fostering goodwill and extending warmth. At the end of 2025, we officially established the Atour Foundation with the goal of advancing public welfare in a more systematic way, extending care to people. Recently, we launched a dedicated public welfare program focused on frontline housekeeping staff, opened not only to our own employees, but also to housekeeping professionals across China's service industry, guided by our belief that everyone deserves kindness aim to extend Atour's warmth to the broader industry and enable these connections of goodwill to generate a more far-reaching impact. Grounded in the presence and looking to the long term, we will continue to uphold our mission of creating an intimate ambience where people can warmly connect, stay true to our founding aspiration and fulfill our corporate responsibilities. We will remain committed to doing the right things with warmth, steadily move toward our long-term vision of a timeless Atour, warmth along every journey and continue to contribute steadfast and warm strength to the industry and society. I will now turn the call over to our Co-CFO, Mr. Wu Jianfeng, who will discuss our financial results. Jianfeng Wu: Thank you, Haijun. Hello, everyone. I would like to present the company's financial performance for the first quarter of 2026. Our net revenues for the first quarter of 2026 grew by 47.5% year-over-year to RMB 2,811 million. Revenues from our manachised hotels for the first quarter of 2026 grew by 51.9% year-over-year to RMB 1,568 million. The increase was primarily fueled by the ongoing expansion of our hotel network as well as supply chain business development. Revenues contributed by our leased hotels for the first quarter of 2026 decreased by 8.0% year-over-year to RMB 118 million. The decline was primarily due to a decrease in the number of leased hotels as a result of our product mix optimization. The total number of our leased hotels decreased from 25 as of March 31, 2025, to 19 as of March 31, 2026. Revenues from our retail business for the first quarter of 2026 increased by 54.4% year-over-year to RMB 1,071 million. The growth was driven by increasing brand recognition, successful product innovation and a broadened range of product offerings. Gross profit of our hotel business for the first quarter of 2026 increased by 29.5% year-over-year to RMB 550 million. The decline in the gross margin was primarily due to the changes in the revenue structure. Gross profit of our retail business for the first quarter of 2026 increased by 58.3% year-over-year to RMB 564 million. The increase in the gross margin was attributable to the increasing contribution from higher-margin products. Selling and marketing expenses accounted for 14.3% of net revenues for the first quarter of 2026 compared with 14.8% of the same period of 2025. The decrease was primarily due to improved efficiency of investment in our retail business. General and administrative expenses, excluding share-based compensation expenses, accounted for 4.2% of net revenues for the first quarter of 2026 compared with 4.1% for the same period of 2025. Technology and development expenses accounted for 1.8% of net revenues for the first quarter of 2026 compared with 2.1% for the same period of 2025. Adjusted net profit margin for the first quarter of 2026 was 17.4%, representing a decrease of 0.7 percentage points year-over-year. Adjusted EBITDA margin for the first quarter of 2026 was 25.5%, increased by 0.6 percentage points year-over-year. We maintained a healthy cash position. As of March 31, 2026, cash and cash equivalents totaled RMB 3.7 billion with net cash of RMB 3.4 billion. Today, in accordance with our annual dividend policy, we declared the first cash dividend of 2026, totaling around USD 72 million as a reward for our shareholders' trust and support. That concludes our financial highlights for the first quarter of 2026. And for the full year of 2026, we currently expect total net revenues to increase by 24% to 28% compared with the full year of 2025. Now let's open the floor for Q&A. Operator: [Operator Instructions] Your first question comes from the line of Sijie Lin of CICC. Sijie Lin: [Foreign Language] Congrats on another strong quarter. So we noticed a faster pace of hotel closures in Q1. So I want to know whether that will affect the full year closure target? And additionally, is there any change regarding the guidance on new openings? Haijun Wang: [Interpreted] Thank you, Sijie. Let me answer your question. In Q1, we had a relatively more concentrated pace of closures with a total of 37 hotels being closed. The main reason was that some projects we had confirmed last year to be closed were carried over to this year for finalization and resulting in that lag in the numbers. For our full year target for hotel closures this year remains unchanged at 80 hotels. And moreover, thanks to the proactive structural adjustments we initiated last year, the quality of our operating hotels now has clearly improved. And in this process, we have also gradually sorted out and established a set of long-term mechanisms. For older hotels that have been in operation for many years, we will provide targeted support and customized renovation plans to lower the barrier to upgrading along with partial fee waivers and financial support policies to effectively help these older hotels enhance their market competitiveness. And as for new openings, we are proceeding steadily according to our planned pace and adhering to the premier hotel logic. Newly opened hotels must be the ones that have met our positioning and can provide high-quality experience for guests. As of the end of Q1, we had 751 projects in the pipeline, ensuring an ample and high-quality reserve. Therefore, we are maintaining our full year hotel opening targets unchanged. Operator: Our next question comes from the line of Dan Chee of Morgan Stanley. Dan Chee: [Foreign Language] This is Dan from Morgan Stanley. My question is about RevPAR trend for Q2. Can the management share some color with us? And whether there's any change in the management's visibility on the full year RevPAR outlook? Haijun Wang: [Interpreted] Thank you, Dan. Entering Q2, we had observed that leisure travel remained strong. In particular, spring break in some regions during April further boosted travel demand and the more dispersed travel schedule has led to a more balanced distribution of holiday passenger flows. However, when we look ahead, market volatility still exists. Therefore, we maintain a cautiously optimistic attitude about RevPAR performance in Q2. As for long-term trends, we also see various proactive policies continuously to unlock the potential of service consumption and injecting strong vitality of consumption into the industry. Although changes in the external environment may cause short-term fluctuations in the travel market and the accommodation industry as a whole remains in a stage of fluctuating recovery. Against this backdrop, we will not deliberately pursue short-term performance. Instead, we will strategically expand our reach to a broader range of business travelers and leisure travelers, continuously refine our service details that guests can truly feel and make a tour the most reassuring and reliable choice for travelers when stay. Operator: Our next question comes from the line of Lydia Lin of Citi. Lydia Ling: [Foreign Language] This is Lydia from Citi. So could you share with some -- like how is franchisee sentiment on the opening recently? And also whether your company make any changes to your signing strategy? Haijun Wang: [Interpreted] Thank you, Lydia. In March, we mentioned that the market was gradually returning to rationality. And the franchisees are adopting a more mature mindset, so they are not overoptimistic nor anxious about short-term fluctuations. And regarding our signing strategy. First, we will continue to strengthen our presence in the core cities and prime commercial areas across China, capturing the fundamental demand from high-frequency business travel and urban cultural tourism. On the other hand, we are selectively capturing the growth opportunities from leisure demand, for instance, in key potential markets such as strong third-tier cities and cities with 5 A-rated scenic spots that generate stable visitor flows. In these promising areas with solid market foundations and long-term growth potential, we are carefully selecting projects with strong development prospects. Thirdly, in the long run, the quality of signed projects is of critical importance. However, there is no consensus in the market on what quality truly means. Let me take this chance to introduce to you the Atour's concept of quality. Our concept of quality goes beyond mere hardware upgrades and structural improvements. It is rather rooted in experience and aims to build a comprehensive quality composite. Leading product strength is the foundation. The ability to open hotels in the core areas is a key capability and the continuous refinement of experience is our competitive moat. Such a quality philosophy leads to one important outcome. Our pricing power is not achieved through cost cutting, but it is earned through guest perception. This gives us the ability to continuously push pricing boundaries upward. New brands, like SAVHE and Atour Origin have emerged upon this logic. They are not replacements for existing products of ours, but rather the expansions of the Atour brand imaginative horizon. Operator: Our next question comes from the line of Xin Chen of UBS. Xin Chen: [Foreign Language] Let me translate to English. This is Xin Chen from UBS. And my question is about the retail business. Q1 retail revenue outperformed the market expectations. What factors have contributed to the sustained popularity of your new products? Given the positive trend [indiscernible] provided any update to the full year retail revenue guidance? Haijun Wang: [Interpreted] The growth of our retail business is not just about the numbers. So right now, what I really want to share is our product methodology behind this growth. Let me give you one example. Let's take the Deep Sleep Thermo-Regulating Comforter Pro summer season series as an example. When we launched its first generation 3 years ago, we changed the traditional Duvet cover design and created a one-piece design with a quote to the touch feel on both sides. That was a product structural innovation, as I think. With the second generation, we realized that users' real need for coldness is not about extreme coldness but a naturally comfortable refreshing feel. So we reengineered the ventilation system and the fabric structure, upgrading from passive cooling to active temperature control plus moisture wicking. This second generation is demand-driven innovation. When we launched the third generation this year, we targeted the pain point of fluctuating indoor temperatures in summer, aiming to create a dynamic system that actively responds to environmental changes. So the third generation further improves dynamic temperature control and humidity control. This is what I think has deepened scenario-driven innovation. After these 3 iterations, the definition of our product has fundamentally changed from a cool comforter to an air permeable comforter and then to a comforter that breathes. What drives this change are the repeatedly validated needs that emerge from real user scenarios. This example of comforter is also the methodology of our retail business. Each iteration transforms previously vague user sensations into a definable, measurable and a replicable technical standard. So after these 3 iterations, we've now come to realize that the most insurmountable moat is not a specific material or patent, but rather the systematic capability to continuously stay close to users and constantly translate their feelings into standards. Also, let me add to the retail revenue guidance you asked about. Thanks to the solid groundwork laid in the first quarter and the strong sales momentum of our new products, we are confident that we will surpass our previously announced full year revenue target. Therefore, we are raising our full year retail revenue guidance to grow 30% to 35% year-on-year. Operator: We will now take the last question coming from the line of [indiscernible]. Unknown Analyst: [Foreign Language] I'll translate my question in English. I'm [indiscernible]. We noticed that you had also announced dividend plan for the first half year. Could you share whether there have been any changes or developments in the shareholder return policy? Haijun Wang: [Interpreted] Regarding shareholder returns, we have always placed great importance on this. Today, we also announced our first dividend distribution plan for this year with a total amount of approximately USD 72 million, representing about 31% of the previous year's net profit. In addition, since we began repurchases last year and as of Q1 this year, the total repurchase amount has exceeded USD 100 million. Going forward, we will continue to follow our comprehensive shareholder return plan that combines dividends and share repurchases, still targeting approximately a 100% payout ratio based on the previous fiscal year's GAAP net profit as our shareholder return policy. Thank you. Operator: Thank you. That concludes today's question-and-answer session. I would like to now turn the conference back over to Mr. Luke Hu for any additional or closing comments. Luke Hu: Thank you for joining us today. If you have any further questions, please feel free to contact our IR team. We look forward to speaking with you again next quarter. Thank you, and goodbye. Operator: This concludes today's conference call. Thank you for participating. You may now disconnect. Before you buy stock in Atour Lifestyle, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Atour Lifestyle wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $472,852!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,317,207!* Now, it’s worth noting Stock Advisor’s total average return is 984% — a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 27, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Atour (ATAT) Q1 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: May 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Atour Lifestyle Holdings Ltd (NASDAQ:ATAT) reported a 47.5% year-over-year increase in net revenues for Q1 2026, reaching RMB2,811 million. The company's retail business saw a significant 54.4% year-over-year growth in revenue, driven by successful product innovation and increased brand recognition. Atour Lifestyle Holdings Ltd (NASDAQ:ATAT) opened 110 new hotels in Q1 2026, bringing the total number of hotels in operation to 2,088. The company maintained a healthy cash position with cash and cash equivalents totaling RMB3.7 billion as of March 31, 2026. Atour Lifestyle Holdings Ltd (NASDAQ:ATAT) declared a cash dividend of approximately US$72 million for 2026, reflecting a commitment to shareholder returns. Revenues from leased hotels decreased by 8.0% year-over-year to RMB118 million due to a decrease in the number of leased hotels. The gross margin for the hotel business declined due to changes in the revenue structure. Adjusted net profit margin for Q1 2026 decreased by 0.7 percentage points year-over-year to 17.4%. The company experienced a faster pace of hotel closures in Q1, with 37 hotels closed, although the full-year closure target remains unchanged. Market volatility and external environmental changes pose potential risks to the travel market and RevPAR performance in the short term. Warning! GuruFocus has detected 4 Warning Signs with NSE:KROSS. Is ATAT fairly valued? Test your thesis with our free DCF calculator. Q: We noticed a faster pace of hotel closures in Q1. Will this affect the full-year closure targets, and is there any change regarding the guidance on new openings? A: In Q1, we closed 37 hotels, mainly due to projects carried over from last year. Our full-year target for hotel closures remains at 80. We are maintaining our full-year hotel opening target unchanged, with 751 projects in the pipeline, ensuring a high-quality reserve. (Respondent: Unidentified_4) Q: Can management share insights on the RevPAR trend for Q2 and any changes in the full-year RevPAR outlook? A: Leisure travel remains strong, particularly during spring break, boosting travel demand. However, market volatility persists, so we maintain a cautiously optimistic attitude about Q2 RevPAR. We focus on long-term trends and strategic expansion to ensure reliability for travelers. (Respondent: Unidentified_4) Q: Could you share the franchise sentiment on recent openings and any changes to your signing strategy? A: The market is returning to rationality, with franchisees adopting a mature mindset. We focus on strengthening our presence in core cities and capturing growth opportunities in promising areas. Our concept of quality goes beyond hardware upgrades, focusing on experience and comprehensive quality. (Respondent: Unidentified_4) Q: What factors have contributed to the sustained popularity of your new retail products, and are there updates to the full-year retail revenue guidance? A: Our retail growth is driven by product innovation and methodology. For example, our Deep Sleep Thermal Regulating Comforter has evolved through iterations based on user needs. We are raising our full-year retail revenue guidance to grow 30% to 35% year-on-year. (Respondent: Unidentified_4) Q: Are there any changes or developments in the shareholder return policy? A: We announced a dividend distribution plan of approximately US$72 million, representing about 31% of the previous year's net profit. We will continue our comprehensive shareholder return plan, targeting a 100% payout ratio based on the previous fiscal year's GAAP net profit. (Respondent: Unidentified_4) For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Atour Lifestyle Holdings Limited Sponsored ADR? Here are five stocks we like better. Atour Lifestyle posted a 47.5% year-over-year jump in first-quarter net revenue to RMB 2.811 billion, powered by strong growth in both its hotel and retail businesses. Retail remained a major driver, rising 54.4% and helping lift adjusted EBITDA margin to 25.5%. The company’s hotel portfolio continued to expand, with 110 openings in the quarter bringing total operating hotels to 2,088. Companywide RevPAR improved to 102.4% of last year’s level, while management described China’s hotel market as in a “moderate recovery.” Management raised full-year retail revenue guidance to 30% to 35% growth after strong product sales, including a comforter launch that generated over RMB 100 million in GMV within 45 days. Atour also reaffirmed its 2026 total revenue outlook of 24% to 28% growth and said it will continue dividends and share repurchases. Why Wyndham Hotels Is The Industry Value Play, An Earnings Story Atour Lifestyle (NASDAQ:ATAT) reported sharply higher first-quarter revenue for 2026, driven by continued expansion of its hotel network and strong growth in its retail business, while management said China’s hotel market is continuing a “moderate recovery” with a shift toward quality and differentiated experiences. Founder, Chairman and CEO Haijun Wang said the company is operating in a consumer environment that is moving “from scale driven expansion to value driven upgrade centered on quality and experience.” He said Atour’s strategy remains focused on user experience, brand strength and product innovation across both lodging and retail. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? EVP and Co-CFO Jianfeng Wu said net revenues for the first quarter increased 47.5% year over year to RMB 2.811 billion. Managed hotel revenue rose 51.9% to RMB 1.568 billion, helped by hotel network expansion and supply chain business development. Leased hotel revenue fell 8.0% to RMB 118 million, reflecting a smaller leased hotel portfolio following product mix optimization. Retail revenue increased 54.4% to RMB 1.071 billion, supported by stronger brand recognition, product innovation and a broader product range. Wu said gross profit from hotel businesses rose 29.5% to RMB 550 million, though hotel gross margin declined because of changes in revenue structure. Retail gross profit increased 58.3% to RMB 564 million, with margin improvement attributed to a higher contribution from higher-margin products. → MercadoLibre Boldly Invests in Growth: Discount Deepens Selling and marketing expenses were 14.3% of net revenues, down from 14.8% a year earlier, which Wu attributed to improved retail investment efficiency. Adjusted net profit margin was 17.4%, down 0.7 percentage points year over year, while adjusted EBITDA margin rose 0.6 percentage points to 25.5%. Atour ended the quarter with RMB 3.7 billion in cash and cash equivalents and RMB 3.4 billion in net cash. The company declared its first cash dividend of 2026, totaling about $72 million. → MP Materials Is Quietly Building a Rare Earth Powerhouse Wang said Atour’s overall hotel portfolio and mature hotels continued to improve sequentially in the first quarter. Companywide RevPAR was RMB 311.6, equal to 102.4% of the level in the same period of 2025. Occupancy was 100.6% of the year-earlier level, while average daily rate stood at 102.1% of the prior-year level. For mature hotels in operation for more than 18 months, RevPAR was 98.3% of the level in the same period of 2025, with occupancy and ADR at 99.2% and 99.4%, respectively. The company opened 110 hotels during the quarter, bringing its total number of hotels in operation to 2,088 as of quarter-end. Its development pipeline stood at 751 hotels. Wang said Atour is maintaining a “quality-first principle” for new signings and openings. In the company’s central reservation system channel, room nights accounted for 63.7% of total room nights sold in the quarter. Corporate members contributed 19.3% of room nights sold. Wang highlighted several hotel brands during the call. He said Atour 3.0, the company’s latest Atour hotel product, has received positive market feedback since launch. Atour Origin hotels in operation posted RevPAR above RMB 400 in the first quarter. For the upscale SAVHE brand, Wang said hotels in operation recorded RevPAR above RMB 910 and ADR above RMB 1,000. He said SAVHE has attracted more international customers and family travelers, while receiving more user-generated reviews and recommendations on overseas platforms and social media. Wang said Atour will remain “disciplined in scale” for SAVHE while continuing product and service refinements. In the midscale segment, Wang said Atour Lite is gaining recognition among younger users and broadening its business traveler base. More than 20 Atour Lite 3.3 hotels have opened, and first-quarter RevPAR for Atour Lite 3.3 hotels was more than 10% higher than the 3.0 version. During the Q&A, Wu said Atour closed 37 hotels in the first quarter, partly because some closures planned last year were finalized this year. He said the full-year closure target remains unchanged at 80 hotels. Management also said the full-year opening target remains unchanged, though no specific number was provided on the call. Wang said Atour’s retail business continued to benefit from its sleep-focused product ecosystem. Atour Planet ranked among leading brands in the bedding category on major third-party platforms, he said. In pillows, Wang said Atour Planet maintained the top position in category sales on major third-party platforms during the first quarter. The company also launched a Chinese New Year edition of its DeepSleep Memory Foam Pillow Pro 3.0. In comforters, Wang said cumulative sales of the DeepSleep Thermoregulating Comforter series have exceeded 3 million units since launch. At the end of March, Atour introduced the DeepSleep Thermoregulating Comforter Pro 3.0 Summer Season, and Wang said the product generated more than RMB 100 million in GMV within 45 days of launch. Asked by UBS about retail momentum, Wang said product iterations are based on translating user experiences into “definable, measurable, and replicable technical standards.” He said the company is raising its full-year retail revenue guidance to growth of 30% to 35% year over year, citing the first-quarter foundation and new product sales momentum. For 2026, Wu said Atour expects total net revenues to increase 24% to 28% compared with 2025. On RevPAR trends, Wang said leisure travel remained strong entering the second quarter, helped by spring break travel demand in some regions in April. However, he said market volatility remains, and management is “cautiously optimistic” on second-quarter RevPAR. At quarter-end, registered individual members reached 116 million, up 20% year over year. Wang said the company will continue to deepen synergies between hotels and retail around its “deep sleep” scenario. Management also discussed shareholder returns. Wang said Atour’s repurchases have exceeded $100 million since the program began last year through the first quarter. He said the company plans to continue combining dividends and share repurchases, targeting a payout ratio of about 100% based on the previous fiscal year’s GAAP net profit. Atour Lifestyle Holdings Co, Ltd. operates as a hospitality and lifestyle company offering a range of lodging and accommodation services in China. The company's core business includes the development, operation and management of boutique hotels and serviced apartments under its Atour Hotel and Ankora brands. These properties cater primarily to the mid- to upscale segment, delivering a blend of comfort, design-focused interiors and localized services tailored to both business and leisure travelers. In addition to room offerings, Atour Lifestyle provides a suite of ancillary services designed to enhance guest experiences. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Atour Lifestyle Q1 Earnings Call Highlights" was originally published by MarketBeat. 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