Atour Lifestyle (ATAT) Q1 2025 earnings summary

Executive summary

• Net revenues for Q1 2025 grew 29.8% year-over-year to CNY 1,906 million, driven by manachised hotel and retail business growth, with strong retail GMV up 70.9% and a membership base exceeding 96 million, up 35.4%.

• Adjusted net income (non-GAAP) increased 32.3% year-over-year to CNY 345 million, while reported net income fell 5.5% to CNY 244 million due to higher share-based compensation.

• Hotel network expanded to 1,727 hotels (up 32.6% year-over-year), with 121 new openings and 755 hotels in the development pipeline.

• Retail business GMV reached CNY 845 million, with over 90% from online channels and Deep Sleep product series leading sales.

Financial highlights

• Manachised hotel revenues rose 23.5% year-over-year to CNY 1,032 million; leased hotel revenues fell 23.5% to CNY 129 million due to product mix optimization.

• Retail revenues reached CNY 694 million, up 66.5% year-over-year, supported by product innovation and brand recognition.

• Adjusted EBITDA was CNY 474 million, up 33.8% year-over-year; adjusted net profit margin was 18.1%, and adjusted EBITDA margin was 24.9%.

• Cash and cash equivalents totaled CNY 3,146 million as of March 31, 2025, with net cash of CNY 3,074 million and unutilized bank credit facilities of CNY 470 million.

• Basic and diluted EPS for Q1 2025 were CNY 0.58; adjusted diluted EPS was CNY 0.82.

Outlook and guidance

• Full-year 2025 net revenue growth guidance raised to 25%-30% year-over-year.

• Retail revenue growth guidance increased to 50% year-over-year for 2025.

• Hotel opening guidance maintained at 500 new hotels for 2025, targeting 2,000 hotels by year-end.

• RevPAR outlook remains uncertain due to market volatility, but Q2 pressure expected to ease compared to Q1.