Atour Lifestyle (ATAT) Q3 2024 earnings summary

Executive summary

• Net revenues for Q3 2024 grew 46.7% year-over-year and 5.7% quarter-over-quarter to RMB 1,899 million, driven by strong manachised hotel and retail business growth.

• Hotel network expanded to 1,533 hotels (175,199 rooms), up 37.9% year-over-year, with a record 140 new hotel openings in Q3 2024.

• Retail business GMV surged 107.7% year-over-year, with online sales accounting for over 90% of GMV.

• Membership base exceeded 83 million, up 53.7% year-over-year, supporting healthy direct channel sales.

• Launched new upscale brand, Savhe Hotel, in October to strengthen premium market presence.

Financial highlights

• Manachised hotel revenues rose 51.0% year-over-year to RMB 1,179 million; leased hotel revenues declined 20.4% year-over-year to RMB 190 million.

• Retail revenues increased 104% year-over-year, despite a sequential decline due to seasonality.

• Adjusted net income for Q3 2024 was RMB 384 million, up 41.2% year-over-year; adjusted EBITDA was RMB 532 million, up 40% year-over-year.

• Adjusted net profit margin was 20.2% (down 0.8 ppt YoY); adjusted EBITDA margin was 28.0% (down 1.4 ppt YoY).

• Cash and cash equivalents totaled RMB 2,741 million as of September 30, 2024.

Outlook and guidance

• Full-year 2024 net revenue expected to grow 48%-52% year-over-year.

• Full-year RevPAR expected to decline by a mid- to high-single-digit percentage year-over-year due to high base effect and market factors.

• New hotel openings guidance raised from 400 to 450 for 2024, with a target of 2,000 premier hotels by next year.

• Retail business expected to continue outpacing hotel business in growth, maintaining doubled revenue year-over-year for 2024.