Atour Lifestyle Holdings Limited (ATAT) Announces Fourth Quarter And Full Year 2024 Unaudited Financial Earnings Results

Atour Lifestyle Holdings Limited (ATAT) today announced its financial results for the recent quarter, revealing a mixed performance. The company reported quarterly revenue of $2.08 billion, surpassing expectations and marking a revenue beat with a difference of $135.5 million from the estimated $1.95 billion. However, the earnings per share (EPS) came in at $0.79, falling short of the anticipated $2.28, resulting in an EPS miss. Despite the earnings miss, the revenue growth highlights the company’s robust sales performance during the period.

Key Highlights:

• Atour Lifestyle Holdings Limited reported a 38.5% increase in net revenues for Q4 2024, reaching RMB2,084 million, and a 55.3% increase for the full year, totaling RMB7,248 million.
• The company operated 1,619 hotels with 183,184 rooms as of December 31, 2024, marking a 33.8% increase in the number of hotels year-over-year.
• Net income for Q4 2024 rose by 50.5% to RMB331 million, and for the full year, it increased by 72.2% to RMB1,273 million.
• The retail business saw a significant GMV increase of 127.7% year-over-year, reaching RMB2.59 billion for the full year.
• Atour plans to continue expanding its hotel network and retail offerings, with a projected 25% increase in total net revenues for 2025.

Summary:

Atour Lifestyle Holdings Limited experienced substantial growth in 2024, with net revenues for the fourth quarter increasing by 38.5% to RMB2,084 million and by 55.3% for the full year, reaching RMB7,248 million. This growth was primarily driven by the expansion of its manachised hotel network and the retail business. The company operated 1,619 hotels with 183,184 rooms by the end of 2024, reflecting a 33.8% increase in the number of hotels compared to the previous year. The retail segment also performed exceptionally well, with a GMV increase of 127.7% year-over-year, totaling RMB2.59 billion. Atour’s CEO, Mr. Haijun Wang, emphasized the company’s commitment to strengthening its brand presence and expanding its hotel network, stating, “In 2024, guided by the vision of ‘Chinese Experience, 2,000 Premier Hotels,’ we achieved dual improvements in both business scale and operational excellence, driving robust performance growth.”

Looking ahead to 2025, Atour aims to further enhance its core capabilities and brand influence, with a focus on deepening the synergy between its accommodation and retail sectors. The company projects a 25% increase in total net revenues for the year, based on current market conditions and preliminary estimates. Mr. Wang highlighted the company’s strategic direction, saying, “By amplifying our position as the industry benchmark for the ‘Chinese Experience,’ we will propel the Group’s sustained, long-term growth while achieving our expansion goals.” This outlook reflects Atour’s ongoing efforts to innovate within China’s hospitality industry and build new lifestyle brands around its hotel offerings.

Atour Lifestyle Holdings Limited (ATAT) has been on a remarkable upward trajectory, with its stock price surging by an impressive 62.79% over the past year. This bullish trend is further supported by a robust six-month gain of 35.18%, although recent fluctuations show a slight dip of 3.36% over the past week. Despite this minor setback, the company’s fundamentals paint a promising picture. With a price-to-earnings ratio of 10.81, ATAT appears to be attractively valued, especially when considering its stellar earnings per share (EPS) two-year compound annual growth rate (CAGR) of 45.79%. The company’s revenue and free cash flow have also seen substantial growth, boasting two-year CAGRs of 73.50% and 98.26%, respectively. Additionally, a strong net profit margin of 17.32% and a return on invested capital of 69.17% underscore ATAT’s operational efficiency and profitability. These metrics suggest that Atour Lifestyle Holdings is not only maintaining its growth momentum but is also well-positioned for future success.

Atour Lifestyle Holdings Limited, through its subsidiaries, operates a chain of hotels in China. The company operates a series of themed hotels, including music hotels, basketball hotels, and literary hotels catering to the various lifestyles across different age groups with varied interests. As of March 31, 2021, its hotel network covered 608 hotels spanning 131 cities in China, with a total of 71,121 hotel rooms, including 575 manachised hotels with a total of 66,267 manachised hotel rooms, as well as a pipeline of 299 hotels with a total of 32,825 rooms under development. The company also provides hotel management services, including day-to-day management services of the hotels for the franchisees; and sells hotel supplies and other products. Atour Lifestyle Holdings Limited was incorporated in 2012 and is headquartered in Shanghai, China.