Atour Lifestyle (ATAT) Q2 2024 earnings summary

Executive summary

• Achieved robust growth in hotel and retail businesses, with net revenues for Q2 2024 rising 64.5% year-over-year to RMB 1,797 million, driven by hotel network expansion and product innovation.

• Maintained leadership in the upper mid-scale hotel market, with new product launches and enhanced customer experiences.

• Membership base surpassed 76 million, up 72.5% year-over-year, reinforcing brand loyalty and business travel preference.

• Retail business GMV surged 157.6% year-over-year to RMB 620 million, reflecting product innovation and expanded offerings.

• Launched ESG initiatives, including biodiversity protection and community engagement.

Financial highlights

• Net revenue for Q2 2024 grew 64.5% year-over-year and 22.4% quarter-over-quarter to RMB 1,797 million.

• Adjusted net income was RMB 328 million, up 31.6% year-over-year; adjusted net profit margin at 18.2%.

• Adjusted EBITDA reached RMB 443 million, up 28.6% year-over-year, with a margin of 24.6%.

• Operating cash inflow was RMB 577 million; cash and equivalents totaled RMB 3,323 million as of June 30, 2024.

• Total assets reached RMB 7.3 billion, with total liabilities at RMB 4.6 billion and shareholders' equity at RMB 2.7 billion as of June 30, 2024.

Outlook and guidance

• Full-year 2024 net revenue expected to increase by 48%-52% year-over-year, up from previous 40% guidance.

• Adjusted net profit margin projected to remain around 18% for the full year.

• Retail revenue for 2024 expected to double year-over-year.

• Hotel opening target raised to 400 for 2024, with 2,000 hotels targeted nationwide by 2025.