Atour Lifestyle (ATAT) Q2 2025 earnings summary

Executive summary

• Net revenues for Q2 2025 grew 37.4% year-over-year to RMB 2,469 million, driven by hotel network expansion and robust retail business growth.

• Adjusted net income rose 30.2% year-over-year to RMB 427 million, with adjusted EBITDA up 37.7% to RMB 610 million.

• Hotel network expanded to 1,824 hotels as of June 30, 2025, with 118 new openings in Q2 and 816 hotels in the pipeline.

• Retail business GMV surged 84.6% year-over-year, reaching RMB 1,144 million, with online channels contributing over 90%.

• Membership program surpassed 102 million registered members, up 34.7% year-over-year.

Financial highlights

• Manachised hotel revenues increased 26.5% year-over-year to RMB 1,299 million; leased hotel revenues declined 17% to RMB 150 million due to product mix optimization.

• Retail revenues rose 79.8% year-over-year to RMB 965 million.

• Hotel business gross margin improved to 38.3% from 35.7% year-over-year; retail gross margin expanded to 53.3% from 50.6%.

• Selling and marketing expenses increased to RMB 393 million, 15.9% of net revenues, reflecting brand investment and online channel growth.

• Cash and cash equivalents totaled RMB 2,716 million as of June 30, 2025.

Outlook and guidance

• Full-year 2025 net revenues expected to increase by 30% over 2024.

• Retail business full-year growth guidance raised to 60% year-over-year.

• Guidance reaffirmed for 500 new hotel openings and reaching 2,000 premier hotels by year-end.

• Full-year net profit margin expected to decline due to higher effective tax rate (30% vs. 25% last year) and increased retail revenue share.