Atour Lifestyle (ATAT) Q3 2024 earnings summary

Executive summary

• Net revenues for Q3 2024 grew 46.7% year-over-year 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% in hotels and 36.1% in rooms year-over-year, with 140 new hotel openings in Q3 2024.

• Retail business GMV surged 107.7% year-over-year to RMB 566 million, with online channels accounting for over 90% of sales.

• Membership base expanded significantly, supporting healthy direct channel sales.

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

Financial highlights

• Net revenues rose 46.7% year-over-year and 5.7% sequentially to RMB1,898.6 million in Q3 2024.

• 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.

• Gross margin for hotel business was 36.0% (down from 39.5% last year); retail gross margin was 52.7% (up from 52.3%).

• Operating cash inflow was RMB 433 million; investing cash outflow RMB 572 million; financing cash outflow RMB 421 million.

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

Outlook and guidance

• Full-year 2024 net revenue expected to increase by 48%-52% over 2023.

• Full-year RevPAR is 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, with 2024 revenue expected to double year-over-year.