Atour Lifestyle (ATAT) Q4 2025 earnings summary

Executive summary

• Achieved 2,015 operational hotels and 224,423 rooms by December 31, 2025, up 24.5% and 22.5% year-over-year, reinforcing brand through differentiated positioning in a competitive Chinese travel market.

• Net revenues grew 35.1% year-over-year to RMB 9.79 billion in 2025, driven by manachised hotel expansion and retail growth.

• Retail business revenue surged 67.0% year-over-year to RMB 3.67 billion, with Atour Planet leading China's sleep market and driving synergy with hotel operations.

• Completed the 'Chinese Experience, 2,000 Premier Hotels' initiative and launched a new three-year strategic plan, "Chinese Experience, Brand-Led Excellence," focusing on user experience, brand strength, and scenario-based synergy.

• Membership base grew 25% to 112 million, with new joint programs enhancing engagement.

Financial highlights

• FY 2025 net revenues: RMB 9,790 million, up 35.1% year-over-year; Q4 2025: RMB 2,788 million, up 33.8%.

• Adjusted net income for 2025: RMB 1,753 million, up 34.2%; adjusted EBITDA: RMB 2,481 million, up 40.0%, with margin improving to 25.3%.

• Hotel gross margin was 37.0% for 2025; retail gross margin improved to 52.6%.

• Cash and cash equivalents totaled RMB 3.3 billion at year-end, with net cash of RMB 3.05 billion.

• Declared $108 million in cash dividends and repurchased $46 million in shares.

Outlook and guidance

• Expects FY 2026 net revenues to increase by 20% to 24% over FY 2025, with retail revenue projected to grow 25%-30%.

• Net profit margin for 2026 expected to decline slightly due to increased G&A and R&D expenses aligned with long-term strategy.

• Hotel openings in 2026 to match 2025 levels, with strict quality focus on core cities and commercial areas; plan to close around 80 hotels in 2026, down from 92 in 2025.