Atour Lifestyle Holdings Limited

Second-quarter 2026 net revenues increased 41.4% year over year to RMB 3,490 million. Manachised hotel revenues rose 32.8% to RMB 1,725 million, leased hotel revenues fell 11.8% to RMB 132 million, and retail revenues increased 63.2% to RMB 1,575 million. Hotel gross profit rose 18.7% to RMB 659 million, and retail gross profit rose 57.4% to RMB 809 million. Adjusted net profit margin was 16.0%, down 1.3 percentage points year over year, and adjusted EBITDA margin was 23.5%, down 1.2 percentage points year over year. Cash and cash equivalents were RMB 3.9 billion, with net cash of RMB 3.7 billion. For guidance, the company expects full-year 2026 total net revenues to increase 30% versus 2025, full-year retail revenue growth to be 40% year over year, full-year hotel openings unchanged, about 80 hotel closures, and a modest year-over-year decline in full-year net profit margin.

The CEO framed the quarter around a consumer environment that is rewarding differentiated brands, better experiences, and quality execution over pure scale. He emphasized Atour’s three-year strategy of “Chinese Experience, Brand-Led Excellence,” saying the company is focusing on product upgrade, service quality, and disciplined expansion across hotel and retail. His tone was confident and long-term oriented, with repeated references to resilience, brand equity, and sustainable growth rather than short-term volume chasing.

The CFO highlighted broad-based revenue growth, with hotel-related revenue up 32.8% and retail revenue up 63.2%, while noting that leased hotel revenue declined because the leased hotel count fell from 24 to 19. He explained that hotel gross margin was pressured by a faster-growing lower-margin supply chain business, and retail gross margin was pressured by product mix. He also said selling and marketing expense rose to 17.4% of net revenue from 15.9% a year ago, while G&A excluding SBC stayed at 3.5% and technology and development at 1.6%. On capital allocation, he said cash and cash equivalents were RMB 3.9 billion, net cash was RMB 3.7 billion, share repurchases since inception exceeded USD 150 million, and the company is continuing its dividend policy.

Analysts asked about slower industry supply, RevPAR volatility, demand trends, retail momentum, margin outlook, and shareholder returns. Management said the hotel supply slowdown is a natural industry adjustment and that Atour is prioritizing high-quality supply and keeping its full-year opening target unchanged, while also holding closure guidance at about 80. On demand, management said business travel is diversifying beyond large enterprise clients and leisure demand is increasingly experience-driven, with inbound tourism seen as an important long-term opportunity. On margins, management said full-year net profit margin should still decline slightly year over year, but G&A and R&D ratios are now expected to be relatively stable; the main pressures are a higher revenue mix from supply chain and retail and a higher effective tax rate. On shareholder returns, management said buybacks and dividends continue as planned.