Atour Lifestyle Q1 Earnings Call Highlights
Atour Lifestyle (NASDAQ:ATAT) reported sharply higher first-quarter revenue for 2026, driven by continued expansion of its hotel network and strong growth in its retail business, while management said China’s hotel market is continuing a “moderate recovery” with a shift toward quality and differentiated experiences.
Founder, Chairman and CEO Haijun Wang said the company is operating in a consumer environment that is moving “from scale driven expansion to value driven upgrade centered on quality and experience.” He said Atour’s strategy remains focused on user experience, brand strength and product innovation across both lodging and retail.
Revenue rises 47.5% as retail remains a key growth driver
EVP and Co-CFO Jianfeng Wu said net revenues for the first quarter increased 47.5% year over year to RMB 2.811 billion.
- Managed hotel revenue rose 51.9% to RMB 1.568 billion, helped by hotel network expansion and supply chain business development.
- Leased hotel revenue fell 8.0% to RMB 118 million, reflecting a smaller leased hotel portfolio following product mix optimization.
- Retail revenue increased 54.4% to RMB 1.071 billion, supported by stronger brand recognition, product innovation and a broader product range.
Wu said gross profit from hotel businesses rose 29.5% to RMB 550 million, though hotel gross margin declined because of changes in revenue structure. Retail gross profit increased 58.3% to RMB 564 million, with margin improvement attributed to a higher contribution from higher-margin products.
Selling and marketing expenses were 14.3% of net revenues, down from 14.8% a year earlier, which Wu attributed to improved retail investment efficiency. Adjusted net profit margin was 17.4%, down 0.7 percentage points year over year, while adjusted EBITDA margin rose 0.6 percentage points to 25.5%.
Atour ended the quarter with RMB 3.7 billion in cash and cash equivalents and RMB 3.4 billion in net cash. The company declared its first cash dividend of 2026, totaling about $72 million.
Hotel RevPAR improves, network reaches 2,088 properties
Wang said Atour’s overall hotel portfolio and mature hotels continued to improve sequentially in the first quarter. Companywide RevPAR was RMB 311.6, equal to 102.4% of the level in the same period of 2025. Occupancy was 100.6% of the year-earlier level, while average daily rate stood at 102.1% of the prior-year level.
For mature hotels in operation for more than 18 months, RevPAR was 98.3% of the level in the same period of 2025, with occupancy and ADR at 99.2% and 99.4%, respectively.
The company opened 110 hotels during the quarter, bringing its total number of hotels in operation to 2,088 as of quarter-end. Its development pipeline stood at 751 hotels. Wang said Atour is maintaining a “quality-first principle” for new signings and openings.
In the company’s central reservation system channel, room nights accounted for 63.7% of total room nights sold in the quarter. Corporate members contributed 19.3% of room nights sold.
Management discusses brand performance and expansion discipline
Wang highlighted several hotel brands during the call. He said Atour 3.0, the company’s latest Atour hotel product, has received positive market feedback since launch. Atour Origin hotels in operation posted RevPAR above RMB 400 in the first quarter.
For the upscale SAVHE brand, Wang said hotels in operation recorded RevPAR above RMB 910 and ADR above RMB 1,000. He said SAVHE has attracted more international customers and family travelers, while receiving more user-generated reviews and recommendations on overseas platforms and social media. Wang said Atour will remain “disciplined in scale” for SAVHE while continuing product and service refinements.
In the midscale segment, Wang said Atour Lite is gaining recognition among younger users and broadening its business traveler base. More than 20 Atour Lite 3.3 hotels have opened, and first-quarter RevPAR for Atour Lite 3.3 hotels was more than 10% higher than the 3.0 version.
During the Q, Wu said Atour closed 37 hotels in the first quarter, partly because some closures planned last year were finalized this year. He said the full-year closure target remains unchanged at 80 hotels. Management also said the full-year opening target remains unchanged, though no specific number was provided on the call.
Retail guidance raised after strong product sales
Wang said Atour’s retail business continued to benefit from its sleep-focused product ecosystem. Atour Planet ranked among leading brands in the bedding category on major third-party platforms, he said.
In pillows, Wang said Atour Planet maintained the top position in category sales on major third-party platforms during the first quarter. The company also launched a Chinese New Year edition of its DeepSleep Memory Foam Pillow Pro 3.0.
In comforters, Wang said cumulative sales of the DeepSleep Thermoregulating Comforter series have exceeded 3 million units since launch. At the end of March, Atour introduced the DeepSleep Thermoregulating Comforter Pro 3.0 Summer Season, and Wang said the product generated more than RMB 100 million in GMV within 45 days of launch.
Asked by UBS about retail momentum, Wang said product iterations are based on translating user experiences into “definable, measurable, and replicable technical standards.” He said the company is raising its full-year retail revenue guidance to growth of 30% to 35% year over year, citing the first-quarter foundation and new product sales momentum.
Company maintains full-year revenue outlook and shareholder return plan
For 2026, Wu said Atour expects total net revenues to increase 24% to 28% compared with 2025.
On RevPAR trends, Wang said leisure travel remained strong entering the second quarter, helped by spring break travel demand in some regions in April. However, he said market volatility remains, and management is “cautiously optimistic” on second-quarter RevPAR.
At quarter-end, registered individual members reached 116 million, up 20% year over year. Wang said the company will continue to deepen synergies between hotels and retail around its “deep sleep” scenario.
Management also discussed shareholder returns. Wang said Atour’s repurchases have exceeded $100 million since the program began last year through the first quarter. He said the company plans to continue combining dividends and share repurchases, targeting a payout ratio of about 100% based on the previous fiscal year’s GAAP net profit.
About Atour Lifestyle (NASDAQ:ATAT)
Atour Lifestyle Holdings Co, Ltd. operates as a hospitality and lifestyle company offering a range of lodging and accommodation services in China. The company's core business includes the development, operation and management of boutique hotels and serviced apartments under its Atour Hotel and Ankora brands. These properties cater primarily to the mid- to upscale segment, delivering a blend of comfort, design-focused interiors and localized services tailored to both business and leisure travelers.
In addition to room offerings, Atour Lifestyle provides a suite of ancillary services designed to enhance guest experiences.
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