Anticipating Atour Lifestyle’s Q1 Earnings: What Investors Can Expect for Stock Performance

Atour Lifestyle Holdings Limited (ATAT) is set to share its first-quarter 2025 earnings on May 22. This company has been on a winning streak, beating earnings estimates for the past four quarters, with an average surprise of 5.2%.

Analysts expect ATAT to report earnings of 32 cents per share, up 23.1% from 26 cents last year. Revenue is predicted to reach about $259.1 million, marking a growth of 27.4% compared to the same period last year.

So, what’s fueling this growth? Atour’s expansion of its hotel network and strong branding are major contributors. The company’s new hotel models, like Atour 4.0 and Atour Light 3.0, are making a significant impact. They’re also gaining traction in larger cities, driving more guests to their properties.

Additionally, the retail side of the business is thriving, particularly with products under the Atour PLANET brand. Items such as memory foam pillows have seen high sales, thanks to e-commerce growth. In fact, management predicts retail revenues will jump by at least 35% this year, highlighting its importance to the company’s overall success.

Still, it’s not all smooth sailing. Seasonal changes and inclement weather may have dipped the revenue per available room (RevPAR). The company is bracing for a possible decline in RevPAR by mid- to high-single digits. Inflation and increased marketing costs could also strain profit margins.

Despite these challenges, industry experts remain optimistic. According to a recent survey by Duke University, many hotel executives anticipate a strong recovery in business travel this year, which could positively influence occupancy rates. However, Atour’s less than stellar Earnings ESP of 0.00% could affect its guidance for the upcoming earnings report.

In the broader market, competitors like Penn Entertainment and Boyd Gaming have also been performing well. For example, Penn is expected to see a 50% rise in quarterly earnings, and Boyd Gaming has consistently exceeded expectations over the past year.

As analysts continue to monitor Atour’s performance, their upcoming report will be crucial in assessing the company’s ability to navigate the evolving landscape of the hospitality industry.

For more details on earnings estimates, check out [Zacks Investment Research](https://www.zacks.com). It’s a helpful resource for tracking stocks and understanding market trends.

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