Atour Lifestyle Holdings Limited just wrapped up its Q2 2025 earnings call. Here are the key points from that discussion.
Overall, the mood was optimistic. Atour reported strong revenue growth, especially in its retail and hotel divisions. However, they recognized several hurdles, including a slow recovery in RevPAR (Revenue Per Available Room), rising competition, and an increased tax rate that could pressure their profits.
Solid Revenue Surge
Atour’s net revenues jumped by 37.4% compared to last year, hitting RMB 2,469 million. This growth reflects their effective market strategies and expanding revenue avenues.
Retail Business Success
The retail arm thrived, with GMV (Gross Merchandise Value) soaring by 84.6% year-over-year to RMB 1,144 million. Impressively, over 90% of this came from online sales, showing that their digital tactics are working well.
Hotel Network Growth
In Q2 2025, Atour opened 118 new hotels, bringing the total to 1,824. That’s a 29.2% increase compared to last year, highlighting their aggressive expansion in the hospitality sector.
Membership Growth
Atour’s membership program is thriving too, with over 102 million registered members, up 34.7% from last year. This growth illustrates their ability to create a loyal customer base.
Success of SAVHE Brand
The first SAVHE flagship hotel in Shenzhen opened with impressive results, boasting a RevPAR of over RMB 800 in its initial month. This shows strong demand and potential for the brand.
Challenges Ahead
Even with all this growth, Atour encountered some roadblocks. Their RevPAR recovery was only at 95.7% of last year’s figures. This points to ongoing struggles in boosting room revenues amid increased competition.
The market landscape is changing, and Atour is witnessing a rise in competitors. Adapting to these shifts will be essential for their continued growth.
Another challenge is the anticipated increase in their effective tax rate to 30% this year, up from 25% last year. This could hinder profit margins further.
Looking Forward
Atour aims to have 2,000 premier hotels by the end of 2025, building on their current count. They also project a 30% jump in total net revenues for this year compared to 2024, driven by their expansion efforts in both hotels and retail. These ambitious targets reflect their confidence in navigating upcoming challenges.
In summary, Atour Lifestyle Holdings is on a positive trajectory with impressive revenue gains and strategic growth plans, despite facing several market hurdles. Their focus on enhancing both retail and hotel operations positions them favorably in the coming years.
