Atour Lifestyle's Q1 2025 Earnings Call: Key Contradictions in Revenue Growth, Hotel Openings, and Shareholder Returns

Hotel performance and revenue growth expectations, retail business growth and revenue targets, hotel opening and franchise momentum, dividend and shareholder return policy, retail business revenue growth guidance are the key contradictions discussed in Atour Lifestyle Holdings Limited's latest 2025Q1 earnings call.



Revenue and Earnings Growth:
- Atour Lifestyle Holdings Limited reported net revenues of RMB1,906 million for Q1 2025, up 29.8% year-over-year but down 8.6% quarter-over-quarter.
- The growth was primarily due to the expansion of the hotel network, while the quarter-over-quarter decline was attributed to a decrease in leased hotel numbers.

Hotel Performance Metrics:
- RevPAR reached RMB304.4 in Q1 2025, representing 92.8% of its level in Q1 2024, with OCC at 95.8% and ADR at 97.2%.
- The decline was due to volatility in the travel market, including weather conditions and macroeconomic impacts.

Retail Business Growth:
- The Retail business GMV reached RMB845 million in Q1 2025, up 70.9% year-over-year, driven by online channels contributing over 90% of total GMV.
- Growth was driven by the popularity of the Deep Sleep Series products and strategic product launches.

Membership and Channel Development:
- Registered individual members surpassed 96 million by the end of Q1 2025, representing a 35.4% year-over-year increase.
- The rise in membership was attributed to the enhanced membership ecosystem and cross-consumption initiatives between Hotel and Retail businesses.

Shareholder Returns:
- The company declared its first cash dividend in 2025 of US$0.14 per ordinary share, and announced a three-year share repurchase program of up to US$400 million.
- These initiatives are part of the company's commitment to creating long-term value and rewarding shareholder trust.