Overview

* Atour Q2 2025 rev up 37.4% yr/yr, driven by hotel and retail growth

* Net income for Q2 2025 rises 39.8% yr/yr, reflecting effective cost management

* EBITDA for Q2 2025 increases 45.1% yr/yr

Outlook

* Company expects full-year 2025 total net revenues to increase by 30%

Result Drivers

* HOTEL EXPANSION - Revenue growth driven by a 29.2% increase in the number of hotels and a 26.7% increase in hotel rooms, per company

* RETAIL GROWTH - Retail revenues surged 79.8% due to brand recognition and product innovation, according to Atour

* LEASED HOTELS - Revenue from leased hotels declined 17% due to a decrease in the number of leased hotels as part of product mix optimization

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 RMB 2.47

Revenue bln

Q2 RMB 427

Adjusted mln

Net

Income

Q2 Net RMB 425

Income mln

Q2 RMB 596

Income mln

From

Operatio

ns

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* Wall Street's median 12-month price target for Atour Lifestyle Holdings Ltd ( ATAT ) is $39.00, about 10% above its August 25 closing price of $35.10

* The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)