Atour Lifestyle Holdings Limited Reports Fourth Quarter and Full Year 2023 Unaudited Financial Results
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Insights
The financial results reported by Atour Lifestyle Holdings Limited showcase a remarkable year-over-year growth in net revenues and net income for both the fourth quarter and the full year of 2023. The substantial increase in net income, particularly the 669.2% rise for the full year, indicates a robust recovery and expansion trajectory. This performance is underscored by the growth in the number of hotels and rooms, which suggests successful scale operations and a positive market reception to Atour's offerings.
Investors may find the reported EBITDA and adjusted EBITDA figures encouraging, as they reflect operational efficiency and profitability. The significant growth in the retail segment, indicated by a 298.3% increase in GMV, hints at successful diversification and potential new revenue streams. However, it's important to monitor the operating costs and expenses, which have also increased, to ensure they remain proportional to revenue growth and do not erode profit margins over time.
Atour's strategy of expanding its hotel network and diversifying into the retail sector appears to be paying off, as evidenced by the impressive growth in key performance indicators such as RevPAR, ADR and occupancy rates. The recovery to pre-pandemic levels and, in some cases, exceeding those levels, signals strong consumer demand and effective pricing strategies. The 'Chinese Experience' branding and the launch of new product lines like Atour Light 3.0 and Atour 4.0 suggest a targeted approach to capturing different market segments.
From a market perspective, Atour's emphasis on enhancing product offerings and unlocking synergies between retail and accommodation could resonate well with consumers looking for integrated experiences. The company's performance should be attractive to investors interested in the hospitality sector, especially considering the potential for continued expansion and market penetration.
The expansion of Atour's hotel network by 29.8% in number of hotels and 27.7% in hotel rooms, along with the development pipeline of 617 manachised hotels, positions the company as a significant player in China's hospitality industry. The emphasis on the 'Life at Ease' concept and the upcoming grand opening of Atour 4.0 reflect an understanding of evolving consumer preferences and a commitment to innovation within the hospitality space.
The reported growth in RevPAR, ADR and occupancy rates indicates effective revenue management and an ability to attract and retain guests. Nonetheless, it is important to maintain this momentum and manage the risks associated with rapid expansion, such as brand dilution and operational challenges. The retail business's strong performance also suggests successful cross-selling opportunities and the potential to build a comprehensive lifestyle brand.
- A total of 1,210 hotels or 137,921 hotel rooms in operation as of December 31, 2023.
- Net revenues for the fourth quarter of 2023 increased by
140.4% year-over-year to RMB1,505 million (US$212 million), compared with RMB626 million for the same period of 2022. Net revenues for full year 2023 increased by106.2% year-over-year to RMB4,666 million (US$657 million ), compared with RMB2,263 million for full year 2022. - Net income for the fourth quarter of 2023 was RMB220 million (US
$31 million ), compared with net loss of RMB83 million for the same period of 2022. Net income for full year 2023 increased by669.2% year-over-year to RMB739 million (US$104 million ), compared with RMB96 million for full year 2022. - Adjusted net income (non-GAAP)1 for the fourth quarter of 2023 increased by
175.8% year-over-year to RMB222 million (US$31 million ), compared with RMB81 million for the same period of 2022. Adjusted net income for full year 2023 increased by248.3% year-over-year to RMB903 million (US$127 million ), compared with RMB259 million for full year 2022. - EBITDA (non-GAAP)2 for the fourth quarter of 2023 was RMB248 million (US
$35 million ), compared with negative RMB47 million for the same period of 2022. EBITDA (non-GAAP) for full year 2023 increased by299.2% year-over-year to RMB1,043 million (US$147 million ), compared with RMB261 million for full year 2022. - Adjusted EBITDA (non-GAAP)3 for the fourth quarter of 2023 increased by
116.1% year-over-year to RMB251 million (US$35 million ), compared with RMB116 million for the same period of 2022. Adjusted EBITDA (non-GAAP) for full year 2023 increased by184.3% year-over-year to RMB1,207 million (US$170 million ), compared with RMB424 million for full year 2022.
SHANGHAI, China, March 28, 2024 (GLOBE NEWSWIRE) -- Atour Lifestyle Holdings Limited (“Atour” or the “Company”) (NASDAQ: ATAT), a leading hospitality and lifestyle company in China, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2023.
Fourth Quarter and Full Year 2023 Operational Highlights
As of December 31, 2023, there were 1,210 hotels with a total of 137,921 hotel rooms in operation across Atour’s hotel network, representing rapid increases of
The average daily room rate4 (“ADR”) was RMB438 for the fourth quarter of 2023, compared with RMB388 for the fourth quarter of 2022 and RMB495 for the previous quarter. The ADR for the fourth quarter of 2023 recovered to
The occupancy rate4 was
The revenue per available room4 (“RevPAR”) was RMB358 for the fourth quarter of 2023, compared with RMB259 for the fourth quarter of 2022 and RMB424 for the previous quarter. The RevPAR for the fourth quarter of 2023 recovered to
The GMV5 generated from our retail business was RMB1,139 million for full year 2023, representing an increase of
“We are pleased to deliver strong full-year results for 2023, as well as significant progress towards our goal to operate a nationwide network of 2,000 premier hotels by 2025 and establish the ‘Chinese Experience’ as the industry benchmark,” said Mr. Haijun Wang, Founder, Chairman and CEO of Atour. “In 2023, we exceeded our expansion target with 289 newly launched hotels and an expanded network of 1,210 hotels as of year-end. We also achieved high-quality, resilient RevPAR growth in the fourth quarter, with both ADR and OCC surpassing 2019’s levels for the fourth consecutive quarter. Our midscale product, Atour Light 3.0, continued to capture consumer mindshare with its ‘Life at Ease’ concept. Since its launch, this offering has delivered excellent operational performance and customer experience within key business districts, laying a solid foundation as we advance Atour Light 3.0 toward its 1,000-hotel milestone. Meanwhile, Atour 4.0, our upper midscale offering, is progressing smoothly and is poised for an exceptional grand opening soon. On the retail side, our ‘Deep Sleep’ products emerged as a market powerhouse and our enhanced brand influence led to a year-over-year increase of approximately
Fourth Quarter and Full Year of 2023 Unaudited Financial Results | ||||||||
| (RMB in thousands) | Q4 2022 | Q4 2023 | FY2022 | FY2023 | ||||
| Revenues: | ||||||||
| Manachised hotels | 364,866 | 851,216 | 1,360,843 | 2,705,609 | ||||
| Leased hotels | 138,909 | 195,020 | 552,929 | 840,044 | ||||
| Retail | 99,195 | 412,226 | 253,607 | 971,931 | ||||
| Others | 23,203 | 46,756 | 95,604 | 148,383 | ||||
| Net revenues | 626,173 | 1,505,218 | 2,262,983 | 4,665,967 | ||||
Net revenues. Our net revenues for the fourth quarter of 2023 increased by
- Manachised hotels. Revenues from our manachised hotels for the fourth quarter of 2023 increased by
133.3% year-over-year to RMB851 million (US$120 million ) from RMB365 million for the same period of 2022. For full year 2023, revenues from our manachised hotels increased by98.8% year-over-year to RMB2,706 million (US$381 million ) from RMB1,361 million for full year 2022. The increases were primarily driven by the ongoing expansion of our hotel network and the growth of our manachised hotels’ RevPAR. The total number of our manachised hotels increased from 899 as of December 31, 2022, to 1,178 as of December 31, 2023. RevPAR of our manachised hotels surpassed 2019’s level and increased to RMB353 and RMB371 for the fourth quarter and full year of 2023, respectively, compared with RMB254 and RMB256 for the same periods of 2022, respectively. - Leased hotels. Revenues from our leased hotels for the fourth quarter of 2023 increased by
40.4% year-over-year to RMB195 million (US$27 million ) from RMB139 million for the same period of 2022. For full year 2023, revenues from our leased hotels increased by51.9% year-over-year to RMB840 million (US$118 million ) from RMB553 million for full year 2022. The increases were primarily due to the growth of our leased hotels’ RevPAR, which surpassed 2019’s level and increased to RMB495 and RMB517 for the fourth quarter and full year of 2023, respectively, compared with RMB342 and RMB331 for the same periods of 2022, respectively. - Retail. Revenues from retail for the fourth quarter of 2023 increased by
315.6% year-over-year to RMB412 million (US$58 million ) from RMB99 million for the same period of 2022. For full year 2023, revenues from retail increased by283.2% year-over-year to RMB972 million (US$137 million ) from RMB254 million for full year 2022. The increases were driven by widespread recognition of our retail brands and compelling product offerings, as well as improved product development and distribution capabilities. - Others. Revenues from others for the fourth quarter of 2023 increased by
101.5% year-over-year to RMB47 million (US$7 million ) from RMB23 million for the same period of 2022. For full year 2023, revenues from others increased by55.2% year-over-year to RMB148 million (US$21 million ) from RMB96 million for full year 2022. The increases were driven by our fast-growing membership business.
| Q4 2022 | Q4 2023 | FY 2022 | FY 2023 | ||||||||||
| (RMB in thousands) | |||||||||||||
| Operating costs and expenses: | |||||||||||||
| Hotel operating costs | (355,929 | ) | (733,208 | ) | (1,393,312 | ) | (2,240,890 | ) | |||||
| Retail costs | (58,689 | ) | (232,041 | ) | (151,815 | ) | (513,326 | ) | |||||
| Other operating costs | (9,446 | ) | (30,671 | ) | (34,870 | ) | (72,543 | ) | |||||
| Selling and marketing expenses | (53,992 | ) | (206,913 | ) | (139,929 | ) | (469,595 | ) | |||||
| General and administrative expenses | (217,041 | ) | (105,434 | ) | (350,009 | ) | (451,470 | ) | |||||
| Technology and development expenses | (15,966 | ) | (22,300 | ) | (66,182 | ) | (77,288 | ) | |||||
| Total operating costs and expenses | (711,063 | ) | (1,330,567 | ) | (2,136,117 | ) | (3,825,112 | ) | |||||
Operating costs and expenses for the fourth quarter of 2023 were RMB1,331 million (US
- Hotel operating costs for the fourth quarter of 2023 increased by
106.0% year-over-year to RMB733 million (US$103 million ) from RMB356 million for the same period of 2022. For full year 2023, hotel operating costs increased by60.8% year-over-year to RMB2,241 million (US$316 million ) from RMB1,393 million for full year 2022. The increases were mainly due to the increase in variable costs, such as supply chain costs, associated with the continued growth of our hotel business. Hotel operating costs accounted for70.1% and63.2% of manachised and leased hotels’ revenues for the fourth quarter and full year of 2023, respectively, compared with70.7% and72.8% for the same periods of 2022, respectively. - Retail costs for the fourth quarter of 2023 increased by
295.4% year-over-year to RMB232 million (US$33 million ) from RMB59 million for the same period of 2022. For full year 2023, retail costs increased by238.1% year-over-year to RMB513 million (US$72 million ) from RMB152 million for full year 2022. The increases were associated with the rapid growth of our retail business. Retail costs accounted for56.3% and52.8% of retail revenues for the fourth quarter and full year of 2023, respectively, compared with59.2% and59.9% for the same periods of 2022, respectively. The decreases were attributable to increasing contribution from higher-margin online sales. - Selling and marketing expenses for the fourth quarter of 2023 were RMB207 million (US
$29 million ), compared with RMB54 million for the same period of 2022. For full year 2023, selling and marketing expenses were RMB470 million (US$66 million ), compared with RMB140 million for full year 2022. The increases were mainly due to our increased investment in brand awareness and online channel development associated with retail business. - General and administrative expenses for the fourth quarter of 2023 were RMB105 million (US
$15 million ), including RMB2 million share-based compensation expenses, compared with RMB217 million, including RMB160 million share-based compensation expenses for the same period of 2022. For full year 2023, general and administrative expenses were RMB451 million (US$64 million ), including RMB162 million share-based compensation expenses, compared with RMB350 million, including RMB160 million share-based compensation expenses for full year 2022. The increases, excluding the impact from share-based compensation, were primarily due to increased costs related to management personnel and professional service expenses. - Technology and development expenses for the fourth quarter of 2023 were RMB22 million (US
$3 million ), compared with RMB16 million for the same period of 2022. For full year 2023, technology and development expenses were RMB77 million (US$11 million ), compared with RMB66 million for full year 2022. The increases were mainly attributable to our increased investments in technology systems and infrastructure to support our expanding hotel network, retail business and customer experience improvements.
Other operating income primarily consists of income from government subsidies and value-added tax related benefits. Other operating income for the fourth quarter of 2023 was RMB40 million (US
Income from operations for the fourth quarter of 2023 was RMB214 million (US
Income tax expense for the fourth quarter of 2023 was RMB17 million (US
Net income for the fourth quarter of 2023 was RMB220 million (US
Adjusted net income (non-GAAP) for the fourth quarter of 2023 was RMB222 million (US
Basic and diluted income per share/American depositary share (ADS). For the fourth quarter of 2023, basic income per share was RMB0.53 (US
EBITDA (non-GAAP) for the fourth quarter of 2023 was RMB248 million (US
Adjusted EBITDA (non-GAAP) for the fourth quarter of 2023 was RMB251 million (US
Cash flows. Operating cash inflow for the fourth quarter of 2023 was RMB564 million (US
Cash and cash equivalents and restricted cash. As of December 31, 2023, the Company had a total balance of cash and cash equivalents and restricted cash of RMB2,842 million (US
Debt financing. As of December 31, 2023, the Company had total outstanding borrowings of RMB72 million (US
_________________________________
1 Adjusted net income (non-GAAP) is defined as net income excluding share-based compensation expenses.
2 EBITDA (non-GAAP) is defined as earnings before interest expense, interest income, income tax expense and depreciation and amortization.
3 Adjusted EBITDA (non-GAAP) is defined as EBITDA excluding share-based compensation expenses.
4 Excludes hotel rooms that were previously requisitioned by the government for quarantine needs in response to the COVID-19 outbreak or otherwise became unavailable due to temporary hotel closures. ADR and RevPAR are calculated based on tax inclusive room rates.
“ADR” refers to the average daily room rate, which means room revenue divided by the number of rooms in use for a given period;
“Occupancy rate” refers to the number of rooms in use divided by the number of available rooms for a given period;
“RevPAR” refers to revenue per available room, which is calculated by total revenues during a period divided by the number of available rooms of our hotels during the same period.
5 “GMV” refers to gross merchandise value, which is the total value of confirmed orders placed and paid for by our end customers with us or our franchisees, as the case may be, and sold as part of our retail business, where the ordered products have been dispatched and not returned, calculated based on the prices of the ordered products net of any discounts offered to our end customers.
Conference Call
The Company will host a conference call at 7:00 AM U.S. Eastern time on Thursday, March 28, 2023 (or 7:00 PM Beijing/Hong Kong time on the same day).
A live webcast of the conference call will be available on the Company’s investor relations website at https://ir.yaduo.com, and a replay of the webcast will be available following the session.
For participants who wish to join the conference call via telephone, please pre-register using the link provided below. Upon registering, each participant will receive a set of participant dial-in numbers and a personal PIN to join the conference call.
Details for the conference call are as follows:
Event Title: Atour Fourth Quarter and Full Year 2023 Earnings Conference Call
Pre-registration Link: https://register.vevent.com/register/BI70f0996472244e0e99374c5c3db7206f
Use of Non-GAAP Financial Measures
To supplement the Company’s unaudited consolidated financial results presented in accordance with U.S. Generally-Accepted Accounting Principles (“GAAP”), the Company uses the following non-GAAP measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission: adjusted net income (loss), which is defined as net income (loss) excluding share-based compensation expenses; EBITDA, which is defined as earnings before interest expense, interest income, income tax expense and depreciation and amortization; adjusted EBITDA, which is defined as EBITDA excluding share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of GAAP and non-GAAP results” set forth at the end of this release.
The Company believes that EBITDA is widely used by other companies in the hospitality industry and may be used by investors as a measure of financial performance. Given the significant investments that the Company has made in leasehold improvements and other fixed assets of leased hotels, depreciation and amortization comprise a significant portion of the Company’s cost structure. The Company believes that EBITDA will provide investors with a useful tool for comparability between periods because it eliminates depreciation and amortization attributable to capital expenditures. Adjusted net income and adjusted EBITDA provide meaningful supplemental information regarding the Company’s performance by excluding share-based compensation expenses, as the investors can better understand the Company’s performance and compare business trends among different reporting periods on a consistent basis excluding share-based compensation expenses which are not expected to result in cash payment. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the Company’s performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to the Company’s historical performance. The Company believes these non-GAAP financial measures are also useful to investors in allowing for greater transparency with respect to supplemental information used regularly by Company management in financial and operational decision-making. The accompanying tables provide more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.
The use of these non-GAAP measures has certain limitations as the excluded items have been and will be incurred and are not reflected in the presentation of these non-GAAP measures. Each of these items should also be considered in the overall evaluation of the results. The Company compensates for these limitations by providing the relevant disclosure of the relevant items both in its reconciliations to the U.S. GAAP financial measures and in its consolidated financial statements, all of which should be considered when evaluating the performance of the Company.
In addition, these measures may not be comparable to similarly titled measures utilized by other companies since such other companies may not calculate these measures in the same manner as the Company does.
About Atour Lifestyle Holdings Limited
Atour Lifestyle Holdings Limited (NASDAQ: ATAT) is a leading hospitality and lifestyle company in China, with a distinct portfolio of lifestyle hotel brands. Atour is the leading upper midscale hotel chain in China and is the first Chinese hotel chain to develop retail business. Atour is committed to bringing innovations to China’s hospitality industry and building new lifestyle brands around hotel offerings.
For more information, please visit https://ir.yaduo.com.
Investor Relations Contact
Atour Lifestyle Holdings Limited
Email: ir@yaduo.com
Piacente Financial Communications
Email: Atour@tpg-ir.com
Tel: +86-10-6508-0677
—Financial Tables and Operational Data Follow—
| ATOUR LIFESTYLE HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (All amounts in thousands, except share data and per share data, or otherwise noted) | ||||||
| As of | As of | |||||
| December 31, | December 31, | |||||
| 2022 | 2023 | |||||
| RMB | RMB | USD1 | ||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | 1,589,161 | 2,840,807 | 400,119 | |||
| Short-term investments | 157,808 | 751,794 | 105,888 | |||
| Accounts receivable | 132,699 | 162,101 | 22,831 | |||
| Prepayments and other current assets | 133,901 | 251,900 | 35,480 | |||
| Amounts due from related parties | 53,630 | 115,900 | 16,324 | |||
| Inventories | 57,460 | 119,078 | 16,772 | |||
| Total current assets | 2,124,659 | 4,241,580 | 597,414 | |||
| Non-current assets | ||||||
| Restricted cash | 946 | 946 | 133 | |||
| Contract costs | 67,270 | 98,220 | 13,834 | |||
| Property and equipment, net | 360,300 | 266,120 | 37,482 | |||
| Operating lease right-of-use assets | 1,932,000 | 1,712,580 | 241,212 | |||
| Intangible assets, net | 5,537 | 4,247 | 598 | |||
| Goodwill | 17,446 | 17,446 | 2,457 | |||
| Other assets | 141,335 | 100,939 | 14,218 | |||
| Deferred tax assets | 112,533 | 144,947 | 20,415 | |||
| Total non-current assets | 2,637,367 | 2,345,445 | 330,349 | |||
| Total assets | 4,762,026 | 6,587,025 | 927,763 | |||
| Liabilities and shareholders’ equity | ||||||
| Current liabilities | ||||||
| Operating lease liabilities, current | 319,598 | 295,721 | 41,651 | |||
| Accounts payable | 184,901 | 594,545 | 83,741 | |||
| Deferred revenue, current | 202,996 | 406,066 | 57,193 | |||
| Salary and welfare payable | 103,539 | 189,823 | 26,736 | |||
| Accrued expenses and other payables | 330,282 | 684,391 | 96,394 | |||
| Income taxes payable | 31,336 | 136,201 | 19,184 | |||
| Short-term borrowings | 142,828 | 70,000 | 9,859 | |||
| Current portion of long-term borrowings | 29,130 | - | - | |||
| Amounts due to related parties | 3,004 | 1,104 | 155 | |||
| Total current liabilities | 1,347,614 | 2,377,851 | 334,913 | |||
| Non-current liabilities | ||||||
| Operating lease liabilities, non-current | 1,805,402 | 1,583,178 | 222,986 | |||
| Deferred revenue, non-current | 277,841 | 369,455 | 52,037 | |||
| Long-term borrowings, non-current portion | 2,000 | 2,000 | 282 | |||
| Other non-current liabilities | 141,763 | 194,452 | 27,388 | |||
| Total non-current liabilities | 2,227,006 | 2,149,085 | 302,693 | |||
| Total liabilities | 3,574,620 | 4,526,936 | 637,606 | |||
_________________________________
1 Translations of balances in the consolidated financial statements from RMB into US$ for the fourth quarter of 2023 and as of December 31, 2023 are solely for readers’ convenience and were calculated at the rate of US
ATOUR LIFESTYLE HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
| (All amounts in thousands, except share data and per share data, or otherwise noted) | |||||||||
| As of | As of | ||||||||
| December 31, | December 31, | ||||||||
| 2022 | 2023 | ||||||||
| RMB | RMB | USD1 | |||||||
| Shareholders’ equity | |||||||||
| Class A ordinary shares | 229 | 244 | 34 | ||||||
| Class B ordinary shares | 56 | 56 | 8 | ||||||
| Additional paid in capital | 1,286,189 | 1,555,773 | 219,126 | ||||||
| Retained earnings (accumulated deficit) | (78,304 | ) | 507,226 | 71,441 | |||||
| Accumulated other comprehensive income (loss) | (10,865 | ) | 4,769 | 672 | |||||
| Total shareholders’ equity attributable to shareholders of the Company | 1,197,305 | 2,068,068 | 291,281 | ||||||
| Non-controlling interests | (9,899 | ) | (7,979 | ) | (1,124 | ) | |||
| Total shareholders’ equity | 1,187,406 | 2,060,089 | 290,157 | ||||||
| Commitments and contingencies | - | - | - | ||||||
| Total liabilities and shareholders’ equity | 4,762,026 | 6,587,025 | 927,763 | ||||||
ATOUR LIFESTYLE HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||||
| (All amounts in thousands, except share data and per share data, or otherwise noted) | ||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||||
| 2022 | 2023 | 2022 | 2023 | |||||||||||||||
| RMB | RMB | USD1 | RMB | RMB | USD1 | |||||||||||||
| Revenues: | ||||||||||||||||||
| Manachised hotels | 364,866 | 851,216 | 119,891 | 1,360,843 | 2,705,609 | 381,077 | ||||||||||||
| Leased hotels | 138,909 | 195,020 | 27,468 | 552,929 | 840,044 | 118,318 | ||||||||||||
| Retail | 99,195 | 412,226 | 58,061 | 253,607 | 971,931 | 136,894 | ||||||||||||
| Others | 23,203 | 46,756 | 6,586 | 95,604 | 148,383 | 20,899 | ||||||||||||
| Net revenues | 626,173 | 1,505,218 | 212,006 | 2,262,983 | 4,665,967 | 657,188 | ||||||||||||
| Operating costs and expenses: | ||||||||||||||||||
| Hotel operating costs | (355,929 | ) | (733,208 | ) | (103,270 | ) | (1,393,312 | ) | (2,240,890 | ) | (315,623 | ) | ||||||
| Retail costs | (58,689 | ) | (232,041 | ) | (32,682 | ) | (151,815 | ) | (513,326 | ) | (72,300 | ) | ||||||
| Other operating costs | (9,446 | ) | (30,671 | ) | (4,320 | ) | (34,870 | ) | (72,543 | ) | (10,218 | ) | ||||||
| Selling and marketing expenses | (53,992 | ) | (206,913 | ) | (29,143 | ) | (139,929 | ) | (469,595 | ) | (66,141 | ) | ||||||
| General and administrative expenses | (217,041 | ) | (105,434 | ) | (14,850 | ) | (350,009 | ) | (451,470 | ) | (63,588 | ) | ||||||
| Technology and development expenses | (15,966 | ) | (22,300 | ) | (3,141 | ) | (66,182 | ) | (77,288 | ) | (10,886 | ) | ||||||
| Total operating costs and expenses | (711,063 | ) | (1,330,567 | ) | (187,406 | ) | (2,136,117 | ) | (3,825,112 | ) | (538,756 | ) | ||||||
| Other operating income | 6,511 | 39,526 | 5,567 | 38,094 | 83,179 | 11,716 | ||||||||||||
| Income from operations | (78,379 | ) | 214,177 | 30,167 | 164,960 | 924,034 | 130,148 | |||||||||||
| Interest income | 4,971 | 8,757 | 1,233 | 14,456 | 29,569 | 4,165 | ||||||||||||
| Gain from short-term investments | 1,918 | 11,322 | 1,595 | 8,455 | 34,519 | 4,862 | ||||||||||||
| Interest expense | (1,646 | ) | (679 | ) | (96 | ) | (6,501 | ) | (5,005 | ) | (705 | ) | ||||||
| Other (expenses) income, net | 2,245 | 3,418 | 481 | (814 | ) | (1,024 | ) | (145 | ) | |||||||||
| Income (loss) before income tax | (70,891 | ) | 236,995 | 33,380 | 180,556 | 982,093 | 138,325 | |||||||||||
| Income tax expense | (11,712 | ) | (17,232 | ) | (2,427 | ) | (84,474 | ) | (243,036 | ) | (34,231 | ) | ||||||
| Net income (loss) | (82,603 | ) | 219,763 | 30,953 | 96,082 | 739,057 | 104,094 | |||||||||||
| Less: net income (loss) attributable to non-controlling interests | (325 | ) | (291 | ) | (41 | ) | (2,017 | ) | 1,920 | 270 | ||||||||
| Net income (loss) attributable to the Company | (82,278 | ) | 220,054 | 30,994 | 98,099 | 737,137 | 103,824 | |||||||||||
| Net income (loss) | (82,603 | ) | 219,763 | 30,953 | 96,082 | 739,057 | 104,094 | |||||||||||
| Other comprehensive income | ||||||||||||||||||
| Foreign currency translation adjustments, net of nil income taxes | (11,322 | ) | (10,372 | ) | (1,461 | ) | (1,918 | ) | 15,634 | 2,202 | ||||||||
| Other comprehensive income (loss), net of income taxes | (11,322 | ) | (10,372 | ) | (1,461 | ) | (1,918 | ) | 15,634 | 2,202 | ||||||||
| Total comprehensive income (loss) | (93,925 | ) | 209,391 | 29,492 | 94,164 | 754,691 | 106,296 | |||||||||||
| Comprehensive income (loss) attributable to non-controlling interests | (325 | ) | (291 | ) | (41 | ) | (2,017 | ) | 1,920 | 270 | ||||||||
| Comprehensive income (loss) attributable to the Company | (93,600 | ) | 209,682 | 29,533 | 96,181 | 752,771 | 106,026 | |||||||||||
| Net income (loss) per ordinary share | ||||||||||||||||||
| —Basic | (0.21 | ) | 0.53 | 0.08 | 0.26 | 1.82 | 0.26 | |||||||||||
| —Diluted | (0.21 | ) | 0.53 | 0.07 | 0.26 | 1.78 | 0.25 | |||||||||||
| Weighted average ordinary shares used in calculating net income per ordinary share | ||||||||||||||||||
| —Basic | 386,298,063 | 412,824,955 | 412,824,955 | 379,321,522 | 405,628,647 | 405,628,647 | ||||||||||||
| —Diluted | 386,298,063 | 416,012,830 | 416,012,830 | 381,598,689 | 414,823,302 | 414,823,302 | ||||||||||||
ATOUR LIFESTYLE HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||
| (In thousands of RMB, except share data and per share data, or otherwise noted) | ||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||||
| 2022 | 2023 | 2022 | 2023 | |||||||||||||||
| RMB | RMB | USD1 | RMB | RMB | USD1 | |||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||
| Net cash generated from (used in) operating activities | (35,018 | ) | 564,038 | 79,444 | 283,677 | 1,988,674 | 280,097 | |||||||||||
| Cash flows from investing activities: | ||||||||||||||||||
| Payment for purchases of property and equipment | (12,630 | ) | (9,827 | ) | (1,384 | ) | (36,425 | ) | (41,724 | ) | (5,877 | ) | ||||||
| Proceeds from disposal of property and equipment | - | - | - | - | 670 | 94 | ||||||||||||
| Payment for purchases of intangible assets | (1,663 | ) | - | - | (2,805 | ) | - | - | ||||||||||
| Payment for purchases of short-term investments | (1,080,450 | ) | (3,601,000 | ) | (507,190 | ) | (2,931,000 | ) | (9,427,210 | ) | (1,327,795 | ) | ||||||
| Proceeds from maturities of short-term investments | 920,918 | 3,654,035 | 514,660 | 2,778,005 | 8,867,743 | 1,248,995 | ||||||||||||
| Net cash (used in) generated from investing activities | (173,825 | ) | 43,208 | 6,086 | (192,225 | ) | (600,521 | ) | (84,583 | ) | ||||||||
| Cash flows from financing activities: | ||||||||||||||||||
| Proceeds from borrowings | 30,000 | - | - | 199,000 | 40,000 | 5,634 | ||||||||||||
| Repayment of borrowings | (58,000 | ) | - | - | (134,480 | ) | (141,958 | ) | (19,994 | ) | ||||||||
| Proceeds from employee stock option exercises | - | 52,461 | 7,389 | - | 105,621 | 14,876 | ||||||||||||
| Payment for dividends | - | - | - | - | (150,579 | ) | (21,209 | ) | ||||||||||
| Acquisition of non-controlling interest | - | - | - | (350 | ) | - | - | |||||||||||
| Proceeds from initial public offering | 400,068 | - | - | 400,068 | - | - | ||||||||||||
| Payment for initial public offering costs | (7,207 | ) | - | - | (7,928 | ) | - | - | ||||||||||
| Net cash (used in) generated from financing activities | 364,861 | 52,461 | 7,389 | 456,310 | (146,916 | ) | (20,693 | ) | ||||||||||
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | (2,250 | ) | (16,275 | ) | (2,293 | ) | 2,816 | 10,409 | 1,470 | |||||||||
| Net increase in cash, cash equivalents and restricted cash | 153,768 | 643,432 | 90,626 | 550,578 | 1,251,646 | 176,291 | ||||||||||||
| Cash and cash equivalents and restricted cash at the beginning of the period | 1,436,339 | 2,198,321 | 309,626 | 1,039,529 | 1,590,107 | 223,961 | ||||||||||||
| Cash and cash equivalents and restricted cash at the end of the period | 1,590,107 | 2,841,753 | 400,252 | 1,590,107 | 2,841,753 | 400,252 | ||||||||||||
| ATOUR LIFESTYLE HOLDINGS LIMITED UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS | ||||||||||||||||||||||||
| (In thousands of RMB, except share data and per share data, or otherwise noted) | ||||||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||
| 2022 | 2023 | 2022 | 2023 | |||||||||||||||||||||
| RMB | RMB | USD1 | RMB | RMB | USD1 | |||||||||||||||||||
| Net income (loss) (GAAP) | (82,603 | ) | 219,763 | 30,953 | 96,082 | 739,057 | 104,094 | |||||||||||||||||
| Share-based compensation expenses, net of tax effect of nil2 | 163,193 | 2,476 | 349 | 163,193 | 163,978 | 23,096 | ||||||||||||||||||
| Adjusted net income (non-GAAP) | 80,590 | 222,239 | 31,302 | 259,275 | 903,035 | 127,190 | ||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||
| 2022 | 2023 | 2022 | 2023 | |||||||||||||||||||||
| RMB | RMB | USD1 | RMB | RMB | USD1 | |||||||||||||||||||
| Net income (loss) (GAAP) | (82,603 | ) | 219,763 | 30,953 | 96,082 | 739,057 | 104,094 | |||||||||||||||||
| Interest income | (4,971 | ) | (8,757 | ) | (1,233 | ) | (14,456 | ) | (29,569 | ) | (4,165 | ) | ||||||||||||
| Interest expense | 1,646 | 679 | 96 | 6,501 | 5,005 | 705 | ||||||||||||||||||
| Income tax expense | 11,712 | 17,232 | 2,427 | 84,474 | 243,036 | 34,231 | ||||||||||||||||||
| Depreciation and amortization | 27,112 | 19,422 | 2,735 | 88,561 | 85,021 | 11,975 | ||||||||||||||||||
| EBITDA (non-GAAP) | (47,104 | ) | 248,339 | 34,978 | 261,162 | 1,042,550 | 146,840 | |||||||||||||||||
| Share-based compensation expenses | 163,193 | 2,476 | 349 | 163,193 | 163,978 | 23,096 | ||||||||||||||||||
| Adjusted EBITDA (non-GAAP) | 116,089 | 250,815 | 35,327 | 424,355 | 1,206,528 | 169,936 | ||||||||||||||||||
_________________________________
2 The share-based compensation expenses were recorded at entities in PRC. Share-based compensation expenses were non-deductible expenses in PRC. Therefore, there is no tax impact for share-based compensation expenses adjustment for non-GAAP financial measures.
Key Operating Data
| Number of Hotels | Number of Rooms | ||||
| Opened in Q4 2023 | Closed in Q4 2023 | As of December 31, 2023 | As of December 31, 2023 | ||
| Manachised hotels | 100 | 2 | 1,178 | 133,291 | |
| Leased hotels | - | - | 32 | 4,630 | |
| Total | 100 | 2 | 1,210 | 137,921 | |
| As of December 31, 2023 | ||||
| Brand | Positioning | Properties | Rooms | |
| Manachised | Leased | |||
| A.T. House | Luxury | - | 1 | 214 |
| Atour S | Upscale | 57 | 8 | 9,628 |
| ZHOTEL | Upscale | 1 | - | 52 |
| Atour | Upper midscale | 898 | 22 | 105,977 |
| Atour X | Upper midscale | 114 | - | 12,140 |
| Atour Light | Midscale | 108 | 1 | 9,910 |
| Total | 1,178 | 32 | 137,921 | |
| Three Months Ended December 31, 2019 | Three Months Ended December 31, 2022 | Three Months Ended September 30, 2023 | Three Months Ended December 31, 2023 | ||||
| Occupancy rate3 (in percentage) | |||||||
| Manachised hotels | |||||||
| Leased hotels | |||||||
| All hotels | |||||||
| ADR3 (in RMB) | |||||||
| Manachised hotels | 410.4 | 382.6 | 489.4 | 432.8 | |||
| Leased hotels | 532.8 | 468.6 | 629.9 | 557.9 | |||
| All hotels | 422.5 | 387.8 | 495.4 | 437.7 | |||
| RevPAR3 (in RMB) | |||||||
| Manachised hotels | 315.4 | 254.4 | 417.9 | 353.1 | |||
| Leased hotels | 471.3 | 341.7 | 571.4 | 495.3 | |||
| All hotels | 329.2 | 259.3 | 424.1 | 358.2 |
| Twelve Months Ended December 31, 2019 | Twelve Months Ended December 31, 2022 | Twelve Months Ended December 31, 2023 | |||
| Occupancy rate3 (in percentage) | |||||
| Manachised hotels | |||||
| Leased hotels | |||||
| All hotels | |||||
| ADR3 (in RMB) | |||||
| Manachised hotels | 415.9 | 386.4 | 457.8 | ||
| Leased hotels | 530.1 | 465.0 | 587.2 | ||
| All hotels | 429.5 | 391.2 | 463.6 | ||
| RevPAR3 (in RMB) | |||||
| Manachised hotels | 313.7 | 256.3 | 370.8 | ||
| Leased hotels | 463.7 | 330.6 | 517.2 | ||
| All hotels | 329.5 | 260.7 | 376.8 |
_________________________________
3 Excludes hotel rooms that were previously requisitioned by the government for quarantine needs in response to the COVID-19 outbreak or otherwise became unavailable due to temporary hotel closures. By the end of the second quarter of 2023, all of our hotels previously requisitioned by the government for quarantine purposes had been restored to our management, and no hotel was subject to requisition or closure due to COVID-19 restrictions during the fourth quarter of 2023 and as of December 31, 2023. ADR and RevPAR are calculated based on tax inclusive room rates.
FAQ
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