Atour Lifestyle Holdings Limited Reports Second Quarter of 2024 Unaudited Financial Results

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Insights

Atour Lifestyle Holdings 's Q2 2024 results show robust growth across key metrics. Net revenues increased by 64.5% year-over-year to RMB1,797 million, while net income rose by 27.1% to RMB304 million. The company's expansion strategy is paying off, with a 36.6% increase in hotels and a 34.3% rise in hotel rooms year-over-year.

The retail segment is a standout performer, with revenues surging by 153.6% to RMB537 million. This diversification is strengthening Atour's business model. However, the decrease in RevPAR from RMB384 to RMB359 year-over-year warrants attention, as it could impact profitability if the trend continues.

Overall, Atour's financial health appears strong, with a solid cash position of RMB3.3 billion and low debt. The company's optimistic outlook for 2024, projecting 48% to 52% revenue growth, suggests continued momentum.

Atour's rapid expansion in the Chinese hospitality market is impressive, with 1,412 hotels now in operation and a pipeline of 712 manachised hotels. The 36.6% year-over-year increase in hotel count outpaces many competitors, indicating strong brand appeal and execution capabilities.

The slight decline in RevPAR (from RMB384 to RMB359) is a concern, but the increased occupancy rate (from 77.1% to 78.4%) suggests Atour is maintaining market share. The lower ADR (RMB441 vs RMB475 last year) might be a strategic move to drive occupancy in a competitive market.

Atour's innovative approach, blending hospitality with retail, sets it apart. The 157.6% growth in retail GMV to RMB620 million demonstrates successful cross-selling and brand extension. This unique positioning could provide a competitive edge and higher customer lifetime value in the long run.

Atour's performance reflects the robust recovery and growth of China's domestic travel market. The company's expansion strategy aligns well with the increasing demand for quality, branded accommodations among Chinese travelers. The rapid growth in manachised hotels suggests a scalable and capital-light model that's attractive to property owners.

The retail business's success, particularly in comforters (over 20% of retail revenues), indicates effective brand extension and consumer trust. This diversification could provide resilience against potential hospitality sector fluctuations.

However, the increase in selling and marketing expenses (from 8.6% to 12.5% of net revenues) bears watching. While necessary for brand building and retail growth, maintaining efficiency will be important for long-term profitability. The company's tech investments (1.8% of net revenues) appear prudent given the increasing importance of digital platforms in hospitality and retail.

08/29/2024 - 06:00 AM

A total of 1,412 hotels, or 161,686 hotel rooms, in operation as of June 30, 2024.
Net revenues for the second quarter of 2024 increased by 64.5% year-over-year to RMB1,797 million (US$247 million), compared with RMB1,093 million for the same period of 2023.
Net income for the second quarter of 2024 increased by 27.1% year-over-year to RMB304 million (US$42 million), compared with RMB239 million for the same period of 2023.
Adjusted net income (non-GAAP)¹ for the second quarter of 2024 increased by 31.6% year-over-year to RMB328 million (US$45 million), compared with RMB249 million for the same period of 2023.
EBITDA (non-GAAP)² for the second quarter of 2024 increased by 25.3% year-over-year to RMB419 million (US$58 million), compared with RMB334 million for the same period of 2023.
Adjusted EBITDA (non-GAAP)³ for the second quarter of 2024 increased by 28.6% year-over-year to RMB443 million (US$61 million), compared with RMB344 million for the same period of 2023.

SHANGHAI, Aug. 29, 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 second quarter ended June 30, 2024.

Second Quarter of 2024 Operational Highlights

As of June 30, 2024, there were 1,412 hotels with a total of 161,686 hotel rooms in operation across Atour’s hotel network, representing rapid increases of 36.6% and 34.3% year-over-year in terms of the number of hotels and hotel rooms, respectively. As of June 30, 2024, there were 712 manachised hotels under development in our pipeline.

The average daily room rate⁴ (“ADR”) was RMB441 for the second quarter of 2024, compared with RMB475 for the same period of 2023 and RMB430 for the first quarter of 2024.

The occupancy rate⁴ was 78.4% for the second quarter of 2024, compared with 77.1% for the same period of 2023 and 73.3% for the first quarter of 2024.

The revenue per available room⁴ (“RevPAR”) was RMB359 for the second quarter of 2024, compared with RMB384 for the same period of 2023 and RMB328 for the first quarter of 2024.

The GMV⁵ generated from our retail business was RMB620 million for the second quarter of 2024, representing an increase of 157.6% year-over-year.

“Driven by the synergistic growth of our accommodation and retail businesses, we delivered a strong performance for the second quarter of 2024, further solidifying our industry leadership,” said Mr. Haijun Wang, Founder, Chairman and CEO of Atour. “Our hotel network expansion maintained its vigorous momentum with 123 new openings in the second quarter, representing a new quarterly record. As of the end of the second quarter, we had a total of 1,412 hotels in operation, representing a 36.6% year-over-year increase, which accelerates the progress toward our goal of 2,000 premier hotels nationwide by 2025. In the second quarter, while RevPAR declined year-over-year primarily due to a high base effect, our occupancy rate remained solid, reaching 101.7% of 2023’s level for the same period. Additionally, our retail business continued to deliver exceptional performance in the second quarter, with GMV up by 157.6% year-over-year to RMB620 million, as a result of our efficient new product development and ongoing product offering expansion.

“Looking ahead to the second half of 2024, we will continue propelling progress with our deep understanding of and ability to fulfill customer needs. By consistently enhancing the ‘Chinese Experience’, we will promote comprehensive, high-quality growth across our Group’s businesses and brand portfolio,” concluded Mr. Wang.

Second Quarter of 2024 Unaudited Financial Results

(RMB in thousands)	Q2 2023	Q2 2024
(RMB in thousands)
Revenues:
Manachised hotels	626,483	1,026,979
Leased hotels	219,524	180,333
Retail	211,648	536,734
Others	35,054	53,001
Net revenues	1,092,709	1,797,047

Net revenues. Our net revenues for the second quarter of 2024 increased by 64.5% to RMB1,797 million (US$247 million) from RMB1,093 million for the same period of 2023, mainly driven by the growth in manachised hotel and retail businesses.

Manachised hotels. Revenues from our manachised hotels for the second quarter of 2024 increased by 63.9% to RMB1,027 million (US$141 million) from RMB626 million for the same period of 2023. This increase was primarily driven by our ongoing hotel network expansion and the rapid growth of our supply chain business. The total number of our manachised hotels increased from 1,001 as of June 30, 2023 to 1,382 as of June 30, 2024. RevPAR of our manachised hotels was RMB355 for the second quarter of 2024, compared with RMB377 for the same period of 2023.
Leased hotels. Revenues from our leased hotels for the second quarter of 2024 decreased by 17.9% to RMB180 million (US$25 million) from RMB220 million for the same period of 2023, primarily due to a decrease in the number of leased hotels as a result of our product mix optimization, as well as a decrease in RevPAR. RevPAR of our leased hotels was RMB503 for the second quarter of 2024, compared with RMB537 for the same period of 2023.
Retail. Revenues from retail for the second quarter of 2024 increased by 153.6% to RMB537 million (US$74 million) from RMB212 million for the same period of 2023. This increase was driven by widespread recognition of our retail brands and effective product innovation and development as we successfully broadened our range of product offerings. In the second quarter of 2024, comforters sales accounted for over 20% of retail revenues, further accelerating the growth of our retail business.
Others. Revenues from others for the second quarter of 2024 increased by 51.2% to RMB53 million (US$7 million) from RMB35 million for the same period of 2023. This increase was driven by our fast-growing membership business.

	Q2 2023		Q2 2024
(RMB in thousands)
Operating costs and expenses:
Hotel operating costs	(509,513	)	(775,753	)
Retail costs	(107,560	)	(265,003	)
Other operating costs	(13,261	)	(9,918	)
Selling and marketing expenses	(94,400	)	(224,607	)
General and administrative expenses	(73,450	)	(91,488	)
Technology and development expenses	(17,831	)	(32,952	)
Total operating costs and expenses	(816,015	)	(1,399,721	)

Operating costs and expenses for the second quarter of 2024 were RMB1,400 million (US$193 million), including RMB24 million share-based compensation expenses, compared with RMB816 million, including RMB10 million share-based compensation expenses for the same period of 2023.

Hotel operating costs for the second quarter of 2024 were RMB776 million (US$107 million), compared with RMB510 million for the same period of 2023. This increase was mainly due to the increase in variable costs, such as supply chain costs, associated with our ongoing hotel network expansion. Hotel operating costs accounted for 64.3% of manachised and leased hotels’ revenues for the second quarter of 2024, compared with 60.2% for the same period of 2023. This increase was due to a decrease in RevPAR attributable to the high base effect in the same period of 2023, as well as an increased share of revenue generated by the lower-margin supply chain business.
Retail costs for the second quarter of 2024 were RMB265 million (US$36 million), compared with RMB108 million for the same period of 2023. This increase was associated with the rapid growth of our retail business. Retail costs accounted for 49.4% of retail revenues for the second quarter of 2024, compared with 50.8% for the same period of 2023. This decrease was attributable to an increasing contribution from higher-margin online sales.
Other operating costs for the second quarter of 2024 were RMB10 million (US$1.4 million), compared with RMB13 million for the same period of 2023.
Selling and marketing expenses for the second quarter of 2024 were RMB225 million (US$31 million), compared with RMB94 million for the same period of 2023. This increase was mainly due to our enhanced investment in brand recognition and the effective development of online channels, aligned with the growth of our retail business. Selling and marketing expenses accounted for 12.5% of net revenues for the second quarter of 2024, compared with 8.6% for the same period of 2023.

General and administrative expenses for the second quarter of 2024 were RMB91 million (US$13 million), including RMB15 million share-based compensation expenses, compared with RMB73 million, including RMB9 million share-based compensation expenses for the same period of 2023. Excluding the share-based compensation expenses, this increase was primarily due to an increase in labor costs. General and administrative expenses, excluding share-based compensation expenses, accounted for 4.2% of net revenues for the second quarter of 2024, compared with 5.9% for the same period of 2023.
Technology and development expenses for the second quarter of 2024 were RMB33 million (US$5 million), compared with RMB18 million for the same period of 2023. This increase was mainly attributable to our increased investments in technology systems and infrastructure to support our expanding hotel network and retail business and improve customer experience. Technology and development expenses accounted for 1.8% of net revenues for the second quarter of 2024, compared with 1.6% for the same period of 2023.

Other operating income (expenses), net for the second quarter of 2024 was RMB6 million (US$0.8 million) expenses, compared with RMB30 million income for the same period of 2023. This decrease was primarily due to the decrease in government subsidies.

Income from operations for the second quarter of 2024 was RMB391 million (US$54 million), compared with RMB307 million for the same period of 2023.

Income tax expense for the second quarter of 2024 was RMB110 million (US$15 million), compared with RMB79 million for the same period of 2023.

Net income for the second quarter of 2024 was RMB304 million (US$42 million), representing an increase of 27.1% year-over-year compared with RMB239 million for the same period of 2023.

Adjusted net income (non-GAAP) for the second quarter of 2024 was RMB328 million (US$45 million), representing an increase of 31.6% year-over-year compared with RMB249 million for the same period of 2023.

Basic and diluted income per share/American depositary share (ADS). For the second quarter of 2024, basic income per share was RMB0.73 (US$0.10), and diluted income per share was RMB0.73 (US$0.10). Basic income per ADS for the second quarter of 2024 was RMB2.20 (US$0.30), and diluted income per ADS was RMB2.19 (US$0.30).

EBITDA (non-GAAP) for the second quarter of 2024 was RMB419 million (US$58 million), representing an increase of 25.3% compared with RMB334 million for the same period of 2023.

Adjusted EBITDA (non-GAAP) for the second quarter of 2024 was RMB443 million (US$61 million), representing an increase of 28.6% compared with RMB344 million for the same period of 2023.

Cash flows. Operating cash inflow for the second quarter of 2024 was RMB577 million (US$79 million). Investing cash outflow for the second quarter of 2024 was RMB306 million (US$42 million). There were no cash flows from financing activities for the second quarter of 2024.

Cash and cash equivalents and restricted cash. As of June 30, 2024, the Company had a total balance of cash and cash equivalents and restricted cash of RMB3.3 billion (US$457 million).

Debt financing. As of June 30, 2024, the Company had total outstanding borrowings of RMB92 million (US$13 million), and the unutilized credit facility available to the Company was RMB450 million.

Outlook

For the full year of 2024, the Company currently expects total net revenues to increase by 48% to 52% compared with full-year 2023.

This outlook is based on current market conditions and the Company’s preliminary estimates, which are subject to changes.

__________________________________
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. In the second quarter of 2024, no hotels were requisitioned for quarantine needs. 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, regardless of whether they are delivered or 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, August 29, 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 registration, 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 Second Quarter 2024 Earnings Conference Call
Pre-registration Link: https://register.vevent.com/register/BIbfa7010eae7841bcbc827b0194809f7c

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, which is defined as net income 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 the financial performance. Given the significant investments that the Company has made in leasehold improvements and other fixed assets of leased hotels, depreciation and amortization comprises 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 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, as these 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 scenario-based 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,	June 30,
	2023	2024
	RMB	RMB	USD¹
Assets
Current assets
Cash and cash equivalents	2,840,807	3,322,879	457,243
Short-term investments	751,794	1,008,571	138,784
Accounts receivable	162,101	165,286	22,744
Prepayments and other current assets	251,900	264,441	36,388
Amounts due from related parties	115,900	123,460	16,989
Inventories	119,078	160,889	22,139
Total current assets	4,241,580	5,045,526	694,287
Non-current assets
Restricted cash	946	1,106	152
Contract costs	98,220	111,507	15,344
Property and equipment, net	266,120	262,381	36,105
Operating lease right-of-use assets	1,712,580	1,559,106	214,540
Intangible assets, net	4,247	3,957	545
Goodwill	17,446	17,446	2,401
Other assets	100,939	90,960	12,517
Deferred tax assets	144,947	193,091	26,570
Total non-current assets	2,345,445	2,239,554	308,174
Total assets	6,587,025	7,285,080	1,002,461

Liabilities and shareholders’ equity
Current liabilities
Operating lease liabilities, current	295,721	310,466	42,722
Accounts payable	594,545	669,883	92,179
Deferred revenue, current	406,066	437,106	60,148
Salary and welfare payable	189,823	179,166	24,654
Accrued expenses and other payables	684,391	742,120	102,118
Income taxes payable	136,201	106,381	14,639
Short-term borrowings	70,000	90,000	12,384
Amounts due to related parties	1,104	2,932	403
Total current liabilities	2,377,851	2,538,054	349,247
Non-current liabilities
Operating lease liabilities, non-current	1,583,178	1,422,930	195,802
Deferred revenue, non-current	369,455	433,037	59,588
Long-term borrowings, non-current portion	2,000	2,000	275
Other non-current liabilities	194,452	227,198	31,263
Total non-current liabilities	2,149,085	2,085,165	286,928
Total liabilities	4,526,936	4,623,219	636,175

__________________________________

¹ Translations of balances in the consolidated financial statements from RMB into US$ for the second quarter of 2024 and as of June 30, 2024 are solely for readers’ convenience and were calculated at the rate of US$1.00=RMB 7.2672, representing the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on June 28, 2024.

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,		June 30,
	2023		2024
	RMB		RMB		USD¹
Shareholders’ equity
Class A ordinary shares	244		258		36
Class B ordinary shares	56		56		8
Additional paid in capital	1,555,773		1,582,786		217,799
Retained earnings	507,226		1,068,036		146,967
Accumulated other comprehensive income	4,769		17,900		2,463
Total equity attributable to shareholders of the Company	2,068,068		2,669,036		367,273
Non-controlling interests	(7,979	)	(7,175	)	(987	)
Total shareholders’ equity	2,060,089		2,661,861		366,286
Commitments and contingencies	-		-		-
Total liabilities and shareholders’ equity	6,587,025		7,285,080		1,002,461

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						Six Months Ended
	June 30,		June 30,				June 30,		June 30,
	2023		2024				2023		2024
	RMB		RMB		USD¹		RMB		RMB		USD¹
Revenues:
Manachised hotels	626,483		1,026,979		141,317		1,073,281		1,863,090		256,370
Leased hotels	219,524		180,333		24,815		406,834		348,382		47,939
Retail	211,648		536,734		73,857		324,581		953,325		131,182
Others	35,054		53,001		7,293		61,949		100,543		13,835
Net revenues	1,092,709		1,797,047		247,282		1,866,645		3,265,340		449,326
Operating costs and expenses:
Hotel operating costs	(509,513	)	(775,753	)	(106,747	)	(891,145	)	(1,437,922	)	(197,865	)
Retail costs	(107,560	)	(265,003	)	(36,466	)	(169,077	)	(471,106	)	(64,826	)
Other operating costs	(13,261	)	(9,918	)	(1,365	)	(23,398	)	(19,744	)	(2,717	)
Selling and marketing expenses	(94,400	)	(224,607	)	(30,907	)	(150,409	)	(399,318	)	(54,948	)
General and administrative expenses	(73,450	)	(91,488	)	(12,589	)	(266,654	)	(168,143	)	(23,137	)
Technology and development expenses	(17,831	)	(32,952	)	(4,534	)	(34,621	)	(57,133	)	(7,862	)
Total operating costs and expenses	(816,015	)	(1,399,721	)	(192,608	)	(1,535,304	)	(2,553,366	)	(351,355	)
Other operating income (expenses), net	29,948		(5,943	)	(818	)	37,178		4,066		560
Income from operations	306,642		391,383		53,856		368,519		716,040		98,531
Interest income	7,513		12,396		1,706		12,356		25,915		3,566
Gain from short-term investments	8,968		10,945		1,506		14,322		20,537		2,826
Interest expense	(1,676	)	(854	)	(118	)	(3,603	)	(1,527	)	(210	)
Other expenses, net	(3,522	)	(85	)	(12	)	(2,971	)	(551	)	(76	)
Income before income tax	317,925		413,785		56,938		388,623		760,414		104,637
Income tax expense	(78,770	)	(109,879	)	(15,120	)	(131,396	)	(198,800	)	(27,356	)
Net income	239,155		303,906		41,818		257,227		561,614		77,281
Less: net income attributable to non-controlling interests	965		254		35		1,162		804		111
Net income attributable to the Company	238,190		303,652		41,783		256,065		560,810		77,170

Net income	239,155		303,906		41,818		257,227		561,614		77,281
Other comprehensive income
Foreign currency translation adjustments, net of nil income taxes	25,072		5,622		774		22,992		13,131		1,807
Other comprehensive income, net of income taxes	25,072		5,622		774		22,992		13,131		1,807
Total comprehensive income	264,227		309,528		42,592		280,219		574,745		79,088
Comprehensive income attributable to non-controlling interests	965		254		35		1,162		804		111
Comprehensive income attributable to the Company	263,262		309,274		42,557		279,057		573,941		78,977
Net income per ordinary share
—Basic	0.59		0.73		0.10		0.64		1.36		0.19
—Diluted	0.57		0.73		0.10		0.62		1.35		0.19
Weighted average ordinary shares used in calculating net income per ordinary share
—Basic	402,763,517		413,244,101		413,244,101		398,389,853		413,042,603		413,042,603
—Diluted	414,773,664		416,487,748		416,487,748		413,553,602		416,300,958		416,300,958

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						Six Months Ended
	June 30,		June 30,				June 30,		June 30,
	2023		2024				2023		2024
	RMB		RMB		USD¹		RMB		RMB		USD¹

Cash flows from operating activities:
Net cash generated from operating activities	519,908		576,641		79,347		881,565		719,877		99,061
Cash flows from investing activities:
Payment for purchases of property and equipment	(9,791	)	(20,136	)	(2,771	)	(27,410	)	(32,751	)	(4,507	)
Payment for purchases of intangible assets	-		-		-		-		(282	)	(39	)
Payment for purchases of short-term investments	(2,003,860	)	(4,578,000	)	(629,953	)	(3,332,210	)	(7,242,000	)	(996,532	)
Proceeds from maturities of short-term investments	2,162,234		4,291,899		590,585		3,494,694		7,005,760		964,025
Net cash generated from (used in) investing activities	148,583		(306,237	)	(42,139	)	135,074		(269,273	)	(37,053	)
Cash flows from financing activities:
Proceeds from borrowings	-		-		-		40,000		20,000		2,752
Repayment of borrowings	(140,130	)	-		-		(141,110	)	-		-
Net cash (used in) generated from financing activities	(140,130	)	-		-		(101,110	)	20,000		2,752
Effect of exchange rate changes on cash and cash equivalents and restricted cash	25,072		4,227		582		23,670		11,628		1,600
Net increase in cash and cash equivalents and restricted cash	553,433		274,631		37,790		939,199		482,232		66,360
Cash and cash equivalents and restricted cash at the beginning of the period	1,975,873		3,049,354		419,605		1,590,107		2,841,753		391,038
Cash and cash equivalents and restricted cash at the end of the period	2,529,306		3,323,985		457,395		2,529,306		3,323,985		457,398

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

Six Months Ended

June 30,

2023

2024

2023

2024

RMB

USD¹

RMB

USD¹

Net income (GAAP)

239,155

303,906

41,818

257,227

561,614

77,281

Share-based compensation expenses, net of tax effect of nil²

9,998

23,885

3,287

151,578

27,027

3,719

Adjusted net income (non-GAAP)

249,153

327,791

45,105

408,805

588,641

81,000

Three Months Ended

Six Months Ended

June 30,

2023

2024

2023

2024

RMB

USD¹

RMB

USD¹

Net income (GAAP)

239,155

303,906

41,818

257,227

561,614

77,281

Interest income

(7,513

)

(12,396

)

(1,706

)

(12,356

)

(25,915

)

(3,566

)

Interest expense

1,676

854

118

3,603

1,527

210

Income tax expense

78,770

109,879

15,120

131,396

198,800

27,356

Depreciation and amortization

22,289

16,690

2,297

44,186

33,839

4,656

EBITDA (non-GAAP)

334,377

418,933

57,647

424,056

769,865

105,937

Share-based compensation expenses

9,998

23,885

3,287

151,578

27,027

3,719

Adjusted EBITDA (non-GAAP)

344,375

442,818

60,934

575,634

796,892

109,656

__________________________________
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 Q2 2024	Closed in Q2 2024	As of June 30, 2024	As of June 30, 2024
Manachised hotels	123	12	1,382	157,225
Leased hotels	-	1	30	4,461
Total	123	13	1,412	161,686

Brand	Positioning	As of June 30, 2024
		Properties		Rooms
		Manachised	Leased
A.T. House	Luxury	-	1	214
Atour S	Upscale	66	5	10,421
ZHOTEL	Upscale	1	-	52
Atour	Upper midscale	1,040	23	122,944
Atour X	Upper midscale	153	-	16,440
Atour Light	Midscale	122	1	11,615
Total		1,382	30	161,686

	All Hotels in Operation
	Three Months Ended June 30, 2023	Three Months Ended March 31, 2024	Three Months Ended June 30, 2024

Occupancy rate³(in percentage)
Manachised hotels	76.8%	73.1%	78.2%
Leased hotels	83.0%	79.3%	83.7%
All hotels	77.1%	73.3%	78.4%

ADR³ (in RMB)
Manachised hotels	468.1	426.0	436.4
Leased hotels	611.5	541.6	573.0
All hotels	474.8	430.0	440.6

RevPAR³ (in RMB)
Manachised hotels	376.6	323.7	354.5
Leased hotels	536.8	455.2	503.3
All hotels	383.6	327.9	358.7

	Hotels in Operation for More Than 18 Months in Q2 2024⁴
	Number of hotels		Same-hotel Occupancy³ (in percentage)				Same-hotel ADR³ (in RMB)		Same-hotel RevPAR³ (in RMB)
	Q2 2023	Q2 2024	Q2 2023		Q2 2024		Q2 2023	Q2 2024	Q2 2023	Q2 2024

Manachised hotels	859	859	77.9	%	80.1	%	471.3	445.5	384.6	370.8
Leased hotels	30	30	83.1	%	83.7	%	613.7	572.8	540.0	503.1
All hotels	889	889	78.1	%	80.3	%	477.8	451.1	391.3	376.5

__________________________________
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. In the second quarter of 2024, no hotels were requisitioned for quarantine needs. ADR and RevPAR are calculated based on tax-inclusive room rates.
⁴ For any given quarter, we define “same-hotel” to be a hotel that has operated for a minimum of 18 calendar months as of the 15th day (inclusive) of any month within that quarter. The OCC, ADR and RevPAR presented above represent such metrics generated by “same hotels” in the second quarter of 2024, compared to the corresponding metrics generated by these “same hotels” during the same period in 2023.

FAQ

What was Atour's (ATAT) net revenue for Q2 2024?

Atour's net revenue for Q2 2024 was RMB1,797 million (US$247 million), representing a 64.5% increase year-over-year.

How many hotels did Atour (ATAT) have in operation as of June 30, 2024?

As of June 30, 2024, Atour had 1,412 hotels with a total of 161,686 hotel rooms in operation.

What was Atour's (ATAT) occupancy rate for Q2 2024?

Atour's occupancy rate for Q2 2024 was 78.4%, compared to 77.1% for the same period in 2023.

How much did Atour's (ATAT) retail business GMV grow in Q2 2024?

Atour's retail business GMV grew by 157.6% year-over-year to RMB620 million in Q2 2024.

What is Atour's (ATAT) revenue outlook for the full year 2024?

Atour expects total net revenues for the full year 2024 to increase by 48% to 52% compared with full-year 2023.

Atour Lifestyle Holdings Limited Reports Second Quarter of 2024 Unaudited Financial Results

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Atour Lifestyle Holdings Limited Reports Second Quarter of 2024 Unaudited Financial Results

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FAQ

What was Atour's (ATAT) net revenue for Q2 2024?

How many hotels did Atour (ATAT) have in operation as of June 30, 2024?

What was Atour's (ATAT) occupancy rate for Q2 2024?

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