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Atour Lifestyle Holdings (ATAT) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Consumer Discretionary· May 13, 2026

Source: earnings call transcript

Executive summary

Atour Lifestyle Holdings Q1 FY26 — Strong Retail Growth and Network Expansion

Atour delivered robust Q1 FY26 results, driven by significant growth in its retail business and continued expansion of its hotel network. The company is strategically focusing on quality-led expansion and product innovation, particularly in its 'Deep Sleep' retail offerings, while optimizing its hotel portfolio. Management maintains a cautiously optimistic outlook amidst market volatility, emphasizing long-term value creation and shareholder returns.

Highlights

5

  • Net revenues grew by 47.5% year-over-year to RMB 2,811 million.

  • Retail business revenue increased by 54.4% year-over-year to RMB 1,071 million.

  • Adjusted EBITDA margin expanded by 0.6 percentage points year-over-year to 25.5%.

  • Registered individual members reached 116 million, representing a 20% year-over-year increase.

  • Full-year retail revenue guidance was raised to 30% to 35% year-on-year growth.

Concerns

2

  • Hotel gross margin declined due to changes in revenue structure.

  • Revenues from leased hotels decreased by 8.0% year-over-year to RMB 118 million, primarily due to product mix optimization and a reduction in leased hotel count from 25 to 19.

Guidance & targets

CategoryTargetConfidence
Total net revenues growth
24% to 28% increase
high materiality
High
Retail revenue growth
30% to 35% year-on-year growth
high materiality
High
Hotel closures
80 hotels
medium materiality
High
Hotel openings
unchanged
medium materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Manachised Hotels
Increase primarily fueled by ongoing expansion of the hotel network and supply chain business development.
RMB 1,568 million51.9%——
Leased Hotels
Decline primarily due to a decrease in the number of leased hotels as a result of product mix optimization.
Number of leased hotels: 19 (as of March 31, 2026)Number of leased hotels (prior year): 25 (as of March 31, 2025)
RMB 118 million-8.0%——
Retail Business
Growth driven by increasing brand recognition, successful product innovation, and a broadened range of product offerings.
RMB 1,071 million54.4%——

ATAT operating KPIs by quarter

ATAT operating KPIs stated on its earnings calls, by fiscal quarter
KPIThis call Mar 2026 Q1 FY26 Jun 2026 Q2 FY26Change vs prior quarter
New stores opened
110 In the first quarter, we opened 110 new hotels. Source: earnings call transcript
101 In the second quarter, we opened 101 new hotels. Source: earnings call transcript
-8.2%
Properties
2,088 By the end of the first quarter, our total number of hotels in operation reached 2,088. Source: earnings call transcript
2,175 By the end of the second quarter, our total number of hotels in operation reached 2,175 and our pipeline of hotels under development remained at a healthy level of 811. Source: earnings call transcript
+4.2%
Loyalty program members
116M By the end of the first quarter, our registered individual members reached 116 million, representing a 20% year-over-year increase. Source: earnings call transcript
120M By the end of the second quarter, Atour had 120 million registered individual members as our membership base has gone the strategic growth of our membership ecosystem has become clearer. Source: earnings call transcript
+3.4%
Properties Leased hotels
19 The total number of our leased hotels decreased from 25 as of March 31, 2025, to 19 as of March 31, 2026. Source: earnings call transcript
19 The total number of our leased hotels decreased from 24 as of June 30, 2025, to 19 as of June 30, 2026. Source: earnings call transcript
0%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

Hotels under development 751 March 31, 2026

Ensures an ample and high-quality reserve for future openings.

Product announcements

ProductTypeDetails
Deep Sleep Memory Foam Pillow Pro 3.0launch
Deep Sleep Thermo-Regulating Comforter Pro 3.0 summer seasonlaunch
Deep Sleep Loungewearlaunch
Deep Sleep fitted sheetupdate

Risks & headwinds

Market volatility and fluctuating recovery in travel market Short-term

Not quantified, but noted as 'still exists' and 'fluctuating recovery'

Mitigation:Strategically expanding reach to business and leisure travelers, refining service details, and focusing on long-term strategy over short-term performance.

Decline in leased hotel revenue and count Q1 2026

Revenue decreased by 8.0% YoY to RMB 118 million; count decreased from 25 to 19 hotels.

Mitigation:Attributed to product mix optimization, suggesting a strategic reduction rather than an uncontrolled decline.

Hotel business gross margin decline Q1 2026

Gross margin declined (specific percentage not given, but gross profit increased 29.5% YoY to RMB 550 million).

Mitigation:Primarily due to changes in the revenue structure, implying a shift in business mix rather than operational inefficiency.

What to watch in Q2 FY26

Hotel closure pace

Next quarter
Current 37 hotels closed in Q1 FY26
Target Full-year target of 80 hotels

Why it matters

To assess if the Q1 concentration of closures was an anomaly or if the pace will continue, impacting net unit growth.

[Interpreted] In Q1, we had a relatively more concentrated pace of closures with a total of 37 hotels being closed. ... For our full year target for hotel closures this year remains unchanged at 80 hotels.

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Q&A highlights

Will the concentrated Q1 hotel closures affect the full-year target, and is there any change to new opening guidance?

Management stated that the Q1 closures were a concentrated finalization of projects confirmed last year, and the full-year closure target of 80 hotels remains unchanged. New opening targets are also unchanged, supported by a healthy pipeline of 751 projects.

“[Interpreted] In Q1, we had a relatively more concentrated pace of closures with a total of 37 hotels being closed. The main reason was that some projects we had confirmed last year to be closed were carried over to this year for finalization and resulting in that lag in the numbers. For our full year target for hotel closures this year remains unchanged at 80 hotels.”

asked by Sijie Lin · answered by Haijun Wang

2 min read 6 chapters

Detailed narrative

Strategic Focus on Quality and Experience

Atour is adapting to China's service consumption shift from scale-driven expansion to value-driven upgrades, emphasizing quality and experience. The company is embedding innovation across products, operations, and organization to drive sustainable growth. This user-first philosophy, with experience as its cornerstone and brand as its anchor, is seen as fundamental to navigating industry cycles and market changes.

Hotel Business Performance and Network Expansion

The hotel portfolio showed sequential improvement in Q1 2026, with overall RevPAR at RMB 311.6, representing 102.4% of 2025 levels, driven by ADR increases. Mature hotels (in operation >18 months) achieved 98.3% of 2025 RevPAR. Atour opened 110 new hotels in Q1, bringing the total to 2,088, with a healthy pipeline of 751 hotels under development. The CRS channel accounted for 63.7% of room nights sold, and corporate members contributed 19.3%.

Brand Development and Differentiation

Atour continues to refine its brand portfolio. Atour 3.6, the latest upper mid-scale product, has received positive market feedback. Atour Origin hotels exceeded RMB 400 in RevPAR, forming a differentiated tier. Upscale SAVHE hotels surpassed RMB 910 in RevPAR and RMB 1,000 in ADR, attracting a diverse customer base. Atour Light 3.3 demonstrated stronger pricing power, with RevPAR more than 10% higher than the 3.0 version, and is expanding in second-tier and above cities.

Retail Business Innovation and Growth

The retail business sustained strong growth, with revenue reaching RMB 1,071 million, up 54.4% year-over-year. Atour Planet maintained leadership in the bedding category on major third-party platforms. The company's product methodology focuses on iterative innovation, translating user sensations into definable standards. For example, the Deep Sleep Thermo-Regulating Comforter Pro 3.0 summer season achieved over RMB 100 million in GMV within 45 days of launch.

Membership Engagement and ESG Initiatives

Registered individual members grew 20% year-over-year to 116 million, with a focus on deepening synergy between hotel and retail businesses around the 'Deep Sleep' core scenario. Atour also highlighted its ESG progress, including the release of its 2025 ESG report and the establishment of the Atour Foundation. A new public welfare program targets frontline housekeeping staff across China's service industry.

Shareholder Returns and Financial Health

Atour declared a cash dividend of approximately USD 72 million for the first half of 2026, representing about 31% of the previous year's net profit. Total share repurchases have exceeded USD 100 million since last year. The company maintains a healthy cash position with RMB 3.7 billion in cash and cash equivalents and RMB 3.4 billion in net cash as of March 31, 2026. The shareholder return policy targets approximately a 100% payout ratio based on previous fiscal year's GAAP net profit.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.