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ATAT
Earnings call · Jun 2026 (Q2 FY26)

Atour Lifestyle Holdings Q2 FY26 earnings call ATAT

Aug 20, 2026 Source

Executive summary

Atour Lifestyle Holdings Q2 FY26 — Strong Retail Growth and Hotel Network Expansion

Atour Lifestyle Holdings delivered strong Q2 FY26 results, driven by robust retail growth and continued hotel network expansion, particularly in its upper midscale and upscale lifestyle brands. While overall revenue and hotel openings were solid, profitability margins saw a slight decline due to revenue mix shifts and increased tax rates. Management remains focused on quality-first expansion and brand-led excellence, with a positive outlook for the second half of the year despite short-term RevPAR volatility.

Highlights

5

  • Retail revenue reached RMB 1.575 billion, up 63% year-over-year.

  • Total net revenues grew by 41.4% year-over-year to RMB 3,490 million.

  • Opened 101 new hotels in Q2, bringing the total to 2,175 hotels in operation.

  • Atour Origin hotels RevPAR exceeded RMB 450 in Q2, highlighting strong differentiation.

  • SAVHE hotels, the upscale lifestyle brand, achieved RevPAR exceeding RMB 1,000.

Concerns

4

  • Adjusted net profit margin decreased by 1.3 percentage points year-over-year to 16.0%.

  • Adjusted EBITDA margin decreased by 1.2 percentage points year-over-year to 23.5%.

  • Revenues from leased hotels decreased by 11.8% year-over-year due to a reduction from 24 to 19 hotels.

  • Full year net profit margin is expected to see a slight year-on-year decline due to revenue mix shift and higher tax rate.

Guidance & targets

CategoryTargetConfidence
Full year total net revenues growth
increase by 30%
high materiality
High
Full year Retail revenue growth
40% year-over-year
high materiality
High
Full year hotel opening target
unchanged
medium materiality
High
Full year hotel closure guidance
unchanged
medium materiality
High
Full year net profit margin
slight year-on-year decline
high materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Hotel Business (Monetized Hotels)
Revenue growth primarily fueled by ongoing expansion of the hotel network and supply chain business development. Gross profit increased by 18.7% year-over-year. Gross margin decline reflected a shift in revenue mix as lower-margin supply chain business grew faster.
RevPAR: RMB 345.4 (100.7% of 2025 level)ADR: 101.2% of 2025 levelOCC: 99.7% of 2025 levelMature hotels (18+ months) RevPAR: RMB 336.8 (97% of 2025 level)Mature hotels (18+ months) ADR: 98.3% of 2025 levelMature hotels (18+ months) OCC: 99% of 2025 levelAtour Hotel RevPAR: >RMB 370Atour Origin RevPAR: >RMB 450Atour Light 3.3 RevPAR: >RMB 340SAVHE RevPAR: >RMB 1,000Total hotels in operation: 2,175New hotels opened: 101Pipeline hotels under development: 811CRS channel contribution to room nights: 61.5%Corporate members contribution to room nights: 20.4%
RMB 1,725 million32.8%—Gross profit RMB 659 million
Hotel Business (Leased Hotels)
Revenue decline primarily due to a decrease in the number of leased hotels.
Number of leased hotels: 19 (as of June 30, 2026) vs 24 (as of June 30, 2025)
RMB 132 million-11.8%——
Retail Business
Growth driven by increasing brand recognition, successful product innovation, and a broadened range of product offerings. Gross profit increased by 57.4% year-over-year. Gross margin decrease reflected a shift in product mix.
GMV of Comfort category growth: >80% year-over-yearDeep Sleep Memory Foam Pillow Pro Series cumulative sales: >12 million units
RMB 1,575 million63.2%—Gross profit RMB 809 million

ATAT operating KPIs by quarter

ATAT operating KPIs stated on its earnings calls, by fiscal quarter
KPI Mar 2026 Q1 FY26This call Jun 2026 Q2 FY26Change vs prior quarter
New stores opened
110 In the first quarter, we opened 110 new hotels. Source transcript
101 In the second quarter, we opened 101 new hotels. Source transcript
-8.2%
Properties
2,088 By the end of the first quarter, our total number of hotels in operation reached 2,088. Source 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 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 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 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 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 transcript
0%

Operating figures the company states on every call, 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 pipeline 811 end of Q2 FY26

Provides a high-quality reserve for future hotel openings.

Product announcements

ProductTypeDetails
Deep Sleep Memory Foam Pillow Pro 4.0update
Deep Sleep Thermo-Regulating Comforter Pro 3.0 all seasonupdate

Risks & headwinds

Homogeneous products and services under pressure first half of 2026

clear split in performance

Mitigation:Focus on differentiated experiences, strong brand equity, product innovation, service capabilities, and operational efficiency.

Short-term RevPAR volatility due to weather early July

travel pace slightly delayed

Mitigation:Long-term demand resilience remains intact; summer travel demand stabilizing and picking up since late July.

Full year net profit margin decline FY26

slight year-on-year decline

Mitigation:Driven by revenue mix shift (lower-margin supply chain and retail product mix growing faster) and higher effective tax rate; expense growth aligned with revenue growth.

What to watch in Q3 FY26

Full year hotel opening target

next quarter
Current unchanged
Target Confirmation of target

Why it matters

Indicates continued network expansion and franchisee confidence in Atour's brand and investment returns.

Thus, we maintain our full year opening target unchanged.

Q&A highlights

Given the industry's deceleration in supply, will this affect the company's signing interest or require adjustments to full-year hotel opening and closure guidance?

Management stated they are not solely pursuing scale expansion but focusing on sustainable brands and strong brand equity. They confirmed maintaining their full-year hotel opening and closure targets unchanged, citing steady signing momentum and a healthy pipeline, and a slowdown in closures.

“We are not pursuing scale expansion alone. Our core goal is to build sustainable brands and strong brand equity across augers. And on the foundation of steadily enhancing brand strength, we are expanding our brand presence. Currently, our brand portfolio already cover a broader range of price points and consumption scenarios capable of accommodating diverse property conditions and meeting more varied market demands.”

asked by Dan Chee · answered by Haijun Wang

2 min read 6 chapters

Detailed narrative

Market Trends and Strategic Focus

China's consumer market continues to show divergent performance, with homogeneous products under pressure while differentiated experiences and strong brands demonstrate resilience. Atour is advancing its 'Chinese experience, brand-led excellence' strategy, focusing on product innovation, service capabilities, and operational efficiency to drive high-quality growth in both Hotel and Retail sectors. This approach aims to build sustainable brands and strong brand equity across its offerings.

Hotel Network Expansion and Quality-First Approach

In Q2 FY26, Atour opened 101 new hotels, bringing the total number of hotels in operation to 2,175, with a pipeline of 811 hotels under development. The company maintains a strict quality-first principle for project selection, focusing on product strengths and prime locations in core markets. While higher-tier cities remain a primary focus, Atour is also expanding into strong third-tier cities, scenic spots, and urban renewal projects, maintaining its full-year opening and closure targets.

Brand Portfolio Performance and Differentiation

Atour's diverse brand portfolio showed strong performance. Atour Hotel 3.6 achieved RevPAR exceeding RMB 370. Atour Origin, with over 60 hotels in operation, saw RevPAR exceed RMB 450, emphasizing its distinctive experience and pricing power. Atour Light 3.3 demonstrated strong operational resilience with RevPAR exceeding RMB 340. The upscale SAVHE brand reached a new high with RevPAR exceeding RMB 1,000, driven by enhanced refined management and expanded wellness offerings.

Robust Retail Business Growth and Product Innovation

The Retail business sustained strong growth momentum, with revenue reaching RMB 1.575 billion, up 63% year-over-year. This growth is attributed to increasing brand recognition, successful product innovation, and a broadened product portfolio. The Deep Sleep Memory Foam Pillow Pro Series surpassed 12 million cumulative sales, and the Comfort category's GMV increased by over 80% year-over-year. New categories like Fitted Sheets and Loungewear are also becoming significant growth drivers.

Systematic Capabilities and Membership Ecosystem

Atour Planet's success is underpinned by systematic capabilities in brand building, product development, supply chain, and content creation. The company recently launched upgraded products like the Deep Sleep Memory Foam Pillow Pro 4.0 and Thermo-Regulating Comforter Pro 3.0, built on its Deep Sleep standard. By the end of Q2, Atour had 120 million registered individual members, forming a solid foundation for both Hotel and Retail businesses and enabling refined engagement strategies to deepen user connections.

Commitment to Service Excellence and Staff Development

Atour introduced 'six commitments to Peace of Mind' to clarify service standards and safeguards across the guest journey, aiming to set a new industry benchmark. The company emphasizes the dedication of its service staff, investing in their development and appreciation through initiatives like the public welcome plan program for hotel housekeeping professionals and Service Staff Appreciation Day, believing that cared-for staff naturally deliver kindness and warmth to guests.

AI-generated summary of the company's earnings call. Not investment advice.