Atour Lifestyle (NASDAQ:ATAT) outlined progress on its hotel expansion and fast-growing retail business during its fourth quarter and full-year 2025 earnings call, while management emphasized a continued focus on “user-first” experience and brand-building amid what it described as a maturing and increasingly rational travel and consumer environment in China.
Strategy update: from “2,000 Premier Hotels” to a new three-year plan
Founder, Chairman, and CEO Wang Haijun said 2025 marked the completion of the company’s “Chinese Experience, 2,000 Premier Hotels” strategic initiative, noting the company reached its scale target of 2,000 premier hotels. Wang also highlighted that Atour’s retail business continued to expand and accounted for “nearly 40%” of total group revenue, with Atour Planet reinforcing what he called its leading position in China’s sleep market.
Hotel operations: RevPAR near prior-year levels, network grows to 2,015 hotels
In the fourth quarter, Atour reported RevPAR of RMB 335.7, which management said represented 99.6% of the level in the same period of 2024, with sequential improvement. Occupancy (OCC) reached 98.8% of the prior-year level and ADR was 101.5% of the prior-year level. For mature hotels in operation for more than 18 months, RevPAR was 96% of the prior-year level, with OCC at 97% and ADR at 99.6% of the same period of 2024.
Atour opened 488 new hotels in 2025. By the end of the fourth quarter, the number of hotels in operation reached 2,015, a 24.5% year-over-year increase. The pipeline of hotels under development stood at 779.
On distribution, management said the core CRS channel remained stable and accounted for 62.9% of total room nights sold in the fourth quarter, while corporate members contributed 20.8% of room nights during the quarter.
Brand portfolio: Atour Origin, Atour 3.6, SAVHE, and Atour Light
Management discussed developments across several brands. Wang said Atour 4.0 was upgraded into an independent brand, Atour Origin, which aims to combine business-travel functionality with a vacation-like ambience. For full-year 2025, management said RevPAR for Atour Origin hotels in operation exceeded RMB 430. At the time of the call, 55 Atour Origin hotels were in operation, with “over 50” projects in the pipeline.
In the company’s upper mid-scale portfolio, management highlighted Atour Hotel’s positioning for mainstream business travel and pointed to the Atour 3.6 product. In the fourth quarter, RevPAR of Atour 3.6 hotels in operation surpassed RMB 380, according to management.
In the upscale segment, Wang described SAVHE as a breakthrough brand and said it had established three hotels in Shanghai, Shenzhen, and Guangzhou. In the fourth quarter, management said SAVHE’s RevPAR exceeded RMB 950. Wang added that SAVHE partnered with EHL Hospitality Business School in the fourth quarter to develop an upscale accommodation service system combining “global expression” with “Eastern values.”
In midscale, management said the Atour Light series three brand had more than 160 hotels in operation by the end of 2025. Wang said Atour Light demonstrated resilience, with fourth-quarter RevPAR recovery of more than 110% year-over-year and full-year RevPAR recovery of over 100% year-over-year. For 2026, management said it plans to roll out a refined cost model and improve operational efficiency, while also building a dedicated talent development system.
Retail business: RMB 3.67 billion in 2025 revenue; growth outlook for 2026
Wang positioned Atour Planet as focused on differentiated, innovation-driven growth in a consumer market he characterized as struggling with homogenized competition. Management said the retail business delivered full-year 2025 revenue of RMB 3.67 billion, representing 67% year-over-year growth, and that Atour Planet ranked among the top brands in bedding categories on major third-party platforms.
Management also cited product and category traction:
- Pillow category leadership, with the Atour Planet Deep Sleep Memory Pillow Pro exceeding 10 million units in cumulative sales since launch.
- Comforter category momentum, with full-year GMV increasing by over 90% year-over-year.
- New categories including fitted sheets and loungewear receiving positive market feedback in 2025.
In Q&A, management said it expects retail revenue in 2026 to increase 25% to 30% year-over-year, while focusing on strengthening core capabilities across product differentiation, supply chain management, and brand-building.
Financial highlights, shareholder returns, and 2026 outlook
EVP and Co-CFO Jianfeng Wu reported that revenue from managed hotels increased 28.1% for the first quarter and 28.0% for the full year of 2025 to RMB 1.4 billion and RMB 5.3 billion, respectively, driven primarily by network expansion. Revenue from leased hotels declined 9.8% for the first quarter and 15.9% for the full year to RMB 148 million and RMB 590 million, which Wu attributed to a reduced number of leased hotels due to product mix optimization.
Retail revenue increased 52.4% in the fourth quarter to RMB 1.2 billion and rose 67.0% for the full year to RMB 3.7 billion, driven by brand recognition, product innovation, and expanded offerings, according to management.
Wu said hotel business gross margin was 35.8% in the fourth quarter and 37.0% for the full year. Retail gross margin improved to 52.6% for both the fourth quarter and the full year, reflecting a higher contribution from higher-margin products. Selling and marketing expenses were 16.5% of net revenues in the fourth quarter and 15.2% for the full year, with the full-year increase tied to brand investment and online channel development. General and administrative expenses excluding share-based compensation were 5.5% in the fourth quarter and 4.2% for the full year, which management attributed to improved efficiency and scale benefits.
Adjusted net profit margin was 17.9% for the full year of 2025, while adjusted EBITDA margin was 25.5% in the fourth quarter and 25.3% for the full year. The company ended 2025 with RMB 3.3 billion in cash and cash equivalents and net cash of RMB 3.1 billion.
On capital returns, Wu said the company declared aggregate cash dividends of approximately $108 million for full-year 2025 and had repurchased $46 million in open market buybacks since the program began in the third quarter.
For 2026, management guided for total net revenues to increase 20% to 24% compared with 2025. On profitability, Wu said the company preliminarily expects its net profit margin to decline slightly year-over-year in 2026 as it allocates resources under its new strategy, including workforce expansion and enhanced digital operational capabilities, which he said should drive higher G&A and R&D expense ratios.
In Q&A on operations, management said it remains optimistic about 2026 signing momentum while emphasizing “high quality” growth rather than purely scale-driven expansion. For openings, management said it aims for a similar scale of new hotel openings in 2026 as in 2025, with continued focus on core city commercial areas and quality. Management did not provide specific RevPAR guidance for 2026, but said it expects first-quarter RevPAR to continue improving, citing strong leisure demand and Spring Festival performance where ADR and occupancy exceeded the prior-year period.
Management also addressed closures, saying experience consistency is the key criterion. After closing 92 hotels in 2025, the company said it plans to close around 80 hotels in 2026, expecting closures to decrease as a result of portfolio optimization already completed.
About Atour Lifestyle (NASDAQ:ATAT)
Atour Lifestyle Holdings Co, Ltd. operates as a hospitality and lifestyle company offering a range of lodging and accommodation services in China. The company’s core business includes the development, operation and management of boutique hotels and serviced apartments under its Atour Hotel and Ankora brands. These properties cater primarily to the mid- to upscale segment, delivering a blend of comfort, design-focused interiors and localized services tailored to both business and leisure travelers.
In addition to room offerings, Atour Lifestyle provides a suite of ancillary services designed to enhance guest experiences.
