Atour Lifestyle (ATAT) Q1 2026 earnings summary

Executive summary

• Net revenues for Q1 2026 grew 47.5% year-over-year to RMB 2,811 million, driven by hotel network expansion and retail business growth, with strong performance across key brands.

• Retail revenue surged 54.4% year-over-year to RMB 1,071 million, led by strong performance in bedding and pillow categories and product innovation.

• Hotel portfolio expanded to 2,088 hotels, with 110 new hotels opened in Q1 2026; RevPAR reached RMB 311.6, 102.4% of Q1 2025 levels.

• Membership base reached 116 million, up 20% year-over-year, supporting cross-business synergies.

• Announced a $72 million cash dividend and continued share repurchases, targeting a 100% payout ratio based on prior year GAAP net profit.

Financial highlights

• Managed hotel revenues rose 51.9% year-over-year to RMB 1,568 million; leased hotel revenues fell 8.0% due to product mix optimization.

• Gross profit increased 41.1% year-over-year to RMB 1,226 million; retail gross profit up 58.3% to RMB 564 million.

• Adjusted net profit margin was 17.4%; adjusted EBITDA margin rose to 25.5%, with adjusted EBITDA up 51.1% to RMB 716 million.

• Cash and cash equivalents stood at RMB 3.7 billion as of March 31, 2026; net cash at RMB 3,441 million.

• Net income surged 90.3% year-over-year to RMB 463 million; adjusted net income up 42.0% to RMB 490 million.

Outlook and guidance

• Full-year 2026 net revenues expected to increase 24%-28% over 2025.

• Retail revenue guidance raised to 30%-35% year-over-year growth for 2026, reflecting strong Q1 momentum.

• Hotel opening and closure targets for the year remain unchanged, with 80 closures and a robust pipeline of 751 projects.

• Management maintains a cautiously optimistic view on Q2 RevPAR amid ongoing market volatility.