Atour Lifestyle Holdings (ATAT) AI Stock Analysis

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Atour Lifestyle Holdings

(NASDAQ:ATAT)

77Outperform

Atour Lifestyle Holdings shows strong financial performance with significant revenue growth and excellent profitability margins, bolstered by a positive earnings call. However, the technical analysis indicates weak momentum, which could constrain short-term stock performance. The valuation is reasonable, suggesting the stock is fairly valued. Overall, the company is well-positioned for future growth, although some caution is warranted regarding current stock momentum and profitability margins.

Positive Factors

Earnings

Atour Lifestyle Holdings Limited reported a 45% year-over-year increase in adjusted net income, surpassing estimates due to higher than expected retail revenue.

Revenue Growth

Management expects a 25% year-over-year increase in total revenue for FY25 driven by hotel network expansion and strong retail sales.

Negative Factors

RevPAR Guidance

Management finds it challenging to provide guidance for FY25 RevPAR due to uncertainties and expects first quarter RevPAR to decline.

RevPAR Performance

Atour has recorded a decline in RevPAR during the CNY, and numbers have worsened, likely dragged by unfavorable weather and high base.

Atour Lifestyle Holdings (ATAT) vs. S&P 500 (SPY)

Market Cap

$3.20B

Dividend Yield1.75%

Average Volume (3M)1.61M

Price to Earnings (P/E)18.2

Beta (1Y)0.58

Revenue Growth53.63%

EPS Growth70.07%

CountryUS

Employees4,248

SectorConsumer Cyclical

Sector Strength58

IndustryTravel Lodging

Share Statistics

EPS (TTM)1.27

Shares Outstanding113,034,930

10 Day Avg. Volume2,734,616

30 Day Avg. Volume1,613,129

Financial Highlights & Ratios

PEG Ratio0.26

Price to Book (P/B)N/A

Price to Sales (P/S)6.48

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$36.08

Price Target Upside55.05% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering4

Atour Lifestyle Holdings Business Overview & Revenue Model

Company DescriptionAtour Lifestyle Holdings Limited, through its subsidiaries, operates a chain of hotels in China. The company operates a series of themed hotels, including music hotels, basketball hotels, and literary hotels catering to the various lifestyles across different age groups with varied interests. As of March 31, 2021, its hotel network covered 608 hotels spanning 131 cities in China, with a total of 71,121 hotel rooms, including 575 manachised hotels with a total of 66,267 manachised hotel rooms, as well as a pipeline of 299 hotels with a total of 32,825 rooms under development. The company also provides hotel management services, including day-to-day management services of the hotels for the franchisees; and sells hotel supplies and other products. Atour Lifestyle Holdings Limited was incorporated in 2012 and is headquartered in Shanghai, China.

How the Company Makes MoneyAtour Lifestyle Holdings generates revenue predominantly through its hotel operations, which include room bookings, food and beverage services, and other related hospitality offerings. A significant portion of the company's income comes from its ability to attract a steady stream of guests to its well-situated properties across China. Additionally, Atour leverages its brand strength and customer loyalty programs to enhance occupancy rates and average daily rates. The company's emphasis on design and service innovation helps differentiate its properties, allowing it to command premium pricing. Beyond traditional hospitality services, Atour may also engage in strategic partnerships and collaborations within the travel and tourism sector to further amplify its revenue streams.

Atour Lifestyle Holdings Financial Statement Overview

Summary

Atour Lifestyle Holdings shows strong financial health with robust profitability, efficient operations, and a stable balance sheet. While historical financial challenges are evident, current metrics reflect significant improvement and stability. The company's cash flow position is particularly strong, providing a solid foundation for continued growth and financial resilience.

Income Statement

Very Positive

The company has shown strong revenue growth with a significant increase from 2023 to TTM (Trailing-Twelve-Months). Gross profit and net profit margins are healthy, indicating effective cost management and profitability. The EBIT and EBITDA margins are robust, showcasing operational efficiency.

Balance Sheet

Positive

The balance sheet reflects a strong equity base and a manageable level of debt, as seen in a favorable debt-to-equity ratio. The equity ratio suggests a solid asset base supported by equity, enhancing financial stability. However, historical negative equity in earlier years indicates past financial challenges.

Cash Flow

Very Positive

Cash flow analysis reveals healthy operating cash flow and strong free cash flow generation, indicating effective cash management. The operating cash flow to net income ratio is stable, highlighting efficient conversion of earnings into cash. The free cash flow growth rate remains positive, supporting future investments and debt servicing.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
6.67B	4.67B	2.26B	2.15B	1.57B	1.57B
	Gross Profit
3.16B	1.91B	682.99M	564.67M	337.70M	388.31M
	EBIT
1.42B	924.03M	164.96M	196.06M	63.27M	91.40M
	EBITDA
1.51B	1.01B	275.62M	305.74M	150.81M	160.55M
	Net Income Common Stockholders
1.17B	737.14M	98.10M	145.05M	42.05M	64.96M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.04B	3.59B	1.75B	1.04B	824.55M	775.63M
	Total Assets
2.25B	6.59B	4.76B	2.25B	1.99B	1.65B
	Total Debt
109.44M	1.95B	2.30B	109.44M	121.43M	72.64M
	Net Debt
-929.14M	-889.91M	709.80M	-929.14M	-703.11M	-690.59M
	Total Liabilities
1.68B	4.53B	3.57B	1.68B	2.30B	1.95B
	Stockholders Equity
579.43M	2.07B	1.20B	579.43M	-306.17M	-295.34M
Cash Flow		Free Cash Flow
1.65B	1.95B	244.45M	351.91M	4.70M	86.22M
	Operating Cash Flow
1.72B	1.99B	283.68M	417.88M	118.67M	224.11M
	Investing Cash Flow
-797.81M	-600.52M	-192.22M	-42.23M	-105.53M	264.86M
	Financing Cash Flow
-348.64M	-146.92M	456.31M	-161.08M	48.01M	-10.08M

Atour Lifestyle Holdings Technical Analysis

Technical Analysis Sentiment

Negative

Last Price23.27

Price Trends

50DMA

28.50

Negative

100DMA

27.61

Negative

200DMA

24.60

Negative

Market Momentum

MACD

-1.59

Positive

RSI

37.61

Neutral

STOCH

46.63

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATAT, the sentiment is Negative. The current price of 23.27 is below the 20-day moving average (MA) of 25.82, below the 50-day MA of 28.50, and below the 200-day MA of 24.60, indicating a bearish trend. The MACD of -1.59 indicates Positive momentum. The RSI at 37.61 is Neutral, neither overbought nor oversold. The STOCH value of 46.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATAT.

Atour Lifestyle Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATAT	77 Outperform	$3.20B	18.24	50.89%	1.75%	53.63%	70.07%
HTHT	75 Outperform	$11.31B	25.83	25.06%	3.51%	7.68%	-25.12%
WH	70 Outperform	$6.11B	21.87	41.40%	1.90%	―	6.40%
CHH	69 Neutral	$5.64B	19.48	-661.94%	0.93%	2.63%	23.39%
GHG	66 Neutral	$216.29M	7.91	12.76%	4.13%	―	―
Sector *	59 Neutral	$6.44B	11.30	3.27%	4.27%	2.37%	-21.19%
SHCO	44 Neutral	$991.93M	―	49.70%	―	6.28%	-45.76%

* Consumer Cyclical Sector Average

Performance Comparison

ATAT

Atour Lifestyle Holdings

23.27

5.88

33.81%

HTHT

H World Group

34.45

-2.22

-6.05%

CHH

Choice Hotels

122.46

6.35

5.47%

GHG

Greentree Hospitality Group

2.13

-0.76

-26.30%

Wyndham Hotels & Resorts

80.83

10.63

15.14%

SHCO

Soho House & Co

5.10

-0.23

-4.32%

Atour Lifestyle Holdings Earnings Call Summary

Earnings Call Date: Mar 25, 2025 | % Change Since: -23.05% | Next Earnings Date: May 15, 2025

Earnings Call Sentiment Positive

The earnings call reflects a positive sentiment with significant network and retail business expansion, record net revenue growth, and improved gross margins. However, challenges such as declines in RevPAR and ADR, and a decrease in the profit margin pose concerns.

Highlights

Strong Network Expansion

In 2024, Atour opened 471 new hotels and signed 670 new projects, exceeding initial targets. The total number of hotels in operation reached 1,619, representing a 33.8% year-over-year growth.

Retail Business Growth

Atour's retail business grew significantly, with full-year GMV reaching RMB 2.59 billion, a 127.7% year-over-year increase. The retail business contributed 30% to the group's revenue in 2024.

Record Net Revenue Increase

For full year 2024, net revenue increased by 55.3% year-over-year to RMB 7,248 million, driven by growth in the manachised hotels and retail businesses.

Improved Gross Margins

Gross margin of the hotel business increased to 37.5% in Q4 2024 from 29.9% in the same period of 2023, while the retail business gross margin increased to 49.6% from 43.7%.

Lowlights

RevPAR and ADR Decline

RevPAR in Q4 reached 94.1% of the 2023 level, while ADR was at 96% of the 2023 level due to high comparison base effects.

Decline in Leased Hotel Revenue

Revenue from leased hotels in Q4 2024 decreased by 15.9% year-over-year, mainly due to a decrease in the number of leased hotels as part of product mix optimization.

Decrease in Adjusted Net Profit Margin

Adjusted net profit margin for 2024 was 18%, a decrease of 1.4 percentage points year-over-year, partly due to a decline in RevPAR and increased marketing expenses.

Company Guidance

During the Atour Lifestyle Holdings Fourth Quarter and Full Year 2024 Earnings Conference Call, the company provided several key metrics highlighting their performance and future guidance. In 2024, Atour opened 471 new hotels and signed 670 new projects, exceeding initial targets and achieving a 33.8% year-over-year growth in the number of hotels in operation. Their RevPAR for the fourth quarter was RMB 337, representing 94.1% of the 2023 level, with an occupancy rate (OCC) of 98.2% compared to 2023. The company reported a full-year revenue of RMB 7,248 million, a 55.3% increase year-over-year, driven by growth in manachised hotels and retail businesses. Retail business revenue increased by 126.2% year-over-year to RMB 2,198 million, contributing 30% to the group's total revenue. The company has set a target of a 25% revenue increase for 2025, with plans to open 500 new hotels and further expand their retail business. The presentation also highlighted the ongoing development of Atour's upscale hotel brands and the strategic goal of reaching 2,000 premier hotels by 2025.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.