Atour Lifestyle Holdings (ATAT) Q4 2025 earnings call transcript

Thank you, operator. Good morning and good evening everyone. Welcome to our fourth quarter and the full year 2025 earnings conference call. Today you will hear from our founder, chairman and CEO Mr. Wang Haijun and our EVP co-safo Mr. Wu Jianfeng. Before we continue, please be aware that this discussion will include overlooking statements under federal securities laws. These statements are subject to various risks and uncertainties, and the actual results may differ significantly from what is stated or implied in our comments today. The company is not obligated to update any forward-looking statements except as required by applicable laws. Additionally, during this call, our management will discuss certain non-GAAP financial measures solely for comparison purpose. For a clear understanding of these measures and a reconciliation of GAAP to non-CAAP financial results, please refer to the earnings release issued earlier today.

Furthermore, a webcast replay of this conference call will be accessible on our website at ir. yadu. com, where a copy of the results presentation is also available. Now I will turn to call over to Mr. Wang, our CEO.

Thank you, Luke. Hello, everyone. Thank you for joining a tour's fourth quarter and a full year 2025 earnings call today. 请大家打开我们的业绩文件 回顾2025年 全球博弈常态化 消费结构分化以及技术变革的浪潮 共同构建了这一年的市场主旋律 在震荡复苏的背景下 中国出行和消费市场变得更加成熟 理性且充满任性 我们也更加深刻的认识到 只有客手用户第一的初心 深耕用户体验 沉淀品牌价值 才能在存量竞争的时代中穿越周期 Please turn to our results presentation Looking back at 2025 sustained global competition structural shifts in consumption and accelerating technological transformation collectively shaped the overarching theme of the year amid a volatile recovery China's travel and consumer markets have become increasingly mature rational and resilient In this environment, we are more convinced than ever that only by staying true to our user-first philosophy, relentlessly enhancing user experience, and building enduring brand value can we navigate industry cycles in an increasingly competitive maturing market.

更是通过差异化的产品布局和深入人心的体验优势,将用户的口碑沉淀为最深厚的品牌资产。 同时,零售业务延续了强劲的增长势头,在集团总收入中占比接近四成。 亚朵星球逐渐巩固了在中国睡眠市场的领先地位,成为用户睡眠产品的首选品牌。 We see the collaboration of the two big business companies and the value of the Chinese experience.

experiences that resonate. Meanwhile, our retail business sustained strong growth momentum, accounting for nearly 40% of the group's total revenue. A tour planet further reinforced its leading position in China's sleep market, establishing itself as the preferred choice for consumers. We continue to see growing synergy between our hotel and retail businesses, with each strengthening the other to further enrich the value proposition of our Chinese experience.

中国体验品牌领航 体验是力深之本 是发展的根基和引擎 我们将持续构筑差异化的体验壁位 巩固领先优势 突破体验上线 稳固在行业的标杆地位 品牌是发展之锚 是前行的动力和指引 我们会坚定的按照生活方式品牌集团的发展方向 and to continue to expand the growth of the market, and to develop the relationship between the market and the market. We will develop the relationship between the market and the market. We will develop the community with the users. As we enter 2026, we continue to see considerable market uncertainty. However, our strategic direction has never been clearer. We will embrace change while maintaining a long-term focus. We consistently create value-added experiences with a personal touch through high-quality products and services.

Building on this foundation, we have officially launched a new three-year strategic plan, Chinese Experience, Brand-Led Excellence. Experience remains the cornerstone of our development and a core driver of growth. We will further reinforce our differentiated experience mode, amplify our strengths, pioneer new frontiers, and strengthening our leadership within the industry. Brand serves as the anchor of our long-term development and the guiding force behind our strategy.

We will firmly follow the course of a lifestyle group, actively exploring an expanding growth path. By using scenarios as a bridge, we will deepen the synergy between our hotel and retail businesses, leveraging our brand to connect across scenarios and deepening our emotional connection and resonance with users.

Now, I would like to provide more details on our hotel and retail performance for the fourth quarter and the full year of 2025. Let's begin with our hotel business. In the fourth quarter, our REVPAR was RMB 335.7, representing 99.6% of the level in the same period of 2024, with the recovery showing sequential improvement trend. Specifically, OCC reached 98.8% and ADR stood at 101.5% of their levels in the same period of 2024. In the fourth quarter, RASPAR for our mature hotels in operation for more than 18 months was 96% of the level in the same period of 2024, while OCC and ADR stood at 97% and 99.6% of 2024 levels for the same period, respectively.

In 2025, we opened 488 new hotels. By the end of the fourth quarter, the number of hotels in operation reached 2015, representing a 24.5% year-over-year increase. As of the same date, our pipeline of hotels under development stood at 779, providing a solid foundation for the continued expansion of our hotel network. On the hotel channel front, our core CRS channel remained stable, accounting for 62.9% of total room nights sold in the fourth quarter. The contribution of room nights sold to corporate members was 20.8% during the quarter.

Next, I would like to share the latest developments across our hotel brands. The upper mid-scale segment has been has long been our core focus, where we have built a deep presence. For the longer-term view, at the beginning of this year, we officially upgraded Atour 4.0 to an independent brand, Atour Origin. While retaining efficient business travel functionality, Atour Origin introduces an immersive vacation ambience, creating a serene urban retreat where customers can find peace of body and mind. Its differentiated brand positioning has been validated by the market. For full year 2025, RASPAR for Atour Origin Hotels in operation exceeded RMB 430.

To date, 55 Atour Origin Hotels are in operation, with over 50 projects in the pipeline. 更贴合主流商旅场景 为用户提供兼具功能与情感的可靠选择 最新产品亚朵3.6 从硬件配置到服务细节持续收获市场认可 四季度在营酒店Rowrpa超过380元 亚朵件也则以独特的氛围塑造 延伸用户的体验边界与精神空间 两个品牌协同发展为加盟商创造了更灵活的投资选择 也更加精准的满足了用户在不同出勤的 and the more-to-reporting market. It has further ado, the more-to-reporting market and experience has been extended to the overall position of the market.

product, Atour 3.6, continues to gain market recognition for its meticulous hardware configuration and outstanding service details. In the fourth quarter, the rev par of Atour 3.6 hotels in operation surpassed the R&B 380. Atour origin expands customers' experience and enriches their sense of well-being through its unique atmosphere. The synergistic development of the two brands has created more flexible investment opportunities for our franchisees while better addressing the diverse needs of our customers across various travel scenarios.

The advantages have further strengthened our competitive edge through innovative scenario designs and enhanced customer experiences, helping us maintain our absolute leading position in the upper-mid-scale market. 高端市场方面,萨河是我们品牌矩阵向上突破的重要一步,凭借高效的投资模型、创新的体验设计以及深层次的文化表达。 萨河在原有的市场格局中走出了一条截然不同的路,成为高端市场的破局者。 目前,萨河已完成在上海、深圳、广州三城三店的布局。 Through a unique unique concept, building and innovative experience, SAHA is the city's culture in the city, and is the value of the high-end hotel. In four季度, SAHA's再營 hotel's performance is very bright.

Rolipa has been a 950 yen. SAHA Hotel marks a substantial breakthrough in advancing our brand portfolio in the upscale market, leveraging an efficient investment model. innovative experience design, and a profound cultural expression, Sa-He Hotel has forged a distinct path within the existing market framework and become a game changer in the upscale segment. Currently Sa has established its presence with three hotels in Shanghai Shenzhen and Guangzhou with its unique aesthetic system carefully crafted ambience and exceptional experiences SAHE is gradually becoming a cultural gateway in each city it enters, redefining the value of upscale hotels.

In the fourth quarter, SAHE delivered exceptional operating results, with RevPAR exceeding RMB 950.2026 年我们也将持续深化东方养生体验 构建萨河市疗愈体验系统 以更精细化的运营和更完整的体系建设 推动品牌的升级与突破 立足于更长远的规划 萨河在第四季度与EHL酒店管理商学院达成合作 共同打造一套兼具全球表达与东方价值的高端住宿服务体系 更好的助力品牌长期发展 In 2026, we will further develop our Eastern wellness experience and build a holistic SAHE healing experience system. Through more refined operations and a more comprehensive framework, framework, we will drive further brand upgrades and breakthroughs. Based on a longer-term vision, SAHE partnered with EHL Hospitality Business School in the fourth quarter to jointly develop an upscale accommodation service system that combines global expression with Eastern values, supporting the brand's long-term development. We aim to establish SAHE as a showcase of global vision and eastern stories translate its core experiential philosophy into new value benchmark for the global upscale hotel industry and bring Chinese experiences to the world stage.

截止 2025年末,清居三系再营酒店数量已超过160家。 我们聚焦高线城市拓展,持续打磨产品,深化品牌建设,提升运营效率,品牌资产质量稳步提升。 清居也展现了出色的经营韧性。 The mid-scale hotel market has significant potential, yet product and service homogenization has long been a major pain point for the industry. We believe the key to breaking through is to develop an operating model that balances experience and efficiency while also incorporates sustainability, thereby creating a unique and differentiated competitive advantage. By the end of 2025, over 160 Atoora Light Series 3 hotels were in operation.

We have focused on higher-tier cities, continuously refined our products, deepened brand building, and improved operational efficiency, thereby steadily elevating brand asset quality. Atoora Light has also demonstrated strong operational resilience. In the fourth quarter, the REF PAR of the Etoile Light Series 3 hotels in operation recovered by more than 110% year-over-year, and the full-year REF PAR recovered by over 100% year-on-year.

In 2026, we will fully roll out a Toralite's refined cost model, deepen its distinctive operations and management, and systematically improve operational efficiency and product competitiveness. At the same time, we will continue to focus on core customer needs, enhance brand recognition and influence, and build unique Auteur Light mindshare. At the organizational level, we are working to establish Atoor Lite's distinctive talent development system to comprehensively enhance the team's overall capabilities.

Atoor Lite's goal has always been clear. Driven by product and brand strength, we will reshape the mid-scale market landscape and establish a new benchmark among mid-scale hotel brands. Moving on to our retail business. Over the past few years, the traditional consumer market has been mired in homogeneous competition and sluggish growth. Only brands that truly define new demand and create new value have a chance to break through the industry's structural constraints and chart a differentiated growth path.

This is precisely the path a tour planet has taken. Rather than engaging in evolution with brands taking a traditional path, we have proactively chosen and firmly committed to an entirely new trajectory. Guided by user needs, we have forged this path of differentiated growth through deep insights into users' sleep pain points and a continuous product innovation. This has not only reshaped the market landscape, but also helped drive progress and upgrade across the industry.

In 2025, our retail business sustained strong growth momentum. with full-year revenue reaching RMB $3.67 billion, representing 67% year-over-year growth. Atura Planet has also consistently ranked among the top brands in the betting category on major third-party platforms. Throughout the year, we continued to drive product innovation and expand categories, and our deep sleep ecosystem grew increasingly mature. the release of the Atura Planet Deep Sleep Standard Set, a benchmark for the high quality and consistency of our products.

Building on our solid product performance, Atura Planet's brand influence continued to strengthen, laying a solid foundation for the long-term development of our retail business.

In 2025, our Pillow Category further strengthened its leadership, consistently topping category rankings on major third-party platforms and gaining product mindshare among users. Cumulative sales volume of the Deep Sleep Memory Phone Pillow Pro Series has exceeded 10 million units since launch, marking a significant sales milestone. Our Comforter category also delivered robust growth momentum, with full-year GMV increasing by over 90% year over year, and the market share continuing to rise.

Our new categories, fitted sheets and launchware, received positive market feedback in 2025, collectively driving the continuous evolution of our deep sleep ecosystem.

We will be able to build a new product and a new product. 面向未来,行业将整体步入以创新驱动发展的新周期,竞争的核心正持续向提升产品价值与用户体验的方向转移。 2026 年我们将更加系统性的推进核心能力的构建 产品力上进一步扩大差异化的体验优势 让亚朵星球的深邃体验成为不可复制的坚实壁垒 雇用链端深入各环节精细化管理 保障产品的一致性与可靠交付 品牌层面坚持长期价值的塑造 与用户建立更深层的情感连接 在这一进程中 we will continue to strengthen the new market and innovation and innovation. This is the new stage of the new market. The new market will be the new development of the new market.

Looking ahead, the industry is entering a new cycle driven by innovation, with competition increasingly centered on product value and user experience. experience. In 2026, we will systematically enhance our core capabilities on product excellence. We will further expand our differentiated experience advantage, making a tour planet's deep sleep experience a competitive moat that is difficult to replicate. On the supply chain front, we will deepen rigorous management at every stage to ensure product consistency and reliable delivery. At the brand level, we remain committed to creating long-term value, building deeper emotional connections with our users. Built on deep user insights and product innovation, we are positioned to consolidate and strengthen our competitive lead. We will open a new chapter for our development while collaborating with industry partners to elevate quality and innovation across the sector.

We are always holding the team of the team of the team, and continue to expand the values and values. This is very clear that we have a team of the team. With the company in the most popular and independent, we have a different role in the team. We will continue to build new and new events, and we will create the real and real-life experience. In the beginning of 2016, we launched a national agreement. This project is not only in the communication of the team and the rights of the team, but also in the hope to build a wide-time travel, dining, and a more remote environment of living service sector, and the value of the value in different areas.

In the end of 2025, we reached 1.12 million, the same growth of the 25% over the 25%. We have always upheld our core value of serving people, continuously deepening our experiential value. This is also clearly reflected in our membership operation. Unlike the membership systems prevalent in the industry, which offer from homogenized benefits and low brand recognition, we continue to explore new scenarios to deliver truly tangible, differentiated experiences for our users. In early 2026, we partnered with Starbucks China to launch a joint membership program. Beyond linking membership systems and offering reciprocal benefits, this collaboration aims to build a multi-scenario lifestyle ecosystem, spanning travel, dining, and leisure, creating a bridge to extend value across different scenarios. By the end of 2025, our registered individual members reached 112 million, representing a year-over-year growth of over 25%.

to be able to open up more and more diverse, to connect more and more diverse, to be able to connect with users and experience. In addition, we will also build a more efficient way of building and build a more efficient way of building a community. We will provide a more efficient way of building the team. Moving forward, we will continue to deepen our membership operations with a brand building mindset focusing on a full user life cycle to create a membership ecosystem that stays closely connected with the users Building on our hotel and retail business we will continue to introduce new benefits tailored to the deep sleep scenario. At the same time, we will actively explore more diverse scenarios and expand our reach to a wider audience, further deepening emotional connections with users.

In addition, we will further enhance our digital capabilities and build a more granular operational framework for user segmentation, providing strong support for the long-term development of our membership business.

We will also have a full-time experience of the future. and experience our users' firm and warm-up. standards while striving to break through the ceiling of experience. At the same time, we will further strengthen our organizational capabilities and refine our digital framework, laying a solid foundation to support the group's long-term development. We are committed to accompanying our users on this long-term journey, moving forward together every step of the way. Dedicated to providing lasting companionship, we aim to curate experiences where we can body and mind return to inner peace through every genuine connection, fulfilling our warm and steadfast commitment to every user.

I will now turn the call over to our co-CFO, Mr. Wu Jianfeng, who will discuss our financial results.

Thank you, Haijun. Now I would like to present the company's financial performance for the first quarter and full year of 2025. Revenues from our monetized hotels for the first quarter and full year of 2025 grew by 28.1% and 28.0% year-over-year to RMB 1.4 billion and RMB 5.3 billion, respectively. The increases were primarily fueled by the ongoing expansion of our hotel network. Revenues contributed by our leased hotels for the first quarter and full year of 2025 decreased by 9.8% and 15.9% year-over-year to R&B 148 million and R&B 590 million, respectively. The declines were primarily due to a decrease in the number of leased hotels as a result of our product mix optimization. from our retail businesses for the first quarter and full year of 2025 increased by 52.4% and 67.0% year-over-year to R&B 1.2 billion and R&B 3.7 billion respectively.

The increases were driven by growing brand recognition, successful product innovation, and a broadened the range of product offering. The growth margin of our hotel business was 35.8% for the fourth quarter and 37.0% for the full year of 2025. The growth margin of our retail business improved year-over-year to 52.6% for both the fourth quarter and the full year of 2025, reflecting the growing contribution from higher margin products. Setting and marketing expenses accounted for 16.5% and 15.2% of revenue for the fourth quarter and full year of 2025, respectively. The year-over-year increase for the full year was mainly due to investment in brand recognition and the effective development of online channels in line with the growth of our retail business.

and administrative expenses, excluding share-based compensation expenses, accounted for 5.5% and 4.2% of net revenues for the first quarter and full year of 2025, respectively. The year-over-year decrease for the full year was primarily driven by improved management efficiency and economics of scale. Adjusted net profit margin for the first quarter and full year of 2025 was 17.7% and 17.9%, representing an increase of 1.7 percentage points and a decrease of 0.1 percentage points year over year. Adjusted EBITDA margin for the first quarter and the full year of 2025 was 25.5% and 25.3% respectively, up 4.3% and 0.9% year-over-year. We maintained a healthy cash position as of December 31, 2025, cash and cash equivalents totaled RMB 3.3 billion with net cash of RMB 3.1 billion.

In line with our commitment to enhancing shareholders' value, we declared aggregate cash dividends of approximately US dollar 108 million for the full year of 2025. And as of December 31st, 2025, we had made on-market repurchase of US dollar 46 million since the implementation began in the third quarter. Through this comprehensive shareholder return initiative, we are taking concrete actions to reward shareholders' trust and support, ensuring that all shareholders benefit from the company's growth. For the full year of 2026, we currently expect total net revenue to increase by 20% to 24% with the full year of 2025. That concludes our financial highlights for the first quarter and full year of 2025.

Now let's open the floor for Q&A. Thank you.

I'll answer this question. Thank you, Sijia. We also have the same concern about the entire industry 供給增速 of the波動. But this thing, if you look closely, The company has been running for a long time, and it is a very strong development of the industry. It is a very strong development of the industry.

upgrade, and gradually moving towards a new stage of high quality development. The two-person products and the two-person products will make the partnership stronger.

selecting hotel brands, they are essentially facilitating a market screening process of survival of the fittest. The mutual selection between mature brands and quality franchisees will lead to a more solid foundation for cooperation.

As regards to a tour's own strategic pace, high-quality supply in the market remains scarce. We have never advocated for purely scale-driven growth. However, high quality distinctive growth is actually the direction of our long-term pursuit. We remain positive and optimistic about the signing momentum for 2026, and we will ensure that every newly signed project is more competitive in the market.

In terms of new openings, well, thanks to the continued implementation of our premier hotel strategy, New hotels opened in 2025 have shown significant improvement in both of their location selection and property quality. In 2026, we will continue to uphold strict quality requirements, focusing on the core cities and key commercial areas. On the basis of ensuring higher quality, we aim to achieve a similar scale of openings as last year. Thank you. Thank you. Next question, please.

Oh, thank you Simon. Let me answer your question. In the year 2025, the whole hotel industry was a warm and warm. The supply chain is still continuing. We see that the whole year of Red Pot is a trend for a long-term improvement.

Thank you, Simon, and let me take your question. In 2025, the hotel industry experienced a moderate recovery with a continued restoration of supply and demand dynamics. The 2025 full-year rev part recovery showed a trend of sequential improvement throughout the whole year. In 2026, the overall industry supply growth may slow down furthermore. Dejaer demands remain strong. For example, during the spring festival holiday this year, both the AGR and occupancy performed well, exceeding levels from the same period of last year. Based upon this we expect the REF PAR in Q1 to continue the trend of improvement with a positive momentum We will not provide specific guidance for RevPAR in 2026, but for the full year, the market environment is still changing relatively quickly.

However, favorable policies and the continued recovery of business travel also provide positive factors. Our goal, however, still remains clear. That is, to adhere to our strategic focus amid market volatility. Therefore, we will persist with and deepen the differentiated experience advantages of Ator, maintaining our more balanced and refined revenue management strategy for both ADR and OCC to consolidate and enhance the performance of REF part recovery and solidify our long-term value of the brand.

Thank you, Donna.

Okay, thank you, Lydia. Let me share the whole business plan and the whole business plan. In the past few years, the company should be supported by the new innovation and product movement. We have established the company's first-order, and has been developed by the new market, and has been developed by the new market. This is also brought to you by the new market.

Next, the company will be developed by the new market. It is to be from the various levels of commerce, and to compete with the new market, 不陷入与模仿者和跟随者的同质化的内选 走出一条属于我们亚洲星球自己的独特的发展的道路 Okay, thank you, Lydia. Let me first share the overall direction and product plans for our retail business. Over the past few years, it is fair to say that a tour planet has adhered to the development philosophy of innovation-driven and product-driven. We not only released the industry's first deep sleep standard, but also propelled the leapfrog growth in the retail business, truly leading the progress and upgrade of China's sleep industry.

Moving forward, a full planet will enter a phase of deepening core capabilities, consolidating our competitive advantages from all dimensions. We aim to avoid homogenized competition with those emulators and followers and forge a unique development path for a tour planet.

We expect it will be more quickly to grow, and further increase the market. The next step, the new products and the new products will be rapidly. We will through the products of the adage and products of the product, and the new products will be further further. We also have the other products and other products of the product. In terms of category planning, A Tour Planet will continue our focus on the deep sleep track.

Firstly, we will continue to strengthen our core categories, and that will be the pillow category, to name one of them. Our goal for the pillow category is to maintain our absolute leading position, establishing a decisive advantage. While we expect the comfort of Calgary to achieve an even faster growth than pillows, further increasing market share. Secondly, new categories such as fitted sheets and launchwear will accelerate breakthroughs, achieving scale growth through blockbuster product iterations and Calgary matrix expansion.

Besides, mattresses and other sleep accessories will also be as extended categories. collectively completing our deep sleep ecosystem layout of a tour planet.

Next, I would like to share our outlook for the retail revenue. In 2025, both scale and brand reputation of our retail business reached a new height. Looking at 2026, we expect retail revenue to grow by 25% to 30% year-on-year. While maintaining the healthy scale growth, we are more focused on the continued consolidation of our core competitiveness. By continuously enhancing product strength and brand power, we aim to achieve a longer-term sustainable development for retail business.

Thank you, Lydia.

Thank you, Ronald. 确实我们2025年我们公司全年调整后的净利润率约为17.9% 年初的时候我们也预估收入结构的变化和有效税率的提升会对利润率产生一定的拖拽 但是通过我们经济化的运营管理 我们各个业务板块的利润率水平都持续的改善跟提升 That also added the additional support of the government in Q4's time-based impact. Finally, the rate of the year 2025 is the average average.

and a higher effective tax rate, and they would exert some drag on our profit margin. However, through refined operational management, our profit margins of all business units continued to improve, and coupled with the policy subsidies being embodied intensively during Quarter 4, eventually our 2025 net profit margin roughly leveled with that of 2024. That's why in the 2016, we're going to continue to develop our business. We're going to build a new business, and the sales price will continue to change. And we're going to build a new business, which is the Chinese experience company. We will also be able to build a more extensive view of our business. We will also be able to increase our key management team to increase our digital power, to support our business team.

So we're going to build a new business team. We expect the management and development costs will increase. So at the beginning of the year, we expect the average average of the average of the average of the global market in the year.

Looking ahead to 2026, as our business continues to evolve, the revenue mix of our monetized business, supply chain business, and retail business will continue to change. At the same time, based on the new three-year strategy of Chinese experience, brand-led excellence, we will allocate resources with a longer-term perspective. For instance, to strengthen key positions through workforce expansion and to enhance digital operational capabilities to support the group's long-term development. Therefore, we anticipate that both our GMA and R&D expense ratios will increase this year. Therefore, at this starting point of the year, we preliminary expect the group's net profit margin for 2026 to decline slightly year on year. Thank you.

Thank you, Romo.

Thank you, Dan. In the main part of the pandemic, we always have been talking to you. We have the main main decision for the pandemic. We have the same experience. The goal is to strengthen our production of the hotel industry and experience.

Thank you, Dan. Regarding closures, just like what we have been consistently communicating with the market, our core consideration for closure decisions is the consistency of experience. The goal is to continuously strengthen the operational quality and experience standards of our hotels and operations. In 2025, we rigorously maintained quality control over our operating hotels, and thereby closing a total of 92 hotels.

In 2026, to ensure the quality level of our overall hotel network, we will still maintain a certain proactive elimination rate, terminating cooperation with hotels that fail to meet a tour's experiential standards in order to continuously consolidate our brand value in the long term. Nonetheless, based on the optimization and adjustments already made in 2025, now the foundation of our existing hotel portfolio is more solid. Therefore, we expect the number of closures in 2026 to decrease. Our current planned target is to close around 80 hotels within the year. Thank you.

Thank you for joining us today. If you have any further questions, please feel free to contact our IRT. We look forward to speaking with you again next quarter. Thank you and goodbye. This concludes today's conference call. Thank you for participating. You may now disconnect.