Atour Lifestyle Holdings Ltd. reported a 41.4% year-over-year increase in net revenue to RMB 3.42 billion ($480 million) for the second quarter of 2026, driven by expansion in its hotel and retail segments. The company’s shares fell 2.22% to $36.18 in early trading, following a 3.78% premarket decline from the prior close of $37.
Hotel business revenue rose 32.8% to RMB 1.73 billion, supported by network expansion and supply-chain initiatives. Retail revenue, primarily from Atour Planet, surged 63.2% to RMB 1.58 billion, while leased hotel revenue declined 11.8% to RMB 132 million as the portfolio shrank from 24 to 19 properties year-over-year. Gross profit in the hotel segment increased 18.7% to RMB 659 million, while retail gross profit climbed 57.4% to RMB 809 million. Adjusted net profit margin narrowed to 16.0% from 17.3% a year earlier, and adjusted EBITDA margin fell to 23.5% from 24.7%.
The company’s cash position strengthened, with cash and cash equivalents totaling RMB 3.9 billion and net cash at RMB 3.7 billion as of June 30. Return on equity over the last twelve months stood at 53%, while the current ratio was 2.17. Selling and marketing expenses rose to 17.4% of revenue from 15.9%, while technology and development costs remained stable at 1.6% of revenue.
Atour operated 2,175 hotels at the end of the quarter, with 811 in the development pipeline and 101 new openings in Q2. Revenue per available room (RevPAR) reached RMB 345.4, flat with the prior year’s level, while occupancy held steady at 99.7%. The central reservation system accounted for 61.5% of room nights sold, with corporate member bookings representing 20.4% of total CRS sales. Registered members grew to 120 million by quarter-end.
Retail performance was bolstered by the Deep Sleep Memory Foam Pillow Pro Series, which surpassed 12 million units sold since launch, and an 80% year-over-year increase in comforter category gross merchandise value. The company also expanded into fitted sheets and loungewear as new strategic categories.
Management reaffirmed full-year 2026 revenue growth guidance of 30% year-over-year, raising retail revenue growth expectations to 40%. Hotel closure guidance remained unchanged at approximately 80 properties for the year. CEO Wang Haijun emphasized a shift toward product innovation and brand equity over scale expansion, while Co-CFO Jianfeng Wu highlighted a focus on long-term user needs rather than short-term promotions.
