RPT-China's Atour Lifestyle Q2 revenue rises, driven by hotel, retail businesses

Overview

• Atour Q2 2025 rev up 37.4% yr/yr, driven by hotel and retail growth

• Net income for Q2 2025 rises 39.8% yr/yr, reflecting effective cost management

• EBITDA for Q2 2025 increases 45.1% yr/yr

Outlook

• Company expects full-year 2025 total net revenues to increase by 30%

Result Drivers

• HOTEL EXPANSION - Revenue growth driven by a 29.2% increase in the number of hotels and a 26.7% increase in hotel rooms, per company

• RETAIL GROWTH - Retail revenues surged 79.8% due to brand recognition and product innovation, according to Atour

• LEASED HOTELS - Revenue from leased hotels declined 17% due to a decrease in the number of leased hotels as part of product mix optimization

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for Atour Lifestyle Holdings Ltd is $39.00, about 10% above its August 25 closing price of $35.10

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nGNX3WXm3Q