Atour Lifestyle Holdings Limited Reports Second Quarter of 2024 Unaudited Financial Results

August 29, 2024 at 6:01 AM EDT
  • A total of 1,412 hotels, or 161,686 hotel rooms, in operation as of June 30, 2024.
  • Net revenues for the second quarter of 2024 increased by 64.5% year-over-year to RMB1,797 million (US$247 million), compared with RMB1,093 million for the same period of 2023.
  • Net income for the second quarter of 2024 increased by 27.1% year-over-year to RMB304 million (US$42 million), compared with RMB239 million for the same period of 2023.
  • Adjusted net income (non-GAAP)1 for the second quarter of 2024 increased by 31.6% year-over-year to RMB328 million (US$45 million), compared with RMB249 million for the same period of 2023.
  • EBITDA (non-GAAP)2 for the second quarter of 2024 increased by 25.3% year-over-year to RMB419 million (US$58 million), compared with RMB334 million for the same period of 2023.
  • Adjusted EBITDA (non-GAAP)3 for the second quarter of 2024 increased by 28.6% year-over-year to RMB443 million (US$61 million), compared with RMB344 million for the same period of 2023.

SHANGHAI, Aug. 29, 2024 (GLOBE NEWSWIRE) -- Atour Lifestyle Holdings Limited (“Atour” or the “Company”) (NASDAQ: ATAT), a leading hospitality and lifestyle company in China, today announced its unaudited financial results for the second quarter ended June 30, 2024.

Second Quarter of 2024 Operational Highlights

As of June 30, 2024, there were 1,412 hotels with a total of 161,686 hotel rooms in operation across Atour’s hotel network, representing rapid increases of 36.6% and 34.3% year-over-year in terms of the number of hotels and hotel rooms, respectively. As of June 30, 2024, there were 712 manachised hotels under development in our pipeline.

The average daily room rate4 (“ADR”) was RMB441 for the second quarter of 2024, compared with RMB475 for the same period of 2023 and RMB430 for the first quarter of 2024.

The occupancy rate4 was 78.4% for the second quarter of 2024, compared with 77.1% for the same period of 2023 and 73.3% for the first quarter of 2024.

The revenue per available room4 (“RevPAR”) was RMB359 for the second quarter of 2024, compared with RMB384 for the same period of 2023 and RMB328 for the first quarter of 2024.

The GMV5 generated from our retail business was RMB620 million for the second quarter of 2024, representing an increase of 157.6% year-over-year.

“Driven by the synergistic growth of our accommodation and retail businesses, we delivered a strong performance for the second quarter of 2024, further solidifying our industry leadership,” said Mr. Haijun Wang, Founder, Chairman and CEO of Atour. “Our hotel network expansion maintained its vigorous momentum with 123 new openings in the second quarter, representing a new quarterly record. As of the end of the second quarter, we had a total of 1,412 hotels in operation, representing a 36.6% year-over-year increase, which accelerates the progress toward our goal of 2,000 premier hotels nationwide by 2025. In the second quarter, while RevPAR declined year-over-year primarily due to a high base effect, our occupancy rate remained solid, reaching 101.7% of 2023’s level for the same period. Additionally, our retail business continued to deliver exceptional performance in the second quarter, with GMV up by 157.6% year-over-year to RMB620 million, as a result of our efficient new product development and ongoing product offering expansion.

“Looking ahead to the second half of 2024, we will continue propelling progress with our deep understanding of and ability to fulfill customer needs. By consistently enhancing the ‘Chinese Experience’, we will promote comprehensive, high-quality growth across our Group’s businesses and brand portfolio,” concluded Mr. Wang. 

Second Quarter of 2024 Unaudited Financial Results

(RMB in thousands)   Q2 2023   Q2 2024
       
Revenues:        
Manachised hotels   626,483   1,026,979
Leased hotels   219,524   180,333
Retail   211,648   536,734
Others   35,054   53,001
Net revenues   1,092,709   1,797,047
         

Net revenues. Our net revenues for the second quarter of 2024 increased by 64.5% to RMB1,797 million (US$247 million) from RMB1,093 million for the same period of 2023, mainly driven by the growth in manachised hotel and retail businesses.

  • Manachised hotels. Revenues from our manachised hotels for the second quarter of 2024 increased by 63.9% to RMB1,027 million (US$141 million) from RMB626 million for the same period of 2023. This increase was primarily driven by our ongoing hotel network expansion and the rapid growth of our supply chain business. The total number of our manachised hotels increased from 1,001 as of June 30, 2023 to 1,382 as of June 30, 2024. RevPAR of our manachised hotels was RMB355 for the second quarter of 2024, compared with RMB377 for the same period of 2023.
     
  • Leased hotels. Revenues from our leased hotels for the second quarter of 2024 decreased by 17.9% to RMB180 million (US$25 million) from RMB220 million for the same period of 2023, primarily due to a decrease in the number of leased hotels as a result of our product mix optimization, as well as a decrease in RevPAR. RevPAR of our leased hotels was RMB503 for the second quarter of 2024, compared with RMB537 for the same period of 2023.
     
  • Retail. Revenues from retail for the second quarter of 2024 increased by 153.6% to RMB537 million (US$74 million) from RMB212 million for the same period of 2023. This increase was driven by widespread recognition of our retail brands and effective product innovation and development as we successfully broadened our range of product offerings. In the second quarter of 2024, comforters sales accounted for over 20% of retail revenues, further accelerating the growth of our retail business.
     
  • Others. Revenues from others for the second quarter of 2024 increased by 51.2% to RMB53 million (US$7 million) from RMB35 million for the same period of 2023. This increase was driven by our fast-growing membership business.
  Q2 2023   Q2 2024
(RMB in thousands)    
Operating costs and expenses:    
Hotel operating costs (509,513 )   (775,753 )
Retail costs (107,560 )   (265,003 )
Other operating costs (13,261 )   (9,918 )
Selling and marketing expenses (94,400 )   (224,607 )
General and administrative expenses (73,450 )   (91,488 )
Technology and development expenses (17,831 )   (32,952 )
Total operating costs and expenses (816,015 )   (1,399,721 )
           

Operating costs and expenses for the second quarter of 2024 were RMB1,400 million (US$193 million), including RMB24 million share-based compensation expenses, compared with RMB816 million, including RMB10 million share-based compensation expenses for the same period of 2023.

  • Hotel operating costs for the second quarter of 2024 were RMB776 million (US$107 million), compared with RMB510 million for the same period of 2023. This increase was mainly due to the increase in variable costs, such as supply chain costs, associated with our ongoing hotel network expansion. Hotel operating costs accounted for 64.3% of manachised and leased hotels’ revenues for the second quarter of 2024, compared with 60.2% for the same period of 2023. This increase was due to a decrease in RevPAR attributable to the high base effect in the same period of 2023, as well as an increased share of revenue generated by the lower-margin supply chain business.
     
  • Retail costs for the second quarter of 2024 were RMB265 million (US$36 million), compared with RMB108 million for the same period of 2023. This increase was associated with the rapid growth of our retail business. Retail costs accounted for 49.4% of retail revenues for the second quarter of 2024, compared with 50.8% for the same period of 2023. This decrease was attributable to an increasing contribution from higher-margin online sales.
     
  • Other operating costs for the second quarter of 2024 were RMB10 million (US$1.4 million), compared with RMB13 million for the same period of 2023.
     
  • Selling and marketing expenses for the second quarter of 2024 were RMB225 million (US$31 million), compared with RMB94 million for the same period of 2023. This increase was mainly due to our enhanced investment in brand recognition and the effective development of online channels, aligned with the growth of our retail business. Selling and marketing expenses accounted for 12.5% of net revenues for the second quarter of 2024, compared with 8.6% for the same period of 2023.
     
  • General and administrative expenses for the second quarter of 2024 were RMB91 million (US$13 million), including RMB15 million share-based compensation expenses, compared with RMB73 million, including RMB9 million share-based compensation expenses for the same period of 2023. Excluding the share-based compensation expenses, this increase was primarily due to an increase in labor costs. General and administrative expenses, excluding share-based compensation expenses, accounted for 4.2% of net revenues for the second quarter of 2024, compared with 5.9% for the same period of 2023.
     
  • Technology and development expenses for the second quarter of 2024 were RMB33 million (US$5 million), compared with RMB18 million for the same period of 2023. This increase was mainly attributable to our increased investments in technology systems and infrastructure to support our expanding hotel network and retail business and improve customer experience. Technology and development expenses accounted for 1.8% of net revenues for the second quarter of 2024, compared with 1.6% for the same period of 2023.

Other operating income (expenses), net for the second quarter of 2024 was RMB6 million (US$0.8 million) expenses, compared with RMB30 million income for the same period of 2023. This decrease was primarily due to the decrease in government subsidies.

Income from operations for the second quarter of 2024 was RMB391 million (US$54 million), compared with RMB307 million for the same period of 2023.

Income tax expense for the second quarter of 2024 was RMB110 million (US$15 million), compared with RMB79 million for the same period of 2023.

Net income for the second quarter of 2024 was RMB304 million (US$42 million), representing an increase of 27.1% year-over-year compared with RMB239 million for the same period of 2023.

Adjusted net income (non-GAAP) for the second quarter of 2024 was RMB328 million (US$45 million), representing an increase of 31.6% year-over-year compared with RMB249 million for the same period of 2023.

Basic and diluted income per share/American depositary share (ADS). For the second quarter of 2024, basic income per share was RMB0.73 (US$0.10), and diluted income per share was RMB0.73 (US$0.10). Basic income per ADS for the second quarter of 2024 was RMB2.20 (US$0.30), and diluted income per ADS was RMB2.19 (US$0.30).

EBITDA (non-GAAP) for the second quarter of 2024 was RMB419 million (US$58 million), representing an increase of 25.3% compared with RMB334 million for the same period of 2023.

Adjusted EBITDA (non-GAAP) for the second quarter of 2024 was RMB443 million (US$61 million), representing an increase of 28.6% compared with RMB344 million for the same period of 2023.

Cash flows. Operating cash inflow for the second quarter of 2024 was RMB577 million (US$79 million). Investing cash outflow for the second quarter of 2024 was RMB306 million (US$42 million). There were no cash flows from financing activities for the second quarter of 2024.

Cash and cash equivalents and restricted cash. As of June 30, 2024, the Company had a total balance of cash and cash equivalents and restricted cash of RMB3.3 billion (US$457 million).

Debt financing. As of June 30, 2024, the Company had total outstanding borrowings of RMB92 million (US$13 million), and the unutilized credit facility available to the Company was RMB450 million.

Outlook

For the full year of 2024, the Company currently expects total net revenues to increase by 48% to 52% compared with full-year 2023.

This outlook is based on current market conditions and the Company’s preliminary estimates, which are subject to changes.

__________________________________
1 Adjusted net income (non-GAAP) is defined as net income excluding share-based compensation expenses.
2 EBITDA (non-GAAP) is defined as earnings before interest expense, interest income, income tax expense and depreciation and amortization.
3 Adjusted EBITDA (non-GAAP) is defined as EBITDA excluding share-based compensation expenses.
4 Excludes hotel rooms that were previously requisitioned by the government for quarantine needs in response to the COVID-19 outbreak or otherwise became unavailable due to temporary hotel closures. In the second quarter of 2024, no hotels were requisitioned for quarantine needs. ADR and RevPAR are calculated based on tax-inclusive room rates.
“ADR” refers to the average daily room rate, which means room revenue divided by the number of rooms in use for a given period;
“Occupancy rate” refers to the number of rooms in use divided by the number of available rooms for a given period;
“RevPAR” refers to revenue per available room, which is calculated by total revenues during a period divided by the number of available rooms of our hotels during the same period.
5 “GMV” refers to gross merchandise value, which is the total value of confirmed orders placed and paid for by our end customers with us or our franchisees, as the case may be, and sold as part of our retail business, where the ordered products have been dispatched, regardless of whether they are delivered or returned, calculated based on the prices of the ordered products net of any discounts offered to our end customers.

Conference Call

The Company will host a conference call at 7:00 AM U.S. Eastern time on Thursday, August 29, 2023 (or 7:00 PM Beijing/Hong Kong time on the same day). 

A live webcast of the conference call will be available on the Company’s investor relations website at https://ir.yaduo.com, and a replay of the webcast will be available following the session.

For participants who wish to join the conference call via telephone, please pre-register using the link provided below. Upon registration, each participant will receive a set of participant dial-in numbers and a personal PIN to join the conference call.

Details for the conference call are as follows: 

Event Title: Atour Second Quarter 2024 Earnings Conference Call
Pre-registration Link: https://register.vevent.com/register/BIbfa7010eae7841bcbc827b0194809f7c

Use of Non-GAAP Financial Measures

To supplement the Company’s unaudited consolidated financial results presented in accordance with U.S. Generally-Accepted Accounting Principles (“GAAP”), the Company uses the following non-GAAP measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission: adjusted net income, which is defined as net income excluding share-based compensation expenses; EBITDA, which is defined as earnings before interest expense, interest income, income tax expense and depreciation and amortization; adjusted EBITDA, which is defined as EBITDA excluding share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of GAAP and non-GAAP results” set forth at the end of this release.

The Company believes that EBITDA is widely used by other companies in the hospitality industry and may be used by investors as a measure of the financial performance. Given the significant investments that the Company has made in leasehold improvements and other fixed assets of leased hotels, depreciation and amortization comprises a significant portion of the Company’s cost structure. The Company believes that EBITDA will provide investors with a useful tool for comparability between periods because it eliminates depreciation and amortization attributable to capital expenditures. Adjusted net income and adjusted EBITDA provide meaningful supplemental information regarding the Company’s performance by excluding share-based compensation expenses, as the investors can better understand the Company’s performance and compare business trends among different reporting periods on a consistent basis, excluding share-based compensation expenses, which are not expected to result in cash payment. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the Company’s performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to the Company’s historical performance. The Company believes these non-GAAP financial measures are also useful to investors in allowing for greater transparency with respect to supplemental information used regularly by Company management in financial and operational decision-making. The accompanying tables provide more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.

The use of these non-GAAP measures has certain limitations, as the excluded items have been and will be incurred, and are not reflected in the presentation of these non-GAAP measures. Each of these items should also be considered in the overall evaluation of the results. The Company compensates for these limitations by providing the disclosure of the relevant items both in its reconciliations to the U.S. GAAP financial measures and in its consolidated financial statements, all of which should be considered when evaluating the performance of the Company.

In addition, these measures may not be comparable to similarly titled measures utilized by other companies, as these companies may not calculate these measures in the same manner as the Company does.

About Atour Lifestyle Holdings Limited

Atour Lifestyle Holdings Limited (NASDAQ: ATAT) is a leading hospitality and lifestyle company in China, with a distinct portfolio of lifestyle hotel brands. Atour is the leading upper midscale hotel chain in China and is the first Chinese hotel chain to develop scenario-based retail business. Atour is committed to bringing innovations to China’s hospitality industry and building new lifestyle brands around hotel offerings.

For more information, please visit https://ir.yaduo.com.

Investor Relations Contact

Atour Lifestyle Holdings Limited
Email: ir@yaduo.com

Piacente Financial Communications
Email: Atour@tpg-ir.com
Tel: +86-10-6508-0677

—Financial Tables and Operational Data Follow—

ATOUR LIFESTYLE HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except share data and per share data, or otherwise noted)
             
    As of   As of
    December 31,   June 30,
    2023   2024
    RMB   RMB   USD1
Assets            
Current assets            
Cash and cash equivalents   2,840,807   3,322,879   457,243
Short-term investments   751,794   1,008,571   138,784
Accounts receivable   162,101   165,286   22,744
Prepayments and other current assets   251,900   264,441   36,388
Amounts due from related parties   115,900   123,460   16,989
Inventories   119,078   160,889   22,139
Total current assets   4,241,580   5,045,526   694,287
Non-current assets            
Restricted cash   946   1,106   152
Contract costs   98,220   111,507   15,344
Property and equipment, net   266,120   262,381   36,105
Operating lease right-of-use assets   1,712,580   1,559,106   214,540
Intangible assets, net   4,247   3,957   545
Goodwill   17,446   17,446   2,401
Other assets   100,939   90,960   12,517
Deferred tax assets   144,947   193,091   26,570
Total non-current assets   2,345,445   2,239,554   308,174
Total assets   6,587,025   7,285,080   1,002,461
             
Liabilities and shareholders’ equity            
Current liabilities            
Operating lease liabilities, current   295,721   310,466   42,722
Accounts payable   594,545   669,883   92,179
Deferred revenue, current   406,066   437,106   60,148
Salary and welfare payable   189,823   179,166   24,654
Accrued expenses and other payables   684,391   742,120   102,118
Income taxes payable   136,201   106,381   14,639
Short-term borrowings   70,000   90,000   12,384
Amounts due to related parties   1,104   2,932   403
Total current liabilities   2,377,851   2,538,054   349,247
Non-current liabilities            
Operating lease liabilities, non-current   1,583,178   1,422,930   195,802
Deferred revenue, non-current   369,455   433,037   59,588
Long-term borrowings, non-current portion   2,000   2,000   275
Other non-current liabilities   194,452   227,198   31,263
Total non-current liabilities   2,149,085   2,085,165   286,928
Total liabilities   4,526,936   4,623,219   636,175

__________________________________

1 Translations of balances in the consolidated financial statements from RMB into US$ for the second quarter of 2024 and as of June 30, 2024 are solely for readers convenience and were calculated at the rate of US$1.00=RMB 7.2672, representing the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on June 28, 2024.

ATOUR LIFESTYLE HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except share data and per share data, or otherwise noted)
             
    As of   As of
    December 31,   June 30,
    2023   2024
    RMB   RMB   USD1
Shareholders’ equity            
Class A ordinary shares   244      258      36  
Class B ordinary shares   56      56      8  
Additional paid in capital   1,555,773      1,582,786      217,799  
Retained earnings   507,226      1,068,036      146,967  
Accumulated other comprehensive income   4,769      17,900      2,463  
Total equity attributable to shareholders of the Company   2,068,068     2,669,036      367,273  
Non-controlling interests   (7,979 )   (7,175 )    (987 )
Total shareholders’ equity   2,060,089     2,661,861      366,286  
Commitments and contingencies   -     -      -  
Total liabilities and shareholders’ equity   6,587,025     7,285,080      1,002,461  

 

ATOUR LIFESTYLE HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(All amounts in thousands, except share data and per share data, or otherwise noted)
                         
    Three Months Ended   Six Months Ended
    June 30,   June 30,   June 30,   June 30,
    2023   2024   2023   2024
    RMB   RMB   USD1   RMB   RMB   USD1
Revenues:                        
Manachised hotels    626,483      1,026,979      141,317      1,073,281      1,863,090     256,370  
Leased hotels    219,524      180,333      24,815      406,834      348,382     47,939  
Retail    211,648      536,734      73,857     324,581       953,325     131,182  
Others    35,054      53,001      7,293     61,949      100,543     13,835  
Net revenues    1,092,709      1,797,047      247,282      1,866,645      3,265,340     449,326  
Operating costs and expenses:                        
Hotel operating costs    (509,513 )   (775,753 )   (106,747 )    (891,145 )   (1,437,922 )   (197,865 )
Retail costs    (107,560 )    (265,003 )   (36,466 )   (169,077 )   (471,106 )   (64,826 )
Other operating costs    (13,261 )    (9,918 )   (1,365 )   (23,398 )   (19,744 )   (2,717 )
Selling and marketing expenses    (94,400 )    (224,607 )   (30,907 )    (150,409 )   (399,318 )   (54,948 )
General and administrative expenses    (73,450 )    (91,488 )   (12,589 )    (266,654 )   (168,143 )   (23,137 )
Technology and development expenses    (17,831 )    (32,952 )   (4,534 )    (34,621 )   (57,133 )   (7,862 )
Total operating costs and expenses   (816,015 )    (1,399,721 )   (192,608 )   (1,535,304 )   (2,553,366 )   (351,355 )
Other operating income (expenses), net   29,948      (5,943 )   (818 )   37,178      4,066     560  
Income from operations   306,642      391,383     53,856     368,519      716,040     98,531  
Interest income    7,513      12,396     1,706      12,356     25,915     3,566  
Gain from short-term investments    8,968      10,945     1,506     14,322     20,537     2,826  
Interest expense    (1,676 )    (854 )   (118 )    (3,603 )   (1,527 )   (210 )
Other expenses, net    (3,522 )    (85 )   (12 )    (2,971 )   (551 )   (76 )
Income before income tax   317,925     413,785     56,938     388,623      760,414     104,637  
Income tax expense   (78,770 )    (109,879 )   (15,120 )   (131,396 )   (198,800 )   (27,356 )
Net income   239,155      303,906     41,818     257,227      561,614     77,281  
Less: net income attributable to non-controlling interests   965      254     35     1,162     804     111  
Net income attributable to the Company   238,190      303,652     41,783     256,065      560,810     77,170  
                         
Net income   239,155     303,906     41,818     257,227      561,614     77,281  
Other comprehensive income                        
Foreign currency translation adjustments, net of nil income taxes   25,072     5,622     774     22,992     13,131     1,807  
Other comprehensive income, net of income taxes   25,072     5,622     774     22,992     13,131     1,807  
Total comprehensive income   264,227     309,528     42,592     280,219      574,745     79,088  
Comprehensive income attributable to non-controlling interests   965      254     35     1,162     804     111  
Comprehensive income attributable to the Company   263,262      309,274     42,557     279,057      573,941     78,977  
Net income per ordinary share                        
—Basic   0.59     0.73     0.10     0.64     1.36     0.19  
—Diluted   0.57     0.73     0.10     0.62     1.35     0.19  
Weighted average ordinary shares used in calculating
net income per ordinary share
                       
—Basic   402,763,517     413,244,101     413,244,101     398,389,853     413,042,603     413,042,603  
—Diluted   414,773,664     416,487,748     416,487,748     413,553,602     416,300,958     416,300,958  

 

ATOUR LIFESTYLE HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of RMB, except share data and per share data, or otherwise noted)
                         
    Three Months Ended   Six Months Ended
    June 30,   June 30,   June 30,   June 30,
    2023   2024   2023   2024
    RMB   RMB   USD1   RMB   RMB   USD1
                         
Cash flows from operating activities:                        
Net cash generated from operating activities   519,908     576,641     79,347     881,565     719,877     99,061  
Cash flows from investing activities:                        
Payment for purchases of property and equipment    (9,791 )   (20,136 )   (2,771 )   (27,410 )   (32,751 )   (4,507 )
Payment for purchases of intangible assets   -     -     -     -     (282 )   (39 )
Payment for purchases of short-term investments   (2,003,860 )   (4,578,000 )   (629,953 )   (3,332,210 )   (7,242,000 )   (996,532 )
Proceeds from maturities of short-term investments    2,162,234     4,291,899     590,585     3,494,694      7,005,760     964,025  
Net cash generated from (used in) investing activities   148,583     (306,237 )   (42,139 )   135,074     (269,273 )   (37,053 )
Cash flows from financing activities:                        
Proceeds from borrowings   -     -     -     40,000      20,000     2,752  
Repayment of borrowings   (140,130 )   -     -     (141,110 )   -     -  
Net cash (used in) generated from financing activities   (140,130 )   -     -     (101,110 )   20,000     2,752  
Effect of exchange rate changes on cash and cash equivalents and restricted cash   25,072     4,227     582     23,670     11,628     1,600  
Net increase in cash and cash equivalents and restricted cash   553,433     274,631     37,790     939,199      482,232     66,360  
Cash and cash equivalents and restricted cash at the beginning of the period   1,975,873     3,049,354     419,605     1,590,107     2,841,753     391,038  
Cash and cash equivalents and restricted cash at the end of the period   2,529,306     3,323,985     457,395     2,529,306     3,323,985     457,398  

 

ATOUR LIFESTYLE HOLDINGS LIMITED
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(In thousands of RMB, except share data and per share data, or otherwise noted)
                         
    Three Months Ended   Six Months Ended
    June 30,   June 30,   June 30,   June 30,
    2023   2024   2023   2024
    RMB   RMB   USD1   RMB   RMB   USD1
                         
Net income (GAAP)   239,155     303,906     41,818     257,227     561,614     77,281  
Share-based compensation expenses, net of tax effect of nil2   9,998     23,885     3,287     151,578     27,027     3,719  
Adjusted net income (non-GAAP)   249,153     327,791     45,105     408,805     588,641     81,000  
                         
    Three Months Ended   Six Months Ended
    June 30,   June 30,   June 30,   June 30,
    2023   2024   2023   2024
    RMB   RMB   USD1   RMB   RMB   USD1
                         
Net income (GAAP)   239,155     303,906     41,818     257,227     561,614     77,281  
Interest income   (7,513 )   (12,396 )   (1,706 )   (12,356 )   (25,915 )   (3,566 )
Interest expense   1,676     854     118     3,603     1,527     210  
Income tax expense   78,770     109,879     15,120     131,396     198,800     27,356  
Depreciation and amortization   22,289     16,690     2,297     44,186     33,839     4,656  
EBITDA (non-GAAP)   334,377     418,933     57,647     424,056     769,865     105,937  
Share-based compensation expenses   9,998     23,885     3,287     151,578     27,027     3,719  
Adjusted EBITDA (non-GAAP)   344,375     442,818     60,934     575,634     796,892     109,656  

__________________________________
2 The share-based compensation expenses were recorded at entities in PRC. Share-based compensation expenses were non-deductible expenses in PRC. Therefore, there is no tax impact for share-based compensation expenses adjustment for non-GAAP financial measures.

Key Operating Data

  Number of Hotels   Number of Rooms
  Opened in Q2 2024 Closed in Q2 2024 As of June 30, 2024   As of June 30, 2024
Manachised hotels 123 12 1,382   157,225
Leased hotels - 1 30   4,461
Total 123 13 1,412   161,686

 

Brand Positioning                             As of June 30, 2024
Properties Rooms
Manachised Leased  
A.T. House Luxury - 1 214
Atour S Upscale 66 5 10,421
ZHOTEL Upscale 1 - 52
Atour Upper midscale 1,040 23 122,944
Atour X Upper midscale 153 - 16,440
Atour Light Midscale 122 1 11,615
Total   1,382 30 161,686

 

  All Hotels in Operation
  Three Months Ended
June 30, 2023
  Three Months Ended
March 31, 2024
  Three Months Ended
June 30, 2024
           
Occupancy rate3 (in percentage)          
Manachised hotels 76.8%   73.1%   78.2%
Leased hotels 83.0%   79.3%   83.7%
All hotels 77.1%   73.3%   78.4%
           
ADR3 (in RMB)          
Manachised hotels 468.1   426.0   436.4
Leased hotels 611.5   541.6   573.0
All hotels 474.8   430.0   440.6
           
RevPAR3 (in RMB)          
Manachised hotels 376.6   323.7   354.5
Leased hotels 536.8   455.2   503.3
All hotels 383.6   327.9   358.7

 

  Hotels in Operation for More Than 18 Months in Q2 20244
  Number of hotels   Same-hotel Occupancy3
(in percentage)
  Same-hotel ADR3
(in RMB)
  Same-hotel RevPAR3
(in RMB)
  Q2023   Q2024   Q2023 Q2024   Q2023   Q2024   Q2023   Q2024
                             
Manachised hotels 859   859   77.9 %   80.1 %   471.3   445.5   384.6   370.8
Leased hotels 30   30   83.1 %   83.7 %   613.7   572.8   540.0   503.1
All hotels 889   889   78.1 %   80.3 %   477.8   451.1   391.3   376.5

__________________________________
3 Excludes hotel rooms that were previously requisitioned by the government for quarantine needs in response to the COVID-19 outbreak or otherwise became unavailable due to temporary hotel closures. In the second quarter of 2024, no hotels were requisitioned for quarantine needs. ADR and RevPAR are calculated based on tax-inclusive room rates.
4 For any given quarter, we define “same-hotel” to be a hotel that has operated for a minimum of 18 calendar months as of the 15th day (inclusive) of any month within that quarter. The OCC, ADR and RevPAR presented above represent such metrics generated by “same hotels” in the second quarter of 2024, compared to the corresponding metrics generated by these “same hotels” during the same period in 2023.