WS Investor
10 Nov 2026, 15:44
Atour Lifestyle Falls 1.8% Despite Strong Revenue Growth as Reported Net Income Declines
Atour Lifestyle Holdings (NASDAQ: ATAT) shares fell about 1.8% on Tuesday despite strong third-quarter revenue growth and continued expansion across its hotel and retail businesses.
Third-quarter net revenue increased 30.5% year over year to RMB3.43 billion, while adjusted net income rose 26.2% to RMB615 million. Adjusted EBITDA increased 28.8% to RMB883 million.
However, reported net income declined 5.5% year over year to RMB448 million, creating a divergence between headline profitability and adjusted performance that may have weighed on investor sentiment.
Operating trends remained generally solid. Atour ended September with 2,288 hotels and 254,800 rooms in operation, up 17.5% and 16.2%, respectively, from a year earlier. ADR increased to RMB453 from RMB447, while RevPAR edged higher to RMB373 from RMB371. Occupancy slipped slightly to 79.7% from 80.2%.
Retail remained a major growth engine, with revenue jumping 61% year over year to RMB1.36 billion.
For full-year 2026, Atour expects net revenue growth of 33%-35%. The 1.8% decline appears to reflect softer reported net income and slightly lower occupancy, despite strong top-line growth, hotel expansion and continued momentum in retail.
Atour Lifestyle Holdings (NASDAQ: ATAT) shares fell about 1.8% on Tuesday despite strong third-quarter revenue growth and continued expansion across its hotel and retail businesses.
Third-quarter net revenue increased 30.5% year over year to RMB3.43 billion, while adjusted net income rose 26.2% to RMB615 million. Adjusted EBITDA increased 28.8% to RMB883 million.
However, reported net income declined 5.5% year over year to RMB448 million, creating a divergence between headline profitability and adjusted performance that may have weighed on investor sentiment.
Operating trends remained generally solid. Atour ended September with 2,288 hotels and 254,800 rooms in operation, up 17.5% and 16.2%, respectively, from a year earlier. ADR increased to RMB453 from RMB447, while RevPAR edged higher to RMB373 from RMB371. Occupancy slipped slightly to 79.7% from 80.2%.
Retail remained a major growth engine, with revenue jumping 61% year over year to RMB1.36 billion.
For full-year 2026, Atour expects net revenue growth of 33%-35%. The 1.8% decline appears to reflect softer reported net income and slightly lower occupancy, despite strong top-line growth, hotel expansion and continued momentum in retail.
