Atour Hits 2,000 Hotels, Retail Arm Surges in Strong 2025 Showing

SHANGHAI, China – March 17, 2026 – Atour Lifestyle Holdings Limited (NASDAQ: ATAT) announced a landmark year for 2025, reporting robust financial growth that saw full-year net revenues climb 35.1% to RMB 9.79 billion (US$1.4 billion). The performance was driven by the successful execution of its strategic plan, which culminated in surpassing its goal of 2,000 hotels in operation, and an explosive 67% year-over-year increase in its burgeoning retail business.

The Shanghai-based lifestyle group, which blends hospitality with a direct-to-consumer retail model, solidified its position in China's competitive market. Full-year net income rose 27.4% to RMB 1.62 billion (US$232 million), demonstrating significant profitability alongside its aggressive expansion. The results cap a pivotal year for Atour and set the stage for its newly unveiled three-year strategic plan, signaling a shift from rapid scaling to deepening its brand equity.

A Dual-Engine Growth Model

Atour's 2025 success story is one of two powerful engines firing in unison. The company's core hospitality business expanded its footprint significantly, ending the year with 2,015 hotels and 224,423 rooms in operation, representing a 24.5% year-over-year increase in properties. This expansion of its primarily manachised (managed and franchised) hotel network was the main driver behind the 28% growth in revenues from that segment, which reached RMB 5.31 billion for the year.

However, the standout performer was Atour's retail segment. Leveraging its hotel rooms as experiential showrooms, the company's retail revenues surged by an impressive 67% to RMB 3.67 billion (US$525 million) for the full year. This remarkable growth underscores the success of its unique strategy, which converts hotel guests into retail customers. The increasing contribution from higher-margin products also helped improve the segment's cost efficiency, with retail costs as a percentage of retail revenue decreasing from 49.3% in 2024 to 47.4% in 2025.

“2025 marked the completion of our ‘Chinese Experience, 2,000 Premier Hotels’ strategic initiative,” said Mr. Haijun Wang, Founder, Chairman and CEO of Atour, in the company's official announcement. He noted that the retail business sustained “strong growth momentum,” with its Atour Planet brand solidifying “its leadership in China’s sleep market.” This synergy, where the hospitality arm builds brand trust and the retail arm capitalizes on it, has become a key differentiator for Atour in a crowded market.

Expansion Amidst Shifting Market Tides

While Atour's top-line growth and network expansion are clear indicators of success, the company's operational metrics reflect the complex dynamics of the broader Chinese hospitality market. For the full year 2025, the company reported a slight softening in key performance indicators, with the average daily room rate (ADR) dipping to RMB 432 from RMB 437 in 2024, and the occupancy rate declining to 75.9% from 77.4% a year prior. Consequently, revenue per available room (RevPAR) decreased to RMB 340 from RMB 351.

These modest declines do not exist in a vacuum. The Chinese hotel market entered a phase of what industry analysts call “stock-based competition” in 2025, where a rapid increase in room supply across the country has intensified competition and put downward pressure on rates and occupancy. Atour's own rapid expansion, adding hundreds of new properties, naturally includes a ramp-up period for these new hotels, which can temporarily dilute overall averages. Furthermore, the broader Chinese economy, while meeting growth targets, has seen cautious consumer spending, impacting travel and hospitality pricing power in some segments.

Despite these headwinds, Atour's ability to grow overall revenue by over 35% suggests it is successfully capturing market share. The company’s focus on the upper-midscale segment, which continues to be a growth area fueled by rising domestic tourism, positions it well. The company also demonstrated strong financial discipline, returning significant value to shareholders in 2025 with approximately US$108 million in dividends and US$46 million in share repurchases.

Charting the Future with 'Brand-Led Excellence'

Having achieved its ambitious network target, Atour is now pivoting its focus. The company has launched a new three-year strategic plan for 2026 and beyond, titled 'Chinese Experience, Brand-Led Excellence.' This new directive signals a strategic evolution from a primary focus on quantitative expansion to a deeper emphasis on qualitative growth, brand value, and customer connection.

“Our focus remains on delivering meaningful, human-centered experiences through high-quality products and services,” Mr. Wang stated. “Guided by our long-term vision of ‘A Timeless Atour, Warmth Along Every Journey,’ we will deepen our emotional connections with users, letting warmth empower us through industry cycles and lead us towards a future of healthy and sustainable growth.”

This strategy aims to leverage the cultural appeal of the “Chinese Experience” to differentiate its offerings in a market where travelers, especially domestic ones, increasingly seek local immersion and unique settings. The focus on “Brand-Led Excellence” suggests a commitment to refining service quality, product innovation within its retail arm, and optimizing the performance of its existing 2,000-hotel network.

Looking ahead, the company projects confidence, forecasting total net revenue growth of 20% to 24% for the full year of 2026. This outlook, combined with a new strategic vision focused on brand depth over sheer breadth, indicates Atour is preparing for its next chapter of mature, sustainable growth in China's evolving lifestyle market.