Atour Lifestyle NASDAQ: ATAT reported second-quarter 2026 revenue growth of 41.4% year over year, supported by continued expansion in its managed hotel network and a 63.2% increase in retail revenue. Management maintained its full-year revenue outlook for 30% growth while raising its retail revenue growth target to 40%.
Net revenues for the quarter reached RMB3.42 billion. EVP and Co-CFO Jianfeng Wu said managed-hotel revenue rose 32.8% to RMB1.73 billion, primarily reflecting hotel-network expansion and supply-chain business development. Revenue from leased hotels declined 11.8% to RMB132 million as the number of leased hotels fell to 19 at June 30, from 24 a year earlier.
Hotel RevPAR Holds Near Prior-Year Levels
Founder, Chairman and CEO Haijun Wang said second-quarter revenue per available room, or RevPAR, was RMB345.4, equal to 100.7% of the level reported in the same quarter of 2025. Average daily rate was 101.2% of the prior-year level, while occupancy was 99.7% of the year-earlier level.
For mature hotels operating more than 18 months, RevPAR was RMB336.8, or 97% of the prior-year level. Average daily rate and occupancy at mature hotels were 98.3% and 99.0%, respectively, of their year-earlier levels.
Atour opened 101 hotels during the quarter, bringing its operating network to 2,175 hotels at quarter-end. Its development pipeline totaled 811 hotels. The company said its central reservation system accounted for 61.5% of room nights sold, including a 20.4% contribution from corporate members.
Wang said the company continues to emphasize hotel quality, disciplined project selection and high-quality locations rather than pursuing network scale alone. Atour 3.6 hotels in operation generated RevPAR above RMB370 during the quarter, while Atour Origin generated RevPAR above RMB450. The company said more than 60 Atour Origin hotels were operating, with more than 90 projects in the pipeline.
In the midscale segment, management said Atour Light 3.0 hotels in operation produced RevPAR above RMB340. SAVHE, the company’s upscale lifestyle offering, generated RevPAR above RMB1,000 at hotels in operation during the period.
Management Maintains Opening and Closure Targets
Responding to questions about a broader industry slowdown in hotel supply growth, Wang said hotel supply is affected by macroeconomic conditions, supply-demand dynamics and property availability, resulting in cyclical fluctuations. He said Atour is focused on competitive supply that meets customer expectations for quality.
Wu said signing momentum remained steady during the first half and that the hotel pipeline increased sequentially, providing what management characterized as a high-quality reserve for future openings. The company maintained its full-year hotel-opening target, though it did not provide a numerical opening target on the call. It also maintained guidance for approximately 80 hotel closures for the full year, noting that the pace of closures slowed significantly sequentially beginning in the second quarter.
On the second-half lodging outlook, Wu said travel demand was delayed in some regions in early July by typhoons and heavy rainfall. However, he said demand had begun to stabilize and recover since late July as the peak summer travel season arrived. Management said it sees long-term demand for quality accommodations continuing to rise across both business and leisure travel.
Retail Revenue Climbs as Product Mix Broadens
Retail revenue reached RMB1.58 billion in the second quarter, rising 63.2% from a year earlier. Wu attributed the increase to rising brand recognition, product innovation and a broader product range.
Wang said Atour Planet is expanding beyond reliance on individual blockbuster products toward a broader sleep-focused product portfolio. Cumulative sales of the Deep Sleep Memory Foam Pillow Pro series exceeded 12 million units since launch, according to the company. Gross merchandise value in the comforter category increased more than 80% year over year in the second quarter, while fitted sheets and loungewear represented a growing share of revenue.
The company recently introduced the Deep Sleep Memory Foam Pillow Pro 4.0 and Deep Sleep Thermo-Regulating Comforter Pro 3.0 All Season. Management said the products were developed using the Atour Planet Deep Sleep standard introduced last year.
Given first-half momentum and sales following new product launches, Wu said Atour raised its full-year retail revenue growth guidance to 40% year over year.
Margins Decline as Business Mix Shifts
Gross profit from hotel operations increased 18.7% year over year to RMB659 million. Wu said hotel gross margin declined because lower-margin supply-chain operations grew faster and accounted for a larger share of hotel revenue. Retail gross profit increased 57.4% to RMB809 million, while its gross margin declined due to changes in product mix.
Selling and marketing expense represented 17.4% of revenue, compared with 15.9% a year earlier, reflecting brand investments and online-channel development tied to retail growth. General and administrative expense excluding share-based compensation was 3.5% of revenue, compared with 3.6%, while technology and development expense was 1.6%, compared with 1.7%.
Adjusted net profit margin was 16.0%, down 1.3 percentage points year over year, and adjusted EBITDA margin was 23.5%, down 1.2 percentage points. At June 30, cash and cash equivalents totaled RMB3.9 billion and net cash was RMB3.7 billion.
Wu said Atour still expects a modest year-over-year decline in full-year net profit margin. He said revenue growth from the hotel supply-chain and retail businesses is expected to exceed the company’s initial expectations, shifting revenue mix, while the effective tax rate is also expected to rise year over year.
Atour had 120 million registered individual members at the end of the second quarter. The company also said cumulative share repurchases had exceeded $150 million through the end of the quarter and that it continues to implement its existing dividend policy.
About Atour Lifestyle (NASDAQ:ATAT)
Atour Lifestyle Holdings Co, Ltd. operates as a hospitality and lifestyle company offering a range of lodging and accommodation services in China. The company's core business includes the development, operation and management of boutique hotels and serviced apartments under its Atour Hotel and Ankora brands. These properties cater primarily to the mid- to upscale segment, delivering a blend of comfort, design-focused interiors and localized services tailored to both business and leisure travelers.
In addition to room offerings, Atour Lifestyle provides a suite of ancillary services designed to enhance guest experiences.
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