Atour Lifestyle (NASDAQ:ATAT) reported 30.5% growth in third-quarter net revenue and raised its full-year retail growth forecast, as demand for sleep products and expansion of its hotel network supported results.
Net revenue rose to CNY 3.4 billion in the third quarter of 2026, while adjusted net profit increased 26.2% to CNY 615 million, EVP and Co-CFO Jianfeng Wu said on the earnings call. The company maintained its target of approximately 480 new hotel openings for the year and said it expects total annual revenue growth of 33% to 35%.
Retail Growth Forecast Raised
Wu raised Atour’s 2026 retail revenue growth forecast to 50% to 55% year over year. Morgan Stanley analyst Dan Chee noted on the call that the company’s previous target had been 40% growth.
Wu reported third-quarter retail revenue of CNY 1.4 billion, up 51% year over year. Earlier in the call, founder, Chairman and CEO Haijun Wang said Atour Planet retail revenue reached CNY 1.36 billion, up 61%. The executives did not explain the difference between the figures.
Retail gross margin was 52.1%, down 0.6 percentage points from a year earlier but up 0.7 points from the prior quarter. Wu attributed the changes primarily to differences in product mix.
Wang said cumulative sales of the Deep Sleep Memory Foam Pillow Pro series had exceeded 13 million units, while the latest Pro 4.0 version surpassed CNY 100 million in sales within 17 days of launch. Third-quarter comforter revenue rose more than 70% year over year, he said.
For the longer term, Wang said Atour plans to invest in product development and its supply chain while avoiding price wars and reliance on discounts and promotions. Wu said the company aims to grow retail revenue while improving profitability and operating efficiency.
Hotel Network Expands
Atour opened 128 hotels in the quarter, bringing its operating network to 2,288 properties, with another 778 in its pipeline at quarter-end. Wang said the company continues to target approximately 80 hotel closures in 2026 alongside its opening goal.
Revenue per available room, or RevPAR, was 100.45% of its level in the same quarter of 2025. Wang said leisure travel demand remained resilient during the summer peak season despite temporary weather disruptions in some regions.
Managed hotel revenue increased 20.4% to CNY 1.9 billion, which Wu attributed mainly to network expansion and supply chain business development. Leased hotel revenue fell 18.6% to CNY 134 million as the number of leased properties declined to 17 from 24 a year earlier. Hotel gross margin improved by 0.6 percentage points to 37.9%, helped by the smaller share of leased hotels.
Wang said the company would soon unveil a new upscale hotel brand to complement its existing portfolio. It had more than 124 million registered individual members at quarter-end, he added.
Outlook and Shareholder Returns
Wu said fourth-quarter demand has been supported by holiday leisure travel and the subsequent resumption of business and meetings activity. He declined to provide specific RevPAR guidance for 2027 but said slower industry supply growth could improve supply-and-demand conditions.
Atour declared a second 2026 cash dividend of approximately $59 million, bringing expected full-year dividend payments to about $142 million. Wu also said cumulative share repurchases had exceeded $120 million this year and that combined shareholder returns had surpassed $260 million.
The company continues to target total shareholder returns of approximately 100% of the prior year’s net income through dividends and repurchases, with execution adjusted for market conditions, Wu said.
About Atour Lifestyle (NASDAQ:ATAT)
Atour Lifestyle Holdings Limited is a China-based hospitality company that operates a network of hotels under brands including Atour, Atour S and Atour Light. Its hotels emphasize comfortable accommodations, service and design inspired by local culture.
The company primarily expands through hotel management and franchise arrangements, working with property owners and operators rather than relying solely on hotels it owns. Its services include hotel operations, reservations and guest experiences.
Atour also sells lifestyle products, including bedding and other sleep-related goods, through its retail business.
