Shares of Atour Lifestyle Holdings Limited (ATAT) plummeted 7.08% in pre-market trading on Tuesday following the release of its fourth quarter and full year 2024 financial results. The Chinese hospitality company reported earnings that fell short of analyst expectations and showed declines in key performance metrics.

For the fourth quarter, Atour reported earnings per share (EPS) of 0.79 Chinese Renminbi (US$0.11), significantly below the FactSet consensus estimate of 1.84 Renminbi. This disappointing earnings result appears to be the primary driver of the stock's sharp pre-market decline.

Further adding to investor concerns, the company reported a year-over-year decrease in RevPAR (revenue per available room) for its hotel operations. RevPAR fell to 336.9 RMB in Q4 2024, down from 358.2 RMB in the same period of 2023. This decline was driven by drops in both occupancy rate and average daily rate (ADR). The occupancy rate for all hotels decreased to 77.0% in Q4 2024 from 78.4% in Q4 2023, while ADR fell to 420.2 RMB from 437.7 RMB over the same period.

Despite these challenges, Atour did report strong top-line growth, with Q4 net revenues increasing 38.5% year-over-year to 2,084 million RMB (US$286 million). The company also provided an optimistic outlook for 2025, expecting total net revenues to increase by 25% compared to the full year of 2024. However, this positive guidance does not appear to be offsetting investor concerns about the earnings miss and declining hotel performance metrics in the near term.