Shares of Atour Lifestyle Holdings Limited (ATAT) plummeted 5.03% during intraday trading on Wednesday. The sharp decline followed the company's release of its first-quarter 2026 financial results, which showed strong performance but included forward-looking guidance that investors perceived as conservative.

The Chinese lifestyle group reported unaudited net revenues of RMB 2.81 billion (US$408 million) for Q1 2026, a significant increase of 47.5% year-over-year. This figure surpassed the FactSet consensus estimate of RMB 2.60 billion. Adjusted earnings per share came in at CNY3.51, also beating the mean analyst expectation of CNY2.75 per share. Net income surged 90.3% to RMB 463 million.

Despite the robust quarterly beat, management provided full-year 2026 revenue growth guidance in the range of 24% to 28%, which represents a notable deceleration from the Q1 growth rate. Furthermore, operational data revealed that for hotels in operation for more than 18 months, same-hotel revenue per available room (RevPAR) declined to RMB 304.4 in Q1 2026 from RMB 309.6 in the same period last year. Revenue from the company's leased hotels segment also decreased by 8.0% year-over-year. The combination of these factors likely triggered a "sell-the-news" reaction, as the stock had appreciated 4.2% in the quarter leading up to the report.