Atour Lifestyle Holdings Limited (NASDAQ: ATAT) saw its stock surge 5.06% during intraday trading on Monday, driven by the company's upgraded revenue forecast for 2025 and strong performance in its retail business.

The hotel operator recently raised its full-year revenue growth forecast to 35%, up from an initial 25% projection, citing robust sales in its retail segment. The retail business, which allows customers to purchase products like bedding and pillows seen in hotel rooms, grew 76.4% year-on-year in the third quarter. Notably, the company's Deep Sleep Memory Foam Pillow became a bestseller, generating 100 million yuan in gross merchandise value shortly after its launch.

Analysts remain bullish on Atour, with all 19 covering the stock rating it a "buy" or "strong buy." The company's accelerated hotel openings and improving revenue per available room (revpar) trends further bolster investor confidence.