Shares of Atour Lifestyle Holdings Limited (ATAT) plunged 8.66% 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 significantly short of analyst expectations and showed declines in key hotel performance metrics.

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

Further adding to investor concerns, the company reported year-over-year decreases in several key hotel performance indicators:

• RevPAR (revenue per available room) fell to 336.9 RMB in Q4 2024, down from 358.2 RMB in Q4 2023
• Occupancy rate for all hotels decreased to 77.0% from 78.4% year-over-year
• ADR (average daily rate) declined to 420.2 RMB from 437.7 RMB in the same period last year

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, the positive revenue growth and future guidance do not appear to be offsetting investor concerns about the significant earnings miss and declining hotel performance metrics in the near term, leading to the steep pre-market sell-off.