Overview

• China hospitality and retail group's Q4 net revenue rose 34% yr/yr

• Q4 adjusted net income grew 48% yr/yr

• Company ended 2025 with 2,015 hotels and 224,423 rooms in operation

Outlook

• Atour expects 2026 net revenues to rise 20% to 24% from 2025 levels

Result Drivers

• HOTEL NETWORK EXPANSION - Co said revenue growth was mainly driven by expansion of manachised hotel network

• RETAIL GROWTH - Co said retail revenue rose on growing brand recognition, product innovation and broader offerings

• HIGHER OPERATING COSTS - Co said hotel operating costs rose due to variable costs tied to network expansion

Company press release: ID:nGNX9fKxrF

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for Atour Lifestyle Holdings Ltd is $47.00, about 34.5% above its March 16 closing price of $34.94

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 19 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)