Company News

• A total of 1,412 hotels, or 161,686 hotel rooms, in operation as of June 30, 2024.
• Net revenues for the second quarter of 2024 increased by 64.5% year-over-year to RMB1,797 million (US$247 million), compared with RMB1,093 million for the same period of 2023.
• Net income for the second quarter of 2024 increased by 27.1% year-over-year to RMB304 million (US$42 million), compared with RMB239 million for the same period of 2023.
• Adjusted net income (non-GAAP)¹ for the second quarter of 2024 increased by 31.6% year-over-year to RMB328 million (US$45 million), compared with RMB249 million for the same period of 2023.
• EBITDA (non-GAAP)² for the second quarter of 2024 increased by 25.3% year-over-year to RMB419 million (US$58 million), compared with RMB334 million for the same period of 2023.
• Adjusted EBITDA (non-GAAP)³ for the second quarter of 2024 increased by 28.6% year-over-year to RMB443 million (US$61 million), compared with RMB344 million for the same period of 2023.

SHANGHAI, Aug. 29, 2024 (GLOBE NEWSWIRE) -- Atour Lifestyle Holdings Limited (“Atour” or the “Company”) (NASDAQ: ATAT), a leading hospitality and lifestyle company in China, today announced its unaudited financial results for the second quarter ended June 30, 2024.

Second Quarter of 2024 Operational Highlights

As of June 30, 2024, there were 1,412 hotels with a total of 161,686 hotel rooms in operation across Atour’s hotel network, representing rapid increases of 36.6% and 34.3% year-over-year in terms of the number of hotels and hotel rooms, respectively. As of June 30, 2024, there were 712 manachised hotels under development in our pipeline.

The average daily room rate⁴ (“ADR”) was RMB441 for the second quarter of 2024, compared with RMB475 for the same period of 2023 and RMB430 for the first quarter of 2024.

The occupancy rate⁴ was 78.4% for the second quarter of 2024, compared with 77.1% for the same period of 2023 and 73.3% for the first quarter of 2024.

The revenue per available room⁴ (“RevPAR”) was RMB359 for the second quarter of 2024, compared with RMB384 for the same period of 2023 and RMB328 for the first quarter of 2024.

The GMV⁵ generated from our retail business was RMB620 million for the second quarter of 2024, representing an increase of 157.6% year-over-year.

“Driven by the synergistic growth of our accommodation and retail businesses, we delivered a strong performance for the second quarter of 2024, further solidifying our industry leadership,” said Mr. Haijun Wang, Founder, Chairman and CEO of Atour. “Our hotel network expansion maintained its vigorous momentum with 123 new openings in the second quarter, representing a new quarterly record. As of the end of the second quarter, we had a total of 1,412 hotels in operation, representing a 36.6% year-over-year increase, which accelerates the progress toward our goal of 2,000 premier hotels nationwide by 2025. In the second quarter, while RevPAR declined year-over-year primarily due to a high base effect, our occupancy rate remained solid, reaching 101.7% of 2023’s level for the same period. Additionally, our retail business continued to deliver exceptional performance in the second quarter, with GMV up by 157.6% year-over-year to RMB620 million, as a result of our efficient new product development and ongoing product offering expansion.

“Looking ahead to the second half of 2024, we will continue propelling progress with our deep understanding of and ability to fulfill customer needs. By consistently enhancing the ‘Chinese Experience’, we will promote comprehensive, high-quality growth across our Group’s businesses and brand portfolio,” concluded Mr. Wang. 

Second Quarter of 2024 Unaudited Financial Results

(RMB in thousands)		Q2 2023		Q2 2024
Revenues:
Manachised hotels		626,483		1,026,979
Leased hotels		219,524		180,333
Retail		211,648		536,734
Others		35,054		53,001
Net revenues		1,092,709		1,797,047

Net revenues. Our net revenues for the second quarter of 2024 increased by 64.5% to RMB1,797 million (US$247 million) from RMB1,093 million for the same period of 2023, mainly driven by the growth in manachised hotel and retail businesses.

• Manachised hotels. Revenues from our manachised hotels for the second quarter of 2024 increased by 63.9% to RMB1,027 million (US$141 million) from RMB626 million for the same period of 2023. This increase was primarily driven by our ongoing hotel network expansion and the rapid growth of our supply chain business. The total number of our manachised hotels increased from 1,001 as of June 30, 2023 to 1,382 as of June 30, 2024. RevPAR of our manachised hotels was RMB355 for the second quarter of 2024, compared with RMB377 for the same period of 2023.
   
• Leased hotels. Revenues from our leased hotels for the second quarter of 2024 decreased by 17.9% to RMB180 million (US$25 million) from RMB220 million for the same period of 2023, primarily due to a decrease in the number of leased hotels as a result of our product mix optimization, as well as a decrease in RevPAR. RevPAR of our leased hotels was RMB503 for the second quarter of 2024, compared with RMB537 for the same period of 2023.
   
• Retail. Revenues from retail for the second quarter of 2024 increased by 153.6% to RMB537 million (US$74 million) from RMB212 million for the same period of 2023. This increase was driven by widespread recognition of our retail brands and effective product innovation and development as we successfully broadened our range of product offerings. In the second quarter of 2024, comforters sales accounted for over 20% of retail revenues, further accelerating the growth of our retail business.
   
• Others. Revenues from others for the second quarter of 2024 increased by 51.2% to RMB53 million (US$7 million) from RMB35 million for the same period of 2023. This increase was driven by our fast-growing membership business.

	Q2 2023			Q2 2024
(RMB in thousands)
Operating costs and expenses:
Hotel operating costs	(509,513	)		(775,753	)
Retail costs	(107,560	)		(265,003	)
Other operating costs	(13,261	)		(9,918	)
Selling and marketing expenses	(94,400	)		(224,607	)
General and administrative expenses	(73,450	)		(91,488	)
Technology and development expenses	(17,831	)		(32,952	)
Total operating costs and expenses	(816,015	)		(1,399,721	)

Operating costs and expenses for the second quarter of 2024 were RMB1,400 million (US$193 million), including RMB24 million share-based compensation expenses, compared with RMB816 million, including RMB10 million share-based compensation expenses for the same period of 2023.

• Hotel operating costs for the second quarter of 2024 were RMB776 million (US$107 million), compared with RMB510 million for the same period of 2023. This increase was mainly due to the increase in variable costs, such as supply chain costs, associated with our ongoing hotel network expansion. Hotel operating costs accounted for 64.3% of manachised and leased hotels’ revenues for the second quarter of 2024, compared with 60.2% for the same period of 2023. This increase was due to a decrease in RevPAR attributable to the high base effect in the same period of 2023, as well as an increased share of revenue generated by the lower-margin supply chain business.
   
• Retail costs for the second quarter of 2024 were RMB265 million (US$36 million), compared with RMB108 million for the same period of 2023. This increase was associated with the rapid growth of our retail business. Retail costs accounted for 49.4% of retail revenues for the second quarter of 2024, compared with 50.8% for the same period of 2023. This decrease was attributable to an increasing contribution from higher-margin online sales.
   
• Other operating costs for the second quarter of 2024 were RMB10 million (US$1.4 million), compared with RMB13 million for the same period of 2023.
   
• Selling and marketing expenses for the second quarter of 2024 were RMB225 million (US$31 million), compared with RMB94 million for the same period of 2023. This increase was mainly due to our enhanced investment in brand recognition and the effective development of online channels, aligned with the growth of our retail business. Selling and marketing expenses accounted for 12.5% of net revenues for the second quarter of 2024, compared with 8.6% for the same period of 2023.
   

• General and administrative expenses for the second quarter of 2024 were RMB91 million (US$13 million), including RMB15 million share-based compensation expenses, compared with RMB73 million, including RMB9 million share-based compensation expenses for the same period of 2023. Excluding the share-based compensation expenses, this increase was primarily due to an increase in labor costs. General and administrative expenses, excluding share-based compensation expenses, accounted for 4.2% of net revenues for the second quarter of 2024, compared with 5.9% for the same period of 2023.
   
• Technology and development expenses for the second quarter of 2024 were RMB33 million (US$5 million), compared with RMB18 million for the same period of 2023. This increase was mainly attributable to our increased investments in technology systems and infrastructure to support our expanding hotel network and retail business and improve customer experience. Technology and development expenses accounted for 1.8% of net revenues for the second quarter of 2024, compared with 1.6% for the same period of 2023.

Other operating income (expenses), net for the second quarter of 2024 was RMB6 million (US$0.8 million) expenses, compared with RMB30 million income for the same period of 2023. This decrease was primarily due to the decrease in government subsidies.

Income from operations for the second quarter of 2024 was RMB391 million (US$54 million), compared with RMB307 million for the same period of 2023.

Income tax expense for the second quarter of 2024 was RMB110 million (US$15 million), compared with RMB79 million for the same period of 2023.

Net income for the second quarter of 2024 was RMB304 million (US$42 million), representing an increase of 27.1% year-over-year compared with RMB239 million for the same period of 2023.

Adjusted net income (non-GAAP) for the second quarter of 2024 was RMB328 million (US$45 million), representing an increase of 31.6% year-over-year compared with RMB249 million for the same period of 2023.

Basic and diluted income per share/American depositary share (ADS). For the second quarter of 2024, basic income per share was RMB0.73 (US$0.10), and diluted income per share was RMB0.73 (US$0.10). Basic income per ADS for the second quarter of 2024 was RMB2.20 (US$0.30), and diluted income per ADS was RMB2.19 (US$0.30).

EBITDA (non-GAAP) for the second quarter of 2024 was RMB419 million (US$58 million), representing an increase of 25.3% compared with RMB334 million for the same period of 2023.

Adjusted EBITDA (non-GAAP) for the second quarter of 2024 was RMB443 million (US$61 million), representing an increase of 28.6% compared with RMB344 million for the same period of 2023.

Cash flows. Operating cash inflow for the second quarter of 2024 was RMB577 million (US$79 million). Investing cash outflow for the second quarter of 2024 was RMB306 million (US$42 million). There were no cash flows from financing activities for the second quarter of 2024.

Cash and cash equivalents and restricted cash. As of June 30, 2024, the Company had a total balance of cash and cash equivalents and restricted cash of RMB3.3 billion (US$457 million).

Debt financing. As of June 30, 2024, the Company had total outstanding borrowings of RMB92 million (US$13 million), and the unutilized credit facility available to the Company was RMB450 million.

Outlook

For the full year of 2024, the Company currently expects total net revenues to increase by 48% to 52% compared with full-year 2023.

This outlook is based on current market conditions and the Company’s preliminary estimates, which are subject to changes.

__________________________________
¹ Adjusted net income (non-GAAP) is defined as net income excluding share-based compensation expenses.
² EBITDA (non-GAAP) is defined as earnings before interest expense, interest income, income tax expense and depreciation and amortization.
³ Adjusted EBITDA (non-GAAP) is defined as EBITDA excluding share-based compensation expenses.
⁴ Excludes hotel rooms that were previously requisitioned by the government for quarantine needs in response to the COVID-19 outbreak or otherwise became unavailable due to temporary hotel closures. In the second quarter of 2024, no hotels were requisitioned for quarantine needs. ADR and RevPAR are calculated based on tax-inclusive room rates.
“ADR” refers to the average daily room rate, which means room revenue divided by the number of rooms in use for a given period;
“Occupancy rate” refers to the number of rooms in use divided by the number of available rooms for a given period;
“RevPAR” refers to revenue per available room, which is calculated by total revenues during a period divided by the number of available rooms of our hotels during the same period.
⁵ “GMV” refers to gross merchandise value, which is the total value of confirmed orders placed and paid for by our end customers with us or our franchisees, as the case may be, and sold as part of our retail business, where the ordered products have been dispatched, regardless of whether they are delivered or returned, calculated based on the prices of the ordered products net of any discounts offered to our end customers.

Conference Call

The Company will host a conference call at 7:00 AM U.S. Eastern time on Thursday, August 29, 2023 (or 7:00 PM Beijing/Hong Kong time on the same day). 

A live webcast of the conference call will be available on the Company’s investor relations website at https://ir.yaduo.com, and a replay of the webcast will be available following the session.

For participants who wish to join the conference call via telephone, please pre-register using the link provided below. Upon registration, each participant will receive a set of participant dial-in numbers and a personal PIN to join the conference call.

Details for the conference call are as follows: 

Event Title: Atour Second Quarter 2024 Earnings Conference Call
Pre-registration Link: https://register.vevent.com/register/BIbfa7010eae7841bcbc827b0194809f7c

Use of Non-GAAP Financial Measures

To supplement the Company’s unaudited consolidated financial results presented in accordance with U.S. Generally-Accepted Accounting Principles (“GAAP”), the Company uses the following non-GAAP measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission: adjusted net income, which is defined as net income excluding share-based compensation expenses; EBITDA, which is defined as earnings before interest expense, interest income, income tax expense and depreciation and amortization; adjusted EBITDA, which is defined as EBITDA excluding share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of GAAP and non-GAAP results” set forth at the end of this release.

The Company believes that EBITDA is widely used by other companies in the hospitality industry and may be used by investors as a measure of the financial performance. Given the significant investments that the Company has made in leasehold improvements and other fixed assets of leased hotels, depreciation and amortization comprises a significant portion of the Company’s cost structure. The Company believes that EBITDA will provide investors with a useful tool for comparability between periods because it eliminates depreciation and amortization attributable to capital expenditures. Adjusted net income and adjusted EBITDA provide meaningful supplemental information regarding the Company’s performance by excluding share-based compensation expenses, as the investors can better understand the Company’s performance and compare business trends among different reporting periods on a consistent basis, excluding share-based compensation expenses, which are not expected to result in cash payment. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the Company’s performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to the Company’s historical performance. The Company believes these non-GAAP financial measures are also useful to investors in allowing for greater transparency with respect to supplemental information used regularly by Company management in financial and operational decision-making. The accompanying tables provide more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.

The use of these non-GAAP measures has certain limitations, as the excluded items have been and will be incurred, and are not reflected in the presentation of these non-GAAP measures. Each of these items should also be considered in the overall evaluation of the results. The Company compensates for these limitations by providing the disclosure of the relevant items both in its reconciliations to the U.S. GAAP financial measures and in its consolidated financial statements, all of which should be considered when evaluating the performance of the Company.

In addition, these measures may not be comparable to similarly titled measures utilized by other companies, as these companies may not calculate these measures in the same manner as the Company does.

About Atour Lifestyle Holdings Limited

Atour Lifestyle Holdings Limited (NASDAQ: ATAT) is a leading hospitality and lifestyle company in China, with a distinct portfolio of lifestyle hotel brands. Atour is the leading upper midscale hotel chain in China and is the first Chinese hotel chain to develop scenario-based retail business. Atour is committed to bringing innovations to China’s hospitality industry and building new lifestyle brands around hotel offerings.

For more information, please visit https://ir.yaduo.com.

Investor Relations Contact

Atour Lifestyle Holdings Limited
Email: ir@yaduo.com

Piacente Financial Communications
Email: Atour@tpg-ir.com
Tel: +86-10-6508-0677

—Financial Tables and Operational Data Follow—

ATOUR LIFESTYLE HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except share data and per share data, or otherwise noted)
		As of		As of
		December 31,		June 30,
		2023		2024
		RMB		RMB		USD1
Assets
Current assets
Cash and cash equivalents		2,840,807		3,322,879		457,243
Short-term investments		751,794		1,008,571		138,784
Accounts receivable		162,101		165,286		22,744
Prepayments and other current assets		251,900		264,441		36,388
Amounts due from related parties		115,900		123,460		16,989
Inventories		119,078		160,889		22,139
Total current assets		4,241,580		5,045,526		694,287
Non-current assets
Restricted cash		946		1,106		152
Contract costs		98,220		111,507		15,344
Property and equipment, net		266,120		262,381		36,105
Operating lease right-of-use assets		1,712,580		1,559,106		214,540
Intangible assets, net		4,247		3,957		545
Goodwill		17,446		17,446		2,401
Other assets		100,939		90,960		12,517
Deferred tax assets		144,947		193,091		26,570
Total non-current assets		2,345,445		2,239,554		308,174
Total assets		6,587,025		7,285,080		1,002,461
Liabilities and shareholders’ equity
Current liabilities
Operating lease liabilities, current		295,721		310,466		42,722
Accounts payable		594,545		669,883		92,179
Deferred revenue, current		406,066		437,106		60,148
Salary and welfare payable		189,823		179,166		24,654
Accrued expenses and other payables		684,391		742,120		102,118
Income taxes payable		136,201		106,381		14,639
Short-term borrowings		70,000		90,000		12,384
Amounts due to related parties		1,104		2,932		403
Total current liabilities		2,377,851		2,538,054		349,247
Non-current liabilities
Operating lease liabilities, non-current		1,583,178		1,422,930		195,802
Deferred revenue, non-current		369,455		433,037		59,588
Long-term borrowings, non-current portion		2,000		2,000		275
Other non-current liabilities		194,452		227,198		31,263
Total non-current liabilities		2,149,085		2,085,165		286,928
Total liabilities		4,526,936		4,623,219		636,175

__________________________________

¹ Translations of balances in the consolidated financial statements from RMB into US$ for the second quarter of 2024 and as of June 30, 2024 are solely for readers’ convenience and were calculated at the rate of US$1.00=RMB 7.2672, representing the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on June 28, 2024.

ATOUR LIFESTYLE HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except share data and per share data, or otherwise noted)
		As of			As of
		December 31,			June 30,
		2023			2024
		RMB			RMB			USD1
Shareholders’ equity
Class A ordinary shares		244			258			36
Class B ordinary shares		56			56			8
Additional paid in capital		1,555,773			1,582,786			217,799
Retained earnings		507,226			1,068,036			146,967
Accumulated other comprehensive income		4,769			17,900			2,463
Total equity attributable to shareholders of the Company		2,068,068			2,669,036			367,273
Non-controlling interests		(7,979	)		(7,175	)		(987	)
Total shareholders’ equity		2,060,089			2,661,861			366,286
Commitments and contingencies		-			-			-
Total liabilities and shareholders’ equity		6,587,025			7,285,080			1,002,461

 

ATOUR LIFESTYLE HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(All amounts in thousands, except share data and per share data, or otherwise noted)
		Three Months Ended									Six Months Ended
		June 30,			June 30,						June 30,			June 30,
		2023			2024						2023			2024
		RMB			RMB			USD1			RMB			RMB			USD1
Revenues:
Manachised hotels		626,483			1,026,979			141,317			1,073,281			1,863,090			256,370
Leased hotels		219,524			180,333			24,815			406,834			348,382			47,939
Retail		211,648			536,734			73,857			324,581			953,325			131,182
Others		35,054			53,001			7,293			61,949			100,543			13,835
Net revenues		1,092,709			1,797,047			247,282			1,866,645			3,265,340			449,326
Operating costs and expenses:
Hotel operating costs		(509,513	)		(775,753	)		(106,747	)		(891,145	)		(1,437,922	)		(197,865	)
Retail costs		(107,560	)		(265,003	)		(36,466	)		(169,077	)		(471,106	)		(64,826	)
Other operating costs		(13,261	)		(9,918	)		(1,365	)		(23,398	)		(19,744	)		(2,717	)
Selling and marketing expenses		(94,400	)		(224,607	)		(30,907	)		(150,409	)		(399,318	)		(54,948	)
General and administrative expenses		(73,450	)		(91,488	)		(12,589	)		(266,654	)		(168,143	)		(23,137	)
Technology and development expenses		(17,831	)		(32,952	)		(4,534	)		(34,621	)		(57,133	)		(7,862	)
Total operating costs and expenses		(816,015	)		(1,399,721	)		(192,608	)		(1,535,304	)		(2,553,366	)		(351,355	)
Other operating income (expenses), net		29,948			(5,943	)		(818	)		37,178			4,066			560
Income from operations		306,642			391,383			53,856			368,519			716,040			98,531
Interest income		7,513			12,396			1,706			12,356			25,915			3,566
Gain from short-term investments		8,968			10,945			1,506			14,322			20,537			2,826
Interest expense		(1,676	)		(854	)		(118	)		(3,603	)		(1,527	)		(210	)
Other expenses, net		(3,522	)		(85	)		(12	)		(2,971	)		(551	)		(76	)
Income before income tax		317,925			413,785			56,938			388,623			760,414			104,637
Income tax expense		(78,770	)		(109,879	)		(15,120	)		(131,396	)		(198,800	)		(27,356	)
Net income		239,155			303,906			41,818			257,227			561,614			77,281
Less: net income attributable to non-controlling interests		965			254			35			1,162			804			111
Net income attributable to the Company		238,190			303,652			41,783			256,065			560,810			77,170
Net income		239,155			303,906			41,818			257,227			561,614			77,281
Other comprehensive income
Foreign currency translation adjustments, net of nil income taxes		25,072			5,622			774			22,992			13,131			1,807
Other comprehensive income, net of income taxes		25,072			5,622			774			22,992			13,131			1,807
Total comprehensive income		264,227			309,528			42,592			280,219			574,745			79,088
Comprehensive income attributable to non-controlling interests		965			254			35			1,162			804			111
Comprehensive income attributable to the Company		263,262			309,274			42,557			279,057			573,941			78,977
Net income per ordinary share
—Basic		0.59			0.73			0.10			0.64			1.36			0.19
—Diluted		0.57			0.73			0.10			0.62			1.35			0.19
Weighted average ordinary shares used in calculating net income per ordinary share
—Basic		402,763,517			413,244,101			413,244,101			398,389,853			413,042,603			413,042,603
—Diluted		414,773,664			416,487,748			416,487,748			413,553,602			416,300,958			416,300,958

 

ATOUR LIFESTYLE HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of RMB, except share data and per share data, or otherwise noted)
		Three Months Ended									Six Months Ended
		June 30,			June 30,						June 30,			June 30,
		2023			2024						2023			2024
		RMB			RMB			USD1			RMB			RMB			USD1
Cash flows from operating activities:
Net cash generated from operating activities		519,908			576,641			79,347			881,565			719,877			99,061
Cash flows from investing activities:
Payment for purchases of property and equipment		(9,791	)		(20,136	)		(2,771	)		(27,410	)		(32,751	)		(4,507	)
Payment for purchases of intangible assets		-			-			-			-			(282	)		(39	)
Payment for purchases of short-term investments		(2,003,860	)		(4,578,000	)		(629,953	)		(3,332,210	)		(7,242,000	)		(996,532	)
Proceeds from maturities of short-term investments		2,162,234			4,291,899			590,585			3,494,694			7,005,760			964,025
Net cash generated from (used in) investing activities		148,583			(306,237	)		(42,139	)		135,074			(269,273	)		(37,053	)
Cash flows from financing activities:
Proceeds from borrowings		-			-			-			40,000			20,000			2,752
Repayment of borrowings		(140,130	)		-			-			(141,110	)		-			-
Net cash (used in) generated from financing activities		(140,130	)		-			-			(101,110	)		20,000			2,752
Effect of exchange rate changes on cash and cash equivalents and restricted cash		25,072			4,227			582			23,670			11,628			1,600
Net increase in cash and cash equivalents and restricted cash		553,433			274,631			37,790			939,199			482,232			66,360
Cash and cash equivalents and restricted cash at the beginning of the period		1,975,873			3,049,354			419,605			1,590,107			2,841,753			391,038
Cash and cash equivalents and restricted cash at the end of the period		2,529,306			3,323,985			457,395			2,529,306			3,323,985			457,398

 

ATOUR LIFESTYLE HOLDINGS LIMITED UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(In thousands of RMB, except share data and per share data, or otherwise noted)
		Three Months Ended									Six Months Ended
		June 30,			June 30,						June 30,			June 30,
		2023			2024						2023			2024
		RMB			RMB			USD1			RMB			RMB			USD1
Net income (GAAP)		239,155			303,906			41,818			257,227			561,614			77,281
Share-based compensation expenses, net of tax effect of nil2		9,998			23,885			3,287			151,578			27,027			3,719
Adjusted net income (non-GAAP)		249,153			327,791			45,105			408,805			588,641			81,000
		Three Months Ended									Six Months Ended
		June 30,			June 30,						June 30,			June 30,
		2023			2024						2023			2024
		RMB			RMB			USD1			RMB			RMB			USD1
Net income (GAAP)		239,155			303,906			41,818			257,227			561,614			77,281
Interest income		(7,513	)		(12,396	)		(1,706	)		(12,356	)		(25,915	)		(3,566	)
Interest expense		1,676			854			118			3,603			1,527			210
Income tax expense		78,770			109,879			15,120			131,396			198,800			27,356
Depreciation and amortization		22,289			16,690			2,297			44,186			33,839			4,656
EBITDA (non-GAAP)		334,377			418,933			57,647			424,056			769,865			105,937
Share-based compensation expenses		9,998			23,885			3,287			151,578			27,027			3,719
Adjusted EBITDA (non-GAAP)		344,375			442,818			60,934			575,634			796,892			109,656

__________________________________
² The share-based compensation expenses were recorded at entities in PRC. Share-based compensation expenses were non-deductible expenses in PRC. Therefore, there is no tax impact for share-based compensation expenses adjustment for non-GAAP financial measures.

Key Operating Data

	Number of Hotels				Number of Rooms
	Opened in Q2 2024	Closed in Q2 2024	As of June 30, 2024		As of June 30, 2024
Manachised hotels	123	12	1,382		157,225
Leased hotels	-	1	30		4,461
Total	123	13	1,412		161,686

 

Brand	Positioning	As of June 30, 2024
		Properties		Rooms
		Manachised	Leased
A.T. House	Luxury	-	1	214
Atour S	Upscale	66	5	10,421
ZHOTEL	Upscale	1	-	52
Atour	Upper midscale	1,040	23	122,944
Atour X	Upper midscale	153	-	16,440
Atour Light	Midscale	122	1	11,615
Total		1,382	30	161,686

 

	All Hotels in Operation
	Three Months Ended June 30, 2023		Three Months Ended March 31, 2024		Three Months Ended June 30, 2024
Occupancy rate3 (in percentage)
Manachised hotels	76.8%		73.1%		78.2%
Leased hotels	83.0%		79.3%		83.7%
All hotels	77.1%		73.3%		78.4%
ADR3 (in RMB)
Manachised hotels	468.1		426.0		436.4
Leased hotels	611.5		541.6		573.0
All hotels	474.8		430.0		440.6
RevPAR3 (in RMB)
Manachised hotels	376.6		323.7		354.5
Leased hotels	536.8		455.2		503.3
All hotels	383.6		327.9		358.7

 

	Hotels in Operation for More Than 18 Months in Q2 20244
	Number of hotels				Same-hotel Occupancy3 (in percentage)						Same-hotel ADR3 (in RMB)				Same-hotel RevPAR3 (in RMB)
	Q2 2023		Q2 2024		Q2 2023			Q2 2024			Q2 2023		Q2 2024		Q2 2023		Q2 2024
Manachised hotels	859		859		77.9	%		80.1	%		471.3		445.5		384.6		370.8
Leased hotels	30		30		83.1	%		83.7	%		613.7		572.8		540.0		503.1
All hotels	889		889		78.1	%		80.3	%		477.8		451.1		391.3		376.5

__________________________________
³ Excludes hotel rooms that were previously requisitioned by the government for quarantine needs in response to the COVID-19 outbreak or otherwise became unavailable due to temporary hotel closures. In the second quarter of 2024, no hotels were requisitioned for quarantine needs. ADR and RevPAR are calculated based on tax-inclusive room rates.
⁴ For any given quarter, we define “same-hotel” to be a hotel that has operated for a minimum of 18 calendar months as of the 15th day (inclusive) of any month within that quarter. The OCC, ADR and RevPAR presented above represent such metrics generated by “same hotels” in the second quarter of 2024, compared to the corresponding metrics generated by these “same hotels” during the same period in 2023.