ATAT 1Q26 First Take: Overall results were solid, with RevPAR turning positive YoY for the first time in two years. Retail also beat the guidance the company issued at end-2025, and full-year revenue growth guidance was raised from +20%-24% to +24%-28%.
That said, slightly higher hotel operating costs weighed on margin expansion. Specifically:
1) Hotel biz.: RevPAR was RMB 312 per night in Q1, up 2.4% YoY and positive on a quarterly YoY basis for the first time in two years. By driver, ADR reached RMB 427 (+2.2% YoY), marking a second straight quarter of growth and remaining the key lever.
Industry supply growth has slowed, shifting pricing power toward brands, while a higher mix of premium products at Atour structurally lifted ADR. OCC was 70.6% (+40bps YoY).
On franchise expansion, 110 hotels opened in Q1, bringing operating stores to 2,088 (+20.9% YoY). The pipeline stood at 751, with Jianye and Qingju continuing as the main opening drivers.
2) Retail biz.: Revenue was RMB 1.12bn, up 51% YoY. Based on Jiuqian channel data, Q1 online GMV across Atour's three channels rose 41% YoY, far outpacing the home textiles market (-10%), indicating further share gains.
This suggests Atour Planet's brand mindshare is shifting from seeding-led conversion to active search. Together with the rapid ramp of the Deep Sleep Summer Quilt Pro 3.0 and the summer sleepwear line launched in Q1, the category mix is accelerating its transition from a pillows-and-quilts focus to a broader deep-sleep ecosystem.
3) Profit: GPM fell 190bps to 41.4% on higher supply-chain costs and hotel opex, including increased room service and consumables. The opex ratio edged down slightly on operating leverage.
Adj. EBITDA reached RMB 720mn (+51% YoY), beating the Street. $Atour(ATAT.US)
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