--- title: "ATAT (Trans):" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/40739392.md" description: "Full-year retail revenue guidance raised. Now implies 30%-35% YoY growth." datetime: "2026-05-13T15:30:05.000Z" locales: - [en](https://longbridge.com/en/topics/40739392.md) - [zh-CN](https://longbridge.com/zh-CN/topics/40739392.md) - [zh-HK](https://longbridge.com/zh-HK/topics/40739392.md) author: "[Dolphin Research](https://longbridge.com/en/news/dolphin.md)" --- # ATAT (Trans): **Below is Dolphin Research's transcript-style summary of Atour's FY26 Q1 earnings call. For our take on the results, see '**[**Atour: Hotels Recover, Retail Surges — Has the industry's boutique player finally broken out?**](https://longbridge.cn/zh-CN/topics/40736557?channel=SH000001&invite-code=7XHHT4&app_id=longbridge&utm_source=longbridge_app_share&locale=zh-CN&share_track_id=aa93f882-17fb-4645-8037-d0bc7322a743)**'**$Atour(ATAT.US) **I. Key takeaways** 1\. **Shareholder returns**: Announced the first cash dividend in 2026 of approx. $72 mn, about 31% of the prior fiscal year's net income. Since the buyback launch last year, cumulative repurchases have exceeded $100 mn. Combined dividends and buybacks target an aggregate payout of approx. 100% of prior-year GAAP net income. 2\. **Outlook**: FY26 total revenue is guided to grow 24%-28% YoY. Retail revenue guidance was raised to +30%-35% YoY for the year. 3\. **Liquidity**: As of Mar 31, 2026, cash and equivalents were RMB 3.7 bn, with net cash of RMB 3.4 bn. **II. Call details** **2.1 Management commentary** 1\. **Hotel ops** a. The overall portfolio and mature hotels continued to improve QoQ, with RevPAR returning to positive YoY driven mainly by steady ADR gains. Q1 RevPAR was RMB 311.6 (+2.4% vs. 2019/2023 base as indicated), with OCC at 100.6% and ADR at 102.1% on a recovery index basis. b. For mature hotels (operating \>18 months), RevPAR recovered to 98.3% of last year's level, with OCC at 99.2% and ADR at 99.4%. This reflects a narrower gap at stabilized assets. c. 110 hotels opened in Q1. As of quarter-end, 2,088 hotels were in operation, with 751 in the pipeline. d. CRS contributed 63.7% of room nights, while corporate members accounted for 19.3% of room nights. Direct and B2B channels remain key drivers. e. The price-protection policy (price-drop reimbursement and best-rate guarantee) was reinforced. It earned broad positive feedback during the Lunar New Year period. 2\. **Brand portfolio** a. **Atour Hotels**: The Atour 3.6 product has continued to receive positive market feedback over the past year. This validates its competitiveness in the mid-to-upscale segment. b. **Atour Origin**: Further explores sub-segments within mid-to-upscale. Q1 operating hotels posted RevPAR above RMB 400, creating a complementary price ladder vs. Atour Hotels, with a long-termist approach to product refinement, rollout of the deep-sleep system, and deeper cultural and service elements. c. **SAVHE (premium)**: Q1 operating hotels delivered RevPAR above RMB 910 and ADR above RMB 1,000. It is attracting more international guests and families, gaining increasing organic recommendations and positive reviews on overseas platforms, showcasing a unique appeal rooted in Chinese culture. d. **Atour Light**: The customer base is more diversified, with steady gains among younger users and business travelers. Version 3.3 has opened in 20+ hotels, delivering over 10% higher RevPAR vs. version 3.0, with both product experience and operating efficiency recognized by guests and franchisees. In 2026, expansion will focus on tier-2 and above cities with an emphasis on quality. 3\. **Supply chain** a. As the hotel network expands and brand strength grows, more high-quality suppliers are joining the ecosystem. The platform's assortment is broader, and franchisees are more willing to centralize procurement. b. The company adheres to eight supply chain commitments, establishing robust mechanisms for pricing, after-sales service, and customer care. This underpins reliability for franchise partners. c. Deeper co-development with upstream suppliers will enhance functionality of existing products and support new product development. R&D collaboration remains a focus. 4\. **Retail** a. Q1 retail revenue grew strongly YoY, with core categories performing well. Atour Planet ranks among the top bedding brands on major third-party platforms. b. **Pillows**: Maintained No.1 category sales ranking on major platforms in Q1. The Memory Foam Pillow Pro 3.0, supported by brand campaigns, saw strong market reception. c. **Comforters/duvets**: Share continued to rise, with cumulative sales of the Deep-Sleep Thermo-Control series exceeding 3 mn units. The Deep-Sleep Thermo-Control Pro 3.0 summer edition surpassed RMB 100 mn in GMV within 45 days of launch, delivering a systemic upgrade in dynamic temp-humidity control (dual-direction temperature control and improved moisture wicking and breathability). d. **New categories**: The summer Deep-Sleep loungewear and new-color fitted sheets showed solid early momentum. These extensions broaden the sleep ecosystem. e. Full-year retail revenue guidance has been raised to +30%-35% YoY. 5\. **Membership** a. Registered individual members reached 116 mn by Q1-end, up 20% YoY. The user base continues to scale. b. In 2026, anchored on deep-sleep scenarios, the company will deepen hotel-retail synergies to enhance member value. It will also explore cross-brand collaborations with aligned partners. 6\. **ESG** a. Released Atour Group's 2025 ESG report. This frames ongoing sustainability priorities. b. The Atour Foundation was established at end-2025 and recently launched a public-welfare program for frontline housekeeping staff, open to the broader industry. This aims to elevate frontline worker well-being. **2.2 Q&A** **Q: Q1 saw an uptick in hotel closures. Will this affect full-year closures and openings targets?** A: We closed 37 hotels in Q1, with a concentrated cadence mainly because projects identified last year only completed closure this year, creating a lag in the data. The full-year closure target remains at 80. Thanks to proactive structural adjustments last year, the quality of the operating base has improved notably. Over this process, we have also built a long-term mechanism. For legacy hotels, we provide targeted support and customized renovation plans to lower upgrade thresholds, coupled with partial fee waivers and funding support to meaningfully improve competitiveness. On openings, we are proceeding steadily per plan, holding to a boutique mindset — new hotels must fit our positioning and deliver high-quality guest experiences. With 751 projects in the pipeline at Q1-end, supply is ample and high quality. Therefore, full-year opening targets are unchanged. **Q: How is the Q2 RevPAR trend? Any change to the full-year RevPAR outlook?** A: Entering Q2, we see leisure demand remaining resilient. Spring breaks in some regions in Apr further lifted travel, and more dispersed timing led to a more balanced holiday flow. That said, we remain cautiously optimistic on Q2 RevPAR given ongoing market volatility. Longer term, pro-consumption policies continue to unlock service consumption and provide strong impetus. While external factors may drive short-term swings and lodging remains in a volatile recovery, we will not chase short-term metrics. Instead, we will strategically broaden both business and leisure segments and keep refining tangible service details so Atour becomes the most reassuring and reliable choice for travelers. **Q: How is franchisee sentiment? Any change to signing strategy?** A: The market is normalizing, and franchisees are more mature — neither overly optimistic nor rattled by short-term swings. This sets a healthier backdrop for signings. **On signing strategy: First, we will continue to strengthen presence in core cities and prime districts to capture core business travel and urban leisure demand. Second, we will selectively tap leisure growth in high-potential markets such as strong tier-3 cities and cities with 5A attractions, choosing projects with solid fundamentals and long-term potential.** Third, quality is paramount over the long run, though the market lacks a common definition. Our view of quality goes beyond hardware and structural upgrades; it centers on experience and building a holistic quality construct. Leading product strength is the base, presence in core locations is key, and continuous experience refinement is the moat. This philosophy yields an important result: our pricing power is earned through guest-perceived value, not cost-cutting. This enables us to keep pushing the price boundary higher. Brands like Atour Origin were created under this logic; they are not substitutes for existing products but an expansion of Atour's brand canvas. **Q: Q1 retail revenue beat the Street. What drove the strong uptake of new products, and any update to the full-year retail guide?** A: The retail growth story is about product methodology, not just numbers. Take the Deep-Sleep Thermo-Control Pro summer series as an example: three years ago, Gen 1 shifted from traditional duvet covers to an integrated structure with a cool touch on both sides — a structural innovation. Gen 2 recognized that users seek natural freshness over extreme coolness, so we redesigned ventilation and fabric architecture, moving from passive cooling to active temp control with dehumidification — a demand-driven innovation. This year, Gen 3 targets indoor temperature fluctuations in summer by creating a dynamic system that responds to environmental changes, further upgrading dynamic temp-humidity control — a deeper, scenario-driven innovation. Across three iterations, the product definition evolved from a cool blanket to a breathable duvet and now to a duvet that breathes. **What drives this shift is demand validated repeatedly in real user scenarios. Each iteration translates fuzzy user sensations into definable, measurable, and replicable technical standards. We have learned that the hardest moat is not a single material or patent, but the systemic capability to stay close to users and keep converting user feelings into standards.** On guidance, with a solid Q1 base and strong new-product momentum, we are confident in exceeding the prior full-year target, so we raise full-year retail revenue guidance to +30%-35% YoY. **Q: The company announced a mid-year dividend. Any changes or updates to the shareholder return policy?** A: We attach great importance to shareholder returns. We announced this year's first dividend at approx. $72 mn, about 31% of last fiscal year's net income, and cumulative buybacks since last year exceeded $100 mn by Q1. Looking ahead, we will continue a combined dividend and buyback program targeting an aggregate payout of approx. 100% of prior-year GAAP net income. **Risk disclosure and disclaimer:**[**Dolphin Research Disclaimer and General Disclosure**](https://support.longbridge.global/topics/misc/dolphin-disclaimer) ### Related Stocks - [ATAT.US](https://longbridge.com/en/quote/ATAT.US.md)