SHANGHAI, April 3, 2024 /PRNewswire/ -- Atour Lifestyle Holdings Limited (NASDAQ: ATAT), a leading hospitality and lifestyle company in China, reported robust growth in 2023 fueled by a rebound in domestic travel and its focus on experience-led offerings.

The company announced on its unaudited financial results on March 28,2024 for the fourth quarter and full year ended December 31, 2023.

Net revenues for full year 2023 increased by 106.2% year-over-year to RMB4,666 million (US$657 million), compared with RMB2,263 million for full year 2022. For full year 2023, adjusted net income (non-GAAP) was RMB903 million (US$127 million), representing an increase of 248.3% year-over-year compared with RMB259 million for full year 2022.

Atour, a trailblazer in the "lifestyle hotel" category, prioritizes delivering tailored, high-quality experiences for diverse consumers and scenarios. This commitment has earned it the trust and preference of both consumers and partners alike.

"We are pleased to deliver strong full-year results for 2023, as well as significant progress towards our goal to operate a nationwide network of 2,000 premier hotels by 2025 and establish the 'Chinese Experience' as the industry benchmark," said Mr. Haijun Wang, Founder, Chairman and CEO of Atour.

Beyond an uptake in financial figures, Atour also saw major business metrics rise rapidly in 2023.

In 2023, the average revenue per available room (RevPAR) and average daily rate (ADR) of Atour hotels have both exceeded the levels for the same period in 2019, reaching RMB377 and RMB464, up 44% and 19% year-over-year respectively. The occupancy rate (OCC) for full year 2023, which stood at 77.8%, has recovered to 106.0% of 2019's level.

Atour logged 576 new hotel signings in 2023, further bolstering its iconic "Chinese Experience, 2,000 Premier Hotels" strategy, whereby the hotel chain looks to operate 2,000 hotels by 2025.

As of December 31, 2023, Atour had 1,210 hotels in operation across its network, representing a year-on-year growth of 29.8%. Concurrently, there were 617 manachised hotels under development in its pipeline.

In 2023, the domestic tourism market in China continued to regain its vigor. Data from the Ministry of Culture and Tourism shows that domestic travelers made 4.89 billion trips throughout the year, up 93.3% year on year, while tourist spending totaled RMB4.91 trillion, a staggering 140.3% increase over the previous year.

Amid the post-pandemic recovery, the tourism market is reverting to pre-pandemic levels, fueling a surge in demand for personalized experiences as well as an upgrade within the hospitality sector.

Atour has led this transformation, capitalizing on its advantages in product innovation, operations, and digitalization.

In line with its differentiation strategy , Atour introduced Atour Light 3.0 in February 2023, a midscale offering that not only meets consumers' desire for quality accommodations and unique experiences, but also demonstrates its exceptional value proposition compared to similar brands in the industry.

Since its launch, Atour Light 3.0 has garnered 27 new hotel signings in the fourth quarter of 2023, with 25 already in operation. Strategically located in central business districts of second-tier cities and above, these hotels enhance Atour's accessibility to China's young business travelers and vacationers.

Additionally, the introduction of Atour 4.0 "With Nature", a flagship upper midscale hotel brand, underscores the company's multi-brand, experience-centric approach. Atour 4.0 caters to both travelers and leisure vacationers, offering combined leisure and business facilities. Since its debut in November 2023, the first batch of hotel signings have been completed in major domestic cities and business districts, with the first establishment scheduled to open in the first half of 2024.

To attract and retain members, Atour has enhanced its A-CARD membership system with additional high-value benefits, appealing particularly to younger demographics. These benefits span retail, dining, culture, arts, and sports, complementing the existing loyalty program. As of December 31, 2023, the number of registered members has surpassed 63 million, up 78% year-over-year.

In broadening its product and market scope, Atour intents on exploring new opportunities in the retail sector. Drawing insights from guest feedback, it has introduced a line of deep-sleep-inspired amenities.

This scenario-based retail business generated RMB1.14 billion in GMV for full year 2023, marking a 298.3% year-over-year increase. Among the merchandise, cumulative sales of Atour's best-selling Deep Sleep Pillow PRO hit 1.2 million units, while consumers snapped up more than 100,000 Deep Sleep Temperature Control Quilts.

The spike in sales underscores Atour's ability to meet real user needs, enabling it to expand its competitive edge in the mid- to high-end price segments.

From sleep-related products to other categories, its innovative approach has supplied the hospitality industry with a recipe for success.

Atour's digital capabilities underpin a seamless online-to-offline shopping experience, enhancing user satisfaction and unlocking greater potential for business growth. This integrated model promises to drive the company's long-term development, as the hotel and retail businesses tend to strengthen each other.

Looking ahead to the 11th year since its founding, Atour remains committed to enhancing its "Chinese Experience, 2,000 Premier Hotels" strategy and delivering more lifestyle innovations to customers. It also looks to collaborate with partners to push the boundaries in China's hospitality industry and celebrate success together.

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 a scenario-based retail business. Atour is committed to bringing innovations to China's hospitality industry and building new lifestyle brands around hotel offerings.

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SOURCE Atour Lifestyle Holdings Limited

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