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Atour Lifestyle Q4 Earnings & Revenues Top, Adjusted EBITDA Up Y/Y

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Atour Lifestyle Holdings Limited (ATAT - Free Report) reported robust fourth-quarter 2024 results, with earnings and net revenues beating the Zacks Consensus Estimate and increasing on a year-over-year basis.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The quarter’s result was mainly backed by the ongoing hotel network expansion and the growth of the company’s supply chain business. Furthermore, the widespread recognition of its retail brands and effective product innovation and development reflecting diversified product offerings also bode well during the quarter.

Although increasing operating costs and expenses are concerning, leverage from the growing top line and operational efficiencies aided the company’s bottom line.

Atour Lifestyle’s Q4 in Detail

The company reported earnings per share (EPS) of 33 cents, beating the Zacks Consensus Estimate of 30 cents by 10%. In the prior-year quarter, ATAT recorded an adjusted EPS of 21 cents.

Net revenues of $286 million also topped the consensus mark of $272 million by 4.9% and grew 34.9% year over year.

Revenues in the Manachised hotels segment increased 30% year over year to $152 million, with the total number of hotels increasing year over year to 1,593 from 1,178 as of the fourth quarter end.

The Leased hotels segmental revenues declined 15.9% year over year to $22 million due to the decrease in the number of leased hotels as a result of the company’s product mix optimization. At the end of the quarter, the number of hotels in this segment tumbled to 26 from 32.

Revenues from the Retail segment significantly grew year over year by 85.6% to $105 million due to increased product diversification initiatives and growing brand recognition.

The Others segment’s revenues during the quarter grew 3.4% to $7 million compared with last year's quarter.

Operating Highlights of ATAT

Total operating costs and expenses totaled $233 million, up year over year from $187 million. Hotel operating costs increased 5.8% year over year to $109 million, mainly due to the increase in variable costs, such as supply-chain costs, associated with the company’s ongoing hotel network expansion.

The selling and marketing expenses rose significantly 69% year over year to $49 million because of enhanced investments in brand recognition and the development of online channels, aligned with the growth of its retail business.

Adjusted EBITDA amounted to $61 million, up 76.5% year over year.

Sneak Peek at Atour Lifestyle’s 2024

The full-year net revenues increased 55.3% year over year to $993 million.

The full-year EPS increased to $1.26 in 2024 compared with 75 cents reported in 2023

ATAT’s Financials

As of Dec. 31, 2024, Atour Lifestyle’s cash and cash equivalents and restricted cash were $496 million compared with $400 million as of Dec. 31, 2023.

At the end of the fourth quarter, the total outstanding borrowings were $8.5 million, down from $10 million at 2023-end.

ATAT Unveils 2025 Outlook

The company expects net revenues to grow 25% compared with 2024.

ATAT’s Zacks Rank & Other Key Picks

Atour Lifestyle currently carries a Zacks Rank #2 (Buy).

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