How Investors Are Reacting To Atour (ATAT) Upgraded 2025 Revenue Outlook Despite Softer Hotel Metrics

• Atour Lifestyle Holdings recently reported its second quarter 2025 results, highlighting revenue of CNY 2.47 billion and net income of CNY 424.23 million, alongside an upgraded outlook for full-year revenue growth of 30% over 2024.
• An interesting detail is that while average daily room rates and occupancy saw modest declines year over year, both total revenue and profit continued to rise, suggesting successful expansion in other business areas.
• We will examine how the significant boost in revenue guidance may strengthen Atour's investment narrative around hospitality and digital retail growth.

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Atour Lifestyle Holdings Investment Narrative Recap

To be a shareholder in Atour Lifestyle Holdings, you need to believe that the company’s unique blend of hospitality and digital retail can keep driving significant revenue growth, even as traditional hotel metrics like room rates and occupancy face pressure. The recent boost in full-year revenue guidance is a positive catalyst, potentially reinforcing confidence in Atour’s expansion story, while operational risk from sustaining high-quality standards across its rapidly growing hotel network remains the biggest short-term threat. The news does not appear to materially heighten this risk, but it does underline the importance of ongoing execution as new outlets open.

Among the latest announcements, the August 2025 upgrade in full-year revenue outlook to 30% growth over 2024 is most relevant. This directly builds on the robust second-quarter results, as it suggests continued momentum across both the experiential hospitality segment and the digital retail initiatives, a development that strengthens the narrative around Atour’s catalysts for growth.

Yet, despite the upbeat outlook, investors should keep in mind that if franchisee quality controls weaken as network expansion accelerates…

Read the full narrative on Atour Lifestyle Holdings (it's free!)

Atour Lifestyle Holdings is projected to achieve CN¥15.1 billion in revenue and CN¥2.7 billion in earnings by 2028. This outlook is based on an anticipated 21.9% annual revenue growth rate and a CN¥1.3 billion increase in earnings from the current level of CN¥1.4 billion.

Uncover how Atour Lifestyle Holdings' forecasts yield a $41.06 fair value, a 6% upside to its current price.

Exploring Other Perspectives

Eight individual fair value estimates from the Simply Wall St Community range from CNY 32.78 to CNY 55.76, showing diverse expectations. While expansion is fueling revenue growth, operational risks linked to quality control could affect outcomes, so explore these varied perspectives for a fuller picture.

Explore 8 other fair value estimates on Atour Lifestyle Holdings - why the stock might be worth as much as 44% more than the current price!

Build Your Own Atour Lifestyle Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Atour Lifestyle Holdings research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Atour Lifestyle Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Atour Lifestyle Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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