Xin Chen

Xing Chen from UBS Group asked for an update on the 2025 guidance for hotel openings and closures, the recent trend in franchise signings, and whether increasing market competition will affect future development plans.

Answer

Management confirmed its confidence in achieving the full-year guidance of 500 new hotel openings and reaching a total of 2,000 hotels. They anticipate 70 to 80 hotel closures for the full year as part of an active replacement strategy to maintain quality. Despite market turbulence, the company will adhere to high standards for new signings, prioritizing quality growth and long-term value for franchisees over sheer scale.

Xing Chen from UBS Group AG asked if there were any changes to the 2025 guidance for hotel openings and closures, questioned the recent trend in franchise signings amid market competition, and inquired if this would affect future development plans.

Answer

CEO Wang Haijun (via moderator) affirmed confidence in meeting the full-year guidance of 500 new hotel openings and reaching a total of 2,000 hotels. He noted 34 closures in H1 and projected 70-80 for the full year to maintain quality standards. Despite market turbulence, the company will uphold high standards for new signings, prioritizing precise location selection and quality over scale, adhering to its long-termist development philosophy.

Xin Chen from UBS asked for an update on the strategy for Atour's high-end brands, Atour S and Sakura, and inquired about the recent performance of the Atour Light 3.0 brand.

Answer

CEO Haijun Wang stated that the upscale Atour S and Sakura brands are developing in parallel, with the first Sakura hotel in Shanghai receiving high praise since its opening. Regarding Atour Light 3.0, he confirmed its development is aligned with expectations, having expanded to over 100 hotels with strong operational performance and another 100+ in the pipeline, boosting franchisee confidence.

Xin Chen from UBS inquired about the company's RevPAR performance trends since July, the outlook for full-year 2024 RevPAR, and the expected full-year profit margin given the shifts in the group's revenue structure.

Answer

Founder, Chairman and CEO Haijun Wang acknowledged a high comparison base from last summer but expressed confidence in performance, noting same-hotel RevPAR is expected to outperform the group's blended rate. He raised the full-year revenue growth guidance to a range of 48% to 52% year-over-year and projected the full-year adjusted net profit margin would remain at approximately 18%.