Atour Lifestyle Holdings - Earnings Call - Q1 2025
May 22, 2025
Transcript
Speaker 0
Hello, ladies and gentlemen. Thank you for standing by, and welcome to the Atour Lifestyle Holdings First Quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. Today's conference is being recorded. I would now like to turn the call over to Mr. Luke Hu, Senior IR Manager. Please go ahead, sir.
Luke Hu (Senior Manager of Investor Relations)
Thank you, Operator. Good morning and good evening, everyone. Welcome to our First Quarter 2025 earnings conference call. Today, you will hear from our Founder, Chairman, and CEO, Mr. Wang Haijun, and our EVP Co-CFO, Mr. Wu Jianfeng. Before we continue, please be aware that this discussion will include forward-looking statements under federal securities laws. These statements are subject to various risks and uncertainties, and the actual results may differ significantly from what is stated or implied in our comments today. The company is not obligated to update any forward-looking statements except as required by applicable laws. Additionally, during this call, our management will discuss certain non-GAAP financial measures solely for comparison purposes. For a clear understanding of these measures and a reconciliation of GAAP to non-GAAP financial results, please refer to the earnings release issued earlier today.
Furthermore, a webcast replay of this conference call will be accessible on our website at ir.atour.com, where a copy of the results presentation is also available. Now, I will turn the call over to Mr. Wang, our CEO.
Haijun Wang (Founder, Chairman, and CEO)
谢谢主持人，大家好。感谢各位参加亚朵集团2025年第一季度业绩电话会议。
Luke Hu (Senior Manager of Investor Relations)
Thank you, Luke. Hello, everyone, and thank you for joining Atour's first quarter 2025 earnings call today.
Haijun Wang (Founder, Chairman, and CEO)
2025年第一季度，受复杂多变的宏观环境影响，国内出行市场相对波动，整体市场形势存在诸多不确定性，但机遇与挑战并存。作为领先的生活方式品牌集团，亚朵始终秉持经营人群的理念，从容应对新的市场变化，精准迎合当下消费者对于高品质、个性化和体验式消费的进阶需求。同时，我们持续坚定地推进中国体验2000好店的战略举措，在不断夯实品牌力和产品力的同时，推动行业价值体系的重构与升级。
Luke Hu (Senior Manager of Investor Relations)
In the first quarter of 2025, China's domestic travel market experienced fluctuations amid a complex and volatile macro environment, with numerous uncertainties presenting both challenges and opportunities. As a leading lifestyle group, we have always adhered to our business philosophy of serving people and are confidently navigating these evolving market dynamics. We continue to respond proactively to shifting consumer preferences for superior quality, personalized service, and experience-driven consumption. Meanwhile, we remain firmly committed to advancing the strategic initiative of Chinese Experience 2000 Premier Hotels, which not only strengthens our brand awareness and product offerings but also drives the transformation and elevation of the industry's value chain.
Haijun Wang (Founder, Chairman, and CEO)
下面我将展开介绍2025年第一季度各项业务的具体情况。
Luke Hu (Senior Manager of Investor Relations)
Next, I would like to provide more details on our business performance for the first quarter of 2025.
Haijun Wang (Founder, Chairman, and CEO)
首先是住宿业务，请大家翻到我们的PPT第4页。一季度集团大盘RORPA为304.4元，为24年同期的92.8%。其中，OCC为24年同期的95.8%，ADR为24年同期的97.2%。
Luke Hu (Senior Manager of Investor Relations)
Let's begin with our hotel business. Please turn to slide 4 of our 1Q25 results presentation. Our RevPAR reached CNY 304.4 in the first quarter of 2025, representing 92.8% of its level in the same period of 2024. Specifically, OCC reached 95.8%, and ADR stood at 97.2%, both compared to the same period in 2024.
Haijun Wang (Founder, Chairman, and CEO)
请大家翻到PPT的第5页。一季度在营超过18个月的成熟酒店RORPA为24年同期的92.8%，与集团整体表现一致。其中，OCC和ADR分别为24年同期的95.6%和97.4%。
Luke Hu (Senior Manager of Investor Relations)
Please turn to slide 5. RevPAR for our mature hotels in operation for more than 18 months in the first quarter of 2025 was 92.8% of the level for the same period in 2024, in line with the group's overall performance, while OCC and ADR for these mature hotels reached 95.6% and 97.4% of 2024's levels for the same period, respectively.
Haijun Wang (Founder, Chairman, and CEO)
请大家翻到第6页。得益于不断提升的品牌力以及强大的组织效能，我们的酒店网络持续扩张，进一步彰显了集团的成长韧性。一季度共计新开业121家酒店，同比增长24.7%。截止一季度末，集团在营酒店数量达到1727家，同比增长32.6%。
Luke Hu (Senior Manager of Investor Relations)
Please turn to slide 6. Benefiting from our strengthening brand influence and robust organizational efficiency, our hotel network continued to expand, demonstrating the resilience of our business. In the first quarter, we opened 121 new hotels, representing a 24.7% year-over-year increase. By the end of the first quarter, we had a total of 1,727 hotels in operation, representing a 32.6% year-over-year increase.
Haijun Wang (Founder, Chairman, and CEO)
本季度，加盟商对品牌发展持续看好，管道项目不断扩充。截止一季度末，管道项目总数达到755家。在追求规模扩张的同时，我们始终坚持品质底线，对签约项目和新开业酒店进行严格的筛选和把关，确保可持续的高质量增长。
Luke Hu (Senior Manager of Investor Relations)
This quarter, franchisees remain positive about our brand development. This has led to a continuous expansion of our pipeline projects. By the end of the first quarter, the number of hotels under development reached 755. While pursuing scale expansion, we always adhere to the quality standards. We carefully screen and evaluate both new hotel signings and openings to ensure sustainable high-quality growth.
Haijun Wang (Founder, Chairman, and CEO)
下面我将介绍一下亚朵集团住宿品牌的最新发展。
Luke Hu (Senior Manager of Investor Relations)
Next, I would like to share the latest developments for Atour's hotel brands.
Haijun Wang (Founder, Chairman, and CEO)
一季度秉持长期主义的发展理念，结合对当下商旅消费趋势的深刻洞察，我们对中高端及终端住宿产品均进行了迭代和升级。
Luke Hu (Senior Manager of Investor Relations)
In the first quarter, guided by our long-term growth philosophy and deep insights into current business travel trends, we implemented upgrades to our mid-scale and upper-mid-scale hotel products.
Haijun Wang (Founder, Chairman, and CEO)
请大家翻到第7页。在中高端市场，一季度我们发布了亚朵3.6产品。亚朵3.6采用与自然共生的设计理念，将商务实用性和松弛氛围感深度融合。此外，通过对空间利用和功能设计的全面升级，亚朵3.6着力优化住宿体验的便捷性和舒适度，为用户打造极致商旅的全场景住宿体验，树立中高端市场商务出行的新标杆。
Luke Hu (Senior Manager of Investor Relations)
Please turn to slide 7. In the upper-mid-scale segment, we launched Atour 3.6 in the first quarter. This product embodies an in-harmony-with-nature design philosophy, seamlessly integrating business functionality and a relaxed ambiance. Furthermore, Atour 3.6 prioritizes enhanced convenience and comfort through optimized space utilization and upgraded functional design. This innovation enables us to deliver a comprehensive full-scale ultimate business travel experience, setting a new benchmark for premium business travel in the upper-mid-scale market.
Haijun Wang (Founder, Chairman, and CEO)
自推出以来，亚朵3.6凭借其强大的产品活力、全面升级的体验设施以及高效的投资回报，获得了市场的广泛关注以及加盟商的积极反馈。我们相信，亚朵3.6将持续夯实我们在中高端市场的核心竞争力。
Luke Hu (Senior Manager of Investor Relations)
Since its launch, Atour 3.6 has received widespread market recognition and positive feedback from franchisees through its strong product vitality, holistically upgraded our customer experience features, and efficient investment returns. We believe this product will further solidify our core competitiveness in the upper-midscale segment.
Haijun Wang (Founder, Chairman, and CEO)
请大家翻到第8页。未来，亚朵3系和亚朵4系产品将组成亚朵中高端的新一代的产品矩阵，并行发展，相辅相成。3系产品致力于巩固我们在当下主流商务出行场景中的核心品牌地位，4系产品生命周期更长，引领未来中高端市场的发展方向。3系和4系产品协同，不仅可以满足当今用户多元化的审美偏好和住宿需求，也为广大加盟商提供了更丰富的投资选择。此外，对于有改造需求的存量酒店，我们也推出了亚朵3.5SE焕新方案，使其持续保持市场竞争力。
Luke Hu (Senior Manager of Investor Relations)
Please turn to slide 8. Looking ahead, the Atour Series 3 and the Series 4 product lines will jointly shape our next-generation upper-midscale hotel portfolio, operating in parallel to complement each other. Atour Series 3 strengthens our leading brand position in core business travel scenarios. Meanwhile, Atour Series 4 offers an extended lifecycle and shapes the future of the upper-midscale market. Together, Series 3 and the Series 4 product lines address diverse customer aesthetic preferences and accommodation needs, while also providing franchisees with a broader range of investment options. In addition, for existing hotels with renovation needs, we have introduced the Atour 3.5SE renovation program to help them maintain market competitiveness.
Haijun Wang (Founder, Chairman, and CEO)
请大家翻到第9页。在中端品牌方面，我们坚持围绕年轻用户的多元需求进行产品创新和体验升级。2023年，我们推出青居3.0，凭借其年轻时尚的设计风格和创新特色的触点服务，有效应对了当下终端市场住宿产品审美过时、服务体验不足等问题，赢得了加盟商和消费者的广泛好评。同时，我们也在运营过程中积累了大量关于年轻用户群体的洞察。
Luke Hu (Senior Manager of Investor Relations)
Please turn to slide 9. In the mid-scale segment, we remain committed to product innovation and experiential upgrades that cater to the diverse needs of younger consumers. In 2023, we introduced Atour Lifestyle 3.0, which effectively addressed critical market challenges such as outdated aesthetics and inadequate service experiences by incorporating youthful, fashionable design and innovative service touchpoints. This product has received widespread acclaim from both franchisees and consumers. Meanwhile, during the operation, we have gained valuable insights into the preferences of younger consumers.
Haijun Wang (Founder, Chairman, and CEO)
在此基础上，一季度我们推出了青居3.3的产品，以热那亚的蓝色夜晚为灵感，通过沉浸式的氛围感设计，为用户营造轻松治愈的休憩体验。青居3.3在视觉设计、空间感知以及硬件设置上进行了全面的升级。同时，针对商务洽谈和办公需求，优化了空间功能，全方位提升青居酒店的入住体验。我们相信，凭借品质感的全方位升级、更多元的适配性以及亚朵级体验标准的优势，青居3.3将成为青居品牌达成千店规模的重要引擎，并在终端市场成为标志性的产品。
Luke Hu (Senior Manager of Investor Relations)
Building on this foundation, we launched Atour Lifestyle 3.3 in the first quarter. Inspired by the Blue Nights of Genoa, Atour Lifestyle 3.3 provides customers with a relaxing and restorative resting experience through immersive atmospheric design. Atour Lifestyle 3.3 features comprehensive upgrades in visual design, spatial perception, and facilities, while offering tailored functionality for business meetings and work-related needs. These enhancements further elevate the overall customer experience. With its improved quality, expanded versatility, and adhered to our Atour signature experience standards, we believe Atour Lifestyle 3.3 will serve as a key driver in achieving our goal of 1,000 Atour Lifestyle hotels and will establish itself as a flagship product in the mid-scale segment.
Haijun Wang (Founder, Chairman, and CEO)
在市场竞争日趋激烈的背景下，我们坚持打造长生命周期的产品，品质率持续提升，体验壁垒不断加固，有效地覆盖更广阔人群的需求，进一步夯实我们在各细分市场的领先地位。
Luke Hu (Senior Manager of Investor Relations)
In an increasingly competitive market, we remain focused on creating products with extended lifecycles. By continuously enhancing our product competitiveness with reinforced experience differentiations, we effectively meet the diverse needs of broader demographics, further solidifying our leadership across market segments.
Haijun Wang (Founder, Chairman, and CEO)
接下来是我们的零售业务，请大家翻到第10页。
Luke Hu (Senior Manager of Investor Relations)
Now moving to our retail business, please turn to slide 10.
Haijun Wang (Founder, Chairman, and CEO)
零售业务的发展是亚朵践行生活方式品牌集团的定位和经营人群理念的自然成果。一季度，零售业务继续保持强劲的增长势头。在品牌力持续攀升、用户粘性稳步增强的驱动下，GMV达到了8.45亿元，同比增长70.9%。其中，线上渠道占比持续超过90%。
Luke Hu (Senior Manager of Investor Relations)
The growth of our retail business is a natural extension of our positioning as a lifestyle group and our business philosophy of serving people. In the first quarter, our retail business maintained strong growth momentum, with GMV reaching CNY 845 million, up 70.9% year-over-year, driven by rising brand strength and growing customer loyalty. Online channels continued to contribute over 90% of total GMV.
Haijun Wang (Founder, Chairman, and CEO)
请大家翻到第11页。亚朵星球成立至今，始终致力于研究并融合用户在酒店场景和居家场景下的睡眠需求。我们打造的深睡体验也逐渐成为消费者心中的锚点。在不同场景中，亚朵星球的产品不仅满足了用户的功能需要，也实现了对情绪需求的深度触达。
Luke Hu (Senior Manager of Investor Relations)
Please turn to slide 11. Since its inception, Atour Planet has remained committed to studying and integrating customers' sleep needs across both hotel and home environments. This anchors the deep sleep experience firmly in the minds of customers. Across different scenarios, Atour Planet's products not only fulfill customers' functional needs but also deeply resonate with their emotional needs.
Haijun Wang (Founder, Chairman, and CEO)
枕头品类方面，一季度深睡枕Pro系列产品延续强劲的销售势头，在主流第三方电商平台的销量持续位列品类第一。该系列产品发布至今，累计销量已突破600万支，进一步巩固了亚朵星球在枕头品类的领先地位。
Luke Hu (Senior Manager of Investor Relations)
In the pillow category, our Deep Sleep Memory Foam Pillow Pro series maintained robust sales performance in the first quarter, consistently ranking as the top seller in its category on major third-party e-commerce platforms. Since its launch, the accumulated sales of the Deep Sleep Memory Foam Pillow Pro series have exceeded 6 million units, further solidifying Atour Planet's leading position in the pillow category.
Haijun Wang (Founder, Chairman, and CEO)
请大家翻到第12页。基于我们对用户需求的捕捉和挖掘，以及对用户反馈的提炼和分析，亚朵星球已经形成标准化的以用户需求为驱动的产品迭代模式。3月份，我们跟随季节变化，推出了深睡扣温被夏季Pro 2.0。作为去年深睡夏凉被的迭代版本，新款产品进一步优化了透气凉感系统，聚焦为用户提供自然舒适的清爽体验，而非极致冰冷的触感。新品一经上市便获得了用户的高度认可，发布首月，既在天猫和抖音平台获得了品类销量第一的成绩。上市48天，GMV便突破了亿元大关，成为亚朵星球深睡系列又一个爆款单品。
Luke Hu (Senior Manager of Investor Relations)
Please turn to slide 12. Based on our capture and exploration of user needs, as well as the refinement and analysis of user feedback, Atour Planet has developed a standardized user-driven product iteration model. In March, in line with seasonal changes, we launched the Deep Sleep Thermoregulating Comforter Pro 2.0 Summer Season. Serving as the upgraded version of the Deep Sleep Lightweight Comforter introduced last year, this new product further optimizes the breathable cooling system, aiming to provide the customers with a natural and cozy coolness instead of an ultimate coat touch. Upon launch, the product received widespread consumer praise, ranking first in sales in its category on Tmall and Douyin in its first month. Within just 48 days, the product exceeded CNY 100 million GMV, making it another blockbuster product in the Deep Sleep series.
Haijun Wang (Founder, Chairman, and CEO)
此外，在竞争日益激烈的市场环境中，我们也在持续巩固亚朵星球的核心壁垒。一方面，我们持续进行产品材料和工艺技术的创新；另一方面，通过建立完善的生产工艺标准，我们实现了生产过程中全链路的品质管控，确保产品品质的稳定性和一致性。此外，亚朵星球持续从用户需求出发，优化产品细节，提升使用体验。凭借不断提升的产品性能和品质，亚朵星球精准满足用户对高品质生活的追求，在产品质量和用户体验等维度上定义新的行业标准。
Luke Hu (Senior Manager of Investor Relations)
In addition, amidst an increasingly competitive market environment, we have been steadily reinforcing Atour Planet's core strengths. On one hand, we continue to drive innovation in product materials and manufacturing technologies. On the other hand, by establishing a comprehensive set of production standards, we have achieved end-to-end quality control and ensured consistent and reliable product quality. Moreover, Atour Planet remains focused on refining product details based on customer needs, aiming to enhance the overall usage experience. With the continuous improvement of both product performance and quality, Atour Planet is well positioned to meet consumers' growing expectations for high-quality living, redefining new standards for both product quality and customer experience.
Haijun Wang (Founder, Chairman, and CEO)
请大家翻到第13页。接下来向大家介绍会员以及渠道方面的进展。
Luke Hu (Senior Manager of Investor Relations)
Please turn to slide 13, moving to our membership business and channel development progress.
Haijun Wang (Founder, Chairman, and CEO)
得益于不断成熟的会员体系和持续丰富的会员权益，截止一季度末，亚朵注册会员数已经突破了9,600万人，同比增长35.4%。我们的核心自有渠道继续保持稳定水平，一季度CIS渠道销售间业占比65.1%，其中企业协议销售间业占比19.8%。
Luke Hu (Senior Manager of Investor Relations)
Thanks to the continued enhancement of our membership ecosystem and an expanding range of membership benefits, our registered individual members surpassed 96 million by the end of the first quarter, representing a 35.4% year-over-year increase. Our core CRS channel continued to maintain stable performance, accounting for 65.1% of total room nights sold during the first quarter. The contribution of room nights sold to corporate members was 19.8% during the first quarter.
Haijun Wang (Founder, Chairman, and CEO)
请大家翻到第14页。我们持续完善A卡的会员体系，通过对不同业态用户行为偏好的洞察和研究，推动住宿业务与零售业务的融合联动，以进一步促进交叉消费。一季度，在零售新品发布的同时，我们推出从零售到酒店会员权益的互通促销，吸引更多购买零售产品的消费者体验我们的酒店，进一步推动场景间的转化。
Luke Hu (Senior Manager of Investor Relations)
Please turn to slide 14. We continue to enhance our A Card membership ecosystem by gaining deeper insights into user behavior and preferences across different business formats. This enables us to further integrate hotel and retail businesses, thereby driving cross-consumption between them. In the first quarter, alongside the launch of new retail products, we introduced cross-promotional campaigns that allow retail customers to access our hotel membership benefits. These initiatives have attracted more retail customers to our hotels, driving further conversions across our business segments.
Haijun Wang (Founder, Chairman, and CEO)
在会员运营方面，我们积极把握休闲出行趋势和商务出行的需求，持续打造高感知度的体验和权益。在春节期间，为契合当下年轻人避开人潮、探索小众目的地的出行需求，我们推出了反向旅行、拆惊喜酒店盲盒的活动，并通过目的地推荐官的形式为用户提供在地的玩法。此外，我们也与垂类出行企业展开会员互通合作，在用户出行链中叠加亚朵的价值，进一步提升会员粘性。
Luke Hu (Senior Manager of Investor Relations)
In terms of member engagement, we actively leverage emerging trends in leisure and business travel to continuously deliver experiences and benefits that highly resonate with customers. For example, during the Spring Festival, we launched our counter-trend travel blind hotel booking campaign, catering to the younger travelers' growing preference for exploring niche, crowd-free destinations. We also introduced the Destination Ambassadors to share local travel inspiration. Additionally, we partnered with a vertical travel platform to establish integrated memberships, further embedding our value proposition throughout customers' journey and enhancing member loyalty.
Haijun Wang (Founder, Chairman, and CEO)
最后，很高兴地向大家宣布，我们近期发布了亚朵2024年度的ESG报告。请大家翻到第15页。2024年，我们持续提升ESG的治理水平，在住宿和零售业务中全面融入可持续的理念。同时，我们积极践行社会责任，通过产业支持和温暖帮扶，持续回馈亚朵村，并用品牌影响力搭建起生物多样性保护的桥梁。
Luke Hu (Senior Manager of Investor Relations)
Finally, I am pleased to announce the recent release of our 2024 ESG report. Please turn to slide 15. Throughout 2024, we continued to strengthen our ESG governance by embedding sustainability principles across both hotel and retail businesses. At the same time, we are actively fulfilling our social responsibilities through industrial support and social assistance programs in Jadwal Village. By leveraging our brand influence, we also built bridges for biodiversity conservation.
Haijun Wang (Founder, Chairman, and CEO)
展望未来，我们将持续践行人文、温暖、有趣的产品哲学，推进住宿与零售业务的规模扩张和品质升级，以长期主义理念为指引，为可持续发展以及社会建设贡献亚朵的切实力量。
Luke Hu (Senior Manager of Investor Relations)
Looking ahead, we remain committed to upholding our product philosophy of being humane, warm, and inspiring, scaling the expansion and driving quality enhancements to both our hotel and retail businesses. Guided by our long-term growth principle, we remain committed to making tangible contributions to sustainable development and the betterment of society.
Haijun Wang (Founder, Chairman, and CEO)
下面请我们的联席CFO吴建峰为大家介绍公司的财务情况。
Luke Hu (Senior Manager of Investor Relations)
I will now turn the call over to our Co-CFO, Mr. Wu Jianfeng, who will discuss our financial results.
Jianfeng Wu (EVP and Co-CFO)
Thank you, Haijun. Now, I would like to present the company's financial performance for the first quarter of 2025. Please turn to slide 17 of the result presentation. Our net revenues for the first quarter of 2025 grew by 29.8% year-over-year and fell by 8.6% quarter-over-quarter to CNY 1,906 million. Revenues from our manachised hotels for the first quarter of 2025 were CNY 1,032 million, up by 23.5% year-over-year and down 6.7% quarter-over-quarter. The year-over-year increase was primarily fueled by our ongoing hotel network expansion. Revenues contributed by our leased hotels for the first quarter of 2025 were CNY 129 million, a decrease of 23.5% year-over-year and 21.6% quarter-over-quarter. The declines were primarily due to a decrease in the number of leased hotels as a result of our product mix optimization.
Revenues from our retail business for the first quarter of 2025 were CNY 694 million, up by 66.5% year-over-year and down 9.3% quarter-over-quarter. The year-over-year increase was driven by growing recognition of our retail brands and effective product innovation and development as we successfully broadened our range of product offerings. Now, let's move to costs and expenses. Please turn to slide 18. Hotel operating costs for the first quarter of 2025 increased by 11.2% year-over-year and decreased by 7.3% quarter-over-quarter to CNY 736 million. The year-over-year increase was primarily due to the increases in variable costs, such as hotel manager costs associated with our ongoing hotel network expansion. Gross margin of our hotel business expanded to 36.6% in the first quarter of 2025 from 34.1% during the same period of 2024.
Retail costs for the first quarter of 2025 rose by 63.7% year-over-year and decreased by 12.5% quarter-over-quarter to CNY 337 million. The year-over-year increase was associated with the rapid growth of our retail business. Gross margin of our retail business expanded to 51.4% in the first quarter of 2025 from 50.5% during the same period of 2024, primarily attributable to the increasing contribution from higher margin products. Now, please turn to slide 19. Selling and marketing expenses accounted for 14.8% of net revenues for the first quarter of 2025, compared with 11.9% for the same period of 2024. The increase was mainly due to investment in brand recognition and the effective development of online channels, in line with the growth of our retail business.
General and administrative expenses, excluding share-based compensation expenses, accounted for 4.1% of net revenues for the first quarter of 2025, compared with 5.0% for the same period of 2024. The decrease was primarily due to improved management efficiency and economics of scale. Technology and development expenses accounted for 2.1% of net revenues for the first quarter of 2025, compared with 1.6% for the same period of 2024. The increase was mainly due to increased investment in technology systems and infrastructure to support our expanding hotel network and retail business and improve the customer experience. Now, please turn to slide 20. Adjusted net income for the first quarter of 2025 was CNY 345 million, representing a 32.3% increase year-over-year. Adjusted EBITDA for the first quarter of 2025 was CNY 474 million, up by 33.8% year-over-year.
Adjusted net profit margin for the first quarter of 2025 was 18.1%, representing an increase of 0.3 percentage points year-over-year. Adjusted EBITDA margin for the first quarter of 2025 was 24.9%, an increase of 0.8 percentage points year-over-year. Please turn to slide 21. We also maintained a healthy cash position. As of March 31, 2025, our cash and cash equivalents totaled CNY 3,146 million, with net cash of CNY 3,074 million. Please turn to slide 22. As part of our commitment to enhancing shareholder value, in accordance with the annual dividend policy adopted in August 2024, today we declared our first cash dividend in 2025 of CNY 0.14 per ordinary share or CNY 0.42 per ADS, for an aggregate amount of approximately CNY 58 million.
Concurrently, we announced a three-year share repurchase program, under which we may repurchase an aggregate value of up to CNY 400 million. Through a comprehensive shareholder return initiative in comparison dividends and share repurchase, we are taking concrete actions to reward shareholders' trust and support, enabling all shareholders to share in the company's growth achievement. Now, please turn to slide 23. For full year 2025, we currently expect total net revenue to increase by 25%-30%, compared with full year 2024. That concludes our financial highlights for the first quarter of 2025. Now, let's open for Q&A.
Operator (participant)
Thank you. As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. For the benefit of all participants on today's call, if you raise your question in Chinese, please immediately repeat your question in English. Please limit your question to one at a time. If you wish to have more questions, please rejoin the queue. Stand by while we compile the Q&A roster. Just a moment for our first question. Our first question comes from CG Lin from CICC. Your line is now open.
CC管理层，那我有一个问题是，就是可不可以请管理层分享一下二季度以来的这个RevPAR的一个表现，然后以及对全年RevPAR的大概的看法。 So thank you, management. Could you please share the performance of RevPAR since Q2 and provide outlook on RevPAR for the full year? Thank you.
Haijun Wang (Founder, Chairman, and CEO)
好，谢谢思杰。
Luke Hu (Senior Manager of Investor Relations)
Thank you, Sijie.
Haijun Wang (Founder, Chairman, and CEO)
一季度整体的市场是比较波动的，在天气，包括宏观等多方面因素对出行需求的这样的扰动之下，我们的RevPath同比下降是7.2%。OCC和ADR均有不同程度的同比的下滑。
Luke Hu (Senior Manager of Investor Relations)
In Q1, the overall market experienced some volatility. There were multiple factors to be considered, including weather conditions, macroeconomic impacts, they all affecting travel demand. Our RevPAR decreased by 7.2% year-over-year, and also OCC and ADR were showing varying degrees of decline year-over-year as well.
Haijun Wang (Founder, Chairman, and CEO)
不知道二季度我们是看到市场需求延续了分化的趋势，商务出行的复苏仍然存在一定的不确定性，但休闲游需求还是展现出比较强的韧性。比如在五一假期期间，我们的价格跟出租率均有不错的表现，都超过了去年的同期的水平。综合来看的话，我们预计二季度整体的RevPath的压力相较于一季度的话会有所缓解。
Luke Hu (Senior Manager of Investor Relations)
Entering Q2, we observed the continued divergence in market demand. While there was the recovery of business travel, it remained quite uncertain to some extent. Leisure travel demand has demonstrated some notable resilience. During the Labor Day holiday, both pricing and occupancy performed quite strongly, exceeding prior year levels. Overall, we anticipate there might be some easing of RevPAR pressure in Q2 when compared to Q1.
Haijun Wang (Founder, Chairman, and CEO)
那对于全年RevPath的表现，我们现在的看法跟我们年初是保持一致的。就是在市场较为波动的情况之下，我们觉得今年的全年的RevPath的不确定性仍然是比较大的。但是在经营上面的话，我们也不会去跟市场上其他的酒店公司进行这种同质化的竞争，盲目的去竞争价格。我们会坚持我们亚朵差异化的体验优势，去抓住我们核心的一些收益机会点。那我们会采取ADR跟OCC更加均衡的一个精细化的收益管理的策略，去持续打造我们亚朵的长期品牌价值。谢谢。
Luke Hu (Senior Manager of Investor Relations)
As for our view on the full year RevPAR performance, it is still remaining consistent with the beginning of the year. RevPAR still faces considerable uncertainty given the ongoing market volatility. However, in terms of our operations, we will not just blindly engage in price competitions with the homogenized products in the market. What we will do is to continue to adhere towards differentiated experience advantages to seize the core revenue opportunities, and we are going to adopt a more balanced and refined revenue management strategy in terms of both ADR and OCC so that we can continuously build the long-term brand value of Atour.
Jianfeng Wu (EVP and Co-CFO)
Thank you, Sijie. Next question, please.
Operator (participant)
Thank you. Just a moment for our next question. Next, we have Roland Lun from Bank of America. Your line is now open.
Roland Leung (AVP)
hotel openings? Let me translate my question into English. Good evening, management. Could you please share your view on the new signings momentum and also new hotel openings, for the full year of 2025? Thank you.
Haijun Wang (Founder, Chairman, and CEO)
呃，谢谢，我来回答这个问题。一季度呢，我们整体的签约是延续了比较积极的趋势。在行业普遍面临供给同质化的压力的背景下，亚朵呢是通过了差异化的品牌战略和体验优势，成功地建立了我们自己独特的市场地位，由此呢也吸引了，持续吸引了大量优质加盟商的关注。
Luke Hu (Senior Manager of Investor Relations)
Thank you, Roland. Let me answer your question. In the first quarter, we remained positive, signing momentum. Amid industry-wide pressure from homogeneous supply, Atour, we solidified our unique market positioning through our differentiated brand strategy and distinctive experiential strength. This has continuously drawn the attention of high-quality franchisees.
Haijun Wang (Founder, Chairman, and CEO)
另外呢，在宏观具备这个不确定性的背景下，我们也越来越明显地看到酒店行业相对于其他的投资方式，现金流的回报呢是相对稳定的，商业模式呢也比较稳健。尽管呢，RevPath存在了一定的波动，但是优质物业的租金成本，它还处在一个相对低位的区间，可获得性呢也极大地提高。那么这样综合起来，综合收益啊，具备了长期的吸引力。也正是因为如此啊，我们成熟的酒店加盟商依然是信心充沛的，愿意呢把握机会，抓住呢优质品牌在未来市场中的长期的发展的潜力。
Luke Hu (Senior Manager of Investor Relations)
In addition, against the backdrop of persistent macroeconomic uncertainty, we have clearly observed along the way that compared to other investment channels, the hotel industry offers still a relatively stable cash flow returns and a more robust business model. Despite some RevPAR volatility, the premium property rental cost still is remaining in a relatively low range with improved availability, and that makes the overall returns attractive in the long term. As a result to that, mature hotel franchisees are still remaining confident and are willing to seize opportunities to capture that long-term growth potential of premium brands in the future market.
Haijun Wang (Founder, Chairman, and CEO)
在开业方面，今年的一季度我们是开业了120个121家酒店，也是延续了去年以来的高质量开店的趋势。那么在这个基础上，我们维持全年500家的开店指引，我们有充足的信心啊，可以达成，从而呢稳步地向2025年底2000好店的战略的目标迈进。
Luke Hu (Senior Manager of Investor Relations)
As for new openings, in the first quarter of this year, we opened 121 hotels, continuing that high-quality expansion trend since we had last year. Based upon that, we maintain our full year opening guidance of 500 new openings and have full confidence in achieving this goal, steadily advancing toward our strategic objective of reaching 2,000 premier hotels by the year end.
Haijun Wang (Founder, Chairman, and CEO)
也基于我们2000好店的战略目标，我们会从签约、开店、运营等各个维度啊，对质量提出了更严格的要求，做到呢有质量的数量的增长，确保呢我们每一家酒店都能为用户提供始终如一的优质的体验。谢谢。
Luke Hu (Senior Manager of Investor Relations)
Also, based on our strategic goal of 2,000 premier hotels, we will impose stricter requirements on quality from multiple dimensions, including signings, openings, and operation, to ensure that our hotel numbers grow with quality so that every hotel can provide users with a consistently high-quality experience. Thank you.
Jianfeng Wu (EVP and Co-CFO)
Thank you, Ronald. Next question, please.
Operator (participant)
Thank you. Just a moment. Next, we have Dan Che from Morgan Stanley. Your line is now open.
Dan Chee (VP of Equity Research)
year. Please allow me to translate my question. My question is related to the company's retail business. We saw retail business revenue growth in first quarter was outstanding at 67% year on year. Previously, the company guided full year retail revenue of no less than 35% growth. I would like to ask the management about any update to the full year revenue guidance on this business and, any strategic plan for retail in the coming period. Thank you.
Haijun Wang (Founder, Chairman, and CEO)
好，谢谢 Dan。
Luke Hu (Senior Manager of Investor Relations)
Thank you, Dan. Um, in the first quarter, we seized the key marketing opportunities of the Spring Festival. Also, we gained advantage from the continuous popularity of the Deep Sleep series products. Our retail business achieved a year-on-year growth of over 70% in GMV. Meanwhile, we can see that the sales trend of the new product we launched in March, namely the Deep Sleep Thermoregulating Comforter Pro 2.0 Summer, is also very strong.
Haijun Wang (Founder, Chairman, and CEO)
那展望全年呢，虽然市场竞争呃比较激烈啊，但随着我们亚朵星球产品力和品牌力的持续提升，我们对其后续新品发布以及大促活动的表现呢是充满信心的。那基于此的话呢，我们将全年零售收入的同比增长的指引呢上调到50%。呃，那同时呢，虽然这个RevPath的存在，RevPath存在不确定性啊，但也是得益于我们零售业务的强劲的表现，我们刚才也提到了，将我们全年集团的收入同比增长的指引上调到25%到30%。
Luke Hu (Senior Manager of Investor Relations)
Looking at the full year, though the market competition is still remaining intense, however, because of our continuous enhancement of Atour Planet's product offerings as well as the brand awareness, we are quite confident in the performance of our upcoming product launches, also the major promotional campaigns we have in our plans. Based upon this outlook, we are now raising our full year retail revenue growth forecast to 50% year over year. Meanwhile, despite there are still some RevPAR uncertainties, the strong performance of our retail business led us to increase our group's full year revenue growth guidance to the range of 25%-30% year over year.
Haijun Wang (Founder, Chairman, and CEO)
那未来呢，我们亚朵星球将持续深耕睡眠的领域，加强我们产品的研发，提升产品的品质，巩固供应链的护城河，实现我们产品跟品牌的高质量的可持续的发展。谢谢。
Luke Hu (Senior Manager of Investor Relations)
In the future, Atour Planet will continue to focus on the Deep Sleep domain, enhance product R&D, improve our product quality, also consolidate our moat in supply chain to achieve higher quality and sustainable development of both the products and our brand. Thank you.
Jianfeng Wu (EVP and Co-CFO)
Thank you, Dan. Next question, please.
Operator (participant)
Thank you. Our next question comes from Jin Wei Lu from Cedecs. Your line is now open.
Um, we noticed that you had just announced dividend and share buyback program. Could you share some thoughts of the overall considerations behind these initiatives? Thanks, management.
Haijun Wang (Founder, Chairman, and CEO)
好，嗯，谢谢纪伟啊。
Luke Hu (Senior Manager of Investor Relations)
Thank you, Jiwei.
Haijun Wang (Founder, Chairman, and CEO)
呃，就像之前一直也跟大家沟通的，我们始终是致力于创造长期的价值，以切实的行动呢来回馈我们的股东的信任还有支持。所以这次除了分红以外呢，我们也是正式的公告了我们三年的股票回购计划，那么预计未来三年累计的回购金额不超过4亿美元。
Luke Hu (Senior Manager of Investor Relations)
Thank you, Jiwei. Like we said before, we remain committed to creating long-term value and rewarding our shareholders' trust and support through concrete actions. In addition to the dividends, we have also officially announced today a three-year share repurchase program with a total amount not exceeding CNY 400 million.
Haijun Wang (Founder, Chairman, and CEO)
那在分红方面啊，我们还会继续去完成我们之前制定的三年的分红的方案啊。那之前我们的方案呢是每年累计分红的金额不低于前一财年净利润的50%。那我们今天宣告的是我们首次的分红的金额是5,800万美元，那么大概占到我们前一年净利润的33%。
Luke Hu (Senior Manager of Investor Relations)
Regarding the dividends, we will continue implementing the three-year dividend plan established last year, under which the annual cumulative dividend payout will be no less than 50% of the net income in the previous fiscal year. That's why this year, as we announced, our first dividend distribution totals approximately CNY 58 million, representing about one-third, 33% of the prior fiscal year's net income.
Haijun Wang (Founder, Chairman, and CEO)
未来我们还会持续通过分红加回购这样一揽子的股东回报方案，在确保公司资金正常稳定运转的前提之下呢，结合我们业务的实际情况，我们积极考虑多种股东的回报方式，提高我们股东的收益率，跟广大的股东共享我们公司发展的成果。
Luke Hu (Senior Manager of Investor Relations)
Moving forward into the future, we will implement a comprehensive shareholder return program by combining dividend payout and share buyback together. While ensuring the company's stable and normal capital operations, we will actively consider various shareholder return methods in line with actual business conditions to enhance shareholder yield and enable all shareholders to share in the company's growth achievements.
Haijun Wang (Founder, Chairman, and CEO)
好，谢谢Jiwei。
Luke Hu (Senior Manager of Investor Relations)
Thank you, Jin Wei.
Jianfeng Wu (EVP and Co-CFO)
thank you, Jiwei. Next question, please.
Operator (participant)
Thank you. Our next question comes from Lydia Ling from CETI. Your line is now open.
Lydia Ling (Director of Equity Research)
嗯，管理层好。呃，我想请问一下呃，公司的这个品牌的战略，那能否分享一下咱们那个呃，高端品牌的一个最新进展？另外刚才也看到就是呃，就是在presentation当中呢，管理层也提到了一些在中高端和中端品牌的一些推出来的一些新的产品，能否请管理层来介绍一下这些新的产品的一些策略？ Hi management, could you provide an update on the progression of your upscale of brands? And also we noticed the launch of some new products across both the upper midscale and also midscale brands. Could you elaborate more on the strategies for them? Thank you.
Haijun Wang (Founder, Chairman, and CEO)
好的，谢谢Lydia。那个在高端品牌方面，应该说我们的新的品牌萨和酒店啊，我们会始终保持质量第一的原则，目标呢就是要在最核心的城市，在最好的地段啊，打造一批标杆的项目。那么借此机会啊，我也很高兴的向大家宣布，我们位于深圳滨河的萨和旗舰店将于就是这个月啊，5月28号正式营业。那么这样呢，就是我们两家的萨和酒店这个就开始现在已经在试营业了。在试营业期间，我们会看到我们的产品定位、设计风格和我们一些独特的服务体验，都得到了很多消费者的广泛的好评。我们也相信啊，我们的萨和酒店会把中国体验的内核和隐逸东方的品牌调性，在中国的高端酒店市场会树立起一个新的标杆。
Luke Hu (Senior Manager of Investor Relations)
Thank you, Lydia. In terms of our upscale brands, I'd like to talk about our new brand Sahe Hotel. We consistently adhere to a quality-first principle, and our goal is to develop a batch of flagship projects. We are pleased to take this opportunity to announce that within this month, our Sahe Flagship Hotel at Binhe of Shenzhen will officially commence operations on the 28th of May. Since the trial operations of two Sahe Hotels, which started this year, their product positioning, design, aesthetics, and service experiences have received widespread acclaim from the consumers. We have the confidence that Sahe Hotel's core concept of Chinese experience and its brand ethos of Oriental serenity will establish new benchmarks in the upscale hotel market in China.
Haijun Wang (Founder, Chairman, and CEO)
在我们的中高端领域啊，刚才也提到了，会把我们的亚朵三系和四系啊并存，他们共同啊构成了我们整个亚朵酒店的这个产品矩阵。我想这样呢，不仅会丰富我们加盟商的选择，也满足了消费者多元化的住宿的需要。同时呢，也会进一步扩宽我们的市场覆盖的范围，从而呢巩固亚朵在中高端市场的长期的领导地位。
Luke Hu (Senior Manager of Investor Relations)
In the upper midscale hotel segment, as I mentioned earlier, our Atour Series 3 and Atour Series 4 will coexist, and they will jointly shape our next generation upper midscale hotel portfolio so that it not only reaches the choices of franchisees but also meets the diverse accommodation needs of consumers. Also, to further expand the market coverage so as to consolidate Atour's leading position in the upper midscale market.
Haijun Wang (Founder, Chairman, and CEO)
在我们的中端酒店方面啊，就是说我们会把我们的3.0升级到3.3这个版本。那3.3的版本呢，我们也在体验产品的品质感和商务功能等几个维度啊，进行了全面的升级，并且通过更多模块化的设计是这个应用啊，它可以去适配更多元化的物业，并且呢，也会把我们的房间面积会有更进一步的加大。那我们呢，这样的产品的推出，也会持续能够打造我们的高溢价、成本可控的投资模型，也能为加盟商带来持久盈利，并且有优异回报的投资的选择。
Luke Hu (Senior Manager of Investor Relations)
As for the midscale hotel segment, as we announced earlier, we are going to upgrade our Atour Light 3.0 to the Atour Light 3.3 version, and that has undergone comprehensive upgrades in multiple dimensions, including experience, product texture, and business functions. We are adopting more modular design applications in order to adapt to more diverse properties as well as enlarging the room areas. We are going to continue to be committed to creating a higher premium and cost-controllable investment model by offering those lasting profitability and excellent returns so that we can provide the franchisees with more investment options.
Haijun Wang (Founder, Chairman, and CEO)
好的，谢谢。
Luke Hu (Senior Manager of Investor Relations)
Thank you.
Haijun Wang (Founder, Chairman, and CEO)
Thank you, Lydia.
Thank you. This concludes today's question and answer session. I'd like to turn the conference back over to Mr. Luke for any additional or closing remarks.
Luke Hu (Senior Manager of Investor Relations)
Thank you for joining us today. If you have any further questions, please feel free to contact our IR team. We look forward to speaking with you next quarter, and thank you and goodbye.
That concludes the question and answer session, and thank you very much for joining our call today. You may now disconnect.