Atour Lifestyle Holdings - Earnings Call - Q3 2025

Transcript

Speaker 3

Hello, ladies and gentlemen. Thank you for standing by, and welcome to Atour Lifestyle Holdings' third quarter 2025 earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a Q&A session. Today's conference is being recorded. I would now like to turn the conference over to Mr. Luke Hu, Senior IR Manager. Please go ahead, sir.

Speaker 5

Thank you, Operator. Good morning and good evening, everyone. Welcome to our third quarter 2024 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 the 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.yadoo.com, where a copy of the results presentation is also available. Now, I will turn the call over to Mr. Wang, our CEO.

Speaker 2

谢谢客人大家好，感谢各位参加亚朵集团2025年第三季度业绩电话会议。

Speaker 5

Thank you, Luke. Hello, everyone. Thank you for joining Atour's third quarter 2025 earnings call today.

Speaker 2

当前宏观环境持续波动，消费者观念普遍转向理性与价值追求。新场景与新业态催生出的创新体验，成为驱动消费潜力释放的重要力量。从酒店行业看，三季度以来，整体市场呈现温和回暖的态势。在旅游休闲需求持续释放的同时，也表现出热点快速轮动、区域复苏分化的特征。零售市场方面，消费内容日益聚焦于体验与生活品质的升级。消费者习惯的改变和技术进步共同推动细分领域不断发展。作为领先的生活方式品牌集团，亚朵敏锐洞察用户需求变化，精准把握消费趋势，以酒店与零售业务的持续创新与体验升级，不断响应并引领当代消费者对品质生活的追求。

Speaker 5

Amid the ongoing volatility in the macro environment, consumers have shown a clear shift toward prioritizing value and making more rational purchasing decisions. Innovative experiences emerging from new scenarios and business models have become a key force driving the release of consumption potential. For the hotel sector, the overall market has shown a moderate recovery since the third quarter. While travel and leisure demand continues to be robust, the industry is also characterized by rapidly shifting hotspots and uneven recovery across regions. In the retail market, consumption is increasingly centered around experiential offerings and quality-of-life upgrades. Evolving consumer habits coupled with technological advancements are jointly fueling development across various segments. As a leading lifestyle group, Atour keenly observes the evolution of user needs and captures consumption trends with precision.

Through continuous innovation and enhanced experience in both our hotel and retail businesses, we consistently respond to and lead contemporary consumers' pursuit of quality living.

Speaker 2

下面我将展开介绍2025年第三季度各项业务的具体情况。

Speaker 5

Now, I would like to provide more details on our performance for the third quarter of 2025.

Speaker 2

首先是住宿业务，请大家翻到我们的PPT第4页。三季度集团大盘ROPA为371.3元，为24年同期的97.8%。其中OCC基本恢复至去年同期水平，为24年同期的99.9%。ADR为24年同期的98.1%。

Speaker 5

Let's begin with our hotel business. Please turn to slide 4 of our third quarter 2025 results presentation. In the third quarter, our ROPA was RMB 371.3, representing 97.8% of its level in the same period of 2024. Specifically, OCC nearly recovered to the prior year level at 99.9% of the same period in 2024, and ADR reached 98.1% of its level in the same period of 2024.

Speaker 2

请大家翻到PPT的第5页。三季度在营超过18个月的成熟酒店ROPA为24年同期的95%。其中OCC和ADR分别为24年同期的98.5%和96.6%。

Speaker 5

Please turn to slide 5. In the third quarter, ROPA for our mature hotels in operation for more than 18 months was 95% of the level in the same period of 2024, while OCC and ADR stood at 98.5% and 96.6% of their levels in the same period of 2024, respectively.

Speaker 2

请大家翻到第6页。在品牌势能与产品力的共同驱动下，集团酒店网络稳步拓展，优质项目相继落地。三季度新开业酒店152家，创历史新高。截止三季度末，集团在营酒店数量已达1948家，同比增长27.1%。我们有充足的信心在年底实现2000好店的战略目标，为下一阶段新的征程奠定坚实基础。

Speaker 5

Please turn to slide 6. Driven by our brand power and product excellence, Atour's hotel network steadily expanded with the successful launch of various high-quality projects. In the third quarter, we opened 152 new hotels, a record high for a single quarter. By the end of the third quarter, we had a total of 1,948 hotels in operation, representing a 27.1% year-over-year increase. We have full confidence in achieving our strategic target of the 2,000 premier hotels by year-end, laying a solid foundation for the next phase of our journey.

Speaker 2

截止三季度末，管道内项目数量为754家，保持稳健水平。在规模扩张的同时，我们始终坚持品质优先的原则，通过严格的项目筛选和标准把控，推动酒店网络实现健康可持续的高质量增长。

Speaker 5

As of the end of the third quarter, our pipeline of hotels under development remained steady at 754. Amid our rapid expansion, we remain steadfast in our quality-first principle. By applying rigorous project selection criteria and strict quality standards, we are driving healthy and sustainable high-quality growth.

Speaker 2

下面我将介绍一下集团住宿品牌的最新进展。

Speaker 5

Next, I would like to share the latest developments for our hotel brands.

Speaker 2

请大家翻到第7页。中高端的产品矩阵中，亚朵3.6作为三系产品的最新标杆之作，目前已开业19家酒店，口碑与市场热度持续攀升。通过极致的细节打磨与场景优化，亚朵3.6将功能设施、品质服务与人文氛围精准融合，深度契合住宿用户对高效和舒适的核心需求，为出行体验提供了更具质感的选择。

Speaker 5

Please turn to slide 7. Within our upper-mid-scale product portfolio, Atour 3.6 represents a new benchmark for Atour Series 3 hotels. To date, we have opened 19 Atour 3.6 hotels, which continue to gain market recognition and acclaim. Through meticulous attention to detail and optimized scenario design, Atour 3.6 seamlessly integrates functional amenities, premium service, and humane ambience. It effectively addresses the core needs of guests for efficiency and comfort, offering a new, more refined choice for travel experiences.

Speaker 2

请大家翻到第8页。亚朵四系产品立足于对消费者更长远需求的思考之上，积极的市场反响也印证了准确的产品定位。三季度，亚朵4.0在营超过三个月的酒店ROPA突破500元。在提供基本功能与情感价值双重满足的基础上，亚朵4.0更注重与用户建立深度共鸣，打造身心平衡的治愈体验。

Speaker 5

Please turn to slide 8. Grounded in a forward-looking understanding of consumers' long-term needs, Atour Series 4 has received strong market recognition, reaffirming its precise product positioning. In the third quarter, the ROPA of Atour 4.0 hotels in operation for more than three months surpassed RMB 500. While delivering both functional utility and emotional value, Atour 4.0 hotels place greater emphasis on fostering a deep resonance with guests, creating a healing experience that promotes holistic well-being.

Speaker 2

中高端市场是亚朵长期扎根的核心赛道。我们通过亚朵三系与四系产品的协同布局，有效覆盖了不同客群的多元需求。随着亚朵系列产品在城市核心商圈布局的持续渗透，我们在中高端市场的品牌壁垒和领先优势也将进一步强化。

Speaker 5

The upper-mid-scale segment has long been our core focus and a strategic foundation. By leveraging the synergistic deployment of Atour Series 3 and Series 4, we effectively serve the diverse needs of different customer groups. As Atour products continue to penetrate core business districts across cities, we will further solidify our competitive moat and a leading position in the upper-mid-scale market.

Speaker 2

请大家翻到第9页。萨河酒店是我们在高端生活方式领域的重要突破。三季度两家在营酒店经营表现十分强劲，ROPA超过900元。11月18日，第三家萨河酒店于广州开启试营业，并获得了积极的市场反馈。凭借差异化的设计风格与卓越的住宿体验，萨河酒店正持续吸引多元客群，展现出广阔的发展空间。

Speaker 5

Please turn to slide 9. Saahe Hotel represents a significant breakthrough for us in the upper-scale lifestyle segment. In the third quarter, the two operating hotels demonstrated robust performance, with ROPA exceeding RMB 900. On November 18, our third Saahe Hotel began its soft opening in Guangzhou and has already received positive market feedback. With its unique design style and exceptional accommodation experience, Saahe Hotel continues to attract a diverse clientele, demonstrating its substantial growth potential.

Speaker 2

萨河酒店致力于为高端用户打造融合东方文化底蕴与现代审美的身心滋养之旅。目前我们正在与专业机构开展合作，将科学养生的理念融入用户入住的多个触点，从定制化的养生餐食到精心搭配的客房用品，为住客构建全方位的深度体验，展示我们在高端领域对中国体验理念的思考与实践。在布局策略上，我们仍将坚持精准选址，力求每一家萨河酒店都能成为在地高端生活方式的体验典范。

Speaker 5

Saahe Hotel is dedicated to creating rejuvenating journeys for the discerning clientele, masterfully fusing Eastern cultural heritage with modern aesthetics. We are now collaborating with a professional institution to integrate scientific wellness concepts across the guest experience, from customized healthy diet to carefully curated in-room amenities, building a comprehensive deep experience for guests, and showcase our thoughts and practice of the Chinese experience concept in the upscale segment. For our expansion strategy, we will continue to adhere to precise site selection, striving to make every Saahe Hotel a model of local upscale lifestyle.

Speaker 2

请大家翻到第10页。中端品牌方面，我们通过持续打磨产品、提升运营效率、强化品牌建设等方式，不断巩固自身的差异化优势。三季度，青居延续了亮眼的经营表现，青居三系在营酒店ROPA已超过去年同期水平。作为产品升级最新版本的青居3.3，首批酒店已陆续开业。青居3.3模型更加成熟，不仅在实用性和空间美学上进行了针对性的优化，更收获了用户和加盟商的高度认可。

Speaker 5

Please turn to slide 10. For our mid-scale brand, we consolidated our differentiated advantages by continuously refining our products, improving operational efficiency, and enhancing brand building. Atour Lite continued its strong performance in the third quarter, with the ROPA of Atour Lite Series 3 hotels in operation surpassing year-go levels. As the latest upgraded version, Atour Lite 3.3 has seen its first batch of hotels successively opened. Atour Lite 3.3 features a more mature model that incorporates targeted optimizations in practicality and spatial aesthetics, earning strong acclaim from both users and franchisees.

Speaker 2

现阶段，青居将继续聚焦高线级城市布局，稳扎稳打，通过打造优质的标杆项目，强化品牌认知。同时，我们也正系统性地完善运营体系，通过深化服务触点、优化运营标准、完善人才机制，在确保优质体验的基础上持续提升运营效率，强化我们在终端市场的核心竞争力，为青居品牌的长远发展筑牢根基。

Speaker 5

At the current stage, Atour Lite will continue to concentrate its presence in higher-tier cities, advancing steadily while building brand recognition through benchmark projects. Simultaneously, we are systematically enhancing our operational framework by refining service touchpoints, optimizing operational standards, and strengthening talent development. These efforts ensure premium experiences while consistently driving operational efficiency, solidifying our competitive edge in the mid-scale segment and laying a solid foundation for long-term development of Atour Lite brand.

Speaker 2

接下来是我们的零售业务，请大家翻到第11页。

Speaker 5

Moving now to our retail business, please turn to slide 11.

Speaker 2

三季度零售业务保持强势增长，亚朵零售GMV达到9.94亿元，同比增长75.5%，其中线上渠道占比持续超过90%。在刚刚结束的双十一购物节，亚朵星球不仅在销售层面取得了优异表现，更是进一步强化了在用户心中的深邃品牌形象。同时，三季度以及双十一期间，在主流第三方平台床上用品品类排名中，亚朵星球亦稳居头部地位。

Speaker 5

During the third quarter, our retail business sustained strong growth, with GMV reaching RMB 994 million, representing a 75.5% year-over-year increase. Online channels continue to contribute over 90% of total GMV. During the recently concluded 11/11 Shopping Festival, Atour Planet has not only delivered its excellent sales momentum but has also further strengthened the deep sleep brand image in the minds of users. Meanwhile, across both the third quarter and the 11/11 period, Atour Planet also ranked among the top brands in the betting category on major third-party platforms.

Speaker 2

请大家翻到第12页。亚朵星球的亮眼表现标志着我们在睡眠领域提供系统性解决方案的能力，不断得到市场验证。在核心品类方面，我们通过与高校合作研发等方式持续突破创新，以产品力的提升构筑核心的竞争优势，并逐步拓宽市场空间。同时，基于对用户需求的深入洞察，我们也在积极拓展如深睡床褥、深睡睡衣等全新品类，完善并丰富亚朵星球的睡眠生态布局。接下来我将介绍亚朵星球核心品类的最新进展。

Speaker 5

Please turn to slide 12. The outstanding performance of Atour Planet keeps validating our ability to provide comprehensive sleep solutions in the market. In our core categories, we pursue breakthrough innovation through initiatives like collaborative R&D with academic institutions, consolidating our competitive advantages while gradually expanding market reach. Meanwhile, based on in-depth insights into user needs, we are also developing new categories such as deep sleep fitted sheet and deep sleep loungewear, refining and enriching the sleep ecosystem of Atour Planet. Next, I will now walk you through the latest updates on Atour Planet's core categories.

Speaker 2

请大家翻到第13页。三季度，亚朵星球在主流第三方平台稳居枕头品类销售榜首。新品深睡枕Pro 3.0出色的支撑性与舒适度也受到了用户的广泛好评。上市后展现了非常好的销售趋势，仅25天销售额即突破亿元，较上一代产品破亿时间缩短了19天。截止目前，深睡枕系列自发布以来累计销量已突破800万支。此外，围绕枕头品类，我们也推出了深睡随行枕与深睡儿童枕等衍生产品，逐步构建起覆盖多场景、服务多人群的产品矩阵，展现了我们在提升用户睡眠体验方面的持续拓展与落地能力，进一步夯实了我们在品类中的领先优势。

Speaker 5

Please turn to slide 13. In the third quarter, Atour Planet continued to lead the market in the pillow category across major third-party platforms. Deep Sleep Memory Foam Pillow Pro 3.0 has received glowing reviews for its excellent support and comfort. Since its launch, it has shown strong sales performance, exceeding RMB 100 million GMV in just 25 days, reducing 19 days compared to the previous generation. Up till now, the cumulative sales volume of the Deep Sleep Pillow series has exceeded 8 million units since its release. In addition, we've expanded the pillow portfolio with products like Deep Sleep Travel Pillow and Deep Sleep Pillow for Children, gradually building a product portfolio that covers different scenarios and serves various user groups. This expansion demonstrates our execution capabilities in enhancing sleep experiences while reinforcing our category leadership position.

Speaker 2

请大家翻到第14页。在被子品类方面，亚朵星球凭借深睡控温被系列的亮眼表现，持续重塑着市场格局。伴随季节变化，我们于三季度推出了两款叠代产品：深睡控温被Pro 2.0四季版以及冬季版。两款新品升级了双层控温系统，通过动态调节睡眠微环境，帮助用户获得更稳定的睡眠状态。截止目前，深睡控温被系列产品自发布以来累计销量已突破200万条。

Speaker 5

Please turn to slide 14. Atour Planet is leading the transformation of the comforter category driven by the exceptional performance of our Deep Sleep Thermoregulating Comforter Series. At the season's change, we launched two upgraded products in the third quarter: Deep Sleep Thermoregulating Comforter Pro 2.0, all-season and winter season, both feature an upgraded dual-layer temperature control system that dynamically adjusts the sleep microenvironment for more stable rest. To date, the cumulative sales volume of the Deep Sleep Thermoregulating Comforter Series has exceeded 2 million units since its launch.

Speaker 2

请大家翻到第15页。伴随新品的推出，针对用户在睡眠过程中的核心体感需求，我们正式发布亚朵星球深睡标准，涵盖枕头品类的动态稳压系数与被子品类的动态控温系数。未来，该标准将作为产品迭代的核心准则，确保产品的高品质与一致性。此次标准的建立，推动我们持续提升供应链能力，进一步夯实在睡眠领域的竞争优势与技术壁垒。我们期望以此带动行业标准的升级，让自然深睡成为每一位用户可感知和可实现的体验。

Speaker 5

Please turn to slide 15. With the launch of new products targeting users' core sensory needs during sleep, we officially released the Atour Planet Deep Sleep Standard, covering the dynamic pressure stabilization factor for the pillow category and the dynamic temperature management factor for the comforter category. In the future, this standard will serve as the core criterion for product iteration, ensuring high quality and consistency of products. The establishment of this standard has also driven us to continuously enhance our supply chain capabilities, further strengthening our competitive advantages and the technical barriers in the sleep field. Our goal with this is to elevate industry standards and make natural deep sleep an experience that every user can truly perceive and achieve.

Speaker 2

当前的市场环境中，模仿者与跟随者不断涌现，亚朵星球始终坚持初心，专注倾听用户真实需求，深耕产品细节。我们对用户需求的深刻洞察与快速响应，也在持续迭代中沉淀为品牌长期发展的坚实护城河。与此同时，我们仍将持续厚植基础能力，在产品研发、供应链管理和品质把控上精益求精，筑牢稳健发展的根基。面向未来，我们愿携手产业生态伙伴共同进步，引领中国睡眠产业迈向更高质量发展的新阶段。

Speaker 5

In the current market where imitators and followers are emerging, Atour Planet remains committed to its founding aspiration, dedicated to listening to users' genuine needs and refining product details. Our deep understanding and agile responsiveness to user needs have become a solid moat supporting long-term brand development. In the meantime, we'll keep strengthening our foundational capabilities. We'll pursue excellence in product development, supply chain management, and quality control to solidify a strong foundation for healthy growth. Looking to the future, we're ready to work with our industry partners to move forward together and guide China's sleep industry to a new stage of higher quality development.

Speaker 2

请大家翻到第16页。最后，我向大家介绍一下会员以及渠道方面的进展。

Speaker 5

Please turn to slide 16. Last but not least, I would like to share our progress across our membership business and channel development.

Speaker 2

随着品牌影响力的持续提升以及会员权益体系的不断丰富，我们的会员规模保持强势增长。截止三季度末，注册会员数已经突破1.08亿，同比增长超过30%。销售渠道方面，我们核心自有渠道保持稳健，三季度CS渠道销售建议占比为62.4%，其中企业协议销售建议占比为20%。

Speaker 5

With our growing brand influence and the continuous enrichment of our membership benefit system, our membership base maintained robust growth. By the end of the third quarter, the number of registered individual members exceeded 108 million, representing a year-over-year growth of over 30%. In terms of channel development, our core CRS channel remained stable, accounting for 62.4% of the total room nights sold in the third quarter. The contribution of room nights sold to corporate members was 20% during the quarter.

Speaker 2

请大家翻到第17页。A卡的会员体系的迭代与升级始终基于亚朵对会员真实需求的深入理解。我们通过整合线上线下资源，打造多场景全链路的服务体验，持续探索品质生活的创新形态。掌握下一阶段，我们也将深化A卡的品牌定位，以用户全生命周期为核心，深度挖掘不同用户在住宿与零售场景下的消费偏好与习惯，拓展更多元的生活方式体验，推出更具吸引力的权益与活动，进一步加强与会员之间的情感共鸣。

Speaker 5

Please turn to slide 17. The evolution of the A-card system and the upgrade of membership benefits stem from our deep understanding of members' genuine needs. By integrating online and offline resources, we've created multi-scenario end-to-end service experiences that continuously explore innovative possibilities in quality living. Looking ahead, we will sharpen A-card's brand positioning. With a focus on a complete customer lifecycle, we'll analyze consumption patterns across accommodation and retail scenarios among different user groups, expanding lifestyle experiences and introducing compelling benefits and activities to deepen emotional connection with our members.

Speaker 2

请大家翻到第18页。展望未来，我们将围绕回归用户、回归伙伴、回归基本功三个方面持续深化。对于用户，我们始终将用户第一的理念贯穿于酒店与零售业务的所有细节，提升用户体验，强化我们与用户的情感连接。对于内部伙伴，我们关注其职业成长与经验沉淀，通过多元化的机制颠覆行业传统的晋升与发展路径，推动组织持续进化。对于基本功的夯实，我们通过数字化建设以及精细化的运营管理，推动效率和体验的全面升级，为集团实现长期可持续的高质量发展提供坚实支撑。

Speaker 5

Please turn to slide 18. Moving forward, we will continue to deepen our focus across three key areas of user, employee, and fundamental capabilities. As for our users, we will always adhere to the user-first philosophy, embedding it across all touchpoints of our hotel and retail businesses. We'll continuously enhance users' experiences and deepen our emotional connection with them. For our employees, we pay close attention to their growth trajectories and accumulated experience. Through diversified mechanisms, we redefine traditional industry promotion and development paths, driving continuous organizational evolution. To strengthen our foundational capabilities, we have been leveraging digital solutions alongside granular operations management, thus driving a comprehensive upgrade in both efficiency and the customer experience, providing a solid foundation of the group's long-term sustainable high-quality growth.

Speaker 2

下面请我们的联席CFO吴建峰为大家介绍公司的财务情况。

Speaker 5

I will now turn the call over to our co-CFO, Mr. Wu Jianfeng, who will discuss our financial results.

Speaker 4

Thank you, Haijun. I would like to present the company's financial performance for the third quarter of 2025. Please turn to slide 20 of the result presentation. Our net revenues for the third quarter of 2025 grew by 38.4% year-over-year and 6.5% quarter-over-quarter to RMB 2,628 million. Revenues from our miniaturized hotels for the third quarter of 2025 were RMB 1,560 million, up 32.3% year-over-year and 20.1% quarter-over-quarter. The year-over-year increase was primarily fueled by the ongoing expansion of our hotel network. The total number of our miniaturized hotels increased from 1,504 as of September 30, 2024, to 1,924 as of September 30, 2025. The quarter-over-quarter increase was mainly due to the growth in REPA and our supply chain business. Revenues contributed by our leased hotels for the third quarter of 2025 were RMB 164 million, representing a decrease of 13.4% year-over-year and an increase of 9.7% quarter-over-quarter.

The year-over-year decline was primarily driven by a decrease in the number of leased hotels as a result of our product mix optimization. The quarter-over-quarter increase was mainly due to an increase in REPA. Revenues from our retail business for the third quarter of 2025 were RMB 846 million, reflecting a 76.4% year-over-year increase but a 12.3% quarter-over-quarter decline. The year-over-year growth was driven by increasing brand recognition, successful product innovation, and a broadened range of product offerings. The quarter-over-quarter decline was primarily due to the seasonality of our retail business. Now let's move to cost and expenses. Please turn to slide 21. Hotel opening costs for the third quarter of 2025 increased by 23.5% year-over-year and 21.1% quarter-over-quarter to RMB 1,082 million. These increases were primarily due to higher variable costs, such as supply chain costs and hotel manager costs, associated with our ongoing hotel network expansion.

Gross margin of our hotel businesses expanded to 37.3% in the third quarter of 2025 from 36.0% during the same period of 2024, primarily due to a lower proportion of leased hotels as a result of our product mix optimization. Retail costs for the third quarter of 2025 went up by 36.3% year-over-year and down by 11.2% quarter-over-quarter to RMB 400 million. The year-over-year increase was associated with the rapid growth of our retail business. Gross margin of our retail business remained stable compared to the same period of 2024. Now please turn to slide 22. Setting and marketing expenses for the third quarter of 2025 were RMB 355 million, compared with RMB 218 million for the same period of 2024. Setting and marketing expenses accounted for 13.5% of net revenues for the third quarter of 2025, compared with 11.5% 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 for the third quarter of 2025 were RMB 100 million and included RMB 10 million in share-based compensation expenses, compared with RMB 82 million for the same period of 2024, which also included RMB 3 million in share-based compensation expenses. General and administrative expenses, excluding share-based compensation expenses, accounted for 3.4% of net revenues for the third quarter of 2025, compared with 4.2% for the same period of 2024. The decrease was primarily due to improved management efficiency and economics of scale. Technology and development expenses for the third quarter of 2025 were RMB 44 million, compared with RMB 30 million for the same period of 2024.

Technology and development expenses accounted for 1.7% of net revenues for the third quarter of 2025, compared with 1.6% for the same period of 2024. Please turn to slide 23. Adjusted net income for the third quarter of 2025 was RMB 488 million, representing a 27.0% increase year-over-year. Adjusted net profit margin for the third quarter of 2025 was 18.6%. Adjusted EBITDA for the third quarter of 2025 was RMB 685 million, up by 28.7% year-over-year. Adjusted EBITDA margin for the third quarter of 2025 was 26.1%. Now please turn to slide 24. We also maintained a healthy cash position. As of September 13, 2025, our cash and cash equivalent totaled RMB 2,670 million, with net cash of RMB 2,603 million. Please turn to slide 25.

In line with our commitment to enhancing shareholder value and our annual dividend policy adopted in August 2024, today we declare our second cash dividend for 2025, totaling approximately US dollar 50 million. Through a comprehensive shareholder return initiative encompassing 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 achievements. Please turn to slide 26. For full year 2025, given ongoing network expansion and rapid growth of our retail business, we currently expect total net revenues to increase by 35% compared with full year 2024. That concludes our financial highlights for the third quarter of 2025. Now let's open for Q&A.

Speaker 3

Thank you, Management. We will now begin the question and answer session. To ask a question, please press star 11 and wait for a name to be announced. For the benefit of all participants on today's call, if you raise your questions in Chinese, please immediately repeat your questions in English. Please limit your questions to one at a time. If you wish to have follow-up questions, please rejoin the queue. One moment for the first question. Our first question comes from the line of Dan Qi from Morgan Stanley. Please go ahead.

Speaker 1

谢谢观影者们，晚上好。我是大摩的分析师 Dan 徐显达。我这边的问题是关于 REFPA，就是国庆节我们看到整个酒店这边 REFPA 有一个同比的上涨。可否请管理层分享一下 10 月以来整个 REFPA 的趋势，以及对四季度和明年 REFPA 的一个看法？谢谢。我翻译一下。 Hello Management, could the management share the REFPA trend since October? And also, if it's possible, can you provide your outlook for REFPA in the fourth quarter and also potentially next year? Thank you.

Speaker 3

好，谢谢 Dan。我来回答你这个问题。今年以来在行业整个供需关系持续修复的大背景之下，我们也坚持高质量发展的这样一个理念，依托精细化的收益管理策略，也展现出了比较强的一个经营的韧性。所以我们也看到我们前三个季度我们 REFPA 的同比呈现出一个逐季改善的一个态势。

Speaker 5

Thank you, Dan. Let me address your question. Since the beginning of this year, with the continued recovery in industry supply and the demand dynamics, we sticked to a high-quality development and leveraged a refined strategy of revenue management, demonstrating strong operational resilience. Throughout the first three quarters of this year, our REFPA has shown a trend of progressive improvement on a year-over-year basis.

Speaker 3

在国庆的假期期间的话，休闲的旅游需求保持活跃，但市场结构性的分化特征是比较明显的。在平均房价的带动之下，我们的 REFPA 在国庆期间也实现了同比的增长。假期结束之后，市场也回归到以商务为主导的环境，那也得益于各类的会展，还有商务差旅活动的活跃。我们看到核心城市的商务需求也展现出了比较强的韧性。因此我们也预计四季度的 REFPA 同比下降的压力的话，还有望进一步的缓解。

Speaker 5

During the National Day holiday, leisure travel demand remained robust, but the market exhibited some significant structural divergence. Driven by stronger ADR, our REFPA achieves year-on-year growth. After the holiday, the market returned to a business-dominated environment. But benefiting from active exhibitions and business travel activities, the demand in core cities demonstrated strong resilience. Therefore, we expect the pressure from the year-on-year decline in REFPA to further ease in the fourth quarter.

Speaker 3

展望未来的话，我们预计市场将延续分化的特征，挑战和不确定性的话仍然还是存在的。那么我们也将继续去深耕用户的需求，修炼基本功，以高品质的酒店产品，还有差异化的住宿的体验去吸引用户，深化我们跟用户的情感连接，从而在波动的市场环境里边的话，构筑我们长期的优势，展现我们的长期发展韧性。

Speaker 5

Looking ahead, the market will continue to show divergence, with still some challenges and uncertainties remaining. We will continue to deeply understand user needs, strengthen our foundational capabilities, attract the users with high-quality hotel products, and differentiated experiences. By forging deeper emotional ties with them, we will secure long-term advantages in a volatile market environment and demonstrate our resilience for development.

Speaker 3

谢谢。

Speaker 5

Thank you.

Speaker 3

Thank you, Dan. Next question, please. Thank you for the question. Next question comes from Sujie Lin of CICC. Please go ahead.

Speaker 6

谢谢管理层。我的问题是关于，就是可否请你们分享一下近期这个酒店业务的这个签约的趋势，以及是说全年的这个开店和关店的指引是不是有变化。 So thank you, Management. Could you please share more about the recent new hotel signing trends and whether there are any changes to the full year hotel opening and closure targets? Thank you.

Speaker 3

好的，感谢 Sujie。我来回答这个问题。近年来呢，是在规模发展的过程中，亚朵一直坚持我们的好店的战略定力。在扩张上，我们聚焦核心区位，并对品质是严格把控的。同时呢，我们也推出了多个契合市场需求的新酒店的产品。随着众多高质量项目的成功落地，公司的品牌力与差异化的竞争优势也得到了进一步的夯实。我们呢，并不认同单纯由数量驱动的增长策略。我们坚信，只有在扎实的质量基础上推进规模的增长，才具备可持续发展的价值。

Speaker 5

Thank you, Sujie. Let me answer your question. In recent years, we found that during our scale expansion, Atour has consistently maintained our strategic focus on premier hotels, concentrating on core locations for expansion, and we strictly controlled quality. At the same time, we have launched several new hotel products that align with market needs. With the successful launch of many high-quality projects, our brand strength and differentiated competitive advantages have been further solidified. So we do not endorse a growth strategy driven purely by scale. We firmly believe that only by advancing scale growth on the foundation of quality can we achieve sustainable value.

Speaker 3

签约上，正如刚才提到的，我们保持严格的筛选机制，聚焦核心城市、核心商圈。在高品质的基础之上，今年整体签约项目的数量与去年基本持平，保持了稳健的发展节奏。同时呢，我们也在有序地对管道内停滞的项目进行清理，推动我们的管道健康的发展。

Speaker 5

Regarding signings, as we mentioned earlier, we maintain a strict selection mechanism, focusing on expansion in core business districts of key cities. With high quality being a prerequisite, the total number of new hotel signings this year is generally in line with last year, maintaining a steady development pace. At the same time, we are also clearing stalled projects in the pipeline in an orderly fashion to promote the healthy development of our pipeline.

Speaker 3

开店和关店方面，三季度共计开业呢，是152家酒店。我们有充足的信心实现全年新开500家店的指引，并于年底实现我们2000好店的战略目标。同时呢，对于在营的酒店，我们高度重视在营酒店的运营质量和用户体验，也通过强化标准执行和精细化的管理，确保每家酒店都能提供一致性的高品质的服务。为此呢，我们也保持一定的主动汰换的比例，让我们的整体酒店网络的质量水平持续提升。三季度呢，我们共计关店是28家，预计今年全年的关店数是80家左右。谢谢。

Speaker 5

In terms of openings and closures, we opened 152 hotels in the third quarter. We have full confidence in achieving the full year guidance of 500 new openings and reaching our strategic target of 2000 premier hotels by the end of this year. Meanwhile, for the operating hotels of ours, we place great emphasis on operational quality and user experience. By strengthening standard implementation and refined management, we can ensure that every hotel can deliver consistently high-quality service. To this end, we maintain a certain proactive replacement rate to continuously enhance the quality of our overall hotel network. In the third quarter, we closed 28 hotels and expect approximately 80 closures entirely for this year. Thank you.

Speaker 3

Thank you, Sujie. Next question, please. Thank you for the question. Next questions come from Chenxing of UBS. Please go ahead.

Speaker 1

各位管理层晚上好。感谢给我这次提问的机会。我是UBS的陈兴。我的问题是关于零售的。首先第一个是想请管理层分享一下对零售业务市场竞争的看法。第二个呢，是我们的零售业务的收入不断超预期，那公司对全年零售收入的指引是否会有调整。我翻成英文。 This is Chenxing from UBS, and my question is about the retail business. Could the management share your perspective on the competition in the retail business? In addition, given the consistent overall performance of the retail business, would you consider any adjustments to your full year retail revenue guidance? Thanks. 谢谢两位。

Speaker 3

好的，感谢陈兴。我先来分享一下零售业务发展规划和竞争的一些情况。亚朵星球呢，入局睡眠行业以来，我们的品牌力和产品力逐步获得市场的认可。伴随而来的呢，也是越来越多的模仿者和行业的参与者。市场竞争呢，日趋激烈。然而呢，我们始终认为真正的竞争并非来自于同行，而是不断变化的用户的需求。

Speaker 5

Thank you, Chenxing. Let me start by sharing the development strategy of ours and the competitive landscape of our retail business. Since Atour Planet entered the sleep industry, our brand and product power have gradually gained market recognition. This has been followed by a rise in imitators and industry participants, leading to an increasingly fierce competition. However, we always believe that the real competition is not about the peers, but is about the ever-evolving user needs.

Speaker 3

为此呢，我们并非简单地抄袭行业既有的路径，而是呢，逐步构建起具备我们自主特色的产品和供应链的体系。例如呢，我们近期也正式推出了我们亚朵星球的深睡标准。这个标准呢，区别于克重、面料支数这些行业传统的参数，而是以感觉科学和人体自然睡眠的节律为基础，聚焦用户睡眠过程中的两大核心的体感指标：压力的波动和温度的变化。这样的标准呢，也对我们的产品研发和生产提出了更高的要求。我们也希望通过这个前瞻性的标准，不断夯实我们的产品壁垒，同时携手我们上游的供应的合作方，共同能够带领行业的进步。

Speaker 5

To address this, we did not simply follow the existing industry path. Instead, we progressively built our products and supply chain system with our distinctive characteristics. For example, we officially launched the Atour Planet Deep Sleep standard recently. This standard differs from traditional industry metrics like fabric weights or thread counts, but it is based on sensory science and the natural rhythms of human sleep, focusing on two core sensory indicators of sleeping users: the fluctuation of pressure and the change of temperature. This standard also places higher demands on our product development and production. We aim to continuously strengthen our product barriers through this forward-looking standard while collaborating with the upstream supplier partners to jointly lead the industry progresses.

Speaker 3

作为行业的新进入者，我们始终呢，以更长远的心态进行布局。在快速发展的同时，我们也持续进行基本功的建设和夯实。我想呢，我们在零售业务和住宿业务的初心是一脉相承的，就是始终将品质置于规模之前。未来的发展方向上，亚朵星球将持续深耕产品力，坚持以用户为核心，聚焦长期能力的系统建设，践行亚朵长期主义的发展的路径。

Speaker 5

As a relatively new player in the industry, we always plan our layout with a longer-term mindset. While developing quite rapidly, we have been constantly building and consolidating our foundational capabilities. I believe our underlying philosophy is consistent between the retail and hotel businesses, which is to always prioritize quality over scale. Moving forward, Atour Planet will continue to strengthen our product power, remain user-centric, focus on the systematic development of our long-term capabilities, and practice towards group's long-termism development path.

Speaker 1

我来回答一下关于零售收入的问题。双十一期间的话，我们亚朵星球的整体表现也还是非常出色的。用户的心智也不断地加强。因此呢，基于三季度和双十一零售业务的表现，我们将全年零售收入同比的增长的预期上调至不低于65%。也是基于此的话，我们相应将集团全年收入的指引上调到了35%。

Speaker 5

Well, let me address your question about our retail revenue. During the double eleven period, Atour Planet delivered outstanding performance and continuously strengthened our brand presence in the minds of users. Based upon our strong performance in Q3 and the double eleven, we're now raising our full year retail revenue growth outlook to at least 65% year on year, and accordingly adjust the group's full year revenue guidance to a growth of 35% year on year.

Speaker 3

谢谢。

Speaker 5

Thank you.

Speaker 3

Thank you, Chenxing. Next question, please. Certainly. Next question comes from Ronald Lern of Bank of America. Please go ahead.

Speaker 6

呃，喂，呃，各位管理层，呃，晚上好。呃，我是美银的 Ronald Lern，呃，谢谢给我提问的机会。呃，我的问题是关于分红的。呃，我们看到公司公布了今年第二期的，呃，分红方案。呃，想请教管理层更新一下，呃，股东回报的方案的规划和进展吗？ let me translate my question into English. So, we noticed, Atour has announced a second dividend distribution plan this year. could management provide an update on the planning and progress regarding shareholder returns? thank you.

Speaker 3

好，谢谢 Ronald。嗯，分红方面的话呢，就如同我们今天的公告，我们本年度第二次的分红的总额呢，约为5000万人民币，那，呃，5000万美元，占到上年净利润的29%。因此呢，今年全年累计分红的总额呢，是达到了1.08亿美元，约占到前一年净利润的62%。那其实这个数字是超过了我们全年分红不低于前一个财年净利润50%的这个承诺。那另外在回购方面的话，我们是在9月份正式启动了我们回购的操作，并将依据我们既定的三年回购的回购的方案持续去推进执行。

Speaker 5

Thank you, Ronald. Regarding dividends, as we announced today, our second dividend distribution this year amounts to approximately 50 million US dollars, representing about 29% of last year's net income. Consequently, the cumulative dividend total for this year reaches about 108 million US dollars, accounting for approximately 62% of the prior fiscal year's net income, exceeding our commitment of no less than 50% of that. Additionally, we formally commenced our share repurchase program in September and will continue to execute them in accordance with our established three-year plan.

Speaker 3

那展望未来的话，我们将继续执行分红加回购的一揽子股东回报的计划。计划以计划是以前一年、前一财年 gap 净利润为基准，实现呢，100%的支付比例，就100%的 payout ratio。具体的实施的节奏的话，将结合公司已有的发展和资金的规划进行动态的安排。那我们希望是以切实的行动为果，股东创造长期的价值，回报我们股东的支持和信任，让大家共享公司的发展成果。

Speaker 5

Looking ahead, we will continue to implement our comprehensive shareholder return program, combining dividends and repurchases, targeting a payout ratio of 100% based upon the previous fiscal year's gap net income, with the specific implementation pace to be dynamically arranged in line with our business development and capital planning. Through these tangible actions, we are committed to creating long-term value and sharing the success of the company with our shareholders in appreciation of your ongoing support and trust.

Speaker 3

Thank you, Ronald. Next question, please. One moment for the next questions. The next questions come from Lydia Ling of Citi. Please go ahead.

Speaker 0

嗯，管理层好，我是花旗的 Lydia。呃，我想跟进一下清居方面的问题。我们看到三季度的清居其实整体经营表现也是，呃，挺不错的。呃，那想请问一下管理层接下来对清居的一个下一步的一个发展的规划是否会加快这个清居的一个门店扩张。 thanks management. I'm Lydia from City. we noticed the strong operation performance for the, to a light in the third quarter. So could you share, your plan for the, to a light in the next steps and, any plan for accelerating the, store expansion? Thank you.

Speaker 3

好，谢谢 Lydia。呃，确实我们三季度清居三系呢，在营酒店 rap 已经超过去年同期的水平，表现还是非常不错的。那么其实今年以来呢，清居在整个品牌的建设、运营效率，还有用户体验方面的话，都取得了不错的成绩。那经营表现与规模增长的话，也都是符合公司的预期的。

Speaker 5

Thank you, Lydia. Well, yes indeed. In the third quarter, the rap bar of operating Atour Light Series 3 hotels surpassed the level from the same period last year, performing pretty decently. And in fact, since the beginning of this year, Atour Light has achieved notable results in brand building, operational efficiency, user experience, with both operational performance and scale growth meeting our expectations.

Speaker 3

我们始终认为品牌的核心呢，是在于产品。那么清居酒店的产品呢，精准地契合当下年轻用户的需求和审美的偏好。那我们最新也推出了我们清居 3.3 的版本。那凭借持续优化的投资模型，在服务体验与运营效率之间的话呢，实现了更优的平衡。那通过首期，呃，首批的清居 3.3 项目的落地，我们也在持续收集各方的反馈，去不断完善我们产品的细节。当时我们清居在终端市场的差异化的竞争优势。那么预计到今年年底呢，清居三系版本的酒店的规模呢，能将达到 170 到 180 家。

Speaker 5

We always believe that the core of a brand lies in its products. The Atour Light hotel product accurately aligns with the needs and aesthetic preferences of today's young users. The newly launched Atour Light 3.3, with its constantly optimized investment model, achieves a better balance between service experience and operational efficiency. Through the implementation of the first batch of our Atour Light 3.3 project, we are constantly gathering feedback from various sides, refining product details and strengthening our differentiated competitive advantage in the mid-scale market. We expect this scale of Atour Light Series 3 hotels in operation will be reaching 170 to 180 by the end of this year.

Speaker 3

我们也是坚定地看好清居的长期发展。现阶段在品牌发展的初期呢，我们更要重点夯实运营的基础和体系的能力。下一步我们也将系统地构建清居专属的运营体系，从品牌理念到服务执行，全面强化其差异化的定位，既实现与亚朵主品牌的区隔，也突出它在终端酒店市场的独特的价值。那在此基础之上的话呢，稳步地去推进我们清居品牌实现千店规模的长期发展目标。谢谢。

Speaker 5

We are firmly optimistic about the long-term development of Atour Light. At this current early stage of the brand development, we are particularly focused on solidifying the operational foundation and our systematic capabilities. As for our next step, we will systematically build a dedicated operational system for Atour Light, strengthening its differentiated positioning in all aspects, including from brand concept to service delivery. This will not only distinguish it from our main Atour hotel brand, but also highlight the unique value in the mid-scale hotel market. On this basis, we will steadily advance towards a longer-term development goal of hitting 1,000 hotels milestone for Atour Light brand. Thank you.

Speaker 3

Thank you, Lydia. Next question, please.

that concludes today's questions and answer session. I would like to turn the conference back to Mr. Luke for any additional, comments or closing comments.

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 again next quarter. Thank you and goodbye.

This concludes today's conference call. Thank you for participating. You may now dis.