Atour Lifestyle Holdings (NASDAQ:ATAT) reported first-quarter 2026 results on Wednesday that came in ahead of analyst expectations, supported by strong growth across its hotel and retail operations.
Shares of the company slipped 0.68% in premarket trading following the earnings release.
Revenue and profit post strong year-on-year growth
Quarterly revenue increased 47.5% year-on-year to RMB2.81 billion ($408 million), compared with RMB1.91 billion in the same quarter last year.
Adjusted earnings per share rose to RMB1.17 from RMB0.82 in the first quarter of 2025.
Net income climbed 90.3% year-on-year to RMB463 million ($67 million), while adjusted net income increased 42.0% to RMB490 million ($71 million).
Hotel and retail businesses drive expansion
The company said growth was fueled by continued expansion in both its manachised hotel operations and retail business.
Retail revenue rose 54.4% year-on-year to RMB1.07 billion, while revenue from manachised hotels increased 51.9% to RMB1.57 billion.
“In the first quarter of 2026, we delivered steady performance across both our hotel and retail businesses,” said Haijun Wang, founder, chairman and chief executive officer of Atour.
“For our hotel business, hotel performance continued to improve sequentially. Adhering to our ’quality-first’ principle, we opened 110 new hotels in the first quarter while continuously reinforcing the distinct competitive advantages of each of our hotel brands.”
Hotel network and occupancy continue to grow
As of March 31, 2026, Atour operated 2,088 hotels with a total of 232,298 rooms.
That represented year-on-year increases of 20.9% in hotel count and 19.4% in room capacity.
Revenue per available room (RevPAR) increased to RMB312 during the quarter from RMB304 a year earlier, while occupancy rate improved slightly to 70.6% from 70.2%.
Company projects continued growth in 2026
For the full year 2026, Atour expects total net revenue to grow between 24% and 28% compared with 2025 levels.