Bay Street News

Atour Lifestyle Holdings Limited Reports Fourth Quarter and Full Year 2023 Unaudited Financial Results

Bay Street

SHANGHAI, China, March 28, 2024 (GLOBE NEWSWIRE) — Atour Lifestyle Holdings Limited (“Atour” or the “Company”) (NASDAQ: ATAT), a leading hospitality and lifestyle company in China, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2023.

Fourth Quarter and Full Year 2023 Operational Highlights

As of December 31, 2023, there were 1,210 hotels with a total of 137,921 hotel rooms in operation across Atour’s hotel network, representing rapid increases of 29.8% and 27.7% year-over-year in terms of the number of hotels and hotel rooms, respectively. As of December 31, 2023, there were 617 manachised hotels under development in our pipeline.

The average daily room rate4 (“ADR”) was RMB438 for the fourth quarter of 2023, compared with RMB388 for the fourth quarter of 2022 and RMB495 for the previous quarter. The ADR for the fourth quarter of 2023 recovered to 103.6% of 2019’s level for the same period. The ADR for full year 2023 was RMB464, compared with RMB391 for the previous year. The ADR for full year 2023 recovered to 107.9% of 2019’s level.

The occupancy rate4 was 78.4% for the fourth quarter of 2023, compared with 63.1% for the fourth quarter of 2022 and 82.4% for the previous quarter. The occupancy rate for the fourth quarter of 2023 recovered to 105.9% of 2019’s level for the same period. The occupancy rate for full year 2023 was 77.8%, compared with 63.0% for the previous year. The occupancy rate for full year 2023 recovered to 106.0% of 2019’s level.

The revenue per available room4 (“RevPAR”) was RMB358 for the fourth quarter of 2023, compared with RMB259 for the fourth quarter of 2022 and RMB424 for the previous quarter. The RevPAR for the fourth quarter of 2023 recovered to 108.8% of 2019’s level for the same period. The RevPAR for full year 2023 was RMB377, compared with RMB261 for the previous year. The RevPAR for full year 2023 recovered to 114.4% of 2019’s level.

The GMV5 generated from our retail business was RMB1,139 million for full year 2023, representing an increase of 298.3% year-over-year.

“We are pleased to deliver strong full-year results for 2023, as well as significant progress towards our goal to operate a nationwide network of 2,000 premier hotels by 2025 and establish the ‘Chinese Experience’ as the industry benchmark,” said Mr. Haijun Wang, Founder, Chairman and CEO of Atour. “In 2023, we exceeded our expansion target with 289 newly launched hotels and an expanded network of 1,210 hotels as of year-end. We also achieved high-quality, resilient RevPAR growth in the fourth quarter, with both ADR and OCC surpassing 2019’s levels for the fourth consecutive quarter. Our midscale product, Atour Light 3.0, continued to capture consumer mindshare with its ‘Life at Ease’ concept. Since its launch, this offering has delivered excellent operational performance and customer experience within key business districts, laying a solid foundation as we advance Atour Light 3.0 toward its 1,000-hotel milestone. Meanwhile, Atour 4.0, our upper midscale offering, is progressing smoothly and is poised for an exceptional grand opening soon. On the retail side, our ‘Deep Sleep’ products emerged as a market powerhouse and our enhanced brand influence led to a year-over-year increase of approximately 300% in our retail business’s GMV for 2023. In 2024, we remain committed to further enhancing Atour’s product offerings and unlocking synergies between retail and accommodation while enriching our brand value to elevate the ‘Chinese experience’ to new heights,” concluded Mr. Wang.


Fourth Quarter and Full Year of 2023 Unaudited Financial Results
(RMB in thousands)   Q4 2022   Q4 2023   FY2022   FY2023
               
Revenues:                
Manachised hotels   364,866   851,216   1,360,843   2,705,609
Leased hotels   138,909   195,020   552,929   840,044
Retail   99,195   412,226   253,607   971,931
Others   23,203   46,756   95,604   148,383
Net revenues   626,173   1,505,218   2,262,983   4,665,967
                 

Net revenues. Our net revenues for the fourth quarter of 2023 increased by 140.4% year-over-year to RMB1,505 million (US$212 million) from RMB626 million for the same period of 2022, mainly driven by the robust growth in both hotel and retail businesses. For full year 2023, net revenues increased by 106.2% year-over-year to RMB4,666 million (US$657 million) from RMB2,263 million for full year 2022.

    Q4 2022    Q4 2023    FY 2022    FY 2023   
(RMB in thousands)          
Operating costs and expenses:          
Hotel operating costs   (355,929 )   (733,208 )   (1,393,312 )   (2,240,890 )  
Retail costs   (58,689 )   (232,041 )   (151,815 )   (513,326 )  
Other operating costs   (9,446 )   (30,671 )   (34,870 )   (72,543 )  
Selling and marketing expenses   (53,992 )   (206,913 )   (139,929 )   (469,595 )  
General and administrative expenses   (217,041 )   (105,434 )   (350,009 )   (451,470 )  
Technology and development expenses   (15,966 )   (22,300 )   (66,182 )   (77,288 )  
Total operating costs and expenses   (711,063 )   (1,330,567 )   (2,136,117 )   (3,825,112 )  
                           

Operating costs and expenses for the fourth quarter of 2023 were RMB1,331 million (US$187 million), including RMB2 million share-based compensation expenses, compared with RMB711 million, including RMB163 million share-based compensation expenses for the same period of 2022. Operating costs and expenses for full year 2023 were RMB3,825 million (US$539 million), including RMB164 million share-based compensation expenses, compared with RMB2,136 million, including RMB163 million share-based compensation expenses for full year 2022.

Other operating income primarily consists of income from government subsidies and value-added tax related benefits. Other operating income for the fourth quarter of 2023 was RMB40 million (US$6 million), compared with RMB7 million for the same period of 2022. For full year 2023, other operating income was RMB83 million (US$12 million), compared with RMB38 million for full year 2022.

Income from operations for the fourth quarter of 2023 was RMB214 million (US$30 million), compared with loss from operations of RMB78 million for the same period of 2022. For full year 2023, income from operations was RMB924 million (US$130 million), compared with RMB165 million for full year 2022.

Income tax expense for the fourth quarter of 2023 was RMB17 million (US$2 million), compared with RMB12 million for the same period of 2022. For full year 2023, income tax expense was RMB243 million (US$34 million), compared with RMB84 million for full year 2022.

Net income for the fourth quarter of 2023 was RMB220 million (US$31 million), compared with net loss of RMB83 million for the same period of 2022. For full year 2023, net income was RMB739 million (US$104 million), an increase of 669.2% year-over-year, compared with RMB96 million for full year 2022.

Adjusted net income (non-GAAP) for the fourth quarter of 2023 was RMB222 million (US$31 million), an increase of 175.8% year-over-year, compared with RMB81 million for the same period of 2022. For full year 2023, adjusted net income (non-GAAP) was RMB903 million (US$127 million), an increase of 248.3% year-over-year, compared with RMB259 million for full year 2022.

Basic and diluted income per share/American depositary share (ADS). For the fourth quarter of 2023, basic income per share was RMB0.53 (US$0.08), and diluted income per share was RMB0.53 (US$0.07). Basic income per ADS for the fourth quarter of 2023 was RMB1.60 (US$0.23), and diluted income per ADS was RMB1.59 (US$0.22). For full year 2023, basic income per share was RMB1.82 (US$0.26), and diluted income per share was RMB1.78 (US$0.25). Basic income per ADS was RMB5.45 (US$0.77), and diluted income per ADS was RMB5.33 (US$0.75).

EBITDA (non-GAAP) for the fourth quarter of 2023 was RMB248 million (US$35 million), compared with negative RMB47 million for the same period of 2022. For full year 2023, EBITDA (non-GAAP) was RMB1,043 million (US$147 million), an increase of 299.2% year-over-year, compared with RMB261 million for full year 2022.

Adjusted EBITDA (non-GAAP) for the fourth quarter of 2023 was RMB251 million (US$35 million), an increase of 116.1% year-over-year, compared with RMB116 million for the same period of 2022. For full year 2023, adjusted EBITDA (non-GAAP) was RMB1,207 million (US$170 million), an increase of 184.3% year-over-year, compared with RMB424 million for full year 2022.

Cash flows. Operating cash inflow for the fourth quarter of 2023 was RMB564 million (US$79 million). Investing cash inflow and financing cash inflow for the fourth quarter of 2023 were RMB43 million (US$6 million) and RMB52 million (US$7 million), respectively. For full year 2023, operating cash inflow was RMB1,989 million (US$280 million), compared with RMB284 million for full year 2022. Investing cash outflow for 2023 was RMB601 million (US$85 million), compared with RMB192 million for full year 2022. Financing cash outflow for 2023 was RMB147 million (US$21 million), compared with financing cash inflow of RMB456 million for full year 2022.

Cash and cash equivalents and restricted cash. As of December 31, 2023, the Company had a total balance of cash and cash equivalents and restricted cash of RMB2,842 million (US$400 million).

Debt financing. As of December 31, 2023, the Company had total outstanding borrowings of RMB72 million (US$10 million) and the unutilized credit facility available to the Company was RMB410 million.

_________________________________

1 Adjusted net income (non-GAAP) is defined as net income excluding share-based compensation expenses.
2EBITDA (non-GAAP) is defined as earnings before interest expense, interest income, income tax expense and depreciation and amortization.
3Adjusted EBITDA (non-GAAP) is defined as EBITDA excluding share-based compensation expenses.
4Excludes hotel rooms that were previously requisitioned by the government for quarantine needs in response to the COVID-19 outbreak or otherwise became unavailable due to temporary hotel closures. ADR and RevPAR are calculated based on tax inclusive room rates.
“ADR” refers to the average daily room rate, which means room revenue divided by the number of rooms in use for a given period;
“Occupancy rate” refers to the number of rooms in use divided by the number of available rooms for a given period;
“RevPAR” refers to revenue per available room, which is calculated by total revenues during a period divided by the number of available rooms of our hotels during the same period.
5“GMV” refers to gross merchandise value, which is the total value of confirmed orders placed and paid for by our end customers with us or our franchisees, as the case may be, and sold as part of our retail business, where the ordered products have been dispatched and not returned, calculated based on the prices of the ordered products net of any discounts offered to our end customers.

Conference Call

The Company will host a conference call at 7:00 AM U.S. Eastern time on Thursday, March 28, 2023 (or 7:00 PM Beijing/Hong Kong time on the same day). 

A live webcast of the conference call will be available on the Company’s investor relations website at https://ir.yaduo.com, and a replay of the webcast will be available following the session.

For participants who wish to join the conference call via telephone, please pre-register using the link provided below. Upon registering, each participant will receive a set of participant dial-in numbers and a personal PIN to join the conference call.

Details for the conference call are as follows: 

Event Title: Atour Fourth Quarter and Full Year 2023 Earnings Conference Call
Pre-registration Link: https://register.vevent.com/register/BI70f0996472244e0e99374c5c3db7206f

Use of Non-GAAP Financial Measures

To supplement the Company’s unaudited consolidated financial results presented in accordance with U.S. Generally-Accepted Accounting Principles (“GAAP”), the Company uses the following non-GAAP measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission: adjusted net income (loss), which is defined as net income (loss) excluding share-based compensation expenses; EBITDA, which is defined as earnings before interest expense, interest income, income tax expense and depreciation and amortization; adjusted EBITDA, which is defined as EBITDA excluding share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of GAAP and non-GAAP results” set forth at the end of this release.

The Company believes that EBITDA is widely used by other companies in the hospitality industry and may be used by investors as a measure of financial performance. Given the significant investments that the Company has made in leasehold improvements and other fixed assets of leased hotels, depreciation and amortization comprise a significant portion of the Company’s cost structure. The Company believes that EBITDA will provide investors with a useful tool for comparability between periods because it eliminates depreciation and amortization attributable to capital expenditures. Adjusted net income and adjusted EBITDA provide meaningful supplemental information regarding the Company’s performance by excluding share-based compensation expenses, as the investors can better understand the Company’s performance and compare business trends among different reporting periods on a consistent basis excluding share-based compensation expenses which are not expected to result in cash payment. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the Company’s performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to the Company’s historical performance. The Company believes these non-GAAP financial measures are also useful to investors in allowing for greater transparency with respect to supplemental information used regularly by Company management in financial and operational decision-making. The accompanying tables provide more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.

The use of these non-GAAP measures has certain limitations as the excluded items have been and will be incurred and are not reflected in the presentation of these non-GAAP measures. Each of these items should also be considered in the overall evaluation of the results. The Company compensates for these limitations by providing the relevant disclosure of the relevant items both in its reconciliations to the U.S. GAAP financial measures and in its consolidated financial statements, all of which should be considered when evaluating the performance of the Company.

In addition, these measures may not be comparable to similarly titled measures utilized by other companies since such other companies may not calculate these measures in the same manner as the Company does.

About Atour Lifestyle Holdings Limited

Atour Lifestyle Holdings Limited (NASDAQ: ATAT) is a leading hospitality and lifestyle company in China, with a distinct portfolio of lifestyle hotel brands. Atour is the leading upper midscale hotel chain in China and is the first Chinese hotel chain to develop retail business. Atour is committed to bringing innovations to China’s hospitality industry and building new lifestyle brands around hotel offerings.

For more information, please visit https://ir.yaduo.com.

Investor Relations Contact

Atour Lifestyle Holdings Limited
Email: ir@yaduo.com

Piacente Financial Communications
Email: Atour@tpg-ir.com
Tel: +86-10-6508-0677

—Financial Tables and Operational Data Follow—

ATOUR LIFESTYLE HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except share data and per share data, or otherwise noted)
             
    As of   As of
    December 31,   December 31,
    2022   2023
    RMB   RMB   USD1
Assets            
Current assets            
Cash and cash equivalents   1,589,161   2,840,807   400,119
Short-term investments   157,808   751,794   105,888
Accounts receivable   132,699   162,101   22,831
Prepayments and other current assets   133,901   251,900   35,480
Amounts due from related parties   53,630   115,900   16,324
Inventories   57,460   119,078   16,772
Total current assets   2,124,659   4,241,580   597,414
Non-current assets            
Restricted cash   946   946   133
Contract costs   67,270   98,220   13,834
Property and equipment, net   360,300   266,120   37,482
Operating lease right-of-use assets   1,932,000   1,712,580   241,212
Intangible assets, net   5,537   4,247   598
Goodwill   17,446   17,446   2,457
Other assets   141,335   100,939   14,218
Deferred tax assets   112,533   144,947   20,415
Total non-current assets   2,637,367   2,345,445   330,349
Total assets   4,762,026   6,587,025   927,763
             
Liabilities and shareholders’ equity            
Current liabilities            
Operating lease liabilities, current   319,598   295,721   41,651
Accounts payable   184,901   594,545   83,741
Deferred revenue, current   202,996   406,066   57,193
Salary and welfare payable   103,539   189,823   26,736
Accrued expenses and other payables   330,282   684,391   96,394
Income taxes payable   31,336   136,201   19,184
Short-term borrowings   142,828   70,000   9,859
Current portion of long-term borrowings   29,130   –   –
Amounts due to related parties   3,004   1,104   155
Total current liabilities   1,347,614   2,377,851   334,913
Non-current liabilities            
Operating lease liabilities, non-current   1,805,402   1,583,178   222,986
Deferred revenue, non-current   277,841   369,455   52,037
Long-term borrowings, non-current portion   2,000   2,000   282
Other non-current liabilities   141,763   194,452   27,388
Total non-current liabilities   2,227,006   2,149,085   302,693
Total liabilities   3,574,620   4,526,936   637,606

_________________________________

1Translations of balances in the consolidated financial statements from RMB into US$ for the fourth quarter of 2023 and as of December 31, 2023 are solely for readers’ convenience and were calculated at the rate of US$1.00=RMB 7.0999, representing the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on December 31, 2023.

ATOUR LIFESTYLE HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except share data and per share data, or otherwise noted)
             
    As of   As of
    December 31,   December 31,
    2022   2023
    RMB   RMB   USD1
Shareholders’ equity            
Class A ordinary shares   229     244     34  
Class B ordinary shares   56     56     8  
Additional paid in capital   1,286,189     1,555,773     219,126  
Retained earnings (accumulated deficit)   (78,304 )   507,226     71,441  
Accumulated other comprehensive income (loss)   (10,865 )   4,769     672  
Total shareholders’ equity attributable to shareholders of the Company   1,197,305     2,068,068     291,281  
Non-controlling interests   (9,899 )   (7,979 )   (1,124 )
Total shareholders’ equity   1,187,406     2,060,089     290,157  
Commitments and contingencies   –     –     –  
Total liabilities and shareholders’ equity   4,762,026     6,587,025     927,763  

ATOUR LIFESTYLE HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(All amounts in thousands, except share data and per share data, or otherwise noted)
                         
    Three Months Ended   Year Ended
    December 31,   December 31,   December 31,   December 31,
    2022   2023
   2022   2023
    RMB   RMB   USD1   RMB   RMB   USD1
Revenues:                        
Manachised hotels   364,866     851,216     119,891     1,360,843     2,705,609     381,077  
Leased hotels   138,909     195,020     27,468     552,929     840,044     118,318  
Retail   99,195     412,226     58,061     253,607     971,931     136,894  
Others   23,203     46,756     6,586     95,604     148,383     20,899  
Net revenues   626,173     1,505,218     212,006     2,262,983     4,665,967     657,188  
Operating costs and expenses:                        
Hotel operating costs   (355,929 )   (733,208 )   (103,270 )   (1,393,312 )   (2,240,890 )   (315,623 )
Retail costs   (58,689 )   (232,041 )   (32,682 )   (151,815 )   (513,326 )   (72,300 )
Other operating costs   (9,446 )   (30,671 )   (4,320 )   (34,870 )   (72,543 )   (10,218 )
Selling and marketing expenses   (53,992 )   (206,913 )   (29,143 )   (139,929 )   (469,595 )   (66,141 )
General and administrative expenses   (217,041 )   (105,434 )   (14,850 )   (350,009 )   (451,470 )   (63,588 )
Technology and development expenses   (15,966 )   (22,300 )   (3,141 )   (66,182 )   (77,288 )   (10,886 )
Total operating costs and expenses   (711,063 )   (1,330,567 )   (187,406 )   (2,136,117 )   (3,825,112 )   (538,756 )
Other operating income   6,511     39,526     5,567     38,094     83,179     11,716  
Income from operations   (78,379 )   214,177     30,167     164,960     924,034     130,148  
Interest income   4,971     8,757     1,233     14,456     29,569     4,165  
Gain from short-term investments   1,918     11,322     1,595     8,455     34,519     4,862  
Interest expense   (1,646 )   (679 )   (96 )   (6,501 )   (5,005 )   (705 )
Other (expenses) income, net   2,245     3,418     481     (814 )   (1,024 )   (145 )
Income (loss) before income tax   (70,891 )   236,995     33,380     180,556     982,093     138,325  
Income tax expense   (11,712 )   (17,232 )   (2,427 )   (84,474 )   (243,036 )   (34,231 )
Net income (loss)   (82,603 )   219,763     30,953     96,082     739,057     104,094  
Less: net income (loss) attributable to non-controlling interests   (325 )   (291 )   (41 )   (2,017 )   1,920     270  
Net income (loss) attributable to the Company   (82,278 )   220,054     30,994     98,099     737,137     103,824  
                         
Net income (loss)   (82,603 )   219,763     30,953     96,082     739,057     104,094  
Other comprehensive income                        
Foreign currency translation adjustments, net of nil income taxes   (11,322 )   (10,372 )   (1,461 )   (1,918 )   15,634     2,202  
Other comprehensive income (loss), net of income taxes   (11,322 )   (10,372 )   (1,461 )   (1,918 )   15,634     2,202  
Total comprehensive income (loss)   (93,925 )   209,391     29,492     94,164     754,691     106,296  
Comprehensive income (loss) attributable to non-controlling interests   (325 )   (291 )   (41 )   (2,017 )   1,920     270  
Comprehensive income (loss) attributable to the Company   (93,600 )   209,682     29,533     96,181     752,771     106,026  
Net income (loss) per ordinary share                        
—Basic   (0.21 )   0.53     0.08     0.26     1.82     0.26  
—Diluted   (0.21 )   0.53     0.07     0.26     1.78     0.25  
Weighted average ordinary shares used in calculating net income per ordinary share                        
—Basic   386,298,063     412,824,955     412,824,955     379,321,522     405,628,647     405,628,647  
—Diluted   386,298,063     416,012,830     416,012,830     381,598,689     414,823,302     414,823,302  

ATOUR LIFESTYLE HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of RMB, except share data and per share data, or otherwise noted)
                         
    Three Months Ended   Year Ended
    December 31,   December 31,   December 31,   December 31,
    2022   2023
   2022   2023
    RMB   RMB   USD1   RMB   RMB   USD1
                         
Cash flows from operating activities:                        
Net cash generated from (used in) operating activities   (35,018 )   564,038     79,444     283,677     1,988,674     280,097  
Cash flows from investing activities:                        
Payment for purchases of property and equipment   (12,630 )   (9,827 )   (1,384 )   (36,425 )   (41,724 )   (5,877 )
Proceeds from disposal of property and equipment   –     –     –     –     670     94  
Payment for purchases of intangible assets   (1,663 )   –     –     (2,805 )   –     –  
Payment for purchases of short-term investments   (1,080,450 )   (3,601,000 )   (507,190 )   (2,931,000 )   (9,427,210 )   (1,327,795 )
Proceeds from maturities of short-term investments   920,918     3,654,035     514,660     2,778,005     8,867,743     1,248,995  
Net cash (used in) generated from investing activities   (173,825 )   43,208     6,086     (192,225 )   (600,521 )   (84,583 )
Cash flows from financing activities:                        
Proceeds from borrowings   30,000     –     –     199,000     40,000     5,634  
Repayment of borrowings   (58,000 )   –     –     (134,480 )   (141,958 )   (19,994 )
Proceeds from employee stock option exercises   –     52,461     7,389     –     105,621     14,876  
Payment for dividends   –     –     –     –     (150,579 )   (21,209 )
Acquisition of non-controlling interest   –     –     –     (350 )   –     –  
Proceeds from initial public offering   400,068     –     –     400,068     –     –  
Payment for initial public offering costs   (7,207 )   –     –     (7,928 )   –     –  
Net cash (used in) generated from financing activities   364,861     52,461     7,389     456,310     (146,916 )   (20,693 )
Effect of exchange rate changes on cash and cash equivalents and restricted cash   (2,250 )   (16,275 )   (2,293 )   2,816     10,409     1,470  
Net increase in cash, cash equivalents and restricted cash   153,768     643,432     90,626     550,578     1,251,646     176,291  
Cash and cash equivalents and restricted cash at the beginning of the period   1,436,339     2,198,321     309,626     1,039,529     1,590,107     223,961  
Cash and cash equivalents and restricted cash at the end of the period   1,590,107     2,841,753     400,252     1,590,107     2,841,753     400,252  
ATOUR LIFESTYLE HOLDINGS LIMITED
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(In thousands of RMB, except share data and per share data, or otherwise noted)
                         
    Three Months Ended   Year Ended
    December 31,   December 31,   December 31,   December 31,
    2022
   2023
   2022
   2023
    RMB   RMB   USD1   RMB   RMB   USD1
                         
Net income (loss) (GAAP)   (82,603 )   219,763     30,953     96,082     739,057     104,094  
Share-based compensation expenses, net of tax effect of nil2   163,193     2,476     349     163,193     163,978     23,096  
Adjusted net income (non-GAAP)   80,590     222,239     31,302     259,275     903,035     127,190  
                         
    Three Months Ended   Year Ended
    December 31,   December 31,   December 31,   December 31,
    2022
   2023
   2022
   2023
    RMB   RMB   USD1   RMB   RMB   USD1
                         
Net income (loss) (GAAP)   (82,603 )   219,763     30,953     96,082     739,057     104,094  
Interest income   (4,971 )   (8,757 )   (1,233 )   (14,456 )   (29,569 )   (4,165 )
Interest expense   1,646     679     96     6,501     5,005     705  
Income tax expense   11,712     17,232     2,427     84,474     243,036     34,231  
Depreciation and amortization   27,112     19,422     2,735     88,561     85,021     11,975  
EBITDA (non-GAAP)   (47,104 )   248,339     34,978     261,162     1,042,550     146,840  
Share-based compensation expenses   163,193     2,476     349     163,193     163,978     23,096  
Adjusted EBITDA (non-GAAP)   116,089     250,815     35,327     424,355     1,206,528     169,936  
                                     

_________________________________

2The share-based compensation expenses were recorded at entities in PRC. Share-based compensation expenses were non-deductible expenses in PRC. Therefore, there is no tax impact for share-based compensation expenses adjustment for non-GAAP financial measures.

Key Operating Data

  Number of Hotels   Number of Rooms
  Opened in Q4 2023 Closed in Q4 2023 As of
December 31, 2023		   As of
December 31, 2023
Manachised hotels 100 2 1,178   133,291
Leased hotels – – 32   4,630
Total 100 2 1,210   137,921
    As of December 31, 2023
Brand Positioning Properties Rooms
    Manachised Leased  
A.T. House Luxury – 1 214
Atour S Upscale 57 8 9,628
ZHOTEL Upscale 1 – 52
Atour Upper midscale 898 22 105,977
Atour X Upper midscale 114 – 12,140
Atour Light Midscale 108 1 9,910
Total   1,178 32 137,921
  Three Months
Ended
December 31,
2019		   Three Months
Ended
December 31,
2022		   Three Months
Ended
September 30,
2023		   Three Months
Ended
December 31,
2023
               
Occupancy rate3
(in percentage)		              
Manachised hotels 73.1%   62.8%   82.2%   78.2%
Leased hotels 83.3%   67.3%   86.6%   84.5%
All hotels 74.0%   63.1%   82.4%   78.4%
               
ADR3(in RMB)              
Manachised hotels 410.4   382.6   489.4   432.8
Leased hotels 532.8   468.6   629.9   557.9
All hotels 422.5   387.8   495.4   437.7
               
RevPAR3(in RMB)              
Manachised hotels 315.4   254.4   417.9   353.1
Leased hotels 471.3   341.7   571.4   495.3
All hotels 329.2   259.3   424.1   358.2
  Twelve Months
Ended
December 31, 2019		   Twelve Months
Ended
December 31, 2022		   Twelve Months
Ended
December 31, 2023
           
Occupancy rate3
(in percentage)		          
Manachised hotels 72.3%   62.9%   77.6%
Leased hotels 83.0%   65.8%   83.6%
All hotels 73.4%   63.0%   77.8%
           
ADR3(in RMB)          
Manachised hotels 415.9   386.4   457.8
Leased hotels 530.1   465.0   587.2
All hotels 429.5   391.2   463.6
           
RevPAR3(in RMB)          
Manachised hotels 313.7   256.3   370.8
Leased hotels 463.7   330.6   517.2
All hotels 329.5   260.7   376.8

_________________________________

3Excludes hotel rooms that were previously requisitioned by the government for quarantine needs in response to the COVID-19 outbreak or otherwise became unavailable due to temporary hotel closures. By the end of the second quarter of 2023, all of our hotels previously requisitioned by the government for quarantine purposes had been restored to our management, and no hotel was subject to requisition or closure due to COVID-19 restrictions during the fourth quarter of 2023 and as of December 31, 2023. ADR and RevPAR are calculated based on tax inclusive room rates.


Bay Street News