Atour has quickly emerged as a standout player in China’s mid-to-high-end hotel space by tapping into the evolving needs of the country’s growing middle class - especially younger, experience-driven travelers. Its early entry and focus on soft services, aesthetic ambiance, and social values like rural poverty relief have helped it build strong emotional ties with consumers. With a fast-growing membership base, high repurchase rates, and a brand identity that resonates with both Gen Y and Z, the group is positioned not just as a hotel chain, but as a lifestyle brand.

The company's hotel network operates through four primary models:

Manachised Hotels (57% of Sales): Revenue growth in 2024 was driven by aggressive network expansion and increased sales through Atour’s centralized supply chain. With 1,593 manachised properties, the model combines franchisee-funded development with Atour-managed operations, including staffing, pricing, and procurement. Monthly fees range from 6–8% of gross hotel revenue, plus additional product and service charges, making this a scalable and high-margin engine.

Leased Hotels (10% of Sales): Revenue declined as leased hotels were reduced to just 26 properties by year-end - 1.6% of the portfolio - following a shift toward manachised growth. These company-run hotels serve as brand flagships, typically located in business or transport hubs, with lease terms up to 15 years and floorplans between 80–200 rooms. Atour handles everything from site selection to renovation, staffing, and quality control.

Retail (30% of Sales): Retail revenue rose sharply, fueled by expanded product lines and stronger brand recognition. Atour-branded goods, from bedding to personal care, are now a key part of the guest experience and increasingly sold through external channels. The segment’s strong margin profile benefits from in-house design and direct distribution.

Others (3% of Sales): This category includes services like staff training via Jimu College, internal tech systems, and logistics coordination. Though a small revenue slice, it supports operational consistency across the hotel network and reinforces Atour’s control over brand execution.

Atour 20F

Atour’s 2024 growth shows how each brand plays a clear role - from flagship stays to boutique, budget, and luxury - shaping a diverse hotel portfolio across China:

Atour Hotels: The flagship Atour brand continues to anchor the portfolio with 1,209 properties across 202 cities, accounting for over 75% of total rooms. Performance in 2024 was bolstered by the successful rollout of Atour 4.0, a design-forward concept blending natural tranquility with functional upgrades like premium sleep settings and flexible workspaces. Strong ADRs and growing franchise demand underscore Atour’s dominance in the upper-midscale segment, especially in Tier 1 and Tier 2 cities.

Atour Light: It saw notable traction in 2024, particularly through the rapid expansion of its 3.0 model tailored to younger business travelers. With 156 hotels across 54 cities, the brand balances affordability with experience, offering smartly designed compact rooms and multi-use public areas that shift from breakfast cafés to evening lounges. Growth in this segment reflects rising demand in the midscale market and a successful response to evolving travel preferences.

Atour X: The brand, built on a boutique conversion model, expanded to 170 hotels across 66 cities in 2024. By preserving local design character while integrating Atour’s service standards, X properties appeal to experience-driven travelers looking for authenticity and comfort. The segment benefitted from efficient asset-light expansion and growing interest in lifestyle-focused stays in second-tier cities.

Atour S: It continues to define the upscale tier within the group, offering elevated design and amenities for premium business and leisure guests. With 83 properties in 29 cities, Atour S benefits from strong placements in high-end commercial districts and consistently delivers higher ADRs. The larger guest and public spaces, along with curated cultural touches, position S as a refined alternative to traditional upscale chains.

A.T. House: It remains a singular luxury statement in the portfolio. Operating only one leased property in Shanghai with 214 rooms, it showcases the group’s highest-end design and service philosophy. With a focus on fashion, art, and creative lifestyle, A.T. House delivers the highest ADR in the group and acts as both a brand flagship and laboratory for innovation at the top of the market.

Atour 20F

Atour’s growth trajectory in 2024 was striking, with 471 new hotel openings - up 63% YoY - highlighting aggressive expansion across its portfolio. The total number of hotels in operation reached 1,619, marking a 33.8% increase, while the pipeline remains strong with 741 projects underway, up 20.1% from the previous year. This rapid scale-up reflects both rising brand recognition and robust demand in China’s upper-midscale hotel segment, where Atour continues to strengthen its leadership.

Atour Investor Presentation

Atour’s A-Card membership ecosystem plays a central role in strengthening brand loyalty and enhancing guest personalization across both hotel and retail experiences. Fully digitized and tier-based, the program rewards members not just with stay-based points, but also Jimu points tied to elite tier upgrades—unlocking perks like free breakfasts, travel support, or even personalized sleep kits. With over 89 million registered members by the end of 2024, the system has become a powerful tool for both retention and guest insight. Upgrades like complimentary laundry or shipping for high-tier members, combined with the A-PLUS service program offering custom pre-arrival preferences, reinforce a hospitality model that trades standardization for human-centered, flexible service—while also reducing reliance on OTAs, with over 60% of bookings now done in-house.

Atour Investor Presentation

China’s hotel market is undergoing rapid transformation, driven by rising disposable incomes, urbanization nearing 65%, and the growing preferences of over 400 million middle-class consumers. Travelers increasingly favor boutique and lifestyle hotels over traditional chains, drawn by experiences that reflect local culture and design. Eco-certified properties report 35% higher occupancy, reflecting the shift toward environmentally conscious consumption. Domestic tourism is boosted by major infrastructure upgrades like high-speed rail network, which has unlocked demand in regional and previously remote destinations. This momentum is reflected in the market’s strong recovery and growth trajectory: after a sharp pandemic-induced drop in 2020, China’s hotel industry rebounded from $33.5 billion to $79.3 billion in 2023, with forecasts reaching nearly $95 billion by 2029 (CAGR of 3% between 2023 and 2029), showing the dynamism in the China hotel market.

Statista – Hotels in China Revenue (USD billion)

China’s upper-midscale hotel market remains highly competitive and moderately fragmented, where Huazhu leads the segment driven by its strong-performing Crystal Orange and JI Hotel brands; Jin Jiang International follows, anchored by its Vienna Hotel brand. BTG Hotels with brands like Madison and Novotel contributing to its positioning. Atour Lifestyle has grown rapidly powered by its Atour, Atour Light, Atour X, and premium Atour S offerings. Meanwhile, international players - including Courtyard by Marriott, Hampton by Hilton, Accor, and Holiday Inn Express - are expanding mainly through franchising. While international chains bring global scale, domestic groups like Atour compete through faster development, deep market familiarity, and, in Atour’s case, a unique edge: blending lifestyle retail with hospitality by integrating in-room products and branded spaces - creating a differentiated experience that goes beyond traditional hotel stays.

Statista – Market Share of leading chain-branded hotel operators in China as of January 2022, based on number of rooms

 Atour delivered a solid financial performance in 2024, driven by strong execution across its asset-light business model and rising demand for its lifestyle offerings. Net revenues surged 55.3% YoYto RMB7.25 billion (US$993 million), up from RMB4.67 billion in 2023. This growth was led by the manachised hotel segment, which rose 53.3% to RMB4.15 billion, supported by the addition of 415 new properties, bringing the total to 1,593 by year-end. The retail segment experienced the most dramatic growth, with revenues up 126.2% to RMB2.20 billion, fueled by successful product innovation and stronger consumer engagement with Atour’s lifestyle brands in sleep, fragrance, and personal care.

Conversely, leased hotel revenues fell 16.4% to RMB702 million, reflecting a strategic shift away from capital-intensive operations toward a more scalable franchise-led approach. Despite this, Atour’s overall profitability strengthened significantly. Net income reached RMB1.27 billion (US$174 million), up 72.2% from the prior year, while adjusted net income rose 44.6% to RMB1.31 billion. EBITDA increased by 66.8% to RMB1.74 billion, and adjusted EBITDA rose 46.8% to RMB1.77 billion, signaling healthy operating leverage.

In Q4 2024 alone, total revenues climbed 38.5% YoY to RMB2.08 billion, with retail up 85.6% and manachised hotels contributing over half the top line. Quarterly net income grew 50.5% to RMB331 million, and EBITDA jumped 77.2% to RMB440 million, underscoring accelerating profitability. The company also maintained a solid liquidity position, closing the year with RMB3.6 billion (US$496 million) in cash, providing capacity for reinvestment and future expansion.

For fiscal year 2024, the company is trading at a P/E ratio of 21.4x, well below its three-year average of 67.8x, following a peak of 159x in 2022. Its EV/Revenue multiple stands at 3.06x, also below the three-year average of 4.2x. At the same time, EPS has surged from CNY 0.78 in 2022 to CNY 9.18 in 2024, with highly optimistic projections placing it at CNY 16.73 by 2027 - a projected increase of 82% - implying a distribution rate of 31.5%. Analysts also expect the company to pay a CNY 4 dividend in 2025, up significantly from the CNY 1 distributed in 2023.

Atour’s rapid growth comes with real exposure where operating entirely in China, the group is vulnerable to shifts in local demand, policy changes, and regulatory uncertainty—especially in areas like data privacy and online services. The manachise model, while efficient, limits control over on-the-ground execution, making brand consistency harder to manage. Expansion into new markets adds pressure, as missteps in location or franchisee partnerships could affect performance, rising competition create additional volatility around long-term scalability.

Atour Lifestyle stands out in China’s crowded hotel market with a design-first identity, smart use of tech, and a business model that stretches beyond rooms into retail and lifestyle. Its multi-brand setup hits multiple price points, while the franchise-heavy structure keeps growth capital-light. This mix gives it an edge over both local and global players. Still, the group isn’t without risk—it's heavily tied to the Chinese market, smaller than some rivals, and could feel the squeeze if supply outpaces demand in certain regions.