Atour Lifestyle Holdings (NASDAQ:ATAT) reported full-year 2025 financial results on Tuesday, illustrating the success of its "high-quality expansion" strategy within China’s upper-midscale hospitality market.
The company achieved total net revenues of RMB9,790 million (US$1,400 million), a 35.1% increase over the previous year.
Net income followed a similar trajectory, rising 27.4% to RMB1,621 million (US$232 million), while adjusted EBITDA jumped 40% to RMB2,481 million (US$355 million).
The year was marked by a significant operational milestone as the company officially surpassed 2,000 hotels in its network.
As of December 31, 2025, Atour’s portfolio included 2,015 hotels and 224,423 rooms, reflecting the company's aggressive push into lower-tier cities and the continued popularity of its flagship Atour and Atour Light 3.0 brands.
Performance remained steady through the final months of the year, with fourth-quarter net revenue growing 33.8% to RMB2,788 million (US$399 million).
A standout feature of Atour’s 2025 performance was the continued hyper-growth of its retail business.
Retail revenue surged 67% to RMB3,671 million, fueled by the success of the company’s "Atour Planet" brand, which specializes in sleep-related products such as pillows and mattresses.
This segment has become an increasingly critical component of the company's margin profile, effectively transforming the hotel lobbies and rooms into showrooms for a lifestyle brand that extends beyond traditional lodging.
Management noted that the company’s loyalty program, A-Card, reached a new peak in user engagement, supporting a high percentage of direct bookings that insulated the firm from rising third-party distribution costs.
Looking ahead to 2026, Atour plans to further integrate its hospitality and retail ecosystems, leveraging its vast data on guest preferences to drive product innovation.