Chinese Hospitality Company Atour Lifestyle's Q3 Revenue Nearly Doubles; Occupancy Rate Recovers

Atour Lifestyle Holdings Ltd ATAT reported third-quarter FY23 sales growth of 93.1% year-on-year to RMB1.294 billion ($177 million).

As of September 30, 2023, the company had 1,112 hotels with a total of 128,681 hotel rooms in operation, 26.4% and 25.3% Y/Y, respectively.

The average daily room rate (ADR) was RMB495, which recovered to 111.2% of 2019's level for the same period.

The operating income increased 130% Y/Y to RMB 341.3 million ($46.8 million). Operating cash flow for the quarter totaled RMB 543.1 million ($74.4 million).

The occupancy rate for Q3 was 82.4%, which recovered to 106.6% of 2019's level for the same period.

The company held RMB2.2 billion ($301 million) in cash and equivalents as of September 30, 2023.

EPS for the quarter was RMB0.63 ($0.09). Adjusted EBITDA increased 122.4% to RMB380 million ($52 million).

Price Action: ATAT shares are trading lower by 4.84% at $18.66 on the last check Thursday.