Atour Lifestyle Holdings Ltd (ATAT)

Price$31.30Cached quoteAs of 2026-09-16 02:24 UTC

AI: Undervalued

Price checkStrong growth, cash generation, and a modest multiple make the shares look undervalued at this level.

The market value is roughly 16–17 times trailing earnings and about 14 times trailing free cash flow, meaning cash left after running and investing in the business. June cash and short-term investments exceeded borrowings by about RMB5.5 billion, so the operating business is cheaper after that liquidity is deducted. Management expects 2026 revenue to grow about 30%. That looks attractive, but not dramatically cheap, because second-quarter profit growth lagged revenue growth as several cost ratios worsened. I therefore rate the shares Undervalued, with a moderate margin of safety.

Big pictureRevenue, earnings, and cash generation have compounded quickly while the balance sheet became much safer.

From 2020 to 2025, revenue rose from RMB1.57 billion to RMB9.79 billion, while net income climbed from RMB42 million to RMB1.62 billion. Operating cash flow reached RMB1.99 billion in 2025, and free cash flow was about RMB1.91 billion after capital spending. The balance sheet also improved: year-end 2025 net cash was RMB1.78 billion versus net debt in 2022. Those figures show that growth has translated into real cash and stronger downside protection, not just accounting profits.

Business strengthHotel expansion and retail growth are converting into cash returns while net share dilution stays low.

By June, Atour had 2,175 hotels, up 19.2% year over year, while second-quarter retail revenue grew 63.2%. First-half operating cash flow was RMB1.13 billion. Cash plus short-term investments totaled about RMB5.72 billion against only RMB237 million of borrowings. Atour also spent RMB753 million on repurchases and RMB492 million on dividends in the first half. Diluted weighted shares fell to 413.1 million from 419.5 million a year earlier, showing that buybacks more than offset employee-share dilution overall.

What could change the storyContinued margin pressure or weaker hotel room economics would quickly erode the valuation advantage.

Second-quarter revenue rose 41.4%, but net income rose only 29.0%. Hotel operating costs consumed 64.5% of hotel revenue versus 61.7% a year earlier; retail costs rose to 48.6% from 46.7%; and selling and marketing reached 17.4% of total revenue from 15.9%. Revenue per available room, a measure combining room rate and occupancy, was only slightly above last year. The bull case needs strong growth plus stabilizing margins. A cyclical hotel slowdown or persistent retail marketing spend would undermine the valuation discount.

AI: News

Q2 growth, margin squeezeStrong second-quarter growth and higher guidance were offset by margin pressure and a sharp stock selloff.

On August 20, Atour reported second-quarter revenue of RMB3.49 billion, up 41.4%, and raised 2026 revenue guidance to about 30% growth from 24%–28%. Revenue beat the FactSet estimate cited by MT Newswires, yet the shares finished down 7.4% that day after an initial premarket gain. Timing does not prove causation, but investors may have focused on weaker profitability: net income grew 29.0% while hotel, retail, and marketing cost ratios increased.

Q1 surge and dividendFirst-quarter earnings beat expectations, while a larger dividend reinforced management’s commitment to returning cash.

On May 13, first-quarter revenue rose 47.5% to RMB2.81 billion and net income rose 90.3% to RMB463 million; reported earnings and revenue also beat consensus estimates. The same day, Atour declared a US$0.54 dividend per American depositary share, about US$72 million in total. The stock still closed 3.4% lower, so the market reaction was mixed. The results strengthened the growth thesis, while the dividend showed that expanding cash generation was being shared with investors.

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Revenue

2022

2023

2024

2025

Net income

2022

2023

2024

2025

Free cash flow

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020
Revenue	$1.40B	$993.0M	$657.2M	$328.1M	—	—
Research & development	$25.4M	$18.4M	$10.9M	$9.6M	—	—
Operating income	$329.9M	$222.3M	$130.1M	$23.9M	—	—
Operating margin	23.56%	22.38%	19.80%	7.29%	—	—
EBITDA	$337.6M	$231.2M	$142.1M	$36.8M	—	—
EBITDA margin	24.11%	23.28%	21.63%	11.20%	—	—
Net income	$231.8M	$174.7M	$103.8M	$14.2M	—	—
Net profit margin	16.56%	17.60%	15.80%	4.33%	—	—
Basic EPSper basic share	$0.56	$0.42	$0.26	$0.04	—	—
Diluted EPSper diluted share	$0.55	$0.42	$0.25	$0.04	—	—

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of ATAT
Holder	Shares held
OLP CAPITAL MANAGEMENT Ltd	7.71M
M&G PLC	4.57M
SCHRODER INVESTMENT MANAGEMENT GROUP	4.46M
JPMORGAN CHASE & CO	4.09M
NORGES BANK	4.03M
FMR LLC	3.77M
WFM ASIA (BVI) Ltd	3.13M
Mitsubishi UFJ Trust & Banking Corp	2.82M
VANGUARD CAPITAL MANAGEMENT LLC	2.3M
BlackRock, Inc.	2.06M
RENAISSANCE TECHNOLOGIES LLC	1.88M
Capital World Investors	1.82M
Greenwoods Asset Management Hong Kong Ltd.	1.79M
Man Group plc	1.57M
LAZARD ASSET MANAGEMENT LLC	1.42M
JUPITER ASSET MANAGEMENT LTD	1.29M
MILLENNIUM MANAGEMENT LLC	1.16M
Green Court Capital Management Ltd	1.08M
Temasek Holdings (Private) Ltd	1.08M
BRIGHT VALLEY CAPITAL Ltd	1.02M

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)0$0.00 disclosed value

No insider transactions transactions were reported in the stored SEC coverage.

Review ownership filings at SEC.gov ↗

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Atour Lifestyle Holdings Ltd (ATAT)

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