Q1 2023 Atour Lifestyle Holdings Limited Earnings Call
Operator: Ladies and gentlemen, thank you for standing by and welcome to the Atour Lifestyle Holdings Q1 2023 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speakers' presentation, there will be a Q&A session. Today's conference is being recorded. At this time, I would like to turn the conference over to Ms. Queenie Qin, Senior Manager of Investor Relations. Please go ahead, ma'am.
Speaker 2: are in listen-only mode. After the speaker's presentation there will be a Q&A session. Today's conference is being recorded. At this time I would like to turn the conference over to Ms Queenie Chin, Senior Manager of Investor Relations. Please go ahead ma'am.
Queenie Qin: Thank you, operator. Good morning and good evening, everyone. Welcome to our Q1 2023 Earnings Call. Joining us today are our founder, chairman, and CEO, Mr. Haijun Wang, and our co-CFOs, Mr. Rui Zhao and Mr. Shoudong Wang. Before we start, please note the discussion today will include forward-looking statements made under federal security laws that are subject to numerous risks and uncertainties. Actual results may differ materially from those stated or implied by our comments today. The company does not undertake any obligations to update any forward-looking statements, except as required by applicable laws. During today's call, management will also discuss certain non-GAAP financial measures for comparison purposes only. For a definition of non-GAAP financial measures and the reconciliation of GAAP to non-GAAP financial results, please see the earnings release issued earlier today.
Speaker 3: Thank you, operator. Good morning and good evening, everyone. Welcome to our first quarter 2023 earnings call. Joining us today are founder, chairman and CEO , Mr. Wang Haijun, and our co-CFOs, Ms. Zhao Rui and Mr. Wang Shodong.
Speaker 3: The discussion today will include forward-looking statements made under federal security laws that are subject to numerous risks and uncertainties.
Speaker 3: Actual results may differ materially from those stated or implied by our comments today. The company does not undertake any obligations to update any forward-looking statements, except as required by applicable laws. On today's call, please return to your seats.
Speaker 3: Management will also discuss certain long GAAP financial measures for comparison purposes only. For a definition of long GAAP financial measures and the reconciliation of gap to long GAAP financial results, please see the earnings release issued earlier today.
Queenie Qin: In addition, a webcast replay of this conference call will be available on our website at ir.yaduo.com. Now, I will turn the call over to Mr. Wang, our CEO.
Speaker 3: In addition, a webcast replay of this conference call will be available on our website at ir.yaduo.com. Now, I will turn the call over to Mr. Wang, our CEO .
Haijun Wang: 谢谢翔字。大家好，感谢各位参加亚朵集团2023年第一季度的业绩电话会议。
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[Company Representative] (Atour Lifestyle): Thank you Queenie. Hello everyone and thank you for joining Atour's Q1 2023 Earnings Call today.
Speaker 5: Thank you, Queenie. Hello everyone and thank you for joining a tour's first of quarter 2023 earnings call today.
Haijun Wang: 亚朵在2023年开局强劲，酒店和场景零售业务均取得了亮眼表现。体验领先、经营人群的核心理念，持续引领我们不断完善和打磨生活方式产品，为每一位住客和用户提供卓越的体验。也正是我们坚持不懈的努力和追求卓越的决心，推动了一季度酒店和场景零售业务的强劲复苏。与此同时，我们中国体验2000好店的三年发展规划稳步落地，进展顺利。我们相信亚朵将在以2023年为开端的后疫情发展格局中脱颖而出，不断巩固我们在中高端酒店行业的领先地位。
Speaker 4: Thank you for your attention.
Speaker 4: Thank you for your attention.
Speaker 4: If you have any questions, please let us know in the comments section. Thank you for watching.
Speaker 4: Thank you for your attention.
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[Company Representative] (Atour Lifestyle): I'm pleased to share with you that Atour commenced the year 2023 on a strong note, achieving solid results in both our hotel and area based retail businesses. Our core value proposition to serve people with exceptional experience continues to guide our steps as we refine and polish our hotel services and lifestyle products to deliver Atour experiences to every customer. These uncompromising efforts, combined with our dedication to excellence, drove a robust recovery in both the hotel and retail businesses during Q1. We continue to execute our three year development plan to open 2000 premier hotels while establishing the Chinese experience as the industry benchmark, which we believe will solidify our leading position in the upper mid-scale hotel industry post-pandemic.
Speaker 4: Please subscribe to our channel and share this video with your friends.
Speaker 5: I'm pleased to share with you that Atul commenced the year 2023 on a strong note, achieving solid results in both our hotel and aerial based retail businesses.
Speaker 5: Our core value proposition to serve people with exceptional experience continues to guide our steps as we refine and polish our hotel services and lifestyle products to deliver atour experiences to every customer.
Speaker 5: These uncompromising efforts, combined with our dedication to excellence, drove a robust recovery in both the hotel and retail businesses during the first quarter.
Speaker 5: We continue to execute our three-year development plan to open 2,000 premier hotels while establishing the Chinese experience as the industry benchmark.
Speaker 5: which we believe will solidify our leading position in the upper mid-scale hotel industry post-pandemic.
Haijun Wang: 下面我将展开介绍一下各项业务的具体表现。
[Company Representative] (Atour Lifestyle): Now let me go through our performance details across our business lines.
Speaker 4: Thank you for your attention.
Haijun Wang: 首先是酒店业务。进入后疫情时代以来，市场在出行和住宿需求激增的推动下迅速回暖。亚朵凭借高品质、高溢价、高效率的三高模式，在第一季度实现了ADR和OCC的双增长。我们第一季度的RevPAR恢复至2019年同期的118%，且ADR和入住率均超2019年同期水平，体现了我们可持续的恢复能力。今年前三个月的RevPAR较2019年的恢复度分别为102%、136%及119%。此外，我们在营超18个月成熟酒店的同店同比的RevPAR，在第一季度也反弹至2019年的118%，与大盘表现一致，展现了我们在经营层面的强劲复苏。
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[Company Representative] (Atour Lifestyle): First, our hotel business development. As we enter into the post pandemic era, we are seeing a rapid market recovery driven by surging travel and accommodation demand. Embodying our three pronged mantra: high quality, high value, and high efficiency, Atour responded quickly to the first quarter's rising market opportunities and achieved parallel growth in ADR and OCC. Our RevPAR for the first quarter rebounded significantly to 118% of 2019's level for the same period, while both ADR and occupancy rates exceeded 2019's level, demonstrating our exceptional recovery capability. Looking at the first quarter in greater detail, our RevPAR recovery rate was 102%, 136%, and 119% of 2019's level for January, February, and March respectively. Furthermore, same hotel RevPAR for mature hotels in operation for more than 18 months recovered to 118% of 2019's level in the first quarter, showcasing a vigorous rebound of our business at the operational level.
Speaker 5: As we enter into the post-apandemic era, we are seeing a rapid market recovery driven by surge in travel and accommodation demand.
Speaker 5: Embodian our three pruned mantra, high quality, high value, and high efficiency. A tour responded quickly to the first of quarters rising market opportunities and achieved the parallel growth in ADR and OCC.
Speaker 5: Our ref power for the first quarter rebounded significantly to 118% of 2019's level for the same period while both ADR and occupancy rates exceeded 2019's level.
Speaker 5: demonstrating our exceptional recovery capability.
Speaker 5: Looking at the first quarter in greater detail, our REFpar recovery rate was 102%, 136%, and 119% of 2019's level for January , February , and March, respectively.
Speaker 5: Furthermore, same hotel ref part for mature hotels in operation for more than 18 months recovered to 118% of 2019's level in the first quarter showcasing a vigorous rebound of our business at the operational level.
Haijun Wang: 刚刚过去的五一劳动节假期，出行和住宿需求的集中爆发，进一步推动了RevPAR的提升。相比于2019年，今年五一假期的RevPAR恢复度达到了133%。在多个省份，如山东、福建、湖北等，RevPAR更是实现了远超160%的强劲的恢复。
Speaker 4: Thank you for your attention.
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[Company Representative] (Atour Lifestyle): For the 5-day Labor Day holiday, explosive demand for travel and hotels stimulated further improvement in RevPAR to 133% of 2019's level. Notably, RevPAR's recovery rate soared to over 160% of 2019's level in various provinces, such as Shandong, Fujian, and Hubei, among others. The pandemic during the H2 of 2022, combined with the Chinese New Year holiday in the beginning of 2023, slightly impeded our overall progress with respect to new openings in Q1. However, alongside the market recovery, franchisees' engagement trends have continued to improve. The number of new hotels we signed in Q1 reached 94, representing a new record high for single-quarter signings. Furthermore, among our newly signed hotels, the repurchase rate from our existing franchisees was more than 40%, highlighting our product competitiveness and brand premium.
Speaker 5: stimulated further improvement in Ralf-Par to 133% of 2019's level
Speaker 5: Notably, Red Parts Recovery rate soared to over 160% of 2019's level in various provinces, such as Shandong, Fujian, and Hu Be among others.
Speaker 4: Thank you for your attention.
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Speaker 5: The pandemic during the second half of 2022, combined with the Chinese New Year holiday in the beginning of 2023, slightly impeded our overall progress with respect to new openings in the first quarter.
Speaker 5: However, alongside the market recovery, franchisees' engagement trends have continued to improve.
Speaker 5: The number of new hotels we signed in the first quarter reached the 94, representing a new record high for single quarter signings.
Speaker 5: Furthermore, among our newly signed hotels, the repurchased rate from our existing franchisees was more than 40%.
[Company Representative] (Atour Lifestyle): It's also worth mentioning that our Atour Light 3.0 version has quickly gained market acceptance, achieving a remarkable performance with a total of 16 new projects signed by the end of Q1 since its release on 22 February 2024. Our hotel network continues to grow rapidly. As of the end of Q1 2024, we had extended its coverage to 968 hotels, representing a year-over-year increase of 23%. Meanwhile, our pipeline remained healthy and continued to expand. Excitingly, we commenced the operation of our portfolio's 1,000th premier hotel today in Lanzhou, officially marking the inception of our 1,000th hotel era. At the end of Q1, we had 413 hotels under development.
highlighting our product competitiveness and brand premium. It's also worth mentioning that our tour light 3.0 version has quickly gained market acceptance, achieving a remarkable performance with a total of 16 new projects signed by the end of Q1.
since its release on February 22nd of this year.
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Thank you for your attention.
Our hotel network continues to grow rapidly. As the end of first quarter this year, we had extended its coverage to 968 hotels representing a year-over-year increase of 23%. The end of the first quarter of the year, we had extended its coverage to 968 hotels representing a year-over-year increase of 23%.
Meanwhile, our pipeline remained healthy and continued to expand.
Excitingly, we commenced the operation of our portfolio's 1000th premier hotel today in Lanzhou. Officially marking the inception of our 1000th hotel era.
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[Company Representative] (Atour Lifestyle): We will continue to peruse and analyze the ever-evolving market prospects alongside opportunities to consolidate the hotel market, as we map our course for opening a total of 280 hotels by the end of this year. Our loyalty program and central reservation system, or CRS, also maintained their steady growth momentum in Q1, benefiting from our high-quality services and premier customer experiences. As of the end of Q1, our membership base surpassed 38 million, with an increase of over 2.8 million new members since the end of the previous quarter. Our members are young and engaged, representing the most energetic and promising consumer group in China.
As the end of the first quarter, we had 413 hotels under development. We will continue to peruse and analyze the ever-evolving market prospects alongside opportunities to consolidate the hotel market.
as we map our course for opening a total of 280 hotels by the end of this year.
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Our loyalty program and central reservation system, or CRS, also maintained their steady growth momentum in the first quarter, benefiting from our high quality services and premier customer experiences.
As of the end of Q1, our membership base surpassed a 38 million with an increase of over 2.8 million new members since the end of the previous quarter.
Our members are young and engaged, representing the most energetic and promising consumer group in China.
[Company Representative] (Atour Lifestyle): Among those members who stayed with us in Q1, about 46% of them were aged 30 to 40, and 25% were younger than 30. Meanwhile, the percentage of our nights sold through our CRS exceeded 60% in Q1 of 2023, sustaining its healthy growth trend.
Among those members who stayed with us in the first quarter, about 46% of them were aged 30 to 40, and 25% were younger than 30.
Meanwhile, the percentage of our nights sold through our CRS exceeded 60% in the first quarter of 2023 sustaining its healthy growth trend.
Haijun Wang: 最后是我们的场景零售业务。作为一个始于住宿的生活方式品牌集团，场景零售是我们从经营房间到经营人群的第一个延展的探索。过去几年，我们成功打造了亚朵星球、Z2GO&CO.和萨和三大产品系列，分别聚焦在睡眠、在途旅行和气味美学领域，持续为用户创造在家笃定、在途从容的生活感受。
The last is our long-term business.
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[Company Representative] (Atour Lifestyle): Moving to our scenario-based retail business. As a leading lodging-centric lifestyle brand, the retail business is a natural extension of our expertise in hospitality, reaching beyond accommodation to harmoniously complement our value proposition to serve people who have diverse lifestyles. In the past three years, we have successfully developed the three product lines, namely Atour Planet, Z2GO&CO., and SAVHE, focusing on sleep, travel, and aroma aesthetics respectively. Through these premium offerings, we deliver Atour's signature experience of comfort, ease, and relaxation to our customers when they are at home, as well as on the go.
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Now moving to our scenario based retail business.
as a leading lodging centric lifestyle brand.
The retail business is a natural extension of our expertise in hospitality.
reaching beyond accommodation to harmoniously complement our value proposition to serve people who have diverse lifestyles.
In the past few years, we have successfully developed the three product lines, namely a tour planet, V2Go and Sahra.
focusing on sleep, travel, and aroma aesthetics respectively.
Through these premium offerings, we deliver a tour's signature experience of comfort, ease, and relaxation to our customers when they are at home as well as on the go.
Haijun Wang: 我们提供的高品质生活方式的产品，及持续提升的品牌影响力，配合覆盖了线上和线下的场景的多元化渠道，推动了我们场景零售业务的强劲增长，第二增长曲线不断夯实。在2023年的第一季度，场景零售的GMV达到了CNY 1.42亿，同比增长了近200%。线下、线上渠道双轮驱动，均取得了快速增长。场景零售单季度的收入也实现了CNY 1亿的里程碑，展现了强劲的发展势头。
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[Company Representative] (Atour Lifestyle): These high-quality lifestyle products, along with our diversified online and offline distribution channels and our continuously improving brand awareness, underpinned the robust growth of our innovative, scenario-based retail business during Q1, further solidifying its role as our second growth driver. GMV increased by almost 200% year over year to RMB142 million in Q1 2023, propelled by rapid growth in both our online and offline distribution channels. Revenues from our scenario-based retail business for the quarter reached the RMB100 million milestone, reflecting its powerful growth momentum.
These high quality lifestyle products, along with our diversified online and offline distribution channels, and our continuously improving brand awareness, underpinned the robust growth of our innovative scenario-based retail business during the first quarter.
further solidifying its role as our second growth driver.
GMB increased by almost 200% year-over-year to RMB 142 million in the first quarter of 2023, propelled by rapid growth in both our online and offline distribution channels.
Revenues from our scenario-based retail business for the quarter reached the RMB 100 million milestone. Reflecting its powerful growth momentum.
Haijun Wang: 目前，我们主要聚焦在睡眠品类，以亚朵星球作为核心的阵地。第一季度，亚朵星球的GMV的贡献占比近八成。今年3月，我们基于海量用户的真实体验和反馈，推出了亚朵星球R90深睡枕的升级版2.0。最大程度地兼顾了产品的舒适性与功能性。上市后，销售额便大幅超过1.0版本的同期表现，继续收获了广大用户的喜爱。
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[Company Representative] (Atour Lifestyle): Currently, we are purposefully focused on our sleep category with Atour Planet products as our cornerstone. In Q1, Atour Planet contributed to nearly 80% of our retail business's total GMV. In March, we launched the upgraded 2.0 version of our Atour Planet R90 deep sleep pillow, following a comprehensive user feedback study. We creatively refined the pillow's design and construction to strike the optimal balance between comfort and functionality. Thanks to these luxurious features, the Atour Planet R90 2.0 version pillow became a popular product quickly after its release and has garnered enormous user recognition, with its sales performance significantly exceeding the level of the 1.0 version for the comparable period.
We are purposefully focused on our sleep category.
with Ator Planet products as our cornerstone in the first quarter. Ator Planet contributed nearly 80% of our retail business's total GMV. In March, we launched the upgraded 2.0 version of our Ator Planet R90 Deep Sleep pillow.
Following a comprehensive user feedback study.
We creatively refined the pillows, design, and construction to strike the optimal balance between comfort and functionality.
Thanks to these luxurious features, the A2WR Planet R90 2.0 version pillow to gain a popular product quickly after its release and has garnered enormous user recognition with its sales performance significantly exceeding the level of the 1.0 version for the comparable period.
Haijun Wang: 亚朵零售源于我们生活方式品牌的理念，秉承着把亚朵及体验带回家的初衷。我们持续革新深睡领域，为用户打造安心自在的睡眠体验。我们对于中国睡眠市场的巨大潜力和发展机会非常乐观，会一如既往地加强对用户的洞察和睡眠类产品的研发，不断推陈出新。我们相信，亚朵凭借持续提升的产品力、运营力和品牌力，在未来中国的睡眠经济中将占据一席之地。
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[Company Representative] (Atour Lifestyle): Our retail business is deeply rooted in our lodging-centric lifestyle brand philosophy. Adhering to our original goal of bringing the Atour hotel experience into our customers' homes, we remain committed to exploring deep sleep from every angle as we strive to deliver a comfortable and relaxing sleep experience. We are very optimistic about the massive potential and development opportunities in China's sleep market. Moving forward, we will continue to strengthen our insight into users' evolving needs and push the boundaries of product development, providing our users with premier sleep experiences through a diverse and growing suite of sleep-related products. We believe that our ongoing holistic improvements across our product development capabilities, operational efficiency, and brand awareness will establish Atour as an important player in China's sleep products market.
Our retail business is deeply rooted in our lodging centric lifestyle brand philosophy.
adhering to our original goal of bringing the at-war hotel experience into our customers homes we remain committed to exploring deep sleep from every angle as we strive to deliver a comfortable and relaxing sleep experience
We are very optimistic about the massive potential and development opportunities in China's sleep market.
Moving forward, we will continue to strengthen our insight into users evolving needs and push the boundaries of product development, providing our users with premier sleep experiences through a diverse and growing suite of sleep related products.
We believe that our ongoing holistic improvements across our product development capabilities, operational efficiency, and brand awareness will establish a tour as an important player in China's sleep products market.
[Company Representative] (Atour Lifestyle): Since our establishment in 2013, we have consistently endeavored to provide our customers with cultural, inviting, and interesting experiences throughout every step of their journeys, creating an intimate ambience where people can warmly connect. Meanwhile, we continuously explore new possibilities and expand our consumption scenarios, catering to the refined expectations of those who demand a high-quality lifestyle. Our value proposition originated with the goal to provide an exceptional experience to customers during their stay with us, which we further elevated to serve people who have diverse lifestyles, has not only elevated our strong performance across both our hotel and retail businesses, it has also become the driving force behind Atour's core competitiveness and our key differentiator. As we move forward, this value proposition will further empower us to drive long-term sustainable growth and create greater value for our customers, franchisees, employees, and shareholders.
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Since our establishment in 2013, we have consistently endeavored to provide our customers with cultural, inviting, and interesting experiences throughout every step of their journeys, creating an intimate ambience where people can warmly connect.
Meanwhile, we continuously explore new possibilities and expand our consumption scenarios, catering to the refined expectations of those who demand a high-quality lifestyle.
Our value proposition originated with the goal to provide an exceptional experience to customers during their stay with us, which we further elevated to serve people who have diverse lifestyles.
has not only elevated our strum performance across both our hotel and retail businesses.
It has also become the driving force behind a tourist core competitiveness and our key differentiator. As we move forward, this value proposition will further empower us to drive long-term sustainable growth and create greater value.
Shoudong Wang: Now, I'll turn the call over to our Co-CFO, Mr. Wang Shaodong, to discuss our financial results. Thank you, Mr. Wang. Now, I would like to present the company's financial performance for Q1 2023. Our net revenues for Q1 2023 grew by 71.2% year-over-year to CNY 774 million. The strong increase in Q1 was driven by growth in both the hotel business and the scenario-based retail business. Revenues from our managed hotels for Q1 2023 were CNY 447 million, up by 63.2% year-over-year. This increase was primarily driven by the ongoing expansion of our hotel network and the recovery of RevPAR. As of the end of March 2023, the total number of our managed hotels increased to 935, up by 24.3% year-over-year.
for our customers, franchisees, employees, and shareholders.
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Now, I'll turn the call over to our co-CFO, Mr. Wang Shodong to discuss our financial results.
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Our net revenues for the first quarter of 2023 grew by 71.2% year over year to R&B, 774 million. The strong increase in the first quarter was driven by growth in both the hotel business and the scenario-based retail business.
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Revenues from our Managers to Hotels for the first quarter of 2023, where RMB $447 million, up by 63.2% year over year.
This increase was primarily driven by the ongoing expansion of our hotel network and the recovery of Ravpar. As of the end of March this year, the total number of our managed hotels increased to 935 up by 24.3% year over year.
[Company Representative] (Atour Lifestyle): While RevPAR of our managed hotels surpassed the pre-pandemic level in 2019, increasing to CNY 331 for Q1 2023. 同 比 增 长 67.9%， 主 要 原 因 是 2023 年 以 来 顾 客 流 量 和 消 费 需 求 的 迅 速 反 弹 带 来 的 RevPAR 恢 复 。2023 年 第 一 季 度 RevPAR 恢 复 到 CNY 464 ， 超 过 了 2019 年 同 期 水 平 。Revenues contributed by our leased hotels for Q1 2023 were CNY 187 million, representing an increase of 67.9% year-over-year. The increase was primarily due to the recovery of RevPAR, driven by increased customer traffic and stronger consumption sentiment since the beginning of 2023.
While the rest of our Manage-Rise hotels surpassed the pre-pandemic level in 2019, increasing to RMB 331 for the first quarter of 2023.
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Revenues contributed by our leased hotels for the first quarter of 2023 were RMB $187 million, representing an increase of 67.9% year-over-year.
The increase was primarily due to the recovery of RevPAR, driven by increased the customer traffic and stronger consumption sentiment since the beginning of 2023.
[Company Representative] (Atour Lifestyle): RevPAR of our leased hotels surpassed the pre-pandemic level in 2019, increasing to CNY 464 for Q1 2023. 2023 年 第 一 季 度 零 售 及 其 他 收 入 CNY 140 million ， 同 比 增 长 109.5%， 其 中 零 售 收 入 CNY 113 million ， 同 比 增 长 174.3%， 这 得 益 于 我 们 场 景 零 售 业 务 的 产 品 能 力 快 速 提 升 ， 以 及 客 户 对 亚 朵 自 有 品 牌 认 可 度 的 提 高 。 Revenues from retail and others for Q1 2023 increased by 109.5% year-over-year to CNY 140 million, with scenario-based retail revenue growing by 174.3% year-over-year to CNY 113 million.
Rest part of our release the hotel surpassed the pre-pandemic level in 2019, increasing to RMB 464 for the first quarter of 2023.
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Revenues from retail and others for the first quarter of 2023 increased by 109.5% year-over-year to RMB 140 million. With scenario-based retail revenue growing by 174.3% year-over-year,
[Company Representative] (Atour Lifestyle): The increase was attributable to the growing recognition of our retail brand and enhanced product capabilities. Q1 2023 酒 店 运 营 成 本 CNY 382 million， 同 比 上 升 18.1%， 主 要 原 因 是 酒 店 网 络 扩 张 和 RevPAR 增 长 带 来 的 可 变 运 营 成 本 的 增 长. Q1 2023 酒 店 运 营 成 本 占 总 收 入 的 比 例 为 49.3%， Q1 2022 占 收 入 的 比 例 为 71.5%. Our hotel operating costs for the first quarter of 2023 increased by 18.1% to CNY 382 million year-over-year, mainly due to the increase in variable costs associated with the ongoing expansion of our hotel network and recovery of RevPAR.
to RMB 113 million.
The increase was attributable to the growing recognition of our retail brand and enhanced the product capabilities.
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I'm injured. Chisi, Dan, Wu. Our hotel operating costs for the first quarter of 2023 increased by 18.1% to RMB 382 million year over year, mainly due to the increase in variable costs associated.
[Company Representative] (Atour Lifestyle): Hotel operating costs accounted for 49.3% of net revenues for the first quarter of 2023, compared to 71.5% of net revenues for the same period of last year。 其他运营成本主要包括我们的场景零售成本和其他收入的成本。2023年第一季度其他运营成本7,200万元，同比增长124.5%，主要原因是场景零售业务的快速增长带来的成本增加。2023年第一季度其他运营成本占总收入的比例为9.3%，2022年同期占总收入的比例为7.1%。Other operating costs primarily consist of costs for our scenario-based retail business and cost of other revenues.
with the ongoing expansion of our hotel network and recovery of Ref-Par.
Hotel operating costs accounted for 49.3% of net revenues for the first quarter of 2023 compared to 71.5% of net revenues for the same period of last year.
In addition to the current costs, the main includes our long-term growth cost and other income costs. In 2020, the first quarter of the year, the other current costs, 7,000,000 yuan, the same cost, 124.5% The main reason is the cost of long-term growth and the current cost increase.
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Other operating costs primarily consist of costs for our scenario-based retail business and costs of other revenues. Other operating costs for the first quarter of this year was RMB 72 million, representing an increase of 124.7 million.
[Company Representative] (Atour Lifestyle): Other operating costs for Q1 of this year was RMB 72 million, representing an increase of 124.5% year-over-year, driven by increased costs in line with the rapid growth of our scenario-based retail business.
[Company Representative] (Atour Lifestyle): Other operating costs accounted for 9.3% of net revenues for Q1 2023, compared to 7.1% of net revenues for the same period of 2022. 2023 年 第 一 季 度 销 售 费 用 5,600 万 元 ， 同 比 增 长 135.6%， 主 要 原 因 是 2023 年 公 司 在 场 景 零 售 业 务 品 牌 推 广 和 渠 道 拓 展 上 投 入 的 增 加. 2023 年 第 一 季 度 销 售 费 用 占 总 收 入 的 比 例 为 7.2%，2022 年 同 期 占 总 收 入 的 比 例 为 5.3%. Selling and marketing expenses for Q1 2023 increased by 135.6% to RMB 56 million, primarily driven by the increased investment in branding initiatives and distribution channel development associated with our growing scenario-based retail business.
first quarter of 2023 compared to 7.1% of net revenues for the same period of 2022.
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In the first quarter of 2023, the total revenue of sales was 7.2%, and the total revenue of the same period in 2022 was 5.3%.
Dealing and marketing expenses for the first quarter of 2023 increased by 135.6% to RMB 6 million primarily driven by the increased investment in branding initiatives.
[Company Representative] (Atour Lifestyle): Selling and marketing expenses accounted for 7.2% of net revenues for Q1 2023, compared to 5.3% of net revenues for the same period of 2022. 2023 年 第 一 季 度 管 理 费 用 1.93 亿 元 ， 剔 除 股 权 激 励 费 用 1.41 亿 元 的 影 响 ，2023 年 第 一 季 度 管 理 费 用 5,000 元 ， 同 比 上 升 13.8%。2023 年 第 一 季 度 剔 除 股 权 激 励 费 用 后 ， 管 理 费 用 占 总 收 入 的 比 例 6.7%，2022 年 同 期 占 总 收 入 的 比 例 10.1%。 General and administrative expenses for Q1 2023 were CNY 193 million, excluding share-based compensation expenses of CNY 141 million.
and the Distribution Channel Development associated with our growing scenario-based retail business. Selling and marketing expenses accounted for 7.2% of net revenues for the first quarter of 2023 compared to 5.3% of net revenues.
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General and administrative expenses for the first quarter of 2023 were RMB 193 million. Excluding share-based compensation expenses of RMB 141 million, adjusted general and administrative expenses increased by about 60,000 judgement by checkbox B of a district
[Company Representative] (Atour Lifestyle): Adjusted general and administrative expenses increased by 13.8% year-over-year to RMB 52 million for the Q1 of 2023.
by 13.8% year-over-year to RMB 52 million for the first quarter of 2023.
[Company Representative] (Atour Lifestyle): General and administrative expenses, excluding the impact from share-based compensation expenses, accounted for 6.7% of net revenues for Q1 2023, compared to 10.1% of net revenues for the same period of 2022. 2023 年 第 一 季 度 研 发 费 用 CNY 17 million ， 与 2022 年 同 期 持 平 。 Our technology and development expenses for Q1 2023 were CNY 17 million, which were generally in line with the same period of 2022. 2023 年 第 一 季 度 调 整 后 的 净 利 润 CNY 160 million ， 同 比 增 长 2114.3% 。 2023 年 第 一 季 度 调 整 后 的 EBITDA CNY 231 million ， 同 比 增 长 584.8% 。 Adjusted net income for Q1 increased by 2114.3% year-over-year to CNY 160 million.
General and administrative expenses, excluding the impact from share-based compensation expenses accounted for 6.7% of net revenues for the first quarter of 2023, compared to 10.1% of net revenues.
for the same period of 2022. Arni Arthamian, D.D. Du, Yen Pha Phae Yong, E.C.C.C.B.A.Y.N. Y.Arni Arni and Tong Qi Chi Ping. Our technology and the development expenses for the first quarter of 2023.
were RMB 17 million, which were generally in line with the same period of 2022.
Adjusted net income for the first quarter increased by 2,114.3% year-over-year to RMB 160 million.
[Company Representative] (Atour Lifestyle): Adjusted EBITDA for Q1 2023 was CNY 231 million, up by 584.8% year-over-year. 此 外 ， 亚 朵 保 持 了 充 足 的 现 金 流. 截 止 2023 年 3 月 底 ， 我 们 的 现 金 及 现 金 等 价 物 CNY 1.975 billion ， 净 现 金 CNY 1.762 billion ， 环 比 增 长 24.5%. Notably, we have maintained a healthy cash position, ended Q1 with CNY 2.0 billion in cash and cash equivalents. Among them, net cash was CNY 1.8 billion, representing an increase of 24.5% quarter-over-quarter. 以 上 是 公 司 Q1 2023 的 财 务 情 况. 接 下 来 让 我 们 进 入 Q&A 环 节. 主 持 人. That concludes our financial highlights for Q1 2023.
Adjusted EBITDA for the first quarter of 2023 was RMB 231 million, up by 584.8% year-over-year.
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Notably, we have maintained a healthy cash position, ended Q1 with RMB 2.0 billion in cash and cash equivalence.
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That concludes our financial highlights for the first quarter of 2023 with that. Now let's head it over to our Q&A session.
[Company Representative] (Atour Lifestyle): With that, now let's head it over to our Q&A session.
Operator: Thank you. To ask a question, you need to press *1 and 1 on your telephone and wait for your name to be announced. Until we draw your question, please press *1 and 1 again. *1 and 1 to ask a question. For the benefit of all participants on today's call, if you raise your question in Chinese, please immediately repeat your question in English. Please limit your questions to one at a time, and if you wish to have follow-up questions, please rejoin the queue. Thank you. We'll now take our first question. Please stand by. This is from the line of Sijie Lin from CICC. Please go ahead.
Thank you. You can ask a question. You need to press star one and one on your telephone and wait for your name to be announced. Until we draw your question, please press star one and one again. So star one and one to ask a question. For the benefit of all participants on today's call,
If you raise your question in Chinese please immediately repeat your question in English and please limit your questions to one at a time and if you wish to have follow-up questions please rejoin the queue. Thank you, we'll now take our first question.
Please stand by.
This is from the line of Siju Lin from CICC. Please go ahead.
Sijie Lin: 谢 谢 管 理 层 ， 恭 喜 取 得 这 样 一 个 强 劲 的 RevPAR 的 恢 复 还 有 业 绩 。 我 有 一 个 问 题 是 关 于 这 个 RevPAR， 因 为 咱 们 这 个 Q1 的 RevPAR 是 恢 复 到 了 118%， 然 后 我 们 Q2 的 RevPAR 的 恢 复 情 况 怎 么 样 ？ 以 及 咱 们 对 于 全 年 的 RevPAR 的 恢 复 预 期 有 没 有 一 个 调 整 ？ I repeat my question in English. Thank you management and congrats on the strong results. I have one question about RevPAR. Our Q1 RevPAR recovery reached 118%. How's the RevPAR recovery in Q2? For the full year RevPAR recovery, will we adjust our guidance? Thanks.
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So I'll repeat my question in English. Thank you, management, and congrats on the strong results. So I have one question about RefPOC. Our Q1 RefPOC recovery reached 118%. So how's the RefPOC recovery in Q2? And for the full-year RefPOC recovery, will we adjust our guidance?
[Company Representative] (Atour Lifestyle): 好的，感谢Sijie的提问。Q1是有报复性反弹的因素，我们不确定这种趋势是否持续，需要观察。所以说上次业绩会，我们给了一个相对审慎乐观的全年预期，就是一个全年的高单位数的增长。Thank you very much Sijie for that question. In Q1, there were some partially due to the retaliatory rebound factors, and we were not sure whether that trend was going to be long-term, so we needed to observe. That's why on last quarterly earnings call, we gave a cautiously optimistic guidance, which is single digit positive growth for the whole year. 亚朵始终是定位在中高端的赛道，我们没有结构性的因素对恢复度的利好。就说在Q1，就是2023年的第一季度，刚才我们整个报告里也讲了，我们的全量酒店和我们大于18个月成熟酒店的同店同比的恢复度都是118。这其实也体现了我们在经营层面的恢复。这个恢复度We at Atour always position ourselves in the upper mid-scale segment, in which there are no structural factors benefiting our recovery.
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Thank you very much, Sujie, for that question. In Q1, there were some partially due to the retaliatory rebound factors, and we were not sure whether that trend was going to be long-term, so we needed to observe. That's why on last quarterly earnings call, we gave a cautiously optimistic statement saying we here to give a chunk of theiah
guidance which is single digit positive growth for the whole year.
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[Company Representative] (Atour Lifestyle): As I said in the report in Q1 this year, our RevPAR recovery rate for all of our hotels, as well as for those mature hotels in operation for more than 18 months, were both 118%, showcasing a vigorous rebound of our business at our operational level. That was a high quality growth. As for Q2, now that we see in April and the Labor Day holidays in May, the RevPAR recovery trend were both quite good. We are confident to reach 110% recovery rate for the whole year. Thank you.
118%, showcasing a vigorous rebound of our business at our operational level. And that was a high quality growth.
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As for Q2, now that we see in April and the Labor Day holidays in May, the Rev. Recovery Trend were both quite good. So we are confident to reach 110% recovery rate for the whole year. Thank you.
Queenie Qin: Operator, next question, please.
Operator: Thank you. We will now take our next question. Please stand by. This is from the line of Ronald Leung from Bank of America. Please go ahead.
Operator, next question please. Thank you.
We'll now take our next question.
Please stand by. This is from the line of Ronald Leung from Bank of America. Please go ahead. Hello everyone. I'm Ronald Leung from Bank of America. Please go ahead.
Ronald Leung: Okay, let me ask the question in English. Management, how do you think about the franchisees sentiment now? Do you think there is a good improvement since 2023? Also, if the RevPAR can continue to improve and be better than expectations, do you think the overall openings can be better than the 280 number of guidance this year? Thank you very much.
So, let me ask the question in English. So, management, how do you think about the French I see? Sentiment now. So, management, how do you think about the French I see sentiment now?
Do you think there is a good improvement since 2023? And also, if the rough path can continue to improve and be better than expectations, do you think there is any chance that the 280 hotels opening... Do you think the overall openings can be better than the 280 hotels opening?
Thank you for watching.
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[Company Representative] (Atour Lifestyle): Thank you very much for that question, Ronald. In the Q1, in terms of signings, we made some rapid progress, reaching 94 signings, which is the highest level of a single quarter signings in history. Among those new signings, we found that over 40% of them are actually repurchases from our existing franchisees, that really gave us a lot of encouragement. We do believe that with the recovery of the market and together considering our pipeline reserves, we have already 413 in pipeline in the Q1. Together with the chain hotel opportunities brought by the industry consolidation going on, we will be able to support the new hotel opening target of 280 this year. We at Atour always prioritize quality over quantity. We believe that quality is a prerequisite for long-term healthy development.
Thank you very much for that question, Ronald. In first quarter, in terms of signings, we made some rapid progress reaching 94 signings, which is the highest level of a single quarter signings in history.
Among those new signings, we found that over 40% of them are actually repurchases from our existing franchisees. And that really gave us a lot of encouragement.
We do believe that with the recovery of the market and together considering our pipeline reserves, we have already 413 in pipeline in first quarter.
And together with the chain hotel opportunities brought by the industry consolidation going on, we will be able to support the new hotel opening target of 280 this year.
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We at Tor always prioritize quality over quantity. We at Tor always prioritize quality over quantity.
[Company Representative] (Atour Lifestyle): Also, just now you have heard that today marks the landing of our 1,000th hotel in operation, that was in Lanzhou. That marks we officially have entered 1,000 hotel era, and we will maintain this expansion speed while ensuring the quality of our products and those hotels and try to be robust and develop with more new hotels of that higher quality.
We believe that quality is a prerequisite for long-term healthy development. Also just now you have heard that today marks the landing of our 1000 hotels in operation. That was in Lenzhou. That marks we officially have entered 1000 hotel era.
We will maintain this expansion speed while ensuring the quality of our products and those hotels and try to be robust and develop with more new hotels of that higher quality.
Queenie Qin: Next question, please.
Operator: Thank you. We'll now take our next question. Please stand by. This from the line of Lydia Ling from Citi. Please go ahead.
Next question, please.
Please.
Thank you. We'll now take our next question. Please stand by.
Lydia Ling: 管理层好，我是花旗的Lydia。我这边也有一个问题想要请教一下，想了解一下对于现在目前中高端的酒店的竞争格局的一个看法。那随着整个行业复苏，其实很多酒店集团也加大了对中国高端酒店的投入。那随着整个中高端供给端的增加，公司是否感受到竞争有加剧？然后如何进一步增强咱们在中高端酒店这个板块的一个竞争力？Hi management, Lydia from Citi.
This is from the line of Lydia Ling from City, please go ahead.
Lydia Ling: I have a question regarding the competitive landscape in the mid to upscale hotel. As the hotel industry gradually recovers, many hotel companies shift more focus and invest more in that mid to upscale segment. With more hotel supply into the mid to upscale segment, do you face more intense competition? How to further enhance your competitiveness in this segment? Thank you.
from C.E. and I have a question regarding the competitive landscape in mid to upscale hotel. So as the hotel industry gradually recovers many hotel companies shift more focus and invest more in that mid to upscale segment and so with more hotel supply into the mid to upscale segment do you face more intense competition and how to versus
Haijun Wang: 好的，感谢Lydia的提问。那么我们认为酒店业是分为成本派和体验派两个增长路径。那我们亚朵长期坚持的就是体验派的这个道路。我们体验领先的策略沉淀了非常好的用户的口碑，也提升了我们的用户满意度和消费者的复购。那亚朵的三高策略，也就是我们的高品质、高溢价、高效率，保证了我们的加盟商长期稳定的回报，让我们的加盟商逐渐积累了对我们的认可度，也不断提高了我们的占有率。那么也根据Frost & Sullivan的行业研究，以房间数量的统计，亚朵持续保持着中国最大的中高端连锁酒店的市场份额第一的位置，而且我们领先的优势是在扩大。
further enhance your competitiveness in this segment. Thank you.
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If you have any questions, please let us know. If you have any questions, please let us know. We will be happy to answer any questions you may have. Thank you for your attention.
[Company Representative] (Atour Lifestyle): The hotel industry has two paths, either cost oriented or experience driven. We, Atour, persist on experience. Since our establishment, our strategy of focusing on exceptional experience has accumulated good reputation among our customers. That has enhanced their satisfaction and repurchase. Our three mantras, namely high quality, high value, high efficiency, have helped us to ensure the long term and stable returns for our franchisees. That also have enabled us to gradually accumulate recognition and market share among our franchisee partners. According to Frost & Sullivan's industry research, in terms of the number of rooms, we, Atour, had been maintaining the first position in the market share of the largest upper midscale hotel chains in China, and our leading is still expanding.
The hotel industry has two paths, either cost-oriented or experience-driven.
We at tour, persist on experience since our establishment. Our strategy of focusing on exceptional experience has accumulated good reputation among our customers.
that had enhanced their satisfaction and repurchased. Our three mantra, three high mantras, namely high quality, high value, high efficiency, had helped us to ensure the long-term and stable returns for our franchisees. And that also has enabled us to gradually accumulate
recognition and market share among our franchisee partners. According to Sullivan's industry research, in terms of the number of rooms, we at tour had been maintaining the first position in the market share of the largest upper mid-scale hotel chains in China. And our leading is still expanding.
Haijun Wang: 当然竞争也肯定是有的。但是我们认为在酒店连锁化的大趋势下，整个酒店行业的发展不是一家通吃的零和游戏。那对于所有的行业参与者来说，只要你的品牌能力强，运营能力强，客户体验强，模式创新力强，我想它就一定能够获得高质量的可持续的发展。那只要把自己想做的事情做到极致，形成差异化，那我们这个行业就能够百花齐放，也能够形成一个比较好的良性的竞争格局。谢谢。
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[Company Representative] (Atour Lifestyle): Sure, there are competitions. With the general trend of increasing hotel chain penetration, this industry, the hotel industry, does not develop as a zero-sum game. For those players in this industry, whoever's got strong branding, operational capabilities, better customer experiences, as well as better model innovations, they can achieve high quality and sustainable development. Only when every player in this industry, they do what they want to the extreme and also start to form differentiated product and experiences, that's the time when our industry will develop with more diversification. A healthy competition pattern shall take place.
See you soon. Sure, there are competitions.
While with the general trend of increasing hotel chain penetration, this industry, the hotel industry, does not develop as a zero-sum game.
For those players in this industry, whoever's got strong branding, operational capabilities, better customer experiences, as well as better model innovations, they can achieve high quality and sustainable development.
Only when every player in this industry, they do what they want to the extreme and also start to form differentiated product and experiences, that's the time when our industry will develop with more diversification.
Queenie Qin: Okay, Operator, next question, please.
and then a healthy competition pattern shall take place. Okay, operator, next question please.
Operator: Thank you. We'll now take our next question. Please stand by. This is from the line of Andy Fu from Blue Lotus. Please go ahead.
Thank you. We'll now take our next question.
Thank you. We'll now take our next question. Please stand by.
This is from the line of Andy Fu from Blue Lotus. Please go ahead. Hello everyone. I am Andy Fu from Blue Lotus. Please go ahead.
Andy Fu: Thank management for taking my question. Congrats on the good earnings performance as a net income in Q1. Can management break down the reasons behind the outperforming earnings? Consider the quick recovery trend of travel consumption. Do we have any update on the expectation on the earnings for Q2 and the full year 2023? Thanks.
Thank you management for taking my question. Congrats on the good earnings performance at net income in the first quarter. Can management break down the reasons behind the outperforming earnings? Also consider the quick recovery trend of travel consumption. Do we have any update on the expectation on the earnings for the second quarter in the full year 2023? Thanks.4
Haijun Wang: 感谢 Andy 的提问，这个问题由我来回答。
[Company Representative] (Atour Lifestyle): Thank you for that question. I'll be taking this question.
Thank you for that question. I'll be taking this question.
Haijun Wang: 首先，公司一季度取得了良好的盈利表现，调整后的净利润是1.6亿元，净利润率是20%。
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[Company Representative] (Atour Lifestyle): Well, indeed, our company in Q1 did achieve a good performance. Our adjusted net profit was RMB 160 million, and the adjusted net profit margin was 20%.
Rui Zhao: 首先从毛利层面来看，公司一季度的毛利率是41%，同比上升了20个百分点。毛利上升主要来自两个方面：一是轻资产模式下RevPAR的快速恢复，以及酒店网络扩张带来的规模效应，使得酒店业务毛利率快速提升。
and the adjusted net profit margin was 20%.
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[Company Representative] (Atour Lifestyle): First of all, in terms of gross margin, our Q1 gross margin was 41%, which was 20% higher compared with Q1 of 2022. Mainly there were two reasons. The first is that with our light asset mode, we benefited from the rapid recovery of RevPAR and economy of scale effect brought by the expansion of our hotel network.
First of all, in terms of gross margin, our Q1 gross margin was 41%, which was 20% higher compared with Q1 of 2022. Mainly, there were two reasons. The first is that with our light asset mode, our Q1 gross margin was 41% higher compared
we benefited from the rapid recovery of Revpar and economy of scale effect brought by the expansion of our hotel network.
Rui Zhao: 第二是高毛利的零售业务持续发展。零售业务占总收入的比例，以及零售业务自身的毛利率均有提升，也拉动了公司整体毛利率的上涨。
[Company Representative] (Atour Lifestyle): The second reason was due to the continuous development of our relatively higher gross margin retail business. The revenue contribution from our retail business have continued to increase, and its gross margin by itself also have increased. Those two reasons also have drove our overall gross margin higher.
The second reason was due to the continuous development of our relatively higher gross margin retail business. The revenue contribution from our retail business have continued to increase.
And its gross margin by itself also has increased, and those two reasons also have drove our overall gross margin higher.
Rui Zhao: 从费用来看的话，2023年第一季度三项费用占收入的比例16%，同比下降了3个百分点。其中营销费用占收入的比例7%，同比增长了2个百分点，主要的原因是公司加大了场景零售业务在品牌推广和渠道拓展上的投入。管理和研发费用占收入的比例9%，同比下降了5个百分点，这得益于我们管理效率的提升，管理和研发费用的增长速度远低于收入的增长速度。
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[Company Representative] (Atour Lifestyle): In terms of expenses, our three expenses accounted for 16% of revenue in Q1 this year, down by 3% year on year, in which marketing expenses accounted for 7% of revenue. That was up by 2% because we increased the investment in branding initiatives and the developing distribution channels for our scenario-based retail business. The rest 9% of revenue were administrative and R&D expenses down by 5% than last year since we improved on our management efficiency. The increasing of the management and R&D expenses were much smaller than the growth speed of our revenue.
In terms of expenses, our three expenses accounted for 16% of revenue in the first quarter this year down by 3% year on year, in which marketing expenses accounted for 7% of revenue. That was up by 2% because
We increased the investment in branding initiatives and developing distribution channels for our scenario-based retail business. The rest 9% of revenue were administrative and R&D expenses, down by 5% than last year since we improved on our management efficiency.
The increasing of the management and R&D expenses were much smaller than the growth speed of our revenue.
Rui Zhao: 未来随着酒店网络的持续扩张，规模效应的逐步释放，以及零售业务的不断发展，我们预计集团整体盈利能力从长期来看会保持稳定增长。
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[Company Representative] (Atour Lifestyle): In the future, with our continuous expansion of our hotel network, along with the gradual kicking in of the economy of scale effects, plus the continuous development of our retail business, we expect that our overall profitability will maintain a stable growth in the longer term.
In the future, with our continuous expansion of our hotel network, along with the gradual kicking in of the economy of scale effects.
plus the continuous development of our retail business, we expect that our overall profitability will maintain a stable growth in the longer term.
Rui Zhao: 谢谢。
[Company Representative] (Atour Lifestyle): Thank you.
Queenie Qin: Next question, please.
Operator: Thank you. We will now take our next question. Please stand by. This is from the line of Xin Chen from UBS. Please go ahead.
Thank you. Next question please. Thank you. We'll now take our next question.
Thank you. Next question please. Thank you. We'll now take our next question. Please stand by.
And this is from the line of Xin Chen from UBS. Please go ahead. The United States is one of the planet's largest and largest
Xin Chen: 各位股东朋友大家晚上好，我是UBS的陈鑫。谢谢管理层给我这个提问的机会。我一个问题是想问一下我们的场景零售业务的。想问一下公司对于这个第二增长曲线的零售业务是怎么看的？我们应该如何预期未来的发展，以及对我们的财务报表的影响？Let me ask the question in English. I'd like to raise a question regarding the scenario retail business. How does management see the growth potential of the scenario retail business? What can we expect from its future development?
Q&A Let me ask you in English I'd like to use a question regarding the scenario between the two BNS How does one need to see the growth of potential of the scenario between BNS and the other BNS?
Xin Chen: This will be its impact to Atour's financials. Thank you.
Rui Zhao: 好的，感谢陈鑫的提问。我先来讲一下零售的业务情况，然后请寿东来补充一下财务信息。作为一个始于住宿的生活方式品牌集团，场景零售是我们从经营房间到经营人群的第一步。我想我们线下的酒店场景，为零售提供了天然的体验空间，也带来了很多自然的流量。而零售又将亚朵级的体验带回了用户的家里，提升了用户对亚朵品牌的感知，同时也会给我们的住宿带来流量的回流。所以说，我们的零售和酒店生态形成了一个良好的互动循环。
Thank you for watching.
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[Company Representative] (Atour Lifestyle): Thank you for that question, Mr. Xin Chen. I'll talk about the business condition of our retail business, and then we'd like to ask Mr. Wang Shoudong to supplement on the financial side. We as a lodging centric lifestyle brand, our retail business is a very natural extension of our expertise in hospitality. Reaching beyond accommodation to harmoniously complement our value proposition to serve people who have diverse lifestyles. Our offline hotel scenes can provide a natural experience space, which also brings a lot of natural traffic to our retail businesses. Retail, on the other hand, can also help to bring our Atour experience back to customers' homes, help to improve their perception of Atour, and also bring them back to our hotels for more stays in the future. Retail business and hotel business, as you see, in this way, can form a very nice loop with that kind of synergy.
extension of our expertise in hospitality, reaching beyond accommodation to harmoniously complement our value proposition to serve people who have diverse lifestyles.
Our offline hotel scenes can provide a natural experience space, which also brings a lot of natural traffic to our retail businesses.
Retail, on the other hand, can also help to bring our at-home experience back to customers' homes.
help to improve their perception of Atwar and also bring them back to our hotels for more space in the future.
Retail business and hotel business as you see in this way can form a very nice loop with that kind of synergy.
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[Company Representative] (Atour Lifestyle): Product-wise, we currently focus on a pan-sleep category, taking Atour Planet as our core product. In Q1, our Atour Planet contributed nearly 80% to our overall GMV of the retail sales. Pillows, mattresses, quilts, and four-piece sets all sold very well. We are very optimistic about China's sleep product market with massive potential, and we believe there are quite a lot of development opportunities. We also believe we, Atour, will also stand a place in China's sleep economy in the future. Channel-wise, apart from leveraging our expanding hotel network as both the consumption scenes and customer traffic sources, we also have been developing online third-party channels. Driven from both offline and online, these two channels have both been growing very fast.
Product-wise, we currently focus on a pen-sleep category, taking Atwar Planet as our core product. In first quarter, our Atwar Planet contributed nearly 80% to our overall GMV after retail sales. We have a full set of pillows, mattresses, quilts, and four-piece sets.
also very well. We are very optimistic about China's sleep products market with massive potential. And we believe there are quite a lot of different development opportunities. We also believe we at HUOR will also stand a place in China's sleep economy in the future. Thank you. line up on my foot water
from leveraging our expanding hotel network as both the consumption scenes and customer traffic sources, we also have been developing online third party channels. So that driven from both offline and online, these two channels have both been growing very fast.
[Company Representative] (Atour Lifestyle): In the future, we will continue to strengthen our investments on customer insight and product development to create more high-quality sleep product to offer first-class sleep experiences for our customers, so that we can make more people sleep better. Now let me hand it over to Mr. Wang Shoudong to talk about scenario-based retail's financials. Our scenario-based retail business in last year have already reached a revenue of CNY 254 million and already achieved positive bottom line. For Q1 of this year, our scenario-based retail revenue have already reached a milestone of CNY 100 million, and we expect our whole year revenue will reach above 400 and a million CNY, with an increase of more than 80% year on year, and the profitability will also increase accordingly.
Time for the demo and welcome. We're on Zoom 3.2. We'll begin by asking questions about the AMP Open oven M resource before the event.
In the future, we will continue to strengthen our investment on customer insight and product development to create more high-quality sleep products to offer first-class sleep experiences for our customers and so that we can make more people sleep better.
Thank you for watching.
Now, let me hand it over to Mr. Wang Shodong to talk about scenario-based retail financials.
Thank you for your attention.
Our scenario-based retail business in last year have already reached a revenue of 254 million and already achieved a positive bottom line.
Full year revenue will reach above 400 million with an increase of more than 80% year on year and profitability will also increase accordingly.
[Company Representative] (Atour Lifestyle): On the basis of stringent requirements on ROI and reasonable profit, we also will increase the investment in branding initiatives and distribution channel expansions to make sure that our scenario-based retail's contribution to the group's overall profit will increase year by year.
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Meanwhile, on the basis of stringent requirements on ROI and reasonable profit, we also will increase the investment in branding initiatives and distribution channel expansions to make sure that our scenario-based retails contribution to the group's overall profit will increase year by year.
Queenie Qin: Okay. Operator, the question maybe.
Operator: Thank you. That does conclude the question and answer session. I would like to turn the conference back over to Queenie Qin for any additional or closing comments.
OK, operator, the question maybe? Thank you. That does conclude the question and answer session. I would like to turn the conference back over to Queenie Chin for any additional or closing comments. Yes, thank you, operator. Thank you, everyone, once again, for joining us today. If you have any further questions, please feel free to contact us. Have a great day. Goodbye. Thank you. This does conclude the conference for today.
Queenie Qin: Yes, thank you, operator. Thank you everyone once again for joining us today. If you have any further questions, please feel free to contact us. Have a great day. Goodbye.
Operator: Thank you. This does conclude the conference for today. Thank you for participating, and you may now disconnect.
