Q1 2025 Atour Lifestyle Holdings Ltd Earnings Call
Operator: Hello ladies and gentlemen, thank you for standing by and welcome to the Atour Lifestyle Holdings first quarter 2025 earnings conference call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. Today's conference is being recorded.
Hello, Ladies and gentlemen, thank you for standing by and welcome to the Auto Life style Holdings first quarter 2025 earnings Conference call.
At this time all participants are in a listen only mode.
After the speaker's presentation, there will be a question and answer session. Today's conference is being recorded I would now.
Luke Hu: I would now like to turn the call over to Mr. Luke Hu, Senior IR Manager. Please go ahead, sir. Thank you, operator. Good morning and good evening, everyone. Welcome to our first quarter 2025 earnings conference call.
Speaker Change: I would like to trying to call over to Mr. Luke.
Speaker Change: Another job. Please go ahead Sir.
Mr. Moorehead: Thank you operator, good morning, everyone welcome to our first call charge from say a 25 earnings conference call. Today, you will hear from our founder Chairman and CEO. Mr. Moorehead, you at all worried EVP of course Apple Mr. Chappell before we continue please be aware that today.
Luke Hu: Today, you will hear from our founder, chairman and CEO, Mr. Wang Haijun, and our EVP co-CFO, Mr. Jianfeng Wu. Before we continue, please be aware that this discussion will include forward-looking statements under federal securities laws. These statements are subject to various risks and uncertainties. And the actual results may differ significantly from what is stated or implied in our comments today. The company is not obligated to update any forward-looking statements except as required by applicable laws. Additionally, during this call, our management will discuss certain non-GAF financial measures solely for comparison purposes. For a clear understanding of these measures and a reconciliation of gap-to-non-gap financial results, please refer to the earnings release issued earlier today.
Mr. Moorehead: This discussion will include forward looking statements under federal Securities laws. These statements are subject to various risks and uncertainties and actual results may differ significantly from what is stated or implied.
Mr. Moorehead: And tried to in our comments today.
Mr. Moorehead: The company is not obligated to update any forward looking statements, except as required by applicable law.
Speaker Change: Additionally, during this call management will discuss certain non-GAAP financial measures for comparison purpose for a clear understanding of these measures and a reconciliation of GAAP to non-GAAP financial results. Please refer to the earn yesterday released issued earlier today with them all and Webcasts.
Luke Hu: Furthermore, a webcast replay of this conference call will be accessible on our website at ir.yaduo.com, where a copy of the results presentation is also available.
Speaker Change: A replay of this conference call will be accessible on our laps that that's why.
Speaker Change: Why do you all don't Com, where a copy of the results presentation is also available now I will turn the call over to Mr. Wang our CEO.
Haijun Wang: Now, I will turn the call over to Mr. Wang, our CEO. Thank you, Luke. Hello, everyone, and thank you for joining Atour's first quarter 2025 earnings call today. In the first quarter of 2025, due to the complex and multifaceted environmental impact of COVID-19, the domestic travel market has been relatively unstable. There are many uncertainties in the overall market situation. However, based on the challenge of coexistence, as a leading lifestyle brand group, Atour has always adhered to the concept of managing the crowd, and has been able to adapt to new market changes, precisely catering to the advanced needs of current consumers for high-quality, personalized, and experiential consumption.
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Speaker Change: Now everyone and thank you for joining eye towards first quarter of 2025 earnings call today.
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Haijun Wang: At the same time, we will continue to firmly promote the strategic measures of China's experience of 2,000 good stores While constantly promoting brand power and product power Promote the rebuilding and upgrading of the industry value system In the first quarter of 2025, China's domestic travel market experienced fluctuations amid a complex and volatile macro environment, with numerous uncertainties presenting both challenges and opportunities. As a leading lifestyle group, we have always adhered to our business philosophy of serving people and are confidently navigating these evolving market dynamics. We continue to respond proactively to shifting consumer preferences for superior quality, personalized service, and experience-driven consumption.
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Speaker Change: And our first full quarter of 2025, China's domestic travel market experienced fluctuations he made a complex and volatile macro environment with numerous uncertainties presenting both challenges and opportunities.
Speaker Change: Leading lifestyle group, we have always adhere to our business philosophy of serving people in our comfort and sleep navigating the evolving market dynamics.
Speaker Change: We continue to respond proactively to shifting consumer preferences for superior quality personalized service and experience driven consumption. Meanwhile, we remain firmly committed to advancing our strategic initiatives have Chinese experience 2000 premier hotels, which not only strengthened.
Haijun Wang: Meanwhile, we remain firmly committed to advancing the strategic initiative of Chinese-experienced 2,000 premier hotels, which not only strengthens our brand awareness and product offerings, but also drives the transformation and elevation of the industry's value chain.
Speaker Change: Our brand awareness and our product offerings, but also drives the transformation and the elevation of the industry's value chain Xiaomi.
Haijun Wang: Next, I will introduce the specific situation of all businesses in the first quarter of 2025. Next, I would like to provide more details on our business performance for the first quarter of 2025. First of all, let's take a look at the fourth page of the PPT. In the first quarter, the Group's large-scale Roll Par is 304.4 yuan, which is 92.8% of the 24-year period. Among them, OCC is 95.8% of the 24-year period, and ADR is 97.2% of the 24-year period.
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Speaker Change: Next I would like to provide more details on our business performance for the first quarter of 2025.
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Haijun Wang: Let's begin with our hotel business. Please turn to slide four of our 1Q25 results presentation. Our rough part reached RMB304.4 in the first quarter of 2025, representing 92.8% of its level in the same period of 2024. Specifically, OCC reached 95.8% and ADR stood at 97.2%, both compared to the same period in 2024. Please turn to slide 5. According to the fifth page of the PPT, Roller Park, a mature hotel that has been in operation for more than 18 months, reached 92.8% of its level in the same period of 2024, which is the same as the overall performance of the group.
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Nguyen: Our revpar reached to RMB $304 four in the first quarter of 2025, representing 92, 8% level in the same period of 2024.
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Speaker Change: Stood at 97.2% both compared to the same period in 2024.
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Haijun Wang: OCC and ADR respectively reached 95.6% and 97.4% of their level in the same period of 2024. Please turn to slide 5. ResPAR for our mature hotels in operation for more than 18 months in the first quarter of 2025 was 92.8% of the level for the same period in 2024, in line with the group's overall performance, while OCC and ADR for these mature hotels reached 95.6% and 97.4% of 2024's levels for the same period, respectively.
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Speaker Change: Please turn to slide five revpar for our mature hotels in operation for more than 18 months in the first quarter of 2025 was 92, 8% off the level for the same period in 2024 in line with the group's overall performance, while OCC and ADR.
Speaker Change: For these mature hotels reached a 95, 6% and 97, 4% up 2020 force levels for the same periods respectively.
Haijun Wang: Please turn to page 6. Thanks to the continuous improvement of brand value and strong organizational performance, our hotel network continues to expand. This further demonstrates the group's willingness to grow. In the first quarter, a total of 121 new hotels were opened, an increase of 24.7%. As of the end of the first quarter, the number of hotels in the group has reached 1,727, an increase of 32.6%. Please turn to slide six. Benefiting from our strengthening brand influence and a robust organizational efficiency, our hotel network continued to expand, demonstrating the resilience of our business. In the first quarter, we opened 121 new hotels, representing a 24.7% year-over-year increase.
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Speaker Change: Please turn to slide six benefiting from our strengthening brand influence and a robust organizational efficiency. Our hotel network continued to expand demonstrating the resilience of our business in the first quarter, we opened 121, new hotels representing.
Speaker Change: A 24, 7% year over year increase.
Haijun Wang: By the end of the first quarter, we had a total of 1,727 hotels in operation, representing a 32.6% year-over-year interest.
Speaker Change: By the end of the first quarter, we had a total of 1727 hotels in operation, representing a 32, 6% year over year increase.
Haijun Wang: In this quarter, Jiameng Group has been optimistic about the brand's development and continues to expand its pipeline projects. As of the end of the first quarter, the total number of pipeline projects has reached 755. While pursuing scale expansion, we always stick to the bottom line of quality, strictly screening and monitoring contract projects and newly-opened hotels, ensuring sustainable high-quality growth. This quarter, franchisees remain positive about our brand development. This has led to a continuous expansion of our pipeline projects. By the end of the first quarter, the number of hotels under development reached 755. While pursuing scale expansion, we always adhere to the quality standards.
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Speaker Change: This quarter franchisees remain positive about our brand new developments. This has led to a continuous expansion of our pipeline projects.
Speaker Change: And the first quarter the number of hotels under development reached 755, while pursuing scale expansion, we always adhere to the quality standards, we carefully screened and evaluate both new hotel signings and openings to ensure sustainable high quality growth.
Haijun Wang: We carefully screen and evaluate both new hotel signings and openings to ensure sustainable, high-quality growth.
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Haijun Wang: Next, I would like to share the latest developments for Atour's hotel brand. In the first quarter, guided by our long-term growth philosophy and deep insights into current business travel trends, we implemented upgrades to our mid-scale and upper-mid-scale hotel products. In the first quarter of the mid-to-high-end market, we launched Atour 3.6 products. Atour 3.6 adopts a design concept of co-existence with nature, deeply integrating commercial practicality with a relaxed atmosphere. In addition, through a comprehensive upgrade of space utilization and function design, Atour 3.6 is committed to optimizing the convenience and comfort of the accommodation experience, creating an ultimate business trip experience for users, and establishing a new standard for mid-to-high-end market business travel.
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Speaker Change: Did I listen to you in the first quarter guided by our long term growth philosophy and deep insights into current business travel trends, we implemented upgrades to our midscale and upper Midscale hotel products.
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Haijun Wang: Please turn to slide seven. In the upper mid-scale segment, we launched Atour 3.6 in the first quarter. This product embodies an in harmony with nature design philosophy, seamlessly integrating business functionality and a relaxed ambience. Furthermore, Atour 3.6 prioritizes enhanced convenience and comfort through optimized space utilization and upgraded functional design. This innovation enables us to deliver a comprehensive full scenario ultimate business travel experience, setting a new benchmark for premium business travel in the upper mid-scale market. Since the launch of Atour 3.6, with its strong product activity, comprehensively upgraded experience facilities, and high-efficiency investment returns, we have gained widespread attention from the market and positive feedback from our partners.
Speaker Change: Please turn to slide seven.
Speaker Change: In the upper mid scale segment, we launched a tour three six and of course the corner.
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Speaker Change: This innovation enables us to deliver a comprehensive pro scenario ultimate business travel experience.
Speaker Change: A new benchmark for premium business travel in the upper mid scale market.
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Haijun Wang: We believe that Atour 3.6 will continue to solidify our core competitiveness in the mid- and high-end market. Since its launch, Atour 3.6 has received widespread market recognition and positive feedback from franchisees through its strong product vitality, holistically upgraded our customer experience features and efficient investment returns. We believe this product will further solidify our core competitiveness in the upper mid-scale segment.
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Speaker Change: Since its launch two or 3.6 has received the widespread market recognition and a positive feedback from franchisees through its strong product vitality.
Speaker Change: Let's take we upgraded our customer experience features and efficient investment returns. We believe this product will further solidify our core competitiveness in the upper mid scale segment.
Haijun Wang: Please turn to page 8 In the future, Atour 3C and Atour 4C products will form a new generation of Atour mid-to-high-end products. They will develop together and complement each other. Atour 3C products strive to consolidate our core brand status in the current mainstream commercial travel scene. Atour 4C products have a longer life cycle, leading to the development direction of the future mid-to-high-end market. Atour 3C and Atour 4C products can not only meet the diversified aesthetic preferences and needs of current users, but also provide wider investors with a wider range of investment options. In addition, we have also launched the Atour 3.5 SE innovation plan for storage hotels that need to be remodeled to maintain market competitiveness.
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Haijun Wang: Please turn to slide eight. Looking ahead, the Atour Series 3 and Series 4 product lines will jointly shape our next generation upper mid-scale hotel portfolio, operating in parallel to complement each other. Atour Series 3 strengthens our leading brand position in core business travel scenarios. Meanwhile, Atour Series 4 offers an extended life cycle and shapes the future of the upper mid-scale market. Together, Series 3 and Series 4 product lines address diverse customer aesthetic preferences and accommodation needs, while also providing franchisees with a broader range of investment options. In addition, for existing hotels with renovation needs, we have introduced the Atour 3.5 SE Renovation Program to help them maintain market competitiveness.
Speaker Change: Please turn to slide eight.
Speaker Change: Looking ahead Detour series three series four product lines, well jointly shape. Our next generation Upper Midscale hotel portfolio operating in parallel to complement each other a tourist ARAS three strengthens our leading brand position in core business travel scenarios. Meanwhile.
Speaker Change: Tour series four offers an extended lifecycle and shapes the future of the upper mid scale market together Sierra Street in our series four product lines address diverse customer aesthetic preferences and accommodation needs.
Speaker Change: We are also providing franchisees with a broader range of investment options. In addition for existing hotels with renovation needs. We have introduced an ear towards 3.5 S. E renovation program to help them maintain market competitiveness.
Haijun Wang: Please turn to page 9. In terms of mid-range brands, we insist on providing product innovation and experience upgrade In 2023, we will launch QINGJU 3.0. With its young and fashionable design style and innovative touch services, it effectively addresses the problems of mid-range markets, accommodation products, over-the-top aesthetics, and insufficient service experience, and has won wide praise from conglomerates and consumers. At the same time, we have also gained a lot of attention from young users in the process of operation. Please turn to slide nine. In the mid-scale segment, we remain committed to product innovation and experiential upgrades that cater to the diverse needs of younger consumers.
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Speaker Change: Please turn to slide nine in the Midscale segment, we remain committed to product innovation and experiential upgrades that cater to the diverse needs of younger consumers.
Haijun Wang: In 2023, we introduced Atour Lite 3.0, which effectively addressed the critical market challenges, such as outdated aesthetics and inadequate service experiences by incorporating youthful, fashionable design and innovative service touchpoints. This product has received widespread acclaim from both franchisees and consumers. Meanwhile, during the operation, we have gained valuable insights into the preferences of younger consumers.
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Haijun Wang: Based on this, in the first quarter, we launched the QINGJU 3.3 product. Inspired by the blue night in Venice, through immersive atmosphere design, we create a relaxing and healing resting experience for users. QINGJU 3.3 has made comprehensive improvements in visual design, spatial perception, and hardware settings At the same time, it has optimized spatial functions for business needs and office needs and has improved the entry and exit experience of QINGJU hotels in all aspects We believe that with the upgrade of quality, more diverse compatibility, and the advantage of Asian experience standards QINGJU 3.3 will become an important engine for the QINGJU brand to reach the scale of 1000 hotels and become a landmark product in the mid-range market Building on this foundation, we launched Atour Light 3.3 in the first quarter.
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Tony: Building on this foundation, we launched a tour like three three and a personal corner inspired by the Blue nights of Janella.
Haijun Wang: Inspired by the blue nights of Genoa, Atour Light 3.3 provides customers with a relaxing and restorative resting experience through immersive atmospheric design. Atour Light 3.3 features comprehensive upgrades in visual design, spatial perception, and facilities, while offering tailored functionality for business meetings and work-related. These enhancements further elevate the overall customer experience. With its improved quality, expanded versatility, and adhere to our Atour Signature Experience Standards, we believe Atour Lite 3.3 will serve as a key driver in achieving our goal of 1,000 Atour Lite hotels and will establish itself as a flagship product in the mid-scale sector.
Tony: You are like three three provides customers with a relaxing and restore its interesting experience through immersive atmospheric design.
Tony: Your line 3.3 features comprehensive upgrades and digital design spatial perception and facilities, while offering tailored functionality for business meetings and work related needs. These.
Tony: These enhancements further elevated the overall customer experience, whether it's to improve the quality expanded versatility and adhere to our tour signature experience standards. We believe it's more like three three will serve as a key driver in achieving our goal of 1000.
Tony: Or light hotels, and it will establish itself as a flagship product in the mid scale segment.
Haijun Wang: In light of the fierce competition in the Japanese market, we are committed to creating products with a long life cycle, constantly improving the quality, constantly strengthening the experience barrier, effectively covering the needs of a wider population, and further solidifying our leadership in each market segment. In an increasingly competitive market, we remain focused on creating products with extended life cycles. By continuously enhancing our product competitiveness with reinforced experience differentiations, we effectively meet the diverse needs of broader demographics, further solidifying our leadership across market sectors.
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Tony: In an increasingly competitive market, we remain focused on creating products with extended life cycles by continuously enhancing our product competitiveness with reinforced experienced differentiations, we effectively meet the diverse needs of broader demographics further.
Tony: If I and our leadership across market segments.
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Haijun Wang: Now moving to our retail business.
Tony: Now moving to our retail business, please turn to slide 10.
Haijun Wang: Please turn to slide 10. The development of retail business is a natural result of Atour's positioning in the way of life of brand groups and the management of the people. In the first quarter, retail business continued to maintain a strong growth trend. In the driving force of brand growth and the steady growth of user age, GMV reached 8.45 billion yuan and grew by 70.9% at the same time. Among them, the online channel ratio continued to exceed 90%. The growth of our retail business is a natural extension of our positioning as a lifestyle group and our business philosophy of serving people.
Tony: Yeah sure.
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Paul Hoelscher: Thank you.
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Paul Hoelscher: The growth of our retail business is a natural extension of our positioning as a lifestyle group and our business philosophy of serving people in the first quarter, our retail business maintained strong growth momentum with G. M D, reaching RMB $845 million up.
Haijun Wang: In the first quarter, our retail business maintained strong growth momentum, with GMB reaching RMB 845 million, up 70.9% year-over-year, driven by rising brand strength and growing customer loyalty. Online channels continued to contribute over 90% of total GMB.
Paul Hoelscher: 79% year over year, driven by rising brand strength and a growing customer loyalty online channels continued to contribute over 90% of total G. M. D. C D C.
Haijun Wang: Since the establishment of the Asia Planet, we have always been committed to studying and integrating the needs of users in the hotel scene and the home scene. The deep sleep experience we create is also gradually becoming a blind spot in consumers' minds. Atour Planet has remained committed to studying and integrating customers' sleep needs across both hotel and home environments. This anchors the deep sleep experience firmly in the minds of customers. Across different scenarios, Atour Planet's products not only fulfill customers' functional needs, but also deeply resonate with their emotional needs. In terms of pillow products, Shen Shui Zhen Pro series products in the first quarter have continued to sell well.
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Paul Hoelscher: Please turn to slide 11.
Paul Hoelscher: Since its inception, a tour planet has remained committed to studying and integrating customers sleep needs across both hotel and home environments. This anchors that deep sleep experience firmly in the minds of customers across different scenarios, a tour planets products not only for fuel.
Paul Hoelscher: Customers functional needs, but also deeply resonate with their emotional needs.
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Haijun Wang: The sales of the third-party health platform in the mainstream have remained the first in the list of products. Since the release of this series of products, the total sales have exceeded 6 million and further solidified the leading position of Asian stars in pillow products. In the Pillow category, our Deep Sleep Memory Foam Pillow Pro series maintained robust sales performance in the first quarter, consistently ranking as the top seller in its category on major third-party e-commerce platforms. Since its launch, the accumulated sales of the Deep Sleep Memory Foam Pillow Pro series have exceeded 6 million units, further solidifying Atour Planet's leading position in the Pillow category.
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Paul Hoelscher: In a pillow category, our deep sleep memory foam pillow Pro series maintained robust sales performance in the first quarter consistently ranking as the top seller in its category a major third party e-commerce platforms since its launch the accumulated sales after deep sleep memory.
Paul Hoelscher: Hello Pro series has exceeded 6 million units.
Paul Hoelscher: Solidifying a tour planet leading position in the pillow category.
Haijun Wang: Please turn to page 12 Based on our capture and excavation of users' needs as well as the training and analysis of users' feedback Atour Planet has formed a standardized product iteration model driven by users' needs In March, we followed the changes of the season and launched the Summer Pro 2.0 with deep sleep and cooling As the iteration version of the last year's deep sleep and cooling the new product further optimized the air-cooling system It focuses on providing users with a natural and comfortable refreshing experience, instead of an extremely cold touch. As soon as the new product was launched, it gained users' high-level recognition.
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Paul Hoelscher: Sure.
Haijun Wang: After 48 days of popularity, GMV has surpassed 1 million viewers and became another gap-oric product of Atour Lifestyle Please turn to slide 12. Based on our capture and exploration of user needs, as well as the refinement and analysis of user feedback, Atour Planet has developed a standardized user-driven product iteration model. In March, in line with seasonal changes, we launched the Deep Sleep Thermal Regulating Comforter Pro 2.0 Summer Season. Serving as the upgraded version of the Deep Sleep Lightweight Comforter introduced last year, this new product further optimizes the breathable cooling system, aiming to provide the customers with a natural and cozy coolness instead of an ultimate cold touch.
Paul Hoelscher: So sure about it.
Paul Hoelscher: Hello.
Paul Hoelscher: Come on you got to assume the alternative.
Paul Hoelscher: She did you were you got Paul W. P.
Speaker Change: Please turn to slide 12 pace.
Speaker Change: Based on our capture and exploration of user needs as well as the refinement and analysis of user feedback to our planet has developed a standardized user driven product iteration model in March in line with seasonal changes, we launched the deep sleep thermal regulating comfort approach too.
Paul Hoelscher: Zero summer season, serving as the upgraded version of the deep sleep lightweight comfort or introduced last year. This new product further optimized tester breathable cooling system aiming to provide our customers with a natural and cozy Conus instead of an alternate coach touch upon launch.
Haijun Wang: Upon launch, the product received widespread consumer praise, ranking first in sales in its category on Tmall and Douyin in its first month. Within just 48 days, the product exceeded R&D 100 million GMD, making it another blockbuster product in the Deep Sleep series.
Paul Hoelscher: The product received a widespread consumer price ranking first in sales in its category on Tmall and a doubling in its first month within just the 48 days.
Paul Hoelscher: <unk> exceeded RMB 100 million G M D, making it another blockbuster product in a deep sleep series.
Haijun Wang: In addition, in the competitive market environment, we are also continuing to consolidate the core of the Asian planet. On the one hand, we continue to innovate in product materials and technology. On the other hand, through the establishment of a perfect production and technology standard, we have realized the quality control of the whole chain in the production process, ensuring the stability and consistency of product quality. In addition, Atour Planet continues to start from the needs of users, optimize product details, and enhance the user experience. By constantly improving product performance and quality, Atour Planet accurately meets users' pursuit of high-quality life, defining new industry standards in terms of product quality and user experience.
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Speaker Change: Yeah, I know it seems you would've heard him BLA, if I'm, yeah, well known for some.
Speaker Change: Hello, how can we use for the transit.
Paul Hoelscher: Many of them yet.
Paul Hoelscher: Sometimes when you're building Walnut Hill are sometimes bought who know Charlie I know the kindred at home care about having him getting rid of it.
Paul Hoelscher: Yes, so as soon as you walk through some of your whole she talked about Johan.
Paul Hoelscher: He has done for you or can you.
Paul Hoelscher: So you don't know how many human help hinder the essential jindra months.
Paul Hoelscher: If you do something about the peripheral side.
Paul Hoelscher: Well you know what she has done later without D E Schindler.
Haijun Wang: In addition, amidst an increasingly competitive market environment, we have been steadily reinforcing Atour Planet's core strengths. On one hand, we continue to drive innovation in product materials and manufacturing technologies. On the other hand, by establishing a comprehensive set of production standards, we have achieved end-to-end quality control and ensured consistent and reliable product quality. Moreover, Atour Planet remains focused on refining product details based on customer needs, aiming to enhance the overall usage experience. With the continuous improvement of both product performance and quality, Atour Planet is well-positioned to meet consumers' growing expectations for high-quality living, redefining new standards for both product quality and customer experience.
Paul Hoelscher: Yeah.
Paul Hoelscher: In addition, amidst an increasingly competitive market environment, we have been steadily reinforcing a tour planet's core strengths on one hand, we continue to drive innovation in product and materials and manufacturing technologies on the other hand by establishing a comprehensive set of.
Paul Hoelscher: Production standards, we have achieved end to end quality control and ensure a consistent and reliable product to quality. Moreover, a tour planet remains focused on refining product details based on customer needs aiming to enhance the overall usage experience.
Paul Hoelscher: With the continuous improvement of both product performance and quality of tour planet is well positioned to meet consumers' growing expectations for high quality living redefining new standards for both product quality and customer experience.
Paul Hoelscher:
Haijun Wang: Please turn to slide 13, moving to our membership business and channel development progress. Thanks to the ever-growing membership system and the ever-increasing membership rights, by the end of the first quarter, the number of members registered in Atour has exceeded 96 million. has increased by 35.4%. Our core free channels continue to maintain a stable level In the first quarter, the sales-share ratio of the CIS channels was 65.1% The sales-share ratio of the enterprise agreement was 19.8% Thanks to the continued enhancement of our membership ecosystem and an expanding range of membership benefits, our registered individual members surpassed 96 million by the end of the first quarter, representing a 35.4% year-over-year increase.
Speaker Change: Who you actually did shoot off I'm an agenda. Please turn to slide 13, moving to our membership business and channel development progress.
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Speaker Change: Thanks to the continued enhancement of our membership ecosystem and an expanding range of membership benefits our registered individual members surpassed the 96 million by the end of the first acquire representing a 35, 4% year over year increase.
Haijun Wang: Our core CRS channel continued to maintain stable performance, accounting for 65.1% of total room nights sold during the first quarter. The contribution of room nights sold to corporate members was 19.8% during the first quarter.
Speaker Change: Our of course, the RF channel continued to maintain stable performance accounting for 65, 1% of total room nights sold during the first acquired the contribution of room nights out to corporate members was 19.8% during the first quarter.
Haijun Wang: Please turn to page 14. We will continue to improve the membership system of A-Cart. Through observation and research on the preferences of different types of users, we will promote the integration of accommodation business and retail business. to further promote cross-consumption. In the first quarter, while new retail products are being released, we will launch a joint promotion of retail to hotel membership rights, attracting more consumers who buy retail products to experience our hotel, and further promote the transformation of scenic views.
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Haijun Wang: Please turn to slide 14. We continue to enhance our A-card membership ecosystem by gaining deeper insights into user behavior and preferences across different business formats. This enables us to further integrate hotel and retail business. thereby driving cross-consumption between In the first quarter, alongside the launch of new retail products, we introduced cross-promotional campaigns that allow retail customers to access our hotel membership benefits. These initiatives have attracted more retail customers to our hotels, driving further conversions across our business sector. In terms of member operations, we actively grasp the needs of leisure travel and business travel, and continue to create a high degree of perception of experience and rights.
Speaker Change: Please turn to slide 14.
Speaker Change: We continue to enhance our <unk> card membership ecosystem by gaining deeper insights into user behavior and preferences across different business partners.
Speaker Change: This enables us to further integrate hotel and retail businesses, thereby driving cross consumption between them in.
Speaker Change: In the first quarter alongside the launch of new retail product, we introduced the cross promotional campaigns that allow retail customers to access our hotel membership benefits. These initiatives have attracted more retail customers to our hotels driving further conversions across our business.
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Haijun Wang: During the Spring Festival, in order to fit the needs of young people to avoid crowds and explore small destinations, we launched an event to travel in the opposite direction and surprise hotel blind boxes, and provide local games for users in the form of destination recommendations. We have also started collaboration with travel agencies in China and introduce the passage of Atour's passenger experiences as well as upgrade the nursing practice selbst by adding more value to their services In terms of member engagement, we actively leverage emerging trends in leisure and business travel to continuously deliver experiences and benefits that highly resonate with customers.
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Speaker Change: In terms of member engagement, we have tells me leverage emerging trends in leisure and business travel to continuously deliver experiences kind of benefits that heinie resonate with customer for.
Haijun Wang: For example, during the Spring Festival, we launched our Counter-Trend Travel Blind Hotel Booking Campaign, catering to the younger travelers' growing preference for exploring niche, crowd-free destinations. We also introduced the Destination Ambassadors to share local travel inspiration. Additionally, we partnered with a vertical travel platform to establish integrated memberships, further embedding our value proposition throughout customers' journey, and enhancing member loyalty.
Speaker Change: For example, during the Spring Festival, we launched our counter Trans travel Blind hotel booking campaign catering to the younger travelers growing preference for exploring niche crowd free destinations. We also introduced a destination ambassadors to shatter local travel inspiration.
Speaker Change: Additionally, we partnered with a vertical travel platform to establish integrated memberships further embedding our value proposition throughout customer's journey and enhancing member loyalty.
Haijun Wang: Finally, I am very happy to announce that we have recently released the ESG report for Asia 2024. Please turn to page 15. In 2024, we will continue to improve the management level of ESG and integrate sustainable ideas into housing and retail business. At the same time, we will actively carry out social responsibility and continue to give back to Asia Village through industry support and warm help, and build bridges for biodiversity protection with brand influence.
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Haijun Wang: Finally, I am pleased to announce the recent release of our 2024 ESG report. Please turn to slide 15. Throughout 2024, we continued to strengthen our ESG governance by embedding sustainability principles across both hotel and retail businesses. At the same time, we are actively fulfilling our social responsibilities through industrial support and social assistance programs in Gadual Village. And by leveraging our brand influence, we also build bridges for biodiversity conservation.
Speaker Change: Finally, I am pleased to announce the recent release of our 2020 for ESG report, please turn to slide 15.
Speaker Change: Throughout 'twenty 'twenty four we continued to strengthen our ESG governance by embedding sustainability principles across both hotel and retail businesses at the same time, we are actively fulfilling our social responsibilities through industrials apart and the social assistance programs and catalog heritage.
Speaker Change: And by leveraging our brand influence we also built bridges for biodiversity conservation.
Haijun Wang: In the future, we will continue to build a cultural, warm, and interesting product philosophy, promote the expansion and quality improvement of accommodation and retail business, and contribute to Asia's real strength by supporting sustainable development and social construction Looking ahead, we remain committed to upholding our product philosophy of being humane, warm, and inspiring, scaling the expansion and driving quality enhancements to both our hotel and retail business. Guided by our long-term growth principle, we remain committed to making tangible contributions to sustainable development and the betterment of society.
Speaker Change: I'm on my line went down for two days.
Speaker Change: But not to the company in Georgia, Tennessee, and pool Youre dealing with a gleam up hotel bookings there's somebody you tells.
Speaker Change: How much is really neat.
Speaker Change: They of course, where do you find out shortly.
Speaker Change: That's just a leader.
Speaker Change: Looking ahead, we remain committed to upholding our product our philosophy of being humane warm and inspiring scaling the expansion and driving quality enhancements to both our hotel and retail businesses.
Speaker Change: Guided by our long term growth principle, we remain committed to making tangible contributions to sustainable development and the betterment of society.
Speaker Change: Yes.
Jianfeng Wu: 下面请我们的联席CFO 吴建峰为大家介绍公司的财务情况 I will now turn the call over to our co-CFO, Mr. Wu Jianfeng, who will discuss our financial results. Thank you, Haijun. Now I would like to present the company's financial performance for the first quarter of 2025. Please turn to slide 17 of the result presentation. Our net revenues for the first quarter of 2025 grew by 29.8% year-over-year and fell by 8.6% quarter-over-quarter to RMB 1,906. Revenues from our monetized hotels for the first quarter of 2025 will be RMB1032 million. up by 23.5% year-over-year and down 6.7% quarter-over-quarter. The year-over-year increase was primarily fueled by our ongoing hotel network expansion.
Speaker Change: And she said well hopefully that does yes.
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Speaker Change: I'll now turn the call over to our co CFO, Mr. Jun, Zhang who will discuss our financial results.
Jun Zhang: Thank you Adrian.
Speaker Change: Now I would like to present, the company's financial performance below third quarter of 2025.
Jun Zhang: Please turn to slide 17 of the presentation.
Jun Zhang: Net revenues for the first quarter of 2025 grew by 29, 8% year over year and fell by eight 6%.
Jun Zhang: Quarter to RMB 1906 minutes.
Jun Zhang: Revenues for our <unk> hotels for the first quarter opportunities on your five or RMB 1030 2 million.
Jun Zhang: Up by 23, 5% year over year, and down six 7% quarter over quarter.
Jun Zhang: The year over year increase was primarily fueled by our ongoing hotel networks pension.
Jianfeng Wu: Revenues contributed by our leased hotels for the first quarter of 2025 will be RMB129 million, a decrease of 23.5% year-over-year and 21.6% quarter-over-quarter. The declines were primarily due to a decrease in the number of leased hotels as a result of our product mix optimization. Revenues from our retail business for the first quarter of 2025 were RMB694 million, up by 66.5% year-over-year and down 9.3% quarter-over-quarter. The year-over-year increase was driven by growing recognition of our retail brands and effective product innovation and development as we successfully broadened our range of product offerings.
Jun Zhang: Revenue was contributed by our leased hotels, but that's closer of 2025 were RMB 129 million a.
Jun Zhang: A decrease of 23, 5% year over year, and 21, 6% quarter over quarter.
Jun Zhang: The decline was primarily due to a decrease in the number of leased hotel as a result of our product mix optimization.
Jun Zhang: Revenue for our retail business for the first quarter of 2025, well RMB $694 million up by 66, 5% year over year and down nine 3% quarter over quarter.
Jun Zhang: The year over year increase was driven by growing in recognition of our retail brands and effective.
Jun Zhang: Innovation and development.
Jun Zhang: We successfully broadened our range of product offerings.
Jianfeng Wu: Now let me to cut and extend. please turn to slide 8. Hotel operating cost for the first quarter of 2025 increased by 11.2% year-over-year and decreased by 7.3% quarter-over-quarter to RMB 736 million. The year-over-year increase was primarily due to the increases in variable costs such as hotel manager costs associated with our ongoing hotel network expansion. The gross margin of our hotel business expanded to 36.6% in the first quarter of 2025 from 34.1% during the same period of 2024. Retail costs for the first quarter of 2025 rose by 63.7% year-over-year and decreased by 12.5% quarter-over-quarter to RMB337 million.
Jun Zhang: Now, let's move to costs and expenses.
Jun Zhang: Please turn to slide 18.
Jun Zhang: Hotel operating costs for the first quarter of 2025 increased by 11, 2% year over year and decreased by seven 3% quarter over quarter to RMB 736.
Jun Zhang: Million.
Jun Zhang: The year over year increase was primarily due to the increases in variable costs, such as hotel manager costs associated with our ongoing hotel network expansion.
Jun Zhang: Gross margin of our hotel business is extended to 36, 6% in the first quarter up 10 five.
Jun Zhang: <unk> 34, 1% during the same period of 2024.
Jun Zhang: Retail costs for the first quarter of 2025 drove by 53, 7% year over year and decreased by 12, 5% quarter over quarter to RMB 337 minutes.
Jianfeng Wu: The year-over-year increase was associated with the rapid growth of our retail business. Growth margin of our retail business expanded to 51.4% in the first quarter of 2025, from 50.5% during the same period of 2024. primarily attributable to the increasing contribution from higher margin products. Now please turn to slide 19 Selling and marketing expenses accounted for 14.8% of net revenues for the first quarter of 2025. compelled with 11.9% for the same period of 2024. The increase was mainly due to investment in brand recognition and the effective development of online channels in line with the growth of our retail business.
Jun Zhang: Year over year increase was associated with the rapid growth of our retail business.
Jun Zhang: Gross margin of our retail business and at 251, 4% in the first quarter up 10 to 25, 455% during the same period up 10 to 24.
Jun Zhang: Primary attributable to the increase to the increasing contribution from higher margin products.
Jun Zhang: Now please turn to slide 19.
Jun Zhang: That in and marketing expenses accounted for 14, 8% of net revenues.
Jun Zhang: First quarter of 2025.
Jun Zhang: Compared with 11, 9% for the same period of time Paul.
Jun Zhang: The increase was mainly due to investments in brand recognition and effective development of online channel.
Jun Zhang: With the growth of our retail business.
Jianfeng Wu: General and administrative expenses, excluding share-based compensation expenses, accounted for 4.1% of net revenue for the first quarter of 2025, compelled with 5.0% for the same period of 2024. The decrease was primarily due to improved management efficiency and economics of scale. Technology and development expenses accounted for 2.1% of net revenues for the first quarter of 2025, compared with 1.6% for the same period of 2024. The increase was mainly due to increased investment in technology systems and infrastructure to support our expanding hotel network and retail business and improve the customer experience.
Jun Zhang: Yeah.
Jun Zhang: General and administrative expenses.
Jun Zhang: Excluding share based compensation expenses accounted for 1% of net revenue.
Jun Zhang: Quarter of $10 85.
Jun Zhang: Compelled with 5.0% for the same period of up to 24.
Jun Zhang: The decrease was primarily due to improvement improve management efficiency and economics of scale.
Jun Zhang: Technology and development expenses accounted for two 1% of net revenues for the first quarter of 2025.
Jun Zhang: Compared with one 6% for the same period up 10 to 24.
Jun Zhang: The increase was mainly due to.
Jun Zhang: The increase was mainly due to increased investment in technology systems, and if that structure to support our expanding hotel network and retail business and improve the customer experience.
Jianfeng Wu: Now please turn to slide 20. Adjusted net income for the first quarter of 2025 was RMB345 million, representing a 32.3% increase year-over-year. Adjusted EBITDA for the first quarter of 2025 was RMB474 million. up by 33.8% year-over-year. Adjusted net profit margin for the first quarter of 2025 was 18.1%, representing an increase of 0.3 percentage points year-over-year. Adjusted EBITDA margin for the first quarter of 2025 was 24.9%, an increase of 0.8 percentage points year-over-year. Please turn to slide 21. We also maintained a healthy cash position, as of March 31, 2025, our cash and cash equivalents totaled RMB 3,146 million, with net cash of RMB 3,074 million.
Jun Zhang: Now please turn to slide 20.
Jun Zhang: Adjusted net income for the first quarter of <unk> 75 was RMB 345 million, representing a 32, 3% increase year over year.
Jun Zhang: Adjusted EBITDA for the first quarter up 10 to 25 was RMB $474 million.
Jun Zhang: Up by 33, 8% year over year.
Jun Zhang: Adjusted net profit margin for the first quarter of <unk> 75 was 18, 1% representing an increase of <unk> three percentage points.
Jun Zhang: Per year.
Jun Zhang: Adjusted EBITDA margin for the first quarter of 10 to 25 was 24, 9% an increase of 0.8 percentage points.
Jun Zhang: Year over year.
Jun Zhang: Please turn to slide 21.
Jun Zhang: We also maintained a healthy cash position as of March 31.
Jun Zhang: 30% to 32025.
Jun Zhang: Cash and cash equivalents totaled RMB 3000, 146 million with net cash of RMB 3070 4 million.
Jianfeng Wu: Based on the slide 32 As part of our commitment to enhancing shareholder value, in accordance with the annual dividend policy adopted in August 2024, today we declared our first cash dividend in 2025 of 0.14 USD per ordinary share, or 0.42 USD per ADF. for an aggregate amount of approximately US$58 million.
Jun Zhang: Please turn to slide 22.
Jun Zhang: As part of our commitment to enhancing shareholder value.
Jun Zhang: In accordance with the annual dividend policy adopted in August 20th any full today, we declared our first cash dividend in 2025.
Jun Zhang: 0.1 for U S dollar.
Jun Zhang: Sure.
Jun Zhang: 0.4 to U S dollar.
Jun Zhang: Yes.
Jun Zhang: [noise] when every good amount of across many of the U S dollar $58 million.
Jianfeng Wu: Concurrently, we announced a three-year share repurchase program. under which we may repurchase an aggregate value of up to US$400 million. through a comprehensive shareholder return initiative encompassing dividends and share repurchase. We are taking concrete actions to reward shareholders' trust and support. enabling all shareholders to share in the company's growth achievement.
Jun Zhang: Concurrently, we announced three year share repurchase program.
Jun Zhang: Under which we may repurchase and every engagement value up.
Jun Zhang: Up to a 400 million in U S dollar.
Jun Zhang: Through a comprehensive shareholder return initiative in <unk> dividends and share repurchases.
Jun Zhang: We are taking concrete action to reward shareholders Trust and support.
Jun Zhang: And everybody all shareholders to share in the company's growth of treatment.
Jianfeng Wu: Now please turn to slide 23. For full year 2025, we currently expect total net revenue to increase by 25% to 30% compared with full year 2024.
Jun Zhang: Now please turn to slide 23.
Jun Zhang: For full year 2035, we currently expect total net revenue to increase by 25% to 30% compared with full year 10 to 30 fold.
Jianfeng Wu: That concludes our financial highlights for the first quarter of 2025.
Jun Zhang: That concludes our financial highlights for the first quarter of 2025 now.
Luke Hu: Now let's open for Q&A. Thank you. As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.
Jun Zhang: Now, let's open for Q&A.
Jun Zhang: Yes.
Jun Zhang: Thank you.
Speaker Change: As a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced two.
Jun Zhang: Australia question. Please press star one again.
Operator: 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 submit your question to one at a time. If you wish to have more questions, please rejoin the Q&A. Standby while we compile the Q&A roster. Just a moment for our first question.
Speaker Change: For the benefit of all participants on today's call have you raise your question in Chinese. Please immediately repeat your question in English.
Speaker Change: Please limit your question to one at a time, if you wish to have more questions. Please.
Jun Zhang: Rejoin the queue.
Jun Zhang: Standby, while we compile the Q&A roster.
Speaker Change: Just a man that's a first question.
Sijie Lin: Our first question comes from Sijie Lin from CICC. Your line is now open. Thank you, Management. I have a question.
Speaker Change: Our first question comes from C. G. Lin from <unk>. Your line is now open.
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Haijun Wang: Could you please share the performance of REFPA since Q2 and provide outlook on REFPA for the full year? 好,谢谢苏杰 好,谢谢苏杰 Thank you, Sijie. In the first quarter, the overall market is fluctuating. Under the disruption of the various factors, such as weather and macroeconomic factors, our Red Card is down by 7.2%. OCC and ADR are down by different levels. In Q1, the overall market experienced a sum of volatility. There were multiple factors to be considered, including weather conditions, macroeconomic impacts, they all affecting travel demand. Our REFR decreased by 7.2% year-over-year, and also OCC and ADR were showing varying degrees of decline year-over-year as well.
Speaker Change: Yeah, how you debate in Europe had though Doug it depends.
Speaker Change: So thank you management could you please share that puts on that so for advertising in Q2 and provide Hudson as our revpar for the full year. Thank you.
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Speaker Change: The woman that Revpar can be shutdown ship back into Chile.
Speaker Change: Ultimately the ADR put onto the pump yourself off.
Speaker Change: In Q1, the overall market experienced kusama volatility.
Speaker Change: There were multiple factors to be considered including weather conditions macroeconomic impacts they all affecting traveled and met our revpar decreased by seven 2% year over year and also OCC in ADR, we're showing varying degrees of decline year over year as well.
Haijun Wang: In the second quarter, we saw the market demand continue to diversify. There is still uncertainty about the recovery of business travel, but leisure tourism demand still shows a strong tendency. For example, during the five-day holiday period, our prices and rental rates have shown good performance, exceeding the level of the same period last year. In general, we expect that the overall pressure of the second quarter will be relieved compared to the first quarter. Entering Q2, we observed a continued divergence in market demand. While there was a recovery of business travel, but it remained quite uncertain to some extent.
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Speaker Change: Entering Q2, we observed to continue the divergence in market demand.
Speaker Change: While the order recovery of business travel, but it remains quite uncertain to some extent leisure travel demand has demonstrated some notable resilience.
Haijun Wang: Leisure travel demand has demonstrated some notable resilience. During the Labor Day holiday, both pricing and occupancy performed quite strongly, exceeding prior year levels. So overall, we anticipate there might be some easing of rest part pressure in Q2 when compared to Q1.
Speaker Change: During the labor day holiday, both pricing and occupancy performed quite strongly exceeding prior year levels. So overall, we anticipate there might be some easing of revpar pressure in Q2, when compared to Q1.
Haijun Wang: As for the performance of RAPPART throughout the year, we have the same opinion as we did at the beginning of the year. We think that the uncertainty of this year's rap part is still relatively large in the case of the market fluctuation. However, in terms of business, we will not compete with other hotel companies in the market and blindly compete for prices. We will stick to our Ator's differentiated experience advantage to grasp the core of our profit opportunities. We will adopt a more balanced ADR and OCC and a more sophisticated profit management strategy to continue to build the long-term brand value of Ator.
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Sijie Lin: Thank you.
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Haijun Wang: And as for our view on the full-year Ravpart performance, it is still remaining consistent with the beginning of the year, and Ravpart still faces considerable uncertainty given the ongoing market volatility. However, in terms of our operations, we will not just blindly engage in price competitions with the homogenized products in the market. What we will do is to continue to adhere to Atour's differentiated experience advantages to seize the core revenue opportunities and we are going to adopt a more balanced and refined revenue management strategy in terms of both ADR and OCC so that we can continuously build the long-term brand value of Atour.
Speaker Change: And as for our view on the full year Revpar performance. It is still remaining consistent with the beginning of the year.
Speaker Change: Revpar still faces considerable uncertainty given the ongoing market volatility.
Speaker Change: However in terms of our operations, we will not just blindly engaging price competitions with the homogenize the products in the market.
Speaker Change: What we will do is to continue to adhere to a tourist differentiated experience advantages to seize the core revenue opportunities and we are going to adopt a more balanced kind of refine your revenue management strategy in terms of both ADR and OCC. So that we can continuously.
Speaker Change: He built the long term brand value of mature.
Sijie Lin: Thank you, Sijie.
Operator: Next question, please. Thank you. Just a moment for our next question.
Speaker Change: Thank you. The next question please.
Speaker Change: Thank you just a moment for our next question.
Roland Leung: Next we have Roland Leung from Bank of America, your line is now open. Thank you.
Speaker Change: Next we have a rowland Leon.
Rowland Leon: From Bank of America. Your line is now open.
Roland Leung: Good evening, Manager Guan. I have a question. Can you share with us your thoughts on the signing of the contract and the company's prospect of opening in 2025? Let me translate my question into English.
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Roland Leung: Good evening, Management. Could you please share your view on the new signings momentum and also new hotel openings for the full year of 2025? Thank you.
Speaker Change: Good evening management could you. Please share your view on the new signings momentum and also with new hotel openings for the full year of 2025. Thank you.
Haijun Wang: I will answer this question. In the first quarter, our overall contract has continued a more positive trend. In the context of the pressure of the industry's general supply synchronicity, Atour has successfully built its own unique market position through differentiated brand strategy and experience advantages, and has also continued to attract a large number of attention on the advantages of Jiameng.
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Haijun Wang: Thank you, Rona. Let me answer your question. In the first quarter, we remained positive, finding momentum. Amid industry-wide pressure from homogeneous supply, Atour, we solidified our unique market positioning through our differentiated brand strategy and a distinctive experiential strength. This has continuously drawn the attention of high-quality franchisees. In addition, with Hongguan's uncertain background, we can see that the hotel industry is relatively stable in terms of cash flow return compared to other ways of investment, and the business model is also relatively stable. Although there is a certain fluctuation in Roller Park, the rental cost of high-quality property is still in a relatively low range, and the profitability is also greatly improved.
Speaker Change: Thank you Ron let me answer your question.
Speaker Change: In the first quarter, we remain positive finding momentum.
Speaker Change: Industry wide pressure from homogeneous apply a tour, we solidified our unique market positioning through our differentiated brand strategy and a distinctive experiential stress. This has continuously drawing the attention of high quality franchisees.
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Haijun Wang: In this way, the overall profit has a long-term attraction. That's the reason why we, the mature hotel investors, are still confident and willing to seize the opportunity to seize the potential of high-quality brands to develop in the future market for a long time. In addition, against the backdrop of persistent macroeconomic uncertainty, we have clearly observed along the way that compared to other investment channels, the hotel industry offers still a relatively stable cash flow returns and a more robust business model. So, despite some REFBAR volatility, The premium property rental cost still is remaining in a relatively low range with improved availability, and that makes the overall returns attractive in the long term.
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Speaker Change: In addition against the backdrop of persistent macroeconomic uncertainties, we have clearly observed along the way that compared to other investment channels. The hotel industry offers still a relatively stable cash flow returns and a rope more robust business model.
Speaker Change: So despite some of the Revpar volatility.
Speaker Change: The premium property rental costs still is remaining in a relatively low range with improved availability and that makes the overall returns attractive in the long term as a result to that mature hotel franchisees are still remaining confidence and are willing to seize opportunities to capture that long.
Haijun Wang: As a result to that, mature hotel franchisees are still remaining confident and are willing to seize opportunities to capture that long-term growth potential of premium brands in the future market. In terms of opening, in the first quarter of this year, we opened 121 hotels and continued the trend of high-quality opening since last year. On this basis, we maintain 500 start-up businesses throughout the year. We are confident that we can achieve this goal, so we are steadfastly moving towards the end of 2025, the goal of 2,000 good stores. As for new openings, in the first quarter of this year, we opened 121 hotels, continuing that high-quality expansion trend since we had last year.
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Speaker Change: As for new openings in the first quarter of this year, we opened 121 hotels continuing that high quality expansion trend since we had last year.
Haijun Wang: Based upon that, we maintain our four-year opening guidance of 500 new openings and have full confidence in achieving this goal, steadily advancing toward our strategic objective of reaching 2,000 premier hotels by the year-end. Based on our strategic goal of 2,000 good hotels, we will make stricter requirements on quality in terms of contract, opening, operation, etc., to ensure the quality of the hotel and ensure that every hotel can provide the best experience for its users.
Speaker Change: Upon that we maintain our full year opening guidance of 500, new ore bodies.
Speaker Change: For our confidence in achieving this call steadily advancing toward our strategic objective of reaching 2000 premier hotels by the year end.
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Haijun Wang: Thank you. Also, based on our strategic goal of 2,000 premier hotels, we will impose stricter requirements on quality from multiple dimensions, including finings, openings, and operation, to ensure that our hotel numbers grow with quality, so that every hotel can provide users with a consistently high-quality experience. Thank you.
Speaker Change: Also based on our strategic recall, our 2000 Premier hotels, we will impose stricter requirements on quality from multiple dimensions, including findings openings and operation to ensure that our hotel numbers grow with quality. So that after a hotel can provide you.
Speaker Change: Users with a consistently high quality experience. Thank you.
Roland Leung: Thank you, Ronald.
Operator: Next question, please. Thank you. Just a moment.
Speaker Change: Thank you Ron All next question please.
Speaker Change: Thank you just a moment.
Dan Chee: Next we have Dan Chee from Morgan Stanley. Your line is now open. Thank you, Manager Chen. My question is about the scene retail business. We see that the business performance of retail in the first quarter of the company is very bright. The income of retail has increased by 67%.
Speaker Change: Next we have Dan Chi from Morgan Stanley. Your line is now open.
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Dan Chee: 上次業績上面,我們全年,提到一個全年指引是增長的,上次業績上面,我們全年,提到一個全年指引是增長的, I would like to ask the management team, do you have any new ideas on the next year's revenue guidance for retail and the whole plan for the next year's business? Please allow me to translate my question. My question is related to the company's retail business. We saw retail business revenue growth in first quarter was outstanding at 67% year-on-year. Previously, the company guided full-year retail revenue of no less than 35% growth.
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Speaker Change: Please allow me to translate my question. My question is related to the company's retail business. We saw retail business revenue growth in the first quarter was our spending at 67% year on year previously the company guided full year retail revenue of no less than 35% growth I would like to ask the management.
Haijun Wang: I would like to ask the management about any update to the full-year revenue guidance on this business and any strategic plan for retail in the coming 好,谢谢Dan Thank you again. In the first quarter, thanks to our precise grasp of the Spring Festival marketing point and the continuous marketing of our deep sleep series products, our retail business GNV achieved a growth of more than 70%, which is a very good result. At the same time, we launched a new product in March, which is our deep sleep air temperature back summer Pro 2.0 The current sales trend is also very good Thank you, Dan.
Speaker Change: Any update to the full year revenue guidance on this business and any.
Speaker Change: Any strategic plan for retail in the coming period. Thank you.
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Haijun Wang: In the first quarter, we seized the key marketing opportunities of the Spring Festival. Also, we gained advantage from that continuous popularity of the Deep Sleep series products. Our retail business achieved a year-on-year growth of over 70% in GMB. Meanwhile, we can see that the sales trend of the new products we launched in March, namely the Deep Sleep Thermal Regulating Comforter Pro 2.0 Summer Season, is also very strong. Although the market competition is fierce throughout the year, with the continuous improvement of the product and brand power of our Atour planet, we are confident in the performance of its subsequent new products and large-scale activities.
Speaker Change: Thank you that in first quarter, we seized with the key marketing opportunities or the Spring Festival also we gained advantage from that continuous popularity of the deep sleeps Harris products, our retail business achieved a year on year growth half over 70% in GMT means.
Speaker Change: While we can see that the sales trend of the new product, we launched in March, namely the deep sleep thermal regulating comfort approach 2.0 summer season is also very strong.
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Haijun Wang: Based on this, we have increased the annual growth of retail revenue by 50%. At the same time, although Rampart's existence is uncertain, it is also due to the strong performance of our retail business. As we mentioned just now, we have increased the annual income growth of our group to 25% to 30%. Looking at the full year, though the market competition is still remaining intense, however, because of our continuous enhancement of Atour Planet product offerings as well as the brand awareness We are quite confident in the performance of our upcoming product launches, also the major promotional campaigns we have in our plans.
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Speaker Change: Looking at the full year, though the market competition is still remaining in task. However, because of our continuous enhancement of our to our planet product offerings as well as the brand awareness. We are quite confident in the performance of our upcoming product launches also.
Speaker Change: The major promotional campaigns, we have in our plants.
Haijun Wang: Based upon this outlook, we are now raising our full-year retail revenue growth forecast to 50% year-over-year. Meanwhile, despite there are still some red parts uncertainties. The strong performance of our retail business led us to increase our group's full-year revenue growth guidance to the range of in between 25% to 30% year-over-year.
Speaker Change: Based upon this outlook, we are now raising our full year retail revenue growth forecast to 50% year over year. Meanwhile, Despite there are still some revpar uncertainties. The strong performance of our retail business led us to increase our group's full year revenue growth.
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Haijun Wang: In the future, Atour Planet will continue to develop in the field of deep sleep, enhance the development of our products, improve the quality of our products, consolidate the supply chain, and achieve high-quality sustainable development of our products and brands. Thank you. In the future, Atour Planet will continue to focus on the deep sleep domain, enhance product R&D, improve our product quality, also consolidate our moat and supply chain to achieve higher quality and sustainable development of both the product and our brand. Thank you.
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Jonathan Wang: Jonathan Wang Chunlin again, bath tissue and in the future will come in in the wholesale channel in terms of going to go to them because we see the project.
Speaker Change: In the future a tour planet will continue to focus on the deep sleep domain enhanced product R&D improve our product quality also consolidates, our moat and supply chain to achieve higher quality and a sustainable development.
Speaker Change: With the product and our brand. Thank you.
Dan Chee: Thank you Dan.
Operator: Next question please. Thank you.
Speaker Change: Thank you. The next question please.
Jianhui Liu: Our next question comes from Jianhui Liu from CITIX, your line is now open. Hello, Management. We have just seen the announcement of the plan to share dividends and buyback. Can you please give us a brief introduction on the overall shareholder report? We noticed that you had just announced dividend and share buyback program. Could you share some thoughts of the overall considerations behind these initiatives? Thanks, Management. 好,謝謝地委。 Thank you, everyone. Thank you, Jiwei. As we have always communicated, we are always committed to creating long-term value. We will return the trust and support of our shareholders with practical actions.
Speaker Change: Thank you.
Janeway Li: Our next question comes from Janeway Li from Citigroup. Your line is now open.
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Speaker Change: We noticed that you had just announced dividend and the share buyback program could you share some thoughts of the overall considerations behind these initiatives. Thanks management.
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Jianhui Liu: In addition to the dividend, we have also officially announced our three-year stock buyback plan. We expect that the accumulated return in the next three years will not exceed $400 million. Thank you, Jiwei. Well, like we said before, we remain committed to creating long-term value and rewarding our shareholders' trust and support through concrete action. So, in addition to the dividends, we have also officially announced today a three-year share repurchase program with a total amount not exceeding 400 million U.S. dollars. In terms of distribution, we will continue to implement the three-year distribution plan that we have developed.
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Speaker Change: Thank you too as well like we said before we remain committed to creating long term value and rewarding our shareholders Trust and support through concrete actions. So in addition to the dividends. We have also officially announced today a three year share.
Speaker Change: Purchase program with a total amount not exceeding 400 million in U S dollars.
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Jianfeng Wu: In the past, our plan was to accumulate 50% of the total amount of distribution every year, which is not less than the net profit of the previous fiscal year. Today, we are announcing that our first dividend amount is 58 million US dollars, which accounts for 33% of our net profit in the previous year. Regarding the dividends, we will continue implementing the three-year dividend plan established last year, under which the annual cumulative dividend payout will be no less than 50% of the net income in the previous fiscal year. That's why this year, as we announced, our first dividend distribution totals approximately US$58 million, representing about one-third, 33% of the prior fiscal year's net income.
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Speaker Change: Regarding the dividend, we will continue implementing the three year dividend plan established last year.
Speaker Change: Under which the annual accumulated dividend payout will be no less than 50% after net income in the previous fiscal year.
Speaker Change: That's why this year as we announced our first the dividend distribution totals approximately $58 million representing about one third 33% of the prior fiscal years net income.
Jianfeng Wu: In the future, we will continue to use the shareholding repayment plan, which includes dividends and repurchase. Under the premise of ensuring that the company's funds run normally and stably, we should combine the actual situation of our business, and we should actively consider the ways to pay back to many shareholders, to improve the income rate of our shareholders, and to share the success of our company with many shareholders. And moving forward into the future, we will implement a comprehensive shareholder return program by combining dividend payout and share buyback together. While ensuring the company's stable and normal capital operations, we will actively consider various shareholder return methods in line with actual business conditions to enhance shareholder yield and enable all shareholders to share in the company's growth achievement.
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Speaker Change: Moving forward into the future, we will implement a comprehensive shareholder return program by combining dividend payout and share buyback together.
Speaker Change: While ensuring the company is stable and the normal capital operations, we will actively consider various shareholder return methods in line with actual business conditions to enhance shareholder yield and enable all shareholders to share in the company's growth achievements.
Jianhui Liu: See you at GWIT. Thank you GWIT. Thank you, Jiwei.
Speaker Change: Thank you Julie.
Operator: Next question, please.
Speaker Change: Thank you Jay.
Speaker Change: Next question please.
Speaker Change: Thank you.
Lydia Ling: Our next question comes from Lydia Ling from Citi, your line is now open. Hello, Management. I would like to ask about the brand strategy of the company. Can you share with us the latest progress of our high-end brand? In addition, as we saw in the presentation just now, you also mentioned some new products launched by mid-high-end and mid-end brands. Can you please introduce some strategies for these new products? There are some new products across both the upper mid-scale and also mid-scale brands. Could you elaborate more on the strategies for them? Thank you.
Speaker Change: Our next question comes from Olivia Lang from Citi. Your line is now open.
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Speaker Change: Oh, Hi management could you provide an update on the progression of your upscale all bran and also we noticed the launch of some new products across both our premise Gill and also Midscale brands.
Speaker Change: Could you elaborate more on the strategy with them. Thank you.
Haijun Wang: Thank you, Mr. Li. In terms of high-end brands, our new brand, Sahe Hotel, will always stick to the principle of low quality. Our goal is to create a batch of flagship products in the best city and in the best location. I'm happy to announce that our flagship store in Binhe, Shenzhen, will officially open on May 28 this month. Our two Sahe hotels are now in the trial business. During the trial business, we will see that our product positioning, design style, and our unique service experience have been widely praised by many consumers. We also believe that our Sahe hotel will set a new standard in China's high-end hotel market in terms of the core and wild oriental brand style of Chinese experience.
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Haijun Wang: Thank you, Lydia.
Haijun Wang: In terms of our upscale brand... I'd like to talk about our new brand, Saahe Hotel. We consistently adhere to equality first principle. And our goal is to develop a batch of flagship projects. We are pleased to take this opportunity to announce that within this month, our Sahe flagship hotel at Binhe of Shenzhen will officially commence operations on the 28th of May. So since the trial operations of two Sahe Hotel, which started this year, their product positioning, design, aesthetics, and service experiences have received widespread acclaim from the consumers. And we have the confidence that Sahe Hotel's core concept of Chinese experience and its brand ethos of oriental serenity will establish new benchmarks in the upper-scale hotel market in China.
Speaker Change: Thank you Lydia in terms of our upscale brands.
Speaker Change: I'd like to talk about our new brand soccer hotel, we consistently adhere to a quality first the principal.
Speaker Change: And our goal is to develop a batch of flagship projects. We are pleased to take this opportunity to announce that within this month, our soccer our flagship hotel as Pinker option Jay will officially commenced operations on to 20 <unk> of May.
Speaker Change: Since the trial operations of choose Tahoe Hotel, which started this year their product positioning design aesthetics and a service experiences have received widespread acclaim from the consumers and we have the confidence that SASSA hotels, CT concept of Chinese experience and it's.
Speaker Change: Brand ethos of Oriental Serenity will establish new benchmarks in the upper upscale hotel market in China.
Haijun Wang: As mentioned earlier, Atour's 3rd and 4th series will be stored in China's mid-to-high-end market. They will form the product array of Atour's hotel. I think this will not only enrich the choice of our homebuyers, but also meet the needs of consumers' diversified accommodation. At the same time, it will further expand the scope of our market coverage, thereby consolidating Atour's long-term leadership position in the mid-to-high-end market. And in the upper mid-scale hotel segment, as I mentioned earlier, our Atour 3 and Atour 4 series will co-exist and they will jointly shape our next generation upper mid-scale hotel portfolio so that it not only reaches the choices of franchisees but also meets the diverse accommodation needs of consumers.
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Speaker Change: And then the upper mid scale Hotel segment as I mentioned earlier, our two or three and a tour for serious will co exist and they will jointly shape. Our next generation upper mid scale hotel portfolio. So that it not only reaches the choices of franchisees.
Speaker Change: But also meet the diverse accommodation needs of consumers also to further expand the market coverage so as to consolidating of tourists leading position in the upper mid scale market.
Haijun Wang: Also, to further expand the market coverage so as to consolidating Atour's leading position in the upper mid-scale market. In terms of our mid-range hotels, we will upgrade our 3.0 to the 3.3 version. In the 3.3 version, we are also experiencing the quality and commercial features of the product, and have made comprehensive upgrades. And through more modular design applications, it can adapt to a more diversified property, and further expand our room area. With such a product, we will continue to build our high-priced, cost-controllable investment model, and bring long-term profitability and profitable return to our investors. And as for the mid-scale hotel segment, as we announced earlier, we're going to upgrade our Atour Light 3.0 to the Atour Light 3.3 version.
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Speaker Change: And as for the mid scale Hotel segment, as we announced earlier, we're going to upgrade our a tour like 3.0 to do a tour like three three version and that has also gone comprehensive upgrades in multiple dimensions, including as experience product texture and business.
Haijun Wang: And that has undergone comprehensive upgrades in multiple dimensions, including experience, product texture, and business functions. And we're adopting more modular design applications in order to adapt to more diverse properties, as well as enlarging the room area. We are going to continue to be committed to creating a higher premium and cost-controllable investment model by offering those lasting profitability and excellent returns so that we can provide the franchisees with more investment options.
Speaker Change: Functions and we are adopting more modular design applications in order to adapt to a more diverse properties as well as enlarging the room areas. We are going to continue to be committed to creating a higher premium and cost of controllable investment model by offering does lag.
Speaker Change: Asking profitability and excellent returns so that we can provide with the franchisees with more investment options.
Haijun Wang: 好的,谢谢。 Okay, thank you. Thank you. Thank you, Lidia. Thank you.
Speaker Change: Thank you.
Speaker Change: Thank you Olivia.
Luke Hu: This concludes today's question and answer session.
Speaker Change: Thank you. This concludes today's question and answer session I would like to turn the conference back over to Mr. Luke for any additional or closing remarks.
Luke Hu: I'd like to turn the conference back over to Mr Luke for any additional or closing remarks. Thank you for joining us today. If you have any further questions, please feel free to contact our IR team.
Speaker Change: Thank you for joining us today, if you have any further questions. Please feel free to contact our IR team. We look forward to speaking with you next quarter and thank you and goodbye.
Luke Hu: We look forward to speaking with you next quarter, and thank you and goodbye. And that concludes the question and answer session. And thank you very much for joining our call today.
Speaker Change: And that concludes the question and answer session and thank you very much for joining our call today you may now disconnect.
Operator: You may now disconnect.
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