Atour Lifestyle Holdings Q2 2026 Earnings Call - Retail Revenue Surges 63% as Hotel Margins Compress

Operator: Ladies and gentlemen, thank you for standing by, and welcome to the Atour Lifestyle Holdings second quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be a Q&A session. Today’s conference is being recorded. I would now like to turn the conference over to Mr. Luke Hu, IR director. Please go ahead, sir.

Luke Hu, IR Director, Atour Lifestyle Holdings: Thank you, operator. Good morning and good evening, everyone. Welcome to our second quarter 2026 earnings conference call. 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 today’s 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-GAAP financial measures solely for comparison purpose. For a clear understanding of these measures and a reconciliation of GAAP to non-GAAP financial results, please refer to the earnings release issued earlier today.

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. Now, I will turn the call over to Mr. Wang, our CEO.

Wang Haijun, Founder, Chairman, and CEO, Atour Lifestyle Holdings: Thank you, Luke. Hello, everyone. Thank you for joining Atour’s second quarter 2026 earnings call today. Thank you, Luke. Hello, everyone. Thank you for joining Atour’s second quarter 2026 earnings call today. Please turn to our results presentation. In the first half of 2026, China’s consumer market continued to show divergent performance. In both the hotel and retail sectors, we saw a clear split. Homogeneous products and services remained under pressure, while companies that deliver differentiated experiences and have strong brand equity showed greater resilience. More specifically, the hotel industry is shifting from scale-driven expansion to high-quality growth. Competition is increasingly centered on product innovation, service capabilities, and operational efficiency rather than supply growth. In retail, consumers are not only pursuing product quality, but are also placing increasing importance on whether products align with their lifestyles, and a demand for personalization is also growing.

This means that under these new consumer trends, brands that consistently invest in quality and build differentiated experiences are better positioned to earn consumer recognition. In the first half, we firmly advanced our new three-year strategy, Chinese Experience, Brand-Led Excellence, making continuous breakthroughs across hotel and the retail businesses. We also consolidated our experience advantage and enhanced the brand momentum, driving long-term, healthy, and sustainable growth. Now, I would like to provide more details on our business performance for the second quarter of 2026. Let’s begin with our hotel business. In the second quarter, our RevPAR was RMB 345.4, representing 100.7% of the level in the same period of 2025.

Translator/Interpreter: ADR maintained steady growth, reaching 101.2% of its level in the same period of 2025, while OCC stood at 99.7%. RevPAR for our mature hotels in operation for more than 18 months was RMB 336.8, representing 97% of the level in the same period of 2025. ADR and OCC were 98.3% and 99% of their respective levels in the same period of 2025.

Wang Haijun, Founder, Chairman, and CEO, Atour Lifestyle Holdings: 酒店网络方面，我们坚持品质优先的原则，严格把控项目筛选和开业标准。二季度，集团共计新开业101家酒店，产品力和区位优势叠加释放，推动了核心区域的布点质量持续提升。截止二季度末，集团在营酒店数量达到2,175家，同期管道数量是811家，项目储备保持在健康水平。

Translator/Interpreter: As for our hotel network, we continued to follow a quality-first principle and maintained strict standards for project selection and new hotel openings. In the second quarter, we opened 101 new hotels. Product strength and prime locations together enhanced the quality of our hotel presence in core markets. By the end of the second quarter, our total number of hotels in operation reached 2,175, and our pipeline of hotels under development remained at a healthy level of 811.

Wang Haijun, Founder, Chairman, and CEO, Atour Lifestyle Holdings: 渠道方面，二季度我们的中央预定渠道延续稳健的表现，CRS渠道销售间夜占比是61.5%，其中企业协议销售间夜占比为20.4%。

Translator/Interpreter: On the hotel channel front, our CRS channel continued its steady performance in the second quarter, accounting for 61.5% of total room nights sold. The contribution of room nights sold to corporate members was 20.4%.

Wang Haijun, Founder, Chairman, and CEO, Atour Lifestyle Holdings: 下面我将展开介绍集团各住宿品牌的最新进展。

Translator/Interpreter: Next, I would like to share the latest developments across our hotel brands.

Wang Haijun, Founder, Chairman, and CEO, Atour Lifestyle Holdings: 中高端市场是亚朵长期深耕的主阵地。经过多年积累，我们已经建立了明确的领先地位。回溯发展历程，亚朵酒店早期给用户的印象是一个聚焦中高端商旅需求的生活方式酒店品牌。而随着消费趋势和用户需求的演变，我们持续推动产品迭代升级。最新一代的亚朵3.6版本，在合理投入下，实现了产品体验与投资回报的平衡。在保持商旅核心体验优势的同时，也融入了更鲜明的松弛感。二季度，亚朵3.6经营表现持续亮眼，在营酒店RevPAR超过370元，进一步验证了产品升级带来的市场认可。

Translator/Interpreter: The upper midscale segment has long been Atour’s core focus. Over the years, we have established a clear leadership position. Looking back at our development, Atour Hotel was initially perceived by users as a lifestyle brand, catering to the needs of upper midscale business travelers. As consumer trends and user needs evolved, we continued to upgrade our products. With disciplined investment, the latest Atour 3.6 strikes a balance between the experience it delivers and investment returns. It preserves its strength in business travel while introducing a greater sense of ease. Atour 3.6 again delivered outstanding performance in the second quarter, with RevPAR of hotels in operation exceeding RMB 370, further validating market recognition of the product upgrade.

Wang Haijun, Founder, Chairman, and CEO, Atour Lifestyle Holdings: 在中高端品牌矩阵中，亚朵鉴野与亚朵酒店协同发展，持续拓展中高端酒店市场的增长空间。截至目前，亚朵鉴野在营酒店数量超过60家，管道内储备项目超过90家。亚朵鉴野在提供更具辨识度体验的同时，也具备更强的议价能力。在二季度，亚朵鉴野在营酒店的RevPAR超过450元，体现出极强的差异化的竞争力。

Translator/Interpreter: Within our upper midscale brand portfolio, Atour Origin and Atour Hotel are developing in parallel, further expanding our growth potential in the segment. To date, more than 60 Atour Origin hotels are in operation, with over 90 projects in the pipeline. Atour Origin offers a more distinctive experience and commands stronger pricing power. In the second quarter, RevPAR of Atour Origin hotels in operation exceeded RMB 450, highlighting its strong differentiated competitive edge.

Wang Haijun, Founder, Chairman, and CEO, Atour Lifestyle Holdings: 亚朵鉴野希望呈现的是亚朵村本来的样子，自然、静谧、温暖、朴实。今年4月，我们将一系列差异化的体验触点正式落地全国的亚朵鉴野酒店，包括到店时的原野香氛，午后的坐云茶歇，夜间的深睡体验，以及云南在地的风味早餐。通过更加完整的场景体验，我们希望住客在旅途中感受到自然与度假的氛围，找回内心安静的力量。

Translator/Interpreter: Atour Origin is designed to reflect the Yaduo Village as it truly is: natural, tranquil, warm and authentic. In April, we rolled out a series of distinctive experience touchpoints across Atour Origin hotels nationwide. Upon arrival, guests are welcomed by a wilderness-inspired signature scent. In the afternoon, they can enjoy the tea break in the chatting room. At night, they enjoy our deep sleep experience, and in the morning, they are served a breakfast featuring local Yunnan flavors. Through this more complete experience, we want guests to feel closer to nature, feel like they are on vacation, and to rediscover their inner peace.

Wang Haijun, Founder, Chairman, and CEO, Atour Lifestyle Holdings: 在中端市场中，差异化的核心在于用户可感知的入住体验，这也是青居长期深耕的方向。经过持续的打磨，青居3.3的成本模型已经进入到了系统性的优化以及规模化落地的新阶段，我们将资源更精准地投入到用户在意的睡眠、早餐等核心环节。因此，青居3.3不仅为消费者提供了更加舒适轻松的住宿体验，也通过更合理的投入模型提升了加盟商的经营效率。二季度青居3.3在营酒店的RevPAR超过340元，展现出很强的经营韧性。

Translator/Interpreter: In the mid-scale market, differentiation ultimately rests on a stay experience that customers can truly feel. This has long been Atour Light’s focus. After continued refinement, the Atour Light 3.0 cost model has entered a new phase of systematic optimization and scaled rollout. We are concentrating resources more precisely on the core experience areas that customers care about, including sleep and breakfast. Atour Light 3.0 not only provides customers with a more comfortable and relaxing stay, but also improves franchisees’ operating efficiency through a more disciplined investment model. In the second quarter, RevPAR of Atour Light 3.0 hotels in operation exceeded RMB 340, demonstrating strong operational resilience.

Wang Haijun, Founder, Chairman, and CEO, Atour Lifestyle Holdings: 目前，青居已在高线城市落地了更多的标杆项目，获得了加盟商的积极反馈，品牌基础也越来越稳固。现阶段，青居仍会坚持品质优先，在夯实运营能力的基础上，稳步扩大城市覆盖，引领中端市场中的产品和体验的创新。在打磨产品的同时，我们也在强化青居与年轻客群的连接。我们在二季度面向大学生的客群推出了专属权益，并在暑期上线了特色联名活动，进一步提升了在年轻消费者中的品牌认知。

Translator/Interpreter: Atour Light has established more flagship projects in higher-tier cities, which have received positive feedback from franchisees while the brand foundation continues to strengthen. At this stage, Atour Light will continue to take a quality-first approach. As we strengthen our operating capabilities, we will steadily expand Atour Light’s city coverage and continue to drive product and experience innovation in the mid-scale hotel market. Meanwhile, we are deepening Atour Light’s connection with younger customers. In the second quarter, we introduced exclusive benefits for students and launched distinctive brand collaborations over the summer, further raising brand awareness among younger consumers.

Wang Haijun, Founder, Chairman, and CEO, Atour Lifestyle Holdings: SAVHE以呼吸的生命力为灵感，希望在城市里打造一处治愈空间，让住客在这里安静呼吸，自在平和。自推出以来，SAVHE承担着雅朵品牌矩阵向上突破的角色，既实现了品牌理念的重要进阶，也在不断扩展着自身的价值边界，重新定义了高端生活方式的标准。二季度，SAVHE的经营表现持续突破，在营酒店的RevPAR超过了1,000元。

Translator/Interpreter: Drawing from the vital essence of breath, SAVHE is devoted to creating serene spaces in the city where guests can breathe freely and feel truly at peace. SAVHE has played a role in driving the upward breakthrough of Atour’s brand portfolio since its launch. It has advanced our brand philosophy and continues to broaden the value it delivers, setting a new standard for upscale lifestyle. In the second quarter, SAVHE’s operating performance reached a new high with RevPAR of hotels in operation exceeding RMB 1,000.

Wang Haijun, Founder, Chairman, and CEO, Atour Lifestyle Holdings: 在运营端，我们持续提升萨荷的精细化管理水平，从品牌标准、服务体系到人才系统，逐步沉淀出一套可复制的、具备国际视野的体验方法。二季度，我们还围绕养生场景做了进一步的扩展，丰富了课程和餐食选择，希望让住客在入住过程中获得更加卓越的体验。

Translator/Interpreter: On the operation side, we continue to enhance SAVHE’s refined management capabilities, gradually developing a replicable experience methodology with a global perspective that covers brand standards, service systems, and talent training. In the second quarter, we also expanded SAVHE’s wellness offerings with a broader selection of classes and dining options. Our goal is to provide guests with an even more exceptional experience throughout their stay.

Wang Haijun, Founder, Chairman, and CEO, Atour Lifestyle Holdings: 接下来是我们的零售业务。二季度，亚朵星球延续了强劲的增长势头，零售收入达到15.75亿元，同比增长63%。从品类结构来看，我们逐步从单一大单品的驱动模式向更加丰富的产品矩阵发展。分品类来看，亚朵星球持续巩固在枕头品类断层领先的优势。深睡枕Pro系列自推出以来，累计销量已经超过1,200万只。同时，深睡控温被Pro 3.0持续热销，也带动被子品类实现快速增长。二季度，被子品类的GMV同比增长超过80%。此外，去年推出的战略新品类，床力和睡衣，也持续取得亮眼的销售表现，收入占比进一步提升。

Translator/Interpreter: Moving on to our retail business. In the second quarter, Atour Planet sustained its strong growth momentum with retail revenue reaching RMB 575 million, up 63% year-over-year. In terms of category mix, we are gradually shifting from a single blockbuster product model to a broader product portfolio. By product category, Atour Planet further consolidated its dominant position in the pillow category, with cumulative sales of the Deep Sleep Memory Foam Pillow Pro series surpassing 12 million units since launch. The Deep Sleep Thermo-Regulating Comforter Pro 3.0 summer season continued to see strong sales, driving rapid growth in the comforter category. GMV of the comforter category increased by more than 80% year-over-year. Fitted sheets and loungewear, two strategic categories we introduced last year, maintained outstanding sales momentum and contributed a larger share of revenue.

Wang Haijun, Founder, Chairman, and CEO, Atour Lifestyle Holdings: 从长期来看，零售业务持续突破的背后，是我们围绕品牌、产品、供应链和内容创意建立的系统性的能力，以及由此形成的坚实壁垒。首先在品牌能力上，经过多年的积累，亚朵星球自然深睡的品牌心智深入人心，用户对亚朵睡眠产品的信任也在持续增强。第二，产品研发能力上，我们始终围绕用户真实的睡眠需求进行产品创新，通过持续迭代，建立了从单品突破到品类延展的研发能力，逐步完善了睡眠产品的矩阵。第三，供应链能力上，我们重塑了行业的供应链体系，多项工艺精度突破了行业原有的标准，建立了从原材料到成品全链路的品质管控体系，产品一致性和可靠交付的能力达到了行业领先的水准。第四，内容创意和用户连接的能力上，我们的策略始终是精准传递产品的价值，通过场景化、体验化的内容表达，让用户能够更直观地感知深睡，进一步深化品牌和用户之间的情感连接。

Translator/Interpreter: Over the long term, the continued breakthroughs in our retail businesses are backed by systematic capabilities built across our brand, product, supply chain, and content creation. Together, they form a strong competitive mode. First, in brand building, Atour Planet has firmly established natural deep sleep in users’ minds over the years, while users’ trust in our sleep products continues to grow. Second, in product development, we have always innovated to address users’ genuine sleep needs. Through continuous iteration, we have built R&D capabilities that deliver breakthroughs in individual products and support expansion into new categories. This has enabled us to steadily broaden our sleep product portfolio. Third, in supply chain capabilities, we have reshaped the industry’s supply chain system and set new industry standards for precision across multiple manufacturing processes. We have also established end-to-end quality control from raw materials to finished products, with industry-leading product consistency and delivery reliability.

Fourth, we have strong capabilities in content creation and user engagement. Our strategy has always been to communicate product value with clarity and precision. By creating content around real sleep scenarios and experiences, we make deep sleep more tangible and deepen the emotional connection between our brand and our users.

Wang Haijun, Founder, Chairman, and CEO, Atour Lifestyle Holdings: 在系统性能力的支撑下，近期我们也推出了核心品类的迭代升级，包括深睡枕Pro 4.0，以及深睡控温被四季Pro 3.0。这些新品的推出，背后依托的是我们去年发布的亚朵星球深睡标准。我们希望通过这套标准，将用户对于睡得好的感受转化为更加科学、可验证、可持续优化的产品标准。基于这一理念，深睡枕Pro 4.0针对用户夜间多睡姿变化的真实痛点，通过升级的动态支撑系统，提升了在不同睡姿下的承托体验。而深睡控温被四季Pro 3.0，则围绕温湿度波动的环境下，用户睡眠舒适度的需求，通过温湿平衡系统，进一步优化了控温和排湿的能力，灵活适应换季温差和夜间的体感起伏。

Translator/Interpreter: Building on these capabilities, we recently launched upgraded products in our core categories, including the Deep Sleep Memory Foam Pillow Pro 4.0 and the Deep Sleep Thermo-Regulating Comforter Pro 3.0 All Season. Both new products are built on the Atour Planet Deep Sleep standard we introduced last year. Through this standard, we aim to translate users’ experience of sleeping well into product standards that are more scientific, verifiable, and continuously refinable. Guided by this approach, the Deep Sleep Memory Foam Pillow Pro 4.0 addresses a real pain point of frequent position changes during sleep. With an upgraded dynamic support system, it provides better support across every sleeping position. The Deep Sleep Thermo-Regulating Comforter Pro 3.0 All Season also addresses the need for sleep comfort under changing temperature and humidity conditions.

Its temperature and humidity balancing system improves temperature regulation and moisture management, allowing it to flexibly adapt to seasonal temperature swings and changes in how warm or cool users feel throughout the night.

Wang Haijun, Founder, Chairman, and CEO, Atour Lifestyle Holdings: 展望未来，我们仍将坚持以长期主义的发展理念，深耕零售业务。围绕用户需求，我们会持续推动产品矩阵的创新迭代，进一步提升核心品类的市场份额，巩固领先优势。同时，我们也会持续强化亚朵星球的品牌价值，将产品研发和技术优势沉淀为长期的品牌壁垒，巩固亚朵星球作为用户首选、值得持续信任的睡眠品牌的地位。

Translator/Interpreter: Looking ahead, we will continue developing our retail business with a long-term mindset. Guided by user needs, we will continue to innovate and evolve our product portfolio, further increase our market share in core categories, and consolidate our leadership. We will also continue strengthening Atour Planet’s brand value by translating our strength in product development and technology into a lasting competitive moat for the brand. We will consolidate Atour Planet’s position as the sleep brand that users choose first and consistently trust.

Wang Haijun, Founder, Chairman, and CEO, Atour Lifestyle Holdings: 会员方面，截止二季度末，亚朵注册会员数达到1.2亿。随着会员规模的扩大，我们对会员体系的定位也更加清晰。会员不仅是住宿和零售两大业务的坚实底座，更是集团沉淀长期用户、经营用户价值的载体。

Translator/Interpreter: Turning to membership, by the end of the second quarter, Atour had 120 million registered individual members. As our membership base has grown, the strategic role of our membership ecosystem has become clearer. It is not only a solid foundation for our hotel and retail businesses, but also a platform for retaining long-term users and cultivating user value.

Wang Haijun, Founder, Chairman, and CEO, Atour Lifestyle Holdings: 与此同时，我们也在构建更精细化的人群运营体系，围绕用户最核心的需求，通过分层运营和精准触达，为不同人群提供更匹配的权益和体验。我们希望不断加深与用户的连接，在用户的全生命周期中给予更长久的陪伴。

Translator/Interpreter: At the same time, we are building a more refined system for engaging different user groups. By focusing on their core needs, we deliver more relevant benefits and experiences through segmented engagement and targeted outreach. We aim to deepen our connection with users and build longer lasting relationships with them throughout the user lifecycle.

Wang Haijun, Founder, Chairman, and CEO, Atour Lifestyle Holdings: 最后，我想和大家分享一些思考。近期，我们推出了亚朵安心六大承诺，围绕用户入住全流程中的核心环节，进一步明确服务标准和保障措施。我们认为，安心不是一句口号，而是用户在每一次入住中都能够清晰感知、稳定获得的体验。通过把这些体验做得更扎实，我们希望让安心真正沉淀为用户对亚朵品牌认知，为行业服务标准的提升树立新的标杆。

Translator/Interpreter: Finally, I would like to share a few thoughts. Recently, we introduced Atour’s six commitments to peace of mind, which further clarify our service standards and safeguards across key touch points of the guest journey. We believe peace of mind is not just a slogan, it should be an experience that guests can clearly feel and consistently enjoy during every stay. By delivering these experiences more reliably, we aim to make peace of mind an integral part of how people perceive the Atour brand. We also hope to set a new benchmark for service standard across the industry.

Wang Haijun, Founder, Chairman, and CEO, Atour Lifestyle Holdings: 每一份安心体验的背后，都离不开服务者的付出和坚守。我们也持续关注着服务者的发展和工作体验，包括推出面向全国酒店客房从业人员的公益项目，改善一线岗位服务者的工作环境，以及通过服务者节等行动向他们表达尊重和感谢。我们始终相信，只有当服务者被看见、被尊重、被善待，他们的善意和温暖才会更自然地传递给用户，形成用户和品牌之间长期的信任连接。我们希望持续作为优秀服务的倡导者，引领行业体验水平不断提升。

Translator/Interpreter: Behind every experience that gives guests peace of mind is the dedication of our service staff. We continue to pay close attention to their development and enhance their experience at work, including launching a public welfare program for hotel housekeeping professionals nationwide, improving the work environment for frontline service staff, and expressing respect and gratitude to them through initiatives such as Service Staff Appreciation Day. We firmly believe that when service staff are seen, respected, and treated with care, their kindness and warmth will reach guests naturally. This creates lasting trust between our brand and our users. With that in mind, we hope to continue advocating for service excellence and leading the industry toward a higher standard of experience. These actions are grounded in Atour’s long-term commitment. Across both our hotel and retail businesses, we have always believed that quality is the foundation of sustainable long-term growth.

By improving product quality, refining the user experience, and strengthening organizational capabilities, we can keep creating value for users, and build competitive strength that endures through the industry cycles. Looking ahead, we will continue to do the right things with warmth. With user experience at the center and organizational capabilities as the foundation, we will carry that warmth through every experience we deliver. This enduring warmth will define Atour as we navigate industry cycles and build for the long term. I will now turn the call over to our Co-CFO, Mr. Jianfeng Wu, who will discuss our financial results.

Jianfeng Wu, EVP Co-CFO, Atour Lifestyle Holdings: Thank you, Haijun. Hello, everyone. I would like to present the company’s financial performance for the second quarter of 2026. Our net revenues for the second quarter of 2026 grew by 41.4% year-over-year to RMB 3,419 million. Revenues from our managed hotels for the second quarter of 2026 grew by 32.8% year-over-year to RMB 1,725 million. The increase was primarily fueled by the ongoing expansion of our hotel network, as well as supply chain business development. Revenues contributed by our leased hotels for the second quarter of 2026 decreased by 11.8% year-over-year to RMB 132 million. The decline was primarily due to a decrease in the number of leased hotels. The total number of our leased hotels decreased from 24 as of June 30, 2025, to 19 as of June 30, 2026.

Revenues from our retail business for the second quarter of 2026 increased by 63.2% year-over-year to RMB 1,575 million. The growth was driven by increasing brand recognition, successful product innovation, and a broadened range of product offerings. Gross profit of our hotel businesses for the second quarter of 2026 increased by 18.7% year-over-year to RMB 659 million. The decline in the gross margin primarily reflected a shift in the revenue mix as our lower margin supply chain business grew faster and accounted for a larger share of hotel revenue. Gross profit of our retail business for the second quarter of 2026 increased by 57.4% year-over-year to RMB 809 million. The decrease in gross margin primarily reflected a shift in the product mix.

Selling and marketing expenses accounted for 17.4% of net revenues for the second quarter of 2026, compared with 15.9% for the same period of 2025. The increase was mainly due to the investment in brand recognition and the effective development of online channels, in line with the growth of our retail business. G&A expenses, excluding share-based compensation expenses, accounted for 3.5% of net revenues for the second quarter of 2026, compared with 3.6% for the same period of 2025. Technology and development expenses accounted for 1.6% of net revenues for the second quarter of 2026, compared with 1.7% for the same period of 2025. Adjusted net profit margin for the second quarter of 2026 was 16.0%, representing a decrease of 1.3 percentage points year-over-year. Adjusted EBITDA margin for the second quarter of 2026 was 23.5%, decreased by 1.2 percentage points year-over-year.

We maintained a healthy cash position as of June 30, 2026. Cash and cash equivalents totaled RMB 3.9 billion, with net cash of RMB 3.7 billion. That concludes our financial highlights for the second quarter of 2026. For the full year of 2026, we currently expect total net revenues to increase by 30% compared with the full year of 2025. Now let’s open the floor for Q&A.

Operator: 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. 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 question to one at a time. If you wish to have a follow-up question, please rejoin the queue. Please stand by as we compile the Q&A roster. First question comes from Dan Qi from Morgan Stanley.

Dan Qi, Analyst, Morgan Stanley: 各位管理层大家晚上好，我是大摩的Dan，非常感谢这次提问的机会。我想问一下关于今年整个酒店这边的签约和开店的情况，就是今年以来我们看到行业的整体的供给会有所降速，会影响公司这边的开店和签约的情况。我们看到这个pipeline，也就是未开店也稳定地增长。另外还想问一下，就是关于公司全年的开店还有关店的指引，是否跟之前一样，有没有一些调整？Please allow me to translate my question.

This is Dan from Morgan Stanley. My question is about hotel opening and signing. Since the beginning of this year, the overall industry supply, we have seen deceleration. Will this affect the company’s upcoming signing interest? Additionally, we would like to ask if the company is keeping or any adjustment to the guidance of full year hotel gross opening and closure. Thank you.

Wang Haijun, Founder, Chairman, and CEO, Atour Lifestyle Holdings: 好，感谢Dan。酒店行业的供给变化是受到宏观环境、供需关系以及物业资源多重因素的影响，会呈现周期性的波动。我想这也是行业发展进入成熟期后，正常调整的一个过程。那么相对行业整体的供给的规模，我们自己更关注的，是真正能够具备竞争力，能够满足消费者品质需求的高质量的供给。在当前的市场环境下，我们的加盟商更关注的是品牌的持续成长的能力，以及穿越周期的长期竞争力。体验领先、品牌力强、产品模型成熟、投资回报稳定的头部品牌，我想依然是加盟商投资决策时的首选。我们认为行业调整期也是头部品牌进一步巩固优势，提升市场份额的重要时期。

Translator/Interpreter: Thank you, Dan. There are multiple factors behind the supply dynamics in the hotel industry, including macroeconomic environment, supply, demand, relationship, and property availabilities. They all lead to cyclical fluctuations. This is a natural adjustment process as the industry matures. Rather than focusing solely on overall supply volume, we place greater emphasis on truly competitive, high quality supply that meets consumers’ quality expectations. In the current market environment, franchisees are more focused on a brand’s ability to sustain growth and its long-term resilience through market cycles. The leading brands with superior customer experiences, strong brand equity and proven product models and stable investment returns remain as their top choice for those franchisees when making their investment decisions. We believe that the industry adjustment period is precisely a critical phase for leading brands to further consolidate their strengths and increasing their market share.

Wang Haijun, Founder, Chairman, and CEO, Atour Lifestyle Holdings: 我们并不单纯地追求数量的增长，核心的目标是要在各个档次建立可持续发展的品牌，打造坚实的品牌力，并且是在品牌力持续增长的基础上，实现我们品牌规模的扩张。目前我们的品牌矩阵已经覆盖了更广阔的价格带和消费场景，也能够满足消费者更加多元的需求，并且适配不同的物业条件。在布局上，我们始终会围绕用户的需求以及品牌的长期价值。高线城市的核心商圈仍然是我们的重点。当然，我们也会积极拓展强三线城市、5A景区周边以及城市更新背景下的一些特色的物业的机会作为补充。

Translator/Interpreter: We are not pursuing scale expansion alone. Our core goal is to build sustainable brands and strong brand equity across all tiers. On the foundation of steadily enhancing brand strength, we are expanding our brand presence. Currently, our brand portfolio already cover a broader range of price points and consumption scenarios, capable of accommodating diverse property conditions and meeting more varied market demands. In terms of project distribution, we center around user needs and the long-term brand value, with higher tier city core business districts still remaining as our primary focus. At the same time, we are actively expanding into strong third-tier cities, areas surrounding the 5A-rated scenic spots and distinctive property opportunities arising from urban renewal projects as a supplement.

Jianfeng Wu, EVP Co-CFO, Atour Lifestyle Holdings: 上半年我们的签约延续了稳健的趋势，管道数量的环比也有了不错的提升，这也为我们未来的开业提供了高质量的储备。基于这些，我们维持对全年开店目标保持不变。另外，我们二季度以来，整体关店的节奏环比也是明显放缓，我们也维持全年关店大概是80家左右的指引不变。谢谢。

Translator/Interpreter: In the first half of the year, our signing momentum remained a steady trend, and the pipeline achieved solid increase quarter-over-quarter, providing a high quality reserve for future hotel openings. Thus, we maintain our full year opening target unchanged. In addition, the overall pace of closures has slowed significantly on a sequential basis since the second quarter. Therefore, we are also keeping our full year guidance of approximately 80 hotel closures unchanged. Thank you.

Luke Hu, IR Director, Atour Lifestyle Holdings: Next question, please.

Operator: Thank you. Just a moment for our next question, please. Next, I have Ronald Leung from Bank of America.

Ronald Leung, Analyst, Bank of America: [Foreign language] Let me translate my question into English. We have observed a relatively volatile RevPAR trend since Q2. Could management share your view on RevPAR performance in the second half of the year? Thank you.

Jianfeng Wu, EVP Co-CFO, Atour Lifestyle Holdings: 好，谢谢Ronald。我来回答你这个问题。我们认为品质住宿市场的长期需求是在持续上升的，所以无论是商务的出行，还是休闲的旅游，这个根本的逻辑是没有发生变化。

Translator/Interpreter: Thank you, Ronald. Let me address this question. We believe that the long term demand in the quality accommodation market continues to rise. Whether for business travel or leisure tourism, this fundamental logic has not changed.

Jianfeng Wu, EVP Co-CFO, Atour Lifestyle Holdings: 短期来看的话，7月上旬有部分地区受到台风、暴雨等天气因素的影响，暑期的出行的节奏是比往年要有所滞后的。但7月底以来，暑期的需求也随着旺季的到来而呈现出企稳回升的一个态势。

Translator/Interpreter: In the short term, due to weather factors such as typhoons and heavy rainfall in some regions during early July, the travel pace during this summer season was slightly delayed, compared to previous years. Since the end of July, with the arrival of peak season, summer travel demand has shown signs of stabilizing and picking up.

Jianfeng Wu, EVP Co-CFO, Atour Lifestyle Holdings: 拉长时间看的话，我们认为需求的韧性依然存在，行业向高质量发展的趋势也很明确。所以在这个过程中，具备品牌优势和用户基础的企业一定会持续获得结构性的机会。所以我们也希望市场能从这种高频的数据跳出来，更加去关注行业正向的调整的趋势和优势品牌抗周期的能力。

Translator/Interpreter: Over the longer term, demand resilience remains intact, and the industry’s trend toward higher quality development is clear. In this process, companies with strong brand equity and a solid customer base will continue to capture structural opportunities. We therefore hope the market can look beyond short term data points and focus more on the positive adjustment trends within the industry and the ability of leading brands to withstand cycles.

Jianfeng Wu, EVP Co-CFO, Atour Lifestyle Holdings: 谢谢。

Translator/Interpreter: Thank you.

Luke Hu, IR Director, Atour Lifestyle Holdings: Next question, please.

Operator: Thank you. Next question comes from Jiwei Liu from Citi. Please go ahead.

Jiwei Liu, Analyst, Citi: 管理层好，我是中信证券的刘继伟，我这边有一个关于需求的问题，想请教一下管理层对现在的酒店的需求结构是怎么看的，以及像商务和休闲两端是不是有出现一些新的变化或者机会？I translate my question. I’m Jiwen from Citi. I would like to ask management how you view the current demand structure. Are there any new changes or opportunities in business and leisure travel respectively? Thank you.

Jianfeng Wu, EVP Co-CFO, Atour Lifestyle Holdings: 好，谢谢继伟。首先在商务需求方面的话，客源结构正在变得更加多元化。我们看到过去大型的KA企业客户是重要的需求来源，而随着市场环境的变化，我们也看到了很多属地的核心企业、高校以及科研机构等新的这种需求的机会。因此我们在服务好我们的核心企业客户的同时，也在通过我们企业商旅体系的建设，不断去拓展新的商务客源，持续去提升我们需求的覆盖能力和客源结构的稳定性。

Translator/Interpreter: Thank you, Jiwen. First, with business demand, the customer base is becoming more diversified. Before, larger KA enterprise clients were a major source of demand. However, as the market landscape evolves, we are now also seeing new opportunities emerging from local core enterprises, universities, and research institutions. Therefore, while we continue to serve our core corporate clients well, we are also enhancing our business travel system to tap into new resources of business travelers, thereby strengthening both our demand coverage and the stability of our customer structure.

Jianfeng Wu, EVP Co-CFO, Atour Lifestyle Holdings: 另外在休闲的需求方面，相比单纯去满足住宿的功能需求，越来越多的消费者也更加关注住宿过程当中的体验价值，这也和我们亚朵高品质多品牌的发展方向是相契合的。通过差异化的定位，我们的品牌矩阵也更加精准地匹配了不同客群以及不同的消费场景的需求。

Translator/Interpreter: In addition, on the leisure travel demand side, more and more consumers are paying greater attention to the experiential value of their stay beyond simply fulfilling functional accommodation needs. This aligns well with Atour’s direction of pursuing high quality and multi-brand development. Through differentiated positioning, our brand portfolio is able to more precisely match the needs of different customer segments and the consumption scenarios.

Jianfeng Wu, EVP Co-CFO, Atour Lifestyle Holdings: 与此同时，我们也看到入境游是我们长期关注的重要的增量市场。随着入境游市场的逐步的恢复，我们也在持续地推进境外渠道的合作和品牌的传播，把握未来国际客源增长带来的长期的机会。谢谢。

Translator/Interpreter: At the same time, inbound tourism is also a key growth market that we have been focusing on over the long term. With the gradual recovery of the inbound tourism market, we are actively advancing cooperation with overseas distribution channels and brand communications, and capture the long term opportunities brought by the growth of international guests in the future. Thank you.

Luke Hu, IR Director, Atour Lifestyle Holdings: Next question please.

Operator: Thank you. Next we have Lydia Ling from Citi. Please go ahead.

Lydia Ling, Analyst, Citi: 管理层好，我是花旗的Lydia。我的问题是关于零售业务的。我们又可以看到，在第二季度公司的零售业绩依旧十分地强劲，在60%以上。那这其中背后的核心原因是什么？管理层能否分享一下。那基于上半年的这个趋势，管理层对于全年的零售业务的最新指引是什么？Hi, management. This is Lydia from Citi. I have questions on the retail business, and we continue to see very strong momentum for the retail business in the second quarter.

What would be the underlying core reason behind this stress? Given the strong growth in the first half, what is your latest guidance for your retail business for the full year? Thank you.

Jianfeng Wu, EVP Co-CFO, Atour Lifestyle Holdings: 好的，谢谢Lydia。我先回答一下前半段的问题。上半年呢，亚朵星球还是保持了较快的增长。那我们认为这个增长本身只是能力建设的一个外在的体现，更重要的呢，是我们围绕着品牌、产品、供应链、内容这些系统能力的持续的积累和完善。

Translator/Interpreter: Thank you, Lydia. Let me answer the first part of your question. In the first half of this year, Atour Planet continued to maintain relatively fast growth. However, for us, growth itself is merely an external reflection of the building of our capabilities. What matters more is the continuous accumulation and improvement of our systematic capabilities across brand, product, supply chain, content and other areas.

Jianfeng Wu, EVP Co-CFO, Atour Lifestyle Holdings: 亚朵星球一直是不追逐短期的热点，我们也不依赖打折的促销。我们选择的呢，就是围绕用户真实的睡眠需求，持续进行我们的产品创新和品牌建设。我们也相信，真正能够创造用户价值、品质如一的产品，才能够获得用户的长期的认可。

Translator/Interpreter: Atour Planet has never chased the short-term trends or run discount promotions. Instead, we focus on product innovation and brand building around users’ real sleep needs. We believe that products that truly create user value and deliver consistent quality will ultimately earn long-term recognition from the users.

Jianfeng Wu, EVP Co-CFO, Atour Lifestyle Holdings: 在产品方面，随着我们业务的发展，我们已经逐步形成了更加丰富的睡眠的产品矩阵。枕头品类是持续保持我们的领先优势，那被子品类也实现了快速的增长。床品、睡衣这些围绕睡眠场景延伸的新的战略品类，也正在成为我们重要的增长的来源。

Translator/Interpreter: On the product side, as the business developed, we have gradually built a more comprehensive sleep product portfolio. While our pillow category continues to maintain its leading edge, our comforters also achieved rapid growth. New categories extending from the sleep scenario, such as fitted sheets and loungewear, are also becoming important growth drivers.

Jianfeng Wu, EVP Co-CFO, Atour Lifestyle Holdings: 好，我来补充一下关于零售全年的收入指引。基于上半年零售业务强劲的表现，以及新品上市后不错的销售势头，我们将全年零售收入的指引上调至同比增长40%。谢谢。

Translator/Interpreter: Regarding the full year revenue guidance for the retail business. Based on the strong performance in the first half of the year and the solid sales momentum following new product launches, we are raising our full year retail revenue growth guidance to 40% year-over-year. Thank you.

Luke Hu, IR Director, Atour Lifestyle Holdings: Next question please.

Operator: Thank you. Last question comes from Xin Chen from UBS. Please go ahead.

Xin Chen, Analyst, UBS: 谢谢各位领导给我这次提问的机会。我是UBS的陈星。我的问题是围绕在财务问题上面的。此前公司提到了全年税率会有所提升，想请教一下现阶段对全年利润率的指引是否有变化？另外想问一下公司在股东回报方面有什么样的变化？And let me translate to English. This is Chen Xing from UBS. I’d like to ask questions about finance.

Previously, the company indicated the full year expense ratio would increase. Could you please elaborate on whether there has been any change to the full year profit margin guidance at this stage? Second question is about shareholder return. Has there been any change to the company’s shareholder return policy? [Foreign language].

Jianfeng Wu, EVP Co-CFO, Atour Lifestyle Holdings: 好，谢谢陈星。这个问题我来回答一下。我们目前仍然维持年初对于全年净利润率同比会略有下降的判断，但是影响利润率的因素有一些变化。

Translator/Interpreter: Thank you, Chen Xing. Let me address this question. Currently, we still maintain our initial judgment from the beginning of the year that the full year net profit margin will see a slight year-on-year decline. However, we observed some shifts in the factors affecting our profit margin.

Jianfeng Wu, EVP Co-CFO, Atour Lifestyle Holdings: 年初的时候，我们曾预估，为了匹配长期能力的建设，在人才的扩充、技术研发等方面投入的增加，将带动我们的G&A还有R&D费用率的上升，会对净利润率产生一定的影响。但从上半年实际经营情况来看，出现的一个比较积极的变化是公司的收入增速超出了年初的预期。所以在持续投入能力建设的同时，费用的增长跟收入的增长基本保持匹配。因此，G&A还有R&D费用率预计保持相对的稳定。

Translator/Interpreter: At the beginning of the year, we anticipated that increased investment in talent expansion and the technology R&D aimed at supporting long-term capability building would drive up our G&A and R&D expense ratios and exert some pressure on net margin. Based on our actual first half performance, a positive development has emerged: revenue growth exceeded our initial expectations. So while we continue to invest in capability building, the expense growth has remained broadly aligned with revenue growth. As a result, we now expect the G&A and R&D expense ratios to stay relatively stable.

Jianfeng Wu, EVP Co-CFO, Atour Lifestyle Holdings: 全年来看的话，预计我们酒店供应链和零售业务的收入增速都将超过我们年初的预期，带动我们集团收入结构的一个变化。另外，随着我们持续地执行股东的回报，集团的综合税率预计同比也会有所上升，对净利润率的话会产生一定的影响。综合收入结构和税率的变化，预计我们集团的整体的净利润率同比去年的话将会有所下降。

Translator/Interpreter: As the full year revenue growth for both our hotel supply chain business and retail business is expected to exceed our initial estimates, driving a shift in the group’s revenue mix. In addition, as we continue to execute our shareholder return program, the group’s effective tax rate is also expected to rise compared to last year, which will have a certain impact on net margin. Considering both the revenue mix shift and the higher tax rate, we anticipate a modest year-over-year decline in the group’s full year net profit margin.

Jianfeng Wu, EVP Co-CFO, Atour Lifestyle Holdings: 最后关于股东回报，我们一直是按照既定的策略和节奏在执行。从启动回购到二季度为止，我们已经累计回购金额超过了1.5亿美金。分红方面的话，公司也在按照现有的分红政策持续地推进。谢谢。

Translator/Interpreter: As in terms of shareholder returns, we have consistently executed in accordance with our established strategy and pace. Since the initiation of the share repurchase program up to the end of the second quarter, the cumulative repurchase amount has exceeded US$150 million. In terms of dividends, we are also continuing to steadily implement our existing dividend policy. Thank you.

Operator: Thank you. That concludes today’s Q&A session. I would now like to turn the conference back to Mr. Luke for any additional or closing comments.

Luke Hu, IR Director, Atour Lifestyle Holdings: 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 again next quarter. Thank you and goodbye.