Stock (Symbol) |
Atour Lifestyle (ATAT) |
Stock Price |
$34 |
Sector |
| Retail & Travel |
Data is as of |
| July 3, 2025 |
Expected to Report |
| August 26 |
Company Description |
 Atour Lifestyle Holdings Ltd is principally engaged in the hotel operations.
The Company’s hotel network has approximately 834 hotels located across 151 cities in China, with more than 96,969 hotel rooms. The Company also has approximately 17 theme-based hotels, which includes music, basketball and literature themes. The Company provides a diversified hotel brand portfolio, including Atour, Atour S, Atour X, Atour Light, ZHOTEL and A.T. House. The Company also rents hotels to third-party lessors.. Source: Refinitiv |
Sharek’s Take |
Atour Lifestyle (ATAT) is on the radar of investors as the company has come out of nowhere to become a suddenly hot stock. Atour is a hotel chain in China that’s growing locations, revenue and profits at a nice pace. This stock came to my attention last Thursday, then got the attention of investors later that day due to an article on Investors.com. ATAT fits the mold of a stock I like to own, so let’s take a closer look at the operations. Established in 2012, Atour Lifestyle is the largest super middle class hotel change in China in terms of room numbers with 1619 hotels across 209 cities in China (as of 2024). Atour considers itself a digital-first company and utilizes an app where guests can check availability, pricing, order room service, and check in or out. In 2024, 63% of room nights booked were done through the company’s central reservation system, with the high number giving the hotel higher efficiency. The company offers a manchising business model, which is similar to franchising. Manchising is not capital intensive as the manchisee is responsible for the hotel’s construction and maintenance. Almost all (1593) Atours are manchised. The company also has a loyalty program, A-Card, that gives members perks including room discounts, free breakfast as well as laundry pickup & delivery. As of December 2024, Atour had 89 million members in its loyalty program. The company developed six lifestyle hotel brands:
ATAT went public through a special purpose acquisition company (SPAC) in 2022. Profits and revenues have grown at a nice rate since then, with the profit picture shown in the chart below. The stock has a plump Estimated Long-Term Growth Rate of 27% per year and a reasonable P/E of 22. ATAT pays a dividend, and has a dividend yield of around 1%. Management also buys back stock. Risks include political risk in China. I owned a Chinese hotel stock in the past and it did quite well, H World (HTHT). Atour looks like it can also be a good investment. I will add the stock to the Growth Portfolio today as the shares are breaking out. |
One Year Chart |
 This one-year chart was done last Thursday, and today is Monday. Investors saw the news on the stock, did their research over the $th of July weekend, and bought when the market opened today. Shares are currently $36, a tad above the $34 price it closed at on Thursday. ATAT is breaking out today.
I think the stock is slightly undervalued with a P/E of 21. I think a P/E of 25 is fair. The Est. LTG is 27%. That’s a solid figure! I like to think 25% growers might double in price every three years. Quarterly profit growth has been very good the past four quarters. |
Earnings Table |
 Last quarter,ATAT delivered 31% profit growth as revenue grew 30% year-over-year. This stock doesn’t have a lot of analyst coverage, so I don’t know if this came in above or below estimates.
Annual Profit Estimates are for profits to grow 25% this year and next year as well. Management expects revenue to climb 25% to 30% in 2025. Note, there are varying sources for profit estimates, and these sources gave me different figures. I tried my best to get the clearest picture for this report. Qtrly Profit Estimates are 24%, 15%, 24%, and -3% profit growth in the next 4 qtrs. Note I had to convert China RMB to USD to get these figures. So estimates can vary. Analysts estimate revenue will climb 28% next quarter. |
Fair Value |
 ATAT had a P/E of 21 when we did these charts. I think the stock is deserving of a 25 P/E, which is $41 a share. The stock seems a bit undervalued here.
Also, I’m unsure as to the dividend history as this is a Chinese stock and its difficult for me to get data on. Upside is very good when we look to 2026. |
Bottom Line |
 Atour Lifestyle (ATAT) has a short trading history, and that history has been rocky. The stock buiilt a big base between $15 and $20 during 2023/2024. Shares gapped up from $23 to $25 in September 2024, and the stock then built a new base between $25 and $30.
ATAT is breaking out with solid fundamentals in a hot stock market for speculative stocks. I like the concept, and have made money in a Chinese hotel chain before. ATAT will be added to the Growth Portfolio and rank 23rd in the Power Rankings. |
Power Rankings |
Growth Stock Portfolio
23 of 34Aggressive Growth Portfolio N/AConservative Stock Portfolio N/A |
