Stock (Symbol) |
Atour Lifestyle (ATAT) |
Stock Price |
$32 |
Sector |
| Retail & Travel |
Data is as of |
| June 25, 2026 |
Expected to Report |
| August 24 |
Company Description |
 Atour Lifestyle Holdings Ltd is principally engaged in the hotel operations.
The Company’s hotel network has approximately 2,015 hotels located across 209 cities in China, with 224,432 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 |
 Chinese hotel chain Atour Lifestyle (ATAT) continued its strong performance last quarter, posting a solid 53% profit growth on 48% increase in revenue. Growth was primarily driven by its ongoing hotel network expansion, coupled with increasing recognition of its retail brands. Last quarter, the company opened 110 new hotels, with 751 hotels under development, while its retail business revenue grew 54% year over year, led by strong demand for its “Deep Sleep” pillows and comforters. Atour Lifestyle also launched the Deep Sleep Thermoregulating Comforter series last quarter, which surpassed 3 million cumulative units sold since launch. Despite these solid results, ATAT stock declined from $42 in our research report two quarters ago to $32 this quarter, suggesting investor concerns have shifted toward factors such as slowing growth expectations. While the company is still expected to deliver double-digit growth of more than 20% over the next two quarters, this represents a moderation from the exceptional 58% and 53% growth rates achieved in the prior two quarters. Nonetheless, management expects revenue to increase by 24% to 28% for 2026.
Established in 2012, Atour Lifestyle is the largest super middle-class hotel chain in China, with 2,015 hotels across 209 cities in China as of 2025. Atour calls itself a digital-first company as it uses technology to make travel easier. Its mobile app lets guests check room availability, compare prices, order room service, and check in or out from their phones. In 2025, 63% of all room nights were booked through Atour’s central reservation system, which helps the company work more efficiently. Atour uses a “Manashising” model, which combines management and franchising. In this setup, hotel owners, called “Manachisees”, pay for building and maintaining their hotels, while Atour manages the brand and daily operations. This helps the company grow faster without spending too much on property. Almost all Atour hotels, or 1,996 locations, follow this model. Atour also has a loyalty program, called A-Card, which gives members benefits such as discounted rooms, free breakfast, and laundry pickup & delivery. By the end of 2025, the program had 112 million members. The company developed seven lifestyle hotel brands:
Here are the company’s segment revenue last quarter:
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 (Est. LTG) of 20% per year and a very reasonable P/E of 14. ATAT pays a dividend, and has a dividend yield of around 1%. Management also buys back stock. In 2025, management bought back $46 million in stock and paid $108 million in dividends. Risks include political risk in China. I owned a Chinese hotel stock in the past and it did quite well, H World (HTHT). ATAT looks like it can also be a good investment, and is part of my Growth Portfolio. |
One Year Chart |
 Despite strong profit growth expectations, ATAT stock declined from $42 in our research report two quarters ago to $32 this quarter.
I think the stock is undervalued with a P/E of 14. I think a P/E of 23 is fair. The Est. LTG is 20%, down from last quarter’s 24%. Although that is still a solid figure, it seems like 30% is more appropriate. Quarterly profit growth has been strong during the past four quarters. Qtrly Estimates are solid too. |
Earnings Table |
 Last quarter, ATAT reported 53% profit growth and beat estimates of 18%. Meanwhile, revenue grew 48% and beat of 28%.
Annual Profit Estimates increased this quarter. For 2026, management expects revenue to increase by 24% to 28%. Quarterly Profit Estimates are 26%, 24%, 8% and 29% growth for the next 4 quarter. Note that I converted China RMB to USD to get these figures so the estimates may vary. Analysts estimate revenue will climb 29% next quarter. |
Fair Value |
 This quarter, ATAT stock is at $32, giving it a P/E of 14. The stock seems a bit undervalued here.
My Fair Value P/E is 23. That implies a $53 stock price for 2026, giving ATAT upside of 67% (in my opinion). Also, I’m unsure as to the dividend history as this is a Chinese stock and it is difficult for me to get data on. Looking out to 2027, I envision the stock at $62, suggesting upside of 96%. |
Bottom Line |
 Atour Lifestyle (ATAT) has a short trading history, and that history has been rocky. The stock built a big base between $15 and $20 during 2023/2024. Shares went up from $23 to $25 in September 2024, and the stock then built a new base between $25 and $30.
ATAT is making profits and growing at a good rate. I don’t know why the stock isn’t doing better. Perhaps it doesn’t have enough institutional sponsorship, i.e. funds buying the stock. ATAT ranks 26th in the Growth Portfolio Power Rankings. |
Power Rankings |
Growth Stock Portfolio
26 of 30Aggressive Growth Portfolio N/AConservative Stock Portfolio N/A |
