Atour (ATAT) Q2 2024 Earnings Call Transcript

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Thursday, August 29, 2024 astatine 7 a.m. ET

• Chairman and Chief Executive Officer — Haijun Wang

• Co-Chief Financial Officer — Jianfeng Wu

• Investor Relations Director — Alison Zhang

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Haijun Wang: [Foreign Language] [Interpreted] Thank you, Alison. Hello everyone, and convey you for joining Atour's 2nd 4th 2024 net telephone today. During the 2nd 4th of 2024, home question marketplace request remained steady, with leisure tourism extending its steadfast upward trajectory alongside continuously evolving lawsuit demand. By proactively adapting to these shifting selling -- shifting marketplace dynamics, we further strengthened our enactment successful the precocious midscale edifice market. We consistently elevated the Chinese acquisition successful our accommodation concern during the archetypal fractional of the twelvemonth to amended code our customer's personalized, diverse, and quality-driven expectations. Meanwhile, we adeptly capitalized connected emerging opportunities presented by the latest question of retail concern development.

We made important headway successful propelling holistic, high-quality maturation crossed our concern and marque portfolio portion continuously, deepening our penetration into lawsuit needs and amplifying our marque reputation. Now, I would similar to supply much details connected our show for the 2nd 4th of 2024. Let's statesman with our edifice business. Please crook to Slide 4 of our 2nd 4th 2024 results presentation. Our RevPAR reached RMB359 successful the 2nd 4th of this year, representing 93.5% of its level successful the aforesaid play of 2023. Notably, our OCC maturation remained solid, reaching 101.7% of 2023's level for the aforesaid period, further underscoring Atour's resilient request and beardown marque influence.

ADR was 92.8% of its level successful the aforesaid play of 2023, mostly owed to past year's precocious examination basal effect. Please crook to Slide 5. Our mature hotels successful cognition for much than 18 months continued to outpace Group's wide show during the 2nd quarter. Excluding structural impacts specified arsenic the ramp-up of caller hotels, same-hotel RevPAR successful the 2nd 4th of 2024 reached 96.2% of 2023's level for the aforesaid period, outperforming the Group's blended show by 2.7 percent points. Specifically, OCC accrued by 2.2 percent points year-over-year and ADR stood astatine 94.4% of the aforesaid play successful 2023.

Please crook to Slide 6, our synergistic improvement of Atour and Atour Light has unlocked the important maturation imaginable for our group. In the 2nd quarter, we maintained vigorous momentum successful our edifice web enlargement with 123 caller edifice openings up 76% year-over-year, mounting a grounds gait successful caller openings for a azygous quarter. As of the extremity of the 2nd quarter, we had a full of 1,412 hotels successful operation, representing a 37% year-over-year increase, accelerating our advancement toward our extremity of 2,000 premier hotels nationwide by 2025.