Atour 4000-word in-depth research report

$Atour(ATAT.US)$H World(HTHT.US) $JINJIANG HOTELS(600754.SH) Recently studied Atour (ATAT.US), its asset-light + scene retail model in the mid-to-high-end hotel sector, coupled with impressive financial data, is the core investment value.

🎯Core logic: Atour positions itself in the mid-to-high-end hotel sector, avoiding the red ocean of economy hotels and the trap of luxury heavy assets. The core of its business model is asset-light franchising (90%+ franchised stores) collecting management fees and system usage fees; while transforming hotel spaces into retail scenes (e.g., mattresses, toiletries), IP co-branded rooms have a premium rate of 25%, user repurchase rate exceeds 45% (industry average <30%), and single-store staff-to-room ratio is as low as 0.18 (industry average 0.25+).

📈Financial highlights: 2024 ROE reached 50.77% (excellent shareholder capital efficiency), gross margin 42.16%, net margin 17.60%; net profit growth 72.97%, revenue CAGR 2020-2024 over 35%; free cash flow RMB 1.67 billion (positive for five consecutive years), net profit cash ratio stable >1.0; current ratio 2.02 (no short-term debt worries), debt-to-asset ratio dropped to 62.61%; 2025Q2 operating cash flow RMB 767 million, capex ratio <5%, fitting cash cow characteristics.

🔍Key details: Paid members exceed 35 million, contributing ~70% room nights; 2024 retail business gross margin 71.5%, becoming core profit growth driver; 2025Q2 gross margin 45.56%, net margin 17.19% hit record highs, strong growth momentum.

💰Cash flow quality: Operating cash flow positive for five consecutive years, 2024 FCF RMB 1.67 billion, all profits converted to cash with no inflation risk; low capex ratio, outstanding financial resilience.