On the evening of March 28, Beijing time, ATAT Group (NASDAQ: ATAT) released financial results for the fourth quarter and full year of 2023. Financial reports show that in 2023, Yaduo Group achieved revenue of 4.666 billion yuan, a year-on-year increase of 106.2%; adjusted net profit was 903 million yuan, up 248.3% year on year; adjusted EBITDA was 1,207 billion yuan, up 184.3% year on year. Among them, in the fourth quarter, Yaduo Group's revenue increased 140.4% year-on-year to 1,505 billion yuan.

A record opening in the fourth quarter, and operating indicators continued to grow

In 2023, with the accelerated recovery of the tourism industry, the hotel industry also recovered strongly. According to statistics from the Ministry of Culture and Tourism, in 2023, the number of domestic travelers was 4.891 billion, an increase of 2,361 billion over the same period last year, an increase of 93.3% over the previous year. The increase was significant, recovering to 81.38% in 2019 (6.01 billion), and the recovery of the domestic tourism market accelerated.

Benefiting from the recovery of the external environment and the further release of endogenous growth momentum, Yaduo Group performed well in 2023. According to financial reports, the average rentable room revenue (RevPAR) of Yaduo Group hotels in 2023 was 377 yuan, recovering to 114.4% of the same period in 2019; the average daily room price (ADR) was 464 yuan, returning to 107.9% of the same period in 2019; and the occupancy rate (OCC) reached 77.8%, recovering to 106.0% of the same period in 2019. On a quarterly basis, both ADR and OCC surpassed the same period in 2019 for four consecutive quarters.

Based on its excellent hotel management capabilities, Yaduo Group's hotel products are popular among investors. In 2023, Yaduo Group opened a total of 289 new hotels and 576 newly contracted hotels, exceeding the target set at the beginning of the year. By the end of 2023, the number of hotels operated by Yaduo Group reached 1,210.

As far as Liangju 3.0 is concerned, 27 new contracts were signed in the fourth quarter of 2023, accounting for more than 15% of the contracts. According to reports, 25 new Qingju 3.0 stores were opened in 2023, and the first batch of hotels have quickly completed the climb, laying the foundation for building the next thousand stores. At the same time, Yaduo 4.0, a new high-end hotel product launched in November last year, has now defined a number of benchmark projects in core business districts of key cities. Among them, the first Yaduo 4.0 store will enter the market in the near future.

Consolidate the power of retail products and take the Chinese experience to a new level

With the steady growth in hotel scale and the increase in brand awareness, Yaduo Group's retail business focused on the development of the “deep sleep” scenario, achieved a two-way breakthrough in word of mouth and sales in 2023, creating a “second growth curve” with great potential.

Thanks to the further release of Yaduo Planet's brand power and product power, the data shows that in 2023, the retail business achieved explosive growth, with GMV reaching 1,139 billion yuan, an increase of about 300% over the previous year. Among them, Deep Sleep Pro, which is loved by consumers, has sold more than 1.2 million units throughout the year, and Deep Sleep Temperature Control has sold more than 100,000 units.

Over the past year, on the lodging business side, Yaduo Group has continuously deepened experience-driven refined operations, comprehensively built the “China Experience” brand reputation, and launched future-competitive hotel products based on accurate insight into emerging consumer groups, further consolidating Yaduo's leading position in the middle and high-end markets; on the retail business side, focusing on the “deep sleep” scenario, continuously increasing product development efforts and expanding the deep sleep product line, thereby providing users with deep sleep solutions and an excellent experience that goes beyond lodging. On the member side, Yaduo continues to explore and build a unique membership ecosystem. By the end of 2023, the number of registered members exceeded 63 million, an increase of 78% over the previous year.

Wang Haijun, founder and CEO of Yaduo Group, said, “The implementation of the 'China Experience, 2,000 Good Stores' strategy has achieved remarkable results. In the future, we will unswervingly enhance product strength, further unleash the synergy between retail and lodging businesses, and continue to work to enhance Yaduo's brand value and bring the Chinese experience to a new level.”