2023 was a year of strong recovery in the Chinese travel market.

According to data and estimates from the Ministry of Culture and Tourism, the total number of domestic travelers last year was 4.891 billion, an increase of 93.3%; the total travel expenses of domestic tourists were 4.91 trillion yuan, up 140.3% year on year; the number of domestic travelers and domestic tourism revenue recovered to 81.38% and 85.69% respectively in 2019.

Travel demand, which had been suppressed for three years, was released, leading to a strong recovery in the hotel industry. Coupled with the rise of a new middle class consumer group, which is paying more attention to paying for travel experiences, thereby improving the pursuit of hotel quality and additional services, further opening up room for growth in the middle and high-end hotel market.

Among them, the ATAT Group (NASDAQ: ATAT) stands out from the fierce competition as a representative of high-end hotels. Over the past year, it has continuously strengthened brand emotional interaction, enhanced the sense of experience, achieved both revenue and profit growth, and handed over a high-quality performance report card.

The “password” behind the annual report for profit growth

Looking through the 2023 financial report, Yaduo Group once again proved its leading position in the industry with its performance.

Last year, Yaduo Group achieved revenue of 4.666 billion yuan, up 106.2% year on year; 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. The growth rate was quite impressive.

Behind such outstanding results, on the one hand, Yaduo Group's core business indicators continue to improve.

In 2023, the overall average rentable room revenue (RevPAR) of hotels in mainland China recovered to 100% of the same period in 2019. Among them, the RevPAR for middle and high-end hotels recovered to 106% in 2019.

Meanwhile, Yaduo Group's 2023 RevPAR was 377 yuan, recovering to 114.4% of the same period in 2019, outperforming the industry. Meanwhile, its average daily housing price (ADR) was 464 yuan, recovering to 107.9% of the same period in 2019; the occupancy rate (OCC) reached 77.8%, returning to 106.0% of the same period in 2019. Yaduo Group has demonstrated the strong resilience of its business model and better bargaining power.

On the other hand, Yaduo Group has excellent product strength and brand power, which is also difficult to beatreproducedbarriers to competition.

By the end of 2023, Yaduo Group had established a multi-tier brand matrix covering the mid-range, high-end, and luxury, with Yaduo as its core flagship brand, with the mid-range brand Yaduo Qingju Light, the high-end brands Yaduo S and ZHOTEL, and the luxury brands A.T.House and Yaduo X.

Also, after realizing that changes in consumption are driving the continuous upgrading of hotel products, Yaduo Group continued to introduce new products. Last year alone, it released two new products in a row. One was Light Home 3.0, which caters to the accommodation needs of young people, and the other is Yaduo 4.0, a high-end hotel product centered on the business travel experience.

Qingju 3.0 added 27 new contracts in the fourth quarter of last year, accounting for more than 15% of contracts, and is expected to grow into the next 1,000 store brands in the future; Yaduo 4.0 has now defined a number of benchmark projects in core business districts of key cities, and the first Yaduo 4.0 store will soon enter the market.

inOutside of the hotel's basic market, Yaduo GroupExtend your reach to the retail field of scene and depictA second one, which also has a high degree of certainty, came outcurve.

As a retail brand for Yaduo Hotels, Atour Market has incubated three original lifestyle brands, including “αTOUR PLANET”, “SAVHE”, and “Z2GO&CO.” It covers areas such as sleep, fragrance, personal care, and travel.

According to the data, retail business achieved explosive growth in 2023, 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.

Entering 2024, Yaduo Group will also continue to step up product research and development efforts, broaden the “deep sleep” product line, extend products and services from low-frequency hotel scenarios to high-frequency lifestyle scenarios, further strengthen users' mentality about hotel brands while continuing to drive rapid performance growth and further open up room for growth.

GiveExperience the economic eraThe one below“Best Solution”

Currently, the middle and high-end hotel circuit is growing relatively fast, but it still has a vast blue ocean market, and there is still huge room for improvement in penetration. STR data also shows that if you compare the number of hotels per capita in the US in 2019, the chain rate, and the share of middle and high-end hotel chains, there is theoretically still room for a six-fold increase in the room volume of middle- and high-end hotel chains in China.

How should industry leaders prepare ahead of time for the rapidly changing competitive environment in the future? Yaduo Group provides a unique answer — return to the origin of business and seize consumers' minds with differentiated and personalized services in the era of experiential economy.

For a long time in the past, Yaduo GroupAll the timeAround consumersDemand insightAchieve the experienceContinuationoptimization.

In terms of products, instead of following the traditional standardized manual management model of offline chains, 40-50 services are “commercialized” and experience optimization is incorporated into the product design, such as 100% tea, regional breakfast, and warm water when leaving the store.

In terms of service, the entire operation process of the store from reservation to check-out is broken down into 17 service touchpoints, and details are repeatedly optimized starting from the user's direct experience to provide users with a stay experience far superior to that of their peers.

By accurately adding and subtracting products and services, according to Brand Wisdom research data, Yaduo has received the highest user reviews in the industry out of 17 touchpoints.

Yaduo Group digs deeperThe real needs of users create differentiated experience value that separates them from rivals, andHelping Yaduo build a unique membership ecosystem.

By the end of 2023, the number of registered members of Yaduo had exceeded 63 million, an increase of 78% over the previous year. Relying on a strong membership system, Yaduo Group not only has a relatively high customer base, but also has a high retention rate and repurchase rate and continues to rise, becoming a solid foundation for sustainable performance growth.

More importantly, on this basis, Yaduo Group firmly graspsYoung consumer groups.

According to the Huatai Securities Research Report, 80% of Yaduo's customers in 2022 were business travelers, with young and middle-aged customers under 40 accounting for the highest proportion, reaching 72%. Compared with 2021, the share of young customers under 30 increased to 28% in 2022, an increase of 4.1 percentage points over the previous year. Among the member groups, the number of young members grew at a CAGR of 74.9% in 2017-2022, which is higher than the overall CAGR of 27% for members.Yaduo GroupAlreadyIt has become one of the hotel brands that understands young people the most and is most loved by young people today.

Grasp the preferences of young consumers, not onlyYesYaduo GroupfutureThe key to leveraging demand and improving performance also makes franchisees interested in YaduoThere is confidence in the long-term potential of the brand.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. In the long run, the expanded hotel network has enabled Yaduo Group to accelerate the release of scale effects, further highlighting long-term value.

summed

All in all, the latest performance has fully verified Yaduo Group's operational resilience and ability to cross the cycle. At the business level, Yaduo Group uses hotels as a touchpoint to create a closed loop of accommodation, service, experience and retail, which has undoubtedly become a scarce “sample” in the industry. As the recovery of the hotel industry accelerates, with its differentiated brand advantages and scale effects, the well-developed Yaduo Group is worth looking forward to more in the market.