The Kechuang Board Daily reported on August 30th (Reporter Xu Cihao) that Yado Group released its financial report for the second quarter of 2024 last night.

The financial report shows that in the second quarter of this year, Yado Group achieved a revenue of 1.797 billion yuan, a 64.5% increase year-on-year; adjusted net income was 0.328 billion yuan, a 31.6% increase year-on-year; adjusted EBITDA was 0.443 billion yuan, a 28.6% increase year-on-year.

Based on positive expectations for the company's performance growth, Yado Group has announced annual performance guidance, expecting a year-on-year revenue growth of 48% to 52% in 2024.

As of the time of publication, Yado Group closed at $18.72, a significant increase of 13.32%, with a market cap of $2.576 billion.

Embrace Franchising

Yado Group's revenue structure is mainly composed of four parts: franchise hotel revenue, direct-operated hotel revenue, retail business, and other.

In terms of lodging operations, Atour Group achieved a revenue of 1.207 billion yuan in the second quarter of this year, a 42.7% increase from the same period last year's 0.846 billion yuan.

The revenue contributed by franchise hotel business in the lodging sector was 1.027 billion yuan, a 63.9% increase from the same period last year's 0.626 billion yuan; while the income from directly operated hotels decreased from 0.22 billion yuan in the same period last year to 0.18 billion yuan in the second quarter of this year, a 17.9% decrease.

Regarding the decline in revenue from directly operated hotels, Atour Group explained in the financial report that it was mainly due to the optimization of product mix leading to a reduction in the number of leased hotels and a decrease in Revenue per Available Room (RevPAR) for each room. The financial report shows that the RevPAR of directly operated hotels was 503 yuan, compared to 537 yuan in the same period last year.

Affected by the overall environment, Atour's second-quarter Average Daily Rate (ADR) and Revenue per Available Room (RevPAR) both declined. In response, Atour Group explained in the financial report that this year's decline in RevPAR was mainly due to a high base in the previous year, but the hotel occupancy rate remained stable.

Data disclosed in the financial report shows that Atour Group's second-quarter Average Daily Rate was 441 yuan, a decrease of 34 yuan compared to the same period last year's 475 yuan; however, the occupancy rate was 78.4%, an increase of 1.3% compared to the same period last year's 77.1%; Revenue per Available Room was 359 yuan, compared to 384 yuan in the same period of 2023, a decrease of 26 yuan.

In terms of network expansion, the financial report shows that in the second quarter of this year, Atour Group opened a total of 123 new hotels, a 76% year-on-year increase. As of June 30, 2024, Atour Group had 1412 operating hotels, a 36.6% year-on-year increase, with 161,686 hotel rooms, as well as 712 pipeline projects.

Furthermore, up to now, Atour 4.0 has signed contracts for 50 projects in more than 30 cities nationwide.

At the same time, aimed at the young business travel group, the Light Residence 3.0 launched by Atour has accumulated 37 signed contracts in the second quarter of this year, accounting for over 20% of the total. By the end of the second quarter, the number of Light Residence 3.0 hotels that had opened for business reached 54, with a RevPAR of over 310 yuan for Light Residence 3.0 hotels operating for a full three months in the second quarter.

Regarding the growth of the hotel business, Peng Han, Chief Analyst of Global Travel News, said in an interview with Science and Technology Innovation Board Daily that Atour became one of the domestic high-end hotel brands to rise relatively early in this area. "This will continue to empower their store operations and expansion, forming a first-mover advantage, so at this stage they are able to achieve growth far exceeding the industry average."

Year-on-year growth of 153.6%, with retail business accounting for nearly 30%.

Financial reports show that the retail business is becoming an important source of income for Atour Group.

Financial reports show that the GMV (Gross Merchandise Volume) of the retail business in the second quarter of this year was 0.62 billion yuan. The revenue of the entire second quarter's retail business increased by 153.6% from the same period last year to 0.537 billion yuan, with the online portion accounting for more than 90%.

According to the Atour Planet's 2024 618 Promotion Report, the online omnichannel GMV of Atour Planet reached 0.37 billion yuan, with a year-on-year growth of 230% for the Deep Sleep Experience category and a 15-fold increase in GMV for new bedding products.

At the same time, the GMV of Atour Planet on Tmall, jd.com, and Douyin platforms increased by 210%, 210%, and 260% respectively. The GMV on Atour Planet's official mini-program increased by 150%, and the offline hotel channel's Deep Sleep Aplus experience service covered 0.2 million people. During the promotion period, Atour Planet sold a total of 0.17 million pieces of summer cool bedding and more than 1 million Atour Planet pillows.

Science and Technology Innovation Board Daily noted that the proportion of Atour's retail business to total revenue is 29.8%, while the gross margin continues to rise.

Financial reports show that in the second quarter of this year, the cost of retail business accounted for 49.4% of retail revenue, compared to 50.8% in the same period last year. The gross margin of the retail business in the second quarter of this year reached 50.6%, an increase of 1.4% compared to the same period last year.

As of the end of the second quarter, Ado Group's registered membership exceeded 76 million, a year-on-year increase of 72.5%. At the same time, Ado Group stated in its financial report that it will continue to promote the integration of lodging and retail membership systems, further building a complete and unified Ado member ecosystem to achieve the dual coordinated development of lodging and retail businesses.

Peng Han, Chief Analyst of Global Travel News, believes that Ado's model has diversified its sources of income and reduced its reliance on a single lodging business.