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SHANGHAI - Atour Lifestyle Holdings Limited (NASDAQ: ATAT), a prominent hospitality and lifestyle company in China with a market capitalization of $4.15 billion and impressive revenue growth of 55% in the past year, has announced the declaration of a cash dividend and the authorization of a substantial share repurchase program. According to InvestingPro analysis, the company maintains excellent financial health with an overall score of 3.84 out of 5. The company’s Board of Directors has declared a dividend of $0.14 per ordinary share, which aggregates to approximately $58 million. This dividend, the first for the year 2025 under the company’s Annual Dividend Policy, will be payable on or around June 18, 2025, to shareholders on record as of the close of trading on June 2, 2025. The dividend announcement comes as Atour demonstrates strong financial metrics, with a healthy current ratio of 2.02 and liquid assets exceeding short-term obligations.
In addition to the dividend, Atour has initiated a three-year share repurchase program with plans to buy back up to $400 million of its ordinary shares and/or American depositary shares (ADSs). The repurchases are set to occur through various methods such as open market transactions, privately negotiated transactions, block trades, or other legal means, contingent on market conditions and in compliance with applicable regulations.
The Annual Dividend Policy, adopted in August 2024, commits to distributing dividends of no less than 50% of its net income from the preceding financial year over the next three financial years. The exact dividend amounts are to be determined by the Board, considering the company’s performance, financial standing, capital needs, and other relevant factors.
The share repurchase program is expected to be funded from Atour’s existing cash balance, which stood at approximately RMB3.1 billion ($434 million) as of March 31, 2025. The implementation of the buyback will adhere to SEC Rule 10b-18 and/or Rule 10b5-1, with the Board retaining the authority to adjust the program’s terms and size. InvestingPro data shows the company holds more cash than debt on its balance sheet, with a strong return on equity of 51%.
Atour, known for its upper midscale hotel chain and scenario-based retail business, has been a pioneer in introducing innovations to China’s hospitality industry and developing new lifestyle brands. The company has delivered impressive returns for investors, with a 75.5% price return over the past year. Get access to 10+ additional exclusive InvestingPro Tips and comprehensive analysis through the Pro Research Report, helping you make informed investment decisions.
This strategic financial move is based on a press release statement issued by Atour Lifestyle Holdings Limited.
In other recent news, Atour Lifestyle Holdings Ltd has announced it will release its first-quarter financial results for 2025 on May 22, providing investors with key financial data and company performance insights. The company reported a significant 55.3% year-over-year increase in net revenues for the fiscal year 2024, reaching RMB 7,248 million, with a notable surge in retail revenues by 126.2%. Citi analyst Lydia Ling has raised Atour Lifestyle’s price target to $36.50, maintaining a Buy rating, following the company’s 38% year-over-year revenue increase to RMB 2 billion in the fourth quarter of 2024. The company’s net profit also rose by 50% year-over-year to RMB 330 million, surpassing expectations. Looking ahead, Atour Lifestyle has set ambitious goals for 2025, aiming for a 25% year-over-year revenue increase and plans to open approximately 500 new locations. The company is also focusing on expanding its retail business, anticipating no less than 35% growth in this sector. Despite some uncertainties surrounding revenue per available room, Citi remains optimistic about Atour’s growth prospects, particularly in its retail segment.
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