11/19/2024
Ladies and gentlemen, thank you for standing by. Welcome to the A-Tour Lifestyle Holdings' third quarter 2024 earnings conference call. At this time, all parties are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Liu Gu, Senior IR Manager. Thank you. Please go ahead, sir.
Thank you, operator. Good morning and good evening, everyone. Welcome to our third quarter 2024 earnings conference call. Today, you will hear from our founder, chairman, and CEO, Mr. Wang Haijun, and our co-CFO, Mr. Wu Jianfeng. Before we continue, please be aware that today's discussion will include forward-looking statements under federal securities laws. These statements are subject to various risks and uncertainties. and the actual results may differ significantly from what is stated or implied in our comments today. The company is not obligated to update any forward-looking statements except as required by applicable laws. Additionally, during this call, our management will discuss certain non-GAAP financial measures solely for comparison purposes. For a clear understanding of these measures and a reconciliation of GAAP to non-GAAP financial results, please refer to the earnings release issued earlier today. Furthermore, a webcast replay of this conference call will be accessible on our website at ir.yaduo.com, where a copy of the results presentation is also available. Now, I will turn the call over to Mr. Wang, our CEO,
Thank you, Luke. Hello, everyone, and thank you for joining Atour's third quarter 2024 earnings call today. Atour's third quarter 2024 earnings call today.
In the third quarter of 2024, domestic travel demand demonstrated steady growth. Leisure tourism remained highly active, highlighting the strong resilience of the service consumption market. Following last year's surge in pent-up travel demand, consumer behavior returned to a more rational pace this summer. with a more diverse array of tourism hotspots emerging.
In response to a fluctuating market environment,
and evolving consumer demands. As a leading lifestyle brand, we will continue to innovate and elevate our hotel offerings while strengthening our service advantages to deliver a superior customer experience. Additionally, we will drive high-quality growth in our retail business centered around our deep sleep products to reinforce a tour's distinctive competitive edge.
Now, I would like to provide more details on our performance for the third quarter of 2024. 首先是住宿业务,请大家翻到我们PPT的第四页。 三季度,我们集团大盘RollerPod达到380元,为二三年同期的89.5%。 Let's begin with our hotel business. Please turn to slide four of our 3Q24 results presentation.
Our rough par reached RMB 380 yuan in the third quarter of 2024, representing 89.5% of its level for the same period of 2023, with OCC and ADR achieving 97.5% and 92% of their levels for the same period in 2023, respectively. Due to the high comparison base effect, ADR faced a certain pressure this summer, while OCC also experienced a year-over-year decline amid the shift to outbound tourism.
Please turn to slide five. In the third quarter, our mature hotels in operation for more than 18 months continued to deliver solid operational performance.
Excluding structural impacts such as the ramp-up of new hotels, same hotel RevPar in the third quarter of 2024 reached 91.6% of 2023's level for the same period, outperforming the group's blended performance by 2.1 percentage points. Specifically, OCC and ADR stood at 98.3% and 93.4% of their levels for the same period in 2023, respectively. 请大家翻到第六页。 今年国庆假期期间,我们看到出行和住宿需求显著上升, 推动了OCC的稳健增长,为2023年中秋国庆假期的105%。
Please turn to slide six. Travel and accommodation demand surged during the National Day holidays this year, driving steady growth in OCC, which achieved 105% of its level during the 2023 Mid-Autumn Festival and the National Day holiday.
ADR was 92.1% of its level in the same period of 2023, while Revcar reached 96.1% of its level in the same period of 2023. Please turn to page 7.
As the company's brand continues to strengthen, our hotel network expansion will further accelerate. In the third quarter, the company's entire brand will have a new opening of 140 hotels, with a growth of 72.8%. Please turn to slide 7. Driven by our growing brand influence, our hotel network expansion continued to gain traction. In the third quarter, we accelerated our hotel network expansion with 140 new hotel openings.
up 72.8% year-over-year, once again setting a record quarterly pace in new openings. As of the end of the third quarter, we had a total of 1,533 hotels in operation, representing a 37.9% year-over-year increase.
Please turn to slide 8. Franchisees' confidence remained resolute in the third quarter, further affirming our strong competitive edge and brand recognition.
The number of hotels under development reached 732 as of the end of the third quarter, underpinned by a significant portfolio of high-quality projects, generating sustained momentum to support Ator's thriving brand vitality.
Next, I would like to share the latest developments for the Ator and Ator Light brands. Please turn to page 9. As our fully upgraded high-end products, Yaduo 4.0 is a good experience and excellent business model. It continues to gain the trust of consumers and partners. As of now, there are more than 60 projects in the Yaduo 4.0 pipeline, with six open-air hotels. Yaduo 4.0's product innovation continues to lead to the experience upgrade of high-end hotels.
Please turn to slide nine. As our elevated upper mid-scale offering, Atul 4.0 continues to gain favor among both consumers and franchisees. Driven by its exceptional experience and outstanding operational model, to date, Ator 4.0 has over 60 projects in pipeline with six hotels in operation. Product innovations embodied in Ator 4.0 continued to set the standard for experience upgrades in the upper mid-scale hotel market, driving rapid growth in occupancy rate for Ator 4.0 hotels in operation and highlighting the brand's robust competitive advantages. 请大家翻到第十页。
Please turn to slide 10.
Ator Lite 3.0 also continued to perform strongly this quarter, further solidifying its competitive edge in the mid-scale market. During the third quarter, Ator Lite 3.0 signed 38 new projects, continuing to account for more than 20% of our total new signings. By the end of September, the number of Ator Lite 3.0 hotels in operation reached 76, primarily located in key business districts of second-tier cities and above.
The success of QingJu 3.0 is due to our accurate control of the core business circle and the strategic opportunity to upgrade the property, as well as the continuous attention and rapid response to the consumer trend of commercial hotels. Since the launch of QingJu 3.0, we have continuously achieved innovative and breakthroughs in QingJu characteristics in management and user experience. In the future, QingJu 3.0 will continue to be a brand concept of free life, providing more diversified and high-quality travel experiences for the general public, including young business people.
A TourLight 3.0 success stems from our keen ability to capitalize on strategic property upgrade opportunities in core business districts, along with our continued focus on and swift response to to the evolving business travel market. Since the launch of AttourLight 3.0, we have consistently achieved brand signature innovations and breakthroughs across various dimensions, including operations management and customer experience. Moving forward, AttourLight 3.0 will continue to uphold our ethos of life at ease, delivering a more diverse, elevated travel experience for a wide range of customers, including younger business travelers.
Please turn to slide 11.
Now, I'd like to introduce our recently launched upscale lifestyle brand, Sa He Hotel. Sa He means brief in the Lisu language, symbolizing the power of life. Inspired by this concept, we have meticulously crafted a hotel product rooted in Eastern aesthetics.
Sa He Hotel's launch not only fully showcased to integrate the strong product model of high-end experience and high-quality school, and to create a new form of high-end hotels, and to transform the structural challenges of the industry into opportunities. In the future, we will continue to set up high-end markets with a long-term mindset, and to provide a more immersive emotional experience for the consumer of the new generation.
The launch of Sa He Hotel not only presents a powerful product model that seamlessly integrates Eastern aesthetics, high-end experiences, and a superior operational efficiency, but also pioneers a new form of upscale hospitality, transforming the industry's structural challenges into opportunities. Looking ahead, we will continue to employ a long-term approach to the upscale market providing the new generation of consumers with a tranquil retreat that prioritizes emotional connection and immersive experiences.
接下来是我们的零售业务。 请大家翻到第十二页。 三季度,亚洲零售业务继续保持强劲的增长。 GMV达到了5.66亿人民币,同比大幅增长107.7%。 其中线上渠道占比约为90%。 Moving now to our retail business. Please turn to slide 12. Our retail business sustained its strong momentum in the third quarter.
with robust GMV growth of 107.7% year-over-year, reaching RMB 566 million, and sales from online channels accounting for more than 90% of the total GMV. Notably, we delivered another remarkable performance during this year's Double Eleven Shopping Festival, as we topped the Pillow and Comforter sales chart across various third-party e-commerce platforms. This impressive performance clearly reflects AtorPlanet's continuously strengthening brand awareness.
Please turn to page 13. I am very proud to inform you that we have returned to Yunnan in October, and have held the first deep-dive conference on the theme of natural deep-dive. Please turn to slide 13. I am proud to share that we revisited Yunnan Province this fall in October and successfully held our first deep sleep conference centered around the concept of natural deep sleep. At the conference,
we addressed the widespread issue of sleep disorders in today's society and presented a detailed overview of a tour-planet effective and systematic deep sleep idea.
At this conference, we introduced a wide range of star-studded products. One of them is the new generation of the ADOE Deep Sleep Memory Pill Pro 2.0. Not only does it upgrade the ADOE deep sleep experience, it also reflects our mature and efficient new research and development mechanism. This pillow uses a three-layer sponge design with different hardness levels. Through the unique R-shaped division structure and the angle design that fits the human body engineering, its rebound and support have achieved a significant improvement, which can make the shoulder more relaxed and help users naturally enter a deep sleep state. The Agar Planet Deep Sleep Memory Pill Pro 2.0 has received widespread praise since its launch in July this year,
We spotlighted several blockbuster products at the conference, including the innovative Attor Planet Deep Sleep Memory Foam Pillow Pro 2.0. The launch of this product not only enhances the Attor's signature deep sleep experience, but also showcases our advanced and efficient new product development mechanisms. The updated pillow features a patented spring memory foam material and a three-layer design with foams of varying firmness and curvature. Its unique R-shaped partition structure and ergonomic angle design significantly enhance its rebound and support, promoting greater relaxation of the shoulders and the neck to help users naturally achieve deep sleep. As a result, the Attour Planet Deep Sleep Memory Foam Pillow Pro 2.0 has received widespread acclaim since its release in July this year, with total sales exceeding 800,000 units.
At the same time, we continue to make breakthroughs in quilt products by maintaining the exploration of natural deep sleep. Both the heat-shrink deep sleep cooling quilt and deep sleep temperature control quilt Pro 4G We follow the change of seasons and recently officially launched the deep sleep air-conditioned quilt pro winter This quilt not only continues the deep sleep air-conditioned quilt pro series of highly rated design elements like a double-layer air-conditioning system The design of the quilt is supported by water-washing and drying, etc. It also further improves the heat-shrink ability of the heat-shrink layer so that users can get a deep sleep effect in the cold winter to get ventilation and long-term heat retention