ATAT

Atour is a rapidly growing upscale Chinese hotel operator with an asset-light franchise model plus a fast-expanding retail/lifestyle business. The fundamentals are excellent. FY2025 revenue grew 41.0% to $1.40B, operating income rose 48.4% to $330M (a 23.6% operating margin), and net income grew 32.7% to $232M (a 16.6% net margin). The growth track record is consistent and steep — revenue has more than quadrupled from $328M (FY2022) to $1.40B — and the asset-light model produces a standout 45.1% ROE. The balance sheet is healthy, with $472M of cash, minimal long-term debt and 1.55x liabilities/equity, and the company already returns capital ($110M dividends, $47.2M buybacks) while still reinvesting for growth (capex is tiny at $12.3M, the signature of a franchise model).

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