The year 2025 could well go down as the “Year of the Pillow” for Atour Lifestyle Holdings Ltd. (ATAT.US).
In its third-quarter financial results, announced last week, the upscale hotel operator said it expects to report 35% revenue growth this year, marking a strong upgrade from the 25% rise it forecast at the start of the year. The main engine behind that growth is the company’s retail business, which allows customers to buy products they see in their rooms through Atour’s online store. That business has done especially well, led by strong performance for its bedding products, including pillows.
Investors were broadly encouraged by the company’s latest report, sending Atour’s stock up 8.5% in the five trading days last week after the announcement. Analysts also quite like the company, with all 19 who follow the stock rating it either a “buy” or “strong buy” – a relative rarity these days due to uncertainty surrounding China’s economic slowdown.