Atour Lifestyle Holdings Limited Announces Dividend and Share Repurchase Program

Rhea-AI Summary

Atour Lifestyle Holdings (NASDAQ: ATAT) has announced two major shareholder-friendly initiatives. First, the company declared a cash dividend of $0.42 per ADS (or $0.14 per ordinary share), totaling approximately $58 million, payable on June 18, 2025. This dividend is part of a three-year Annual Dividend Policy adopted in August 2024, which commits to distributing at least 50% of the previous year's net income. Second, Atour authorized a three-year share repurchase program of up to $400 million. The repurchases will be executed through various means including open market purchases and private transactions. The company plans to fund the repurchases from its existing cash reserves, which stood at RMB3.1 billion ($434 million) as of March 31, 2025.

Positive

• Significant share repurchase program of $400 million authorized, representing strong commitment to shareholder returns
• Substantial cash dividend of $0.42 per ADS, totaling $58 million
• Strong cash position of $434 million to support both dividend and buyback programs
• Long-term commitment through three-year dividend policy guaranteeing at least 50% of net income distribution

Negative

• Significant cash outflow from combined dividend and buyback could impact future growth investments
• Large capital return program might indicate limited organic growth opportunities

Insights

Financial Analyst

Atour's $58M dividend and $400M buyback program signal strong financial position and commitment to shareholder returns amid China's hospitality sector.

Atour's dual announcement represents a significant capital return initiative for shareholders. The declared dividend of $0.14 per ordinary share ($0.42 per ADS) amounts to approximately $58 million in total distributions, payable June 18 to shareholders of record as of June 2.

The company has implemented a structured three-year annual dividend policy established in August 2024, committing to distribute at least 50% of its preceding year's net income as dividends. This provides shareholders with predictable income streams while demonstrating management's confidence in sustainable profitability.

More substantially, the $400 million share repurchase program authorized over three years represents a significant commitment to reducing share count and potentially enhancing earnings per share. This buyback program is particularly notable when compared to Atour's reported cash position of approximately RMB3.1 billion ($434 million) as of March 31, 2025 - indicating the company plans to deploy nearly its entire cash reserve for shareholder returns between dividends and buybacks.

The combined capital return strategy suggests Atour's management believes its shares may be undervalued relative to future prospects, while also reflecting confidence in continued strong cash generation from operations. For China's hospitality sector, such aggressive shareholder return programs are relatively uncommon and signal both financial strength and limited immediate expansion opportunities that would otherwise require significant capital reinvestment.

SHANGHAI, May 22, 2025 (GLOBE NEWSWIRE) -- Atour Lifestyle Holdings Limited (“Atour” or the “Company”) (NASDAQ: ATAT), a leading hospitality and lifestyle company in China, today announced that as part of its commitment to enhancing shareholder value, the Board of Directors (the “Board”) has (i) declared a dividend under its three-year annual dividend policy (the “Annual Dividend Policy”) adopted in August 2024, and (ii) authorized a three-year share repurchase program of up to US$400 million (the “Share Repurchase Program”).

Dividend

In accordance with the Annual Dividend Policy, as the first dividend payment in 2025, the Board today declared a cash dividend of US$0.14 per ordinary share, or US$0.42 per American depositary share (“ADS”). Each ADS represents three Class A ordinary shares. The aggregate amount of the cash dividend to be distributed will be approximately US$58 million.

The cash dividend will be payable in U.S. dollars on or around June 18, 2025 to the holders of record of the Company’s ordinary shares (excluding certain Class A ordinary shares previously held by The Bank of New York Mellon, as the depositary bank, for bulk issuance of ADSs reserved under the Company’s share incentive plan) and ADSs as of the close of trading on June 2, 2025 (U.S. Eastern Time). Dividends to be paid to the Company’s ADS holders through the depositary will be subject to the terms of the deposit agreement by and among the Company, the depositary, and the holders and beneficial owners of ADS issued thereunder, including the fees and expenses payable thereunder.

The Board adopted the Annual Dividend Policy in August 2024, under which the Company plans to declare and distribute dividends with an aggregate amount of no less than 50% of its net income for the preceding financial year in each of the three financial years commencing in 2024. Under the Annual Dividend Policy, the exact dividend amount will be determined at the Board’s discretion based on its assessment of the Company’s actual and projected results of operations, financial and cash position, capital requirements and other relevant factors.

Share Repurchase Program

On the same day, the Board authorized the three-year Share Repurchase Program under which the Company may repurchase up to US$400 million in value of its ordinary shares and/or ADSs.

The Company’s proposed repurchases may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The timing and dollar amount of repurchase transactions will be subject to the SEC Rule 10b-18 and/or Rule 10b5-1 requirements. The Board will review the share repurchase program periodically, and may authorize adjustment of its terms and size. The Company expects to fund the repurchases out of its existing cash balance.

As of March 31, 2025, the Company had approximately RMB3.1 billion (US$434 million) in cash, cash equivalents and restricted cash.

About Atour Lifestyle Holdings Limited

Atour Lifestyle Holdings Limited (NASDAQ: ATAT) is a leading hospitality and lifestyle company in China, with a distinct portfolio of lifestyle hotel brands. Atour is the leading upper midscale hotel chain in China and is the first Chinese hotel chain to develop scenario-based retail business. Atour is committed to bringing innovations to China’s hospitality industry and building new lifestyle brands around hotel offerings.

For more information, please visit https://ir.yaduo.com.

Investor Relations Contact

Atour Lifestyle Holdings Limited
Email: ir@yaduo.com

Christensen Advisory
Email: atour@christensencomms.com
Tel: +86-10-5900-1548

FAQ

What is the dividend amount announced by Atour (ATAT) for 2025?

Atour announced a cash dividend of $0.42 per ADS (or $0.14 per ordinary share), with total distribution of approximately $58 million, payable on June 18, 2025.

How much is Atour's (ATAT) share repurchase program worth?

Atour authorized a three-year share repurchase program of up to $400 million in value of its ordinary shares and/or ADSs.

What is Atour's (ATAT) dividend policy?

Atour adopted a three-year Annual Dividend Policy in August 2024, committing to distribute no less than 50% of its net income from the preceding financial year.

How much cash does Atour (ATAT) have to support its dividend and buyback programs?

As of March 31, 2025, Atour had approximately RMB3.1 billion (US$434 million) in cash, cash equivalents and restricted cash.

When is the record date for Atour's (ATAT) dividend payment?

The record date for Atour's dividend payment is June 2, 2025 (U.S. Eastern Time).