The Fast-Growing Mid-Scale Hotel Chain Everyone is Overlooking

Atour Lifestyle is a premium hospitality brand that combines upscale accommodations with thoughtfully curated lifestyle experiences. Known for its meticulous attention to detail, the brand redefines modern travel with high-quality design, personalized services, and a strong commitment to guest well-being.

Building on this strong foundation, Atour has developed a diverse portfolio of hotels strategically located across major cities and destinations in China. Designed to cater to both business and leisure travelers, the brand delivers a refined blend of comfort and style. Moving beyond conventional hospitality, Atour adopts a lifestyle-oriented approach, seamlessly integrating retail offerings such as branded merchandise and wellness products. Below is a breakdown of the hotel portfolio positioning, segmented by different consumer income groups.

According to Frost & Sullivan, Atour Lifestyle emerged as the largest upper midscale hotel chain in China by room count as of December 31, 2023. Its expansive hotel network included 1,210 hotels across 198 cities, offering a total of 137,921 rooms. This portfolio comprised 1,178 manachised hotels with 133,291 rooms and a strong development pipeline of 617 hotels, adding 62,689 rooms. These figures highlight Atour’s rapid growth and solidify its market dominance in the upper midscale hospitality segment.

To maintain its competitive edge, Atour launched innovative offerings such as Atour Light 3.0, targeting midscale travelers who seek quality accommodations with unique experiences. Additionally, Atour introduced its flagship upper midscale brand, Atour 4.0 "With Nature," blending leisure and business facilities for a seamless guest experience. The initial batch of hotels under this brand has been signed in major domestic cities. These initiatives align with Atour’s ambitious "China Experience, 2,000 Premier Hotels" strategy, aiming to expand its footprint significantly by 2025.

Atour’s strong focus on environmental, social, and governance (ESG) initiatives enhances its appeal to impact investors. The company implemented modular refurbishments for its new hotels, reducing construction waste and lowering maintenance costs. Eco-friendly measures include biodegradable paper cups, natural cotton bedding, bamboo paper products, and water-saving innovations such as dedicated-loop hot water systems, reducing water consumption by 12.67 tons per room annually. These efforts reflect Atour’s commitment to sustainability and operational efficiency.

Atour enhanced its A-CARD membership system, offering benefits across retail, dining, culture, and sports, tailored to attract younger demographics. The program achieved impressive growth, with registered members exceeding 63 million by the end of 2023—a 78% year-over-year increase—demonstrating strong customer loyalty.

A standout differentiator is Atour’s scenario-based retail business, a pioneering concept in China. This innovative model generated RMB 1.14 billion in GMV in 2023, marking a 298.3% year-over-year increase. Best-selling products include the Deep Sleep Pillow PRO (with cumulative sales of 1.2 million units) and the Deep Sleep Temperature Control Quilt (selling over 100,000 units). This unique approach not only enhances guest experience but also contributes significantly to Atour’s revenue streams.

Atour’s remarkable growth trajectory, innovative offerings, ESG focus, and unique retail model position the company as a leader in the hospitality sector. With a robust pipeline and strategic initiatives in place, Atour is well-poised to achieve its ambitious goals by 2025, further cementing its dominance in China’s upper midscale hotel market.