CLSA Sees Atour (ATAT) as a Premium Alternative in China's Hotel Market

Atour Lifestyle Holdings Limited (NASDAQ:ATAT) ranks among the best high growth Chinese stocks to buy. CLSA began coverage of Atour Lifestyle Holdings Limited (NASDAQ:ATAT) on January 2 with an Outperform rating and a $49 price target, citing Atour’s distinctive features and services as key elements in its popularity as a premium hotel alternative in the hospitality sector.

CLSA stated that Atour’s asset-light strategy and supply chain capabilities enable its net profit to be less volatile during periods of low revenue per available room (RevPar), hence stabilizing the business model.

CLSA highlighted that Atour’s retail operation is a strategic way of profiting from brand value. The firm stated that it expects Atour’s hotel count to increase at a 23% five-year compound annual growth rate, led by the growth of the Atour Light and Savhe brands, while forecasting that the company’s three-year EBITDA compound annual growth rate will reach 28%.

Atour Lifestyle Holdings Limited (NASDAQ:ATAT) is a Chinese hospitality and lifestyle company that operates a rapidly expanding network of hotels. It is also the first Chinese hotel chain to develop a scenario-based retail business.

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Disclosure: None. This article is originally published at Insider Monkey.