Since the beginning of this year, driven by factors such as increased travel volume and the recovery of the tourism industry, hotels have become one of the strongest recovery tracks in China's sustained economic recovery. As a leader in high-end hotels in China, NASDAQ: ATAT Group's performance in the third quarter of this year was particularly impressive.
On November 16th, Beijing time, Yaduo Group released its financial report for the third quarter of 2023 and held a performance conference call. According to the financial report, in the third quarter, Yaduo Group achieved a revenue of 1.294 billion yuan, a year-on-year increase of 93.1%; The adjusted net profit (non GAAP) was 272 million yuan, a year-on-year increase of 144.7%; The adjusted EBITDA (non GAAP) was RMB 380 million, a year-on-year increase of 122.4%.
Strong growth in core business indicators, with RevPAR reaching a historic high in the third quarter
In the third quarter of this year, driven by the rapid growth of travel and accommodation demand, especially the significant increase in summer demand, multiple business indicators of Yaduo Group showed strong growth. Among them, the RevPAR (average rental room revenue) of Yaduo Group was 424 yuan, setting a quarterly record high, reaching 118% of the same period in 2019. The RevPAR in July, August, and September of this year has recovered to 122%, 116%, and 115% of the same period in 2019, respectively.
At the same time, Yaduo's ADR (daily average room price) and OCC (occupancy rate) also achieved rapid growth in the third quarter, reaching 495 yuan and 82.4% respectively, both exceeding the same period in 2019. It is worth mentioning that during this year's Mid Autumn National Day holiday, Yaduo's ADR and OCC increased by 14.6% and 7.2% respectively compared to the 2019 National Day holiday, driving RevPAR to recover to the same level of 123% in 2019.
Thanks to the continuous empowerment of Yaduo's brand value and efficient management and operation capabilities, its mature hotels that have been in operation for over 18 months have also performed well. The same store's year-on-year RevPAR recovery rate was 118% of the same period in 2019, which is consistent with the overall performance of the group.
In terms of hotel scale, with its excellent brand and product performance, Yaduo gained more favor from franchisees in the third quarter of this year. The hotel's opening progress accelerated, with 81 new stores opened, providing assistance for the accelerated implementation of the "China Experience, 2000 Good Stores" strategy. As of the end of September this year, the network of hotels operated by Yaduo Group has reached 1112; The number of hotels to be developed within the pipeline reached 577, a year-on-year increase of over 60%.
The rapid expansion of hotel scale is inseparable from the strong support of Yaduo Group's innovative mid range product Qingju 3.0 launched in February this year. In the third quarter of this year, Qingju 3.0 signed a total of 25 projects, accounting for over 15% of the newly signed hotels. As of the end of September, Qingju 3.0 has opened 13 stores, mainly located in core business districts of second tier and above cities.
With the aesthetic design that caters to young people and the consistent service experience of Yaduo, Qingju 3.0 has quickly gained user favor since its opening. It is reported that as of the end of September, the 13 light residential 3.0 stores in operation had an average OCC of 78.8% in the fourth week of opening, with RevPAR exceeding 340 yuan, making them quite competitive in the same business district.
The sales of scenario retail business are leading, with an overall GMV increase of 292% year-on-year to 302 million yuan
In addition to continuous breakthroughs in hotel business, the synergy between Yaduo's hotel brand and scene retail is emerging, and the value potential of the lifestyle product ecosystem is accelerating to be released. In the third quarter of this year, the overall GMV of Yaduo Group's scenario retail business reached a new high, reaching 302 million yuan, a year-on-year increase of 292.0%. Among them, the growth of online channel sales is particularly strong, accounting for 80% of the overall GMV.
It is reported that during the recently concluded Double Eleven Shopping Festival, the third-party e-commerce platform GMV of Yaduo's scene retail business exceeded 250 million yuan, an increase of over 600% compared to the same period last year, and an increase of over 140% compared to 618 this year. Moreover, Yaduo Planet continues to gain popularity and win the top spot in sales of pillow categories on various e-commerce platforms.
Analysts have pointed out that maintaining a high growth rate of scenario retail business has become the differentiation advantage of Yaduo Group. And behind this, it is closely related to Yaduo Group's continuous focus on user needs, increasing product innovation, and improving service experience.
On the one hand, through real feedback from users, we continuously explore their needs and drive innovation in scenario retail products. As of now, Yaduo Group has successfully established an efficient new product research and development mechanism, achieving the development and landing of multiple popular products.
For example, the Yaduo Group developed and launched the Yaduo Planet Deep Sleep Pillow PRO in March this year, directly addressing people's sleep pain points. Since its launch, this product has been popular among consumers. As of November 11th, the cumulative sales of the Yaduo Planet Deep Sleep Pillow PRO have exceeded 800000 units. Moreover, the Yaduo Planet Deep Sleep Temperature Control Quilt, which focuses on temperature control, comfortable packaging, and ultra soft and quiet sound, has a GMV of over ten million in September, which once again proves Yaduo's product research and innovation strength.
On the other hand, Yaduo Group will also extend the emphasis on "experience" genes to its scene retail business, committed to providing users with a high-level shopping experience. On the online channel, the comprehensive experience of Yaduo's flagship stores in Tmall and Tiktok has reached the five-star standard, far exceeding the performance of peers.
The above individuals pointed out that Yaduo's brand strength, product research and development strength, and operational strength are the inexhaustible driving force for the sustainable development of scenario retail business.
The "China Experience, Two Thousand Good Stores" Accelerates the Landing, and the New Yaduo 4.0 Consolidates the Mid to High End Competitive Advantage
Whether it is hotel accommodation or scene retail, Yaduo Group has actively implemented the core strategy of "China Experience", taking experience as the cornerstone of the brand and continuously winning the favor of users.
As a result, the A-Card membership scale of Yaduo Group has rapidly grown, and user stickiness continues to increase. As of September 30th, the cumulative number of registered members of Yaduo A-Card has exceeded 54 million. Through continuous iteration and upgrading of membership services and exclusive rights, Yaduo's A-Card membership system is also continuously creating value for users.
For example, in the third quarter of this year, Yaduo continued to upgrade its Yaduo Brocade Bag APLUS product to better meet the growing needs of members and create a unique personalized experience for users. With the continuous enrichment and upgrading of products, users' awareness and stickiness towards Yaduo Jinbao services continue to strengthen, and the utilization rate of Yaduo Jinbao rights has significantly increased compared to the beginning of the year.
In addition, Yaduo's core self owned channels remain efficient, and even during the peak summer tourism season, the proportion of CRS sold nights remains stable, reaching 62.5% in the third quarter of this year.
In order to further upgrade the "China Experience", Yaduo Group has recently launched its mid to high-end hotel brand Yaduo 4.0 version - Jianye. It is reported that in addition to continuing the Yaduo level experience and quality, Yaduo 4.0 provides a comfortable and immersive experience for business travel by designing a "natural and leisurely" space that balances deep sleep and business experience upgrades.
Currently, the demand for business travel has become an important increment driving the development of the mid to high-end hotel industry. And Yaduo 4.0 is specifically designed for business travel. It is not only a new masterpiece of Yaduo's "China Experience", but also a milestone in the implementation of the "Two Thousand Good Stores" strategy, and a new lever for Yaduo to open up its competitive position in the mid to high end track.
Wang Haijun, the founder and CEO of Yaduo Group, said, "Experience is the cornerstone of products. The outstanding performance of our business in the third quarter is exciting, and we will continue to bring surprises to users with high-level product innovation, and give back to our partners along the way with strong operational capabilities. In the future, we will always practice the core strategy of 'China Experience', consolidate brand reputation, and lead Yaduo's high-quality development