旅游业:端午节期间休闲旅游需求依然强劲

Tourism: Still-Resilient Leisure Travel Demand During Dragon BoatFestival Lydia LingAC+852-2501-2475lydia.w.ling@citi.com CITI'S TAKE Despite rainy weather, China domestic tourism demonstrated a resilienttrend during the 3-day Dragon Boat Festival (19-21 Jun), with domestictourist number/tourism revenue growing by 4.4%/4.0% yoy, respectively,according to the Ministry of Culture and Tourism. This came above ourexpectations given a slight decline in nationwide passenger throughput perMinistry of Transportation. Chinese outbound travel reverted to positivegrowth during the holiday while inbound travel continued to trend well.While macro and weather uncertainty may linger, we expect that resilientleisure travel demand, solid inbound travel momentum, and normalizedindustry supply should continue to underpin hotel RevPAR trends in China,especiallyon ADR strength.Atour remains our top Buy,with itsunderappreciatedearnings resilience against RevPAR volatility andsustained retail strength. Xiaopo Wei, CFA+852-2501-2472xiaopo.wei@citi.com Brian Cho+852-2501-2712brian.cho@citi.com Domestic tourism —According to the Ministry of Culture and Tourism, the domestictourist number amounted to 124m person times during the 3-day Dragon BoatFestival,up 4.4%yoy.Domestic tourism revenue grew by 4.0%yoy toRmb44.456bn, with per-capita spend marginally down 0.4% yoy (Figure 1). Thediscrepancy vs. the traffic momentum illustrated by the Ministry of Transportation,in Citi’s view, could be due to less travel demand for non-tourism purposes given therainy weather while leisure travel demand stayed resilient. According to the Ministryof Transportation, nationwide passenger throughput totaled 648m person timesduring the holiday, down 0.9% yoy, mainly dragged by -2.1% yoy in self-drive whichaccounted for 74% of total passenger throughput and -1.8% yoy in waterway.Railway/road/air passenger increased by +2.9%/+2.7%/+0.6% yoy. Lodging & Hainan Duty Free —1)Lodging: We observed a divergent RevPAR trendacross different regions (i.e., Shanghai saw +1.6% yoy in OCC). We expect Atour tooutperform with positive RevPAR growth during the holiday with improvement inboth OCC and ADR. 2)Hainan Duty Free: Hainan offshore duty-free sales grew inline, +8.6% yoy to Rmb202m during the Dragon Boat Festival per Haikou Customs,mainly driven by +11.2% yoy in number of buyers while per-capita spend dropped by2.3% yoy to Rmb5,961 (Figure 6). Outboundand Inbound tourism—According to the National ImmigrationAdministration, average daily cross-border traffic volume rose by 12.9% yoy to 2.2mperson times during Dragon Boat Festival, with +5.5% yoy in mainland Chinese,+18.4% yoy in HK and Macau and Taiwan residents and +23.3% yoy in foreigners(Figure 7). Inbound foreigners under visa-free policy rose 15.2% yoy. See Appendix A-1 for Analyst Certification, Important Disclosures and Research Analyst Affiliations. © 2026 Citigroup Inc. No redistribution without Citigroup’s written permission.Source: Citi Research, National Immigration Administration Atour Lifestyle Holdings Ltd (ATAT.O; US$33.29; 1; 18 Jun 26; 16:00) Valuation Our US$48.0 target price for Atour is based on 14x 26E EV/EBITDA, set at10% above China’s hotel sector average, which we think is justified by thecompany’s faster growth, product competitiveness (particularly in the uppermidscale segment), and business resilience. Risks Our quant model rates the Atour stock High Risk for its volatility, but webelieve it is unwarranted given the better visibility on recovery after China’sreopening, and the company's improving operating capability and earningsresilience. Key downside risks that could impede the stock from reaching our target priceinclude: 1) travel-related impact from natural disasters or pandemic (e.g.,COVID-19); 2) a prolonged economic downturn; 3) intense competition withboth domestic and international hotels; 4) failure to expand or delays in newopenings; and 5) regulation risks. If you are visually impaired and would like to speak to a Citi representative regarding the detailsof the graphics in this document, please call USA 1-888-500-5008 (TTY: 711), from outside theUS +1-210-677-3788 Appendix A-1 ANALYST CERTIFICATION The research analysts primarily responsible for the preparation and content of this research report are either (i) designatedby “AC” in the author block or (ii) listed in bold alongside content which is attributable to that analyst. If multiple ACanalysts are designated in the author block, each analyst is certifying with respect to the entire research report other than(a) content attributable to another AC certifying analyst listed in bold alongside the content and (b) views expressed solelywith respect to a specific issuer which are attributable to another AC certifying analyst identified in the price charts orrating history tables for that issuer shown below. Each of these analysts certify, with respect to the sections of the reportfor which they are responsi