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Lemon Tree Hotels Results: Latest Quarterly Results & Analysis

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Lemon Tree Hotels Ltd. 05 Feb 2025 11:14 AM
Result PDF

Q3FY25 Quarterly Result Announced for Lemon Tree Hotels Ltd.

Hotels company Lemon Tree Hotels announced Q3FY25 results

  • Total Revenue: Rs 355.8 crore, Up 22%.
  • EBITDA: Rs 184.8 crore, Up 30%.
  • EBITDA margin: 51.9%, Up 316 bps.
  • PAT: Rs 79.9 crore, Up 82%.
  • Cash Profit: Rs 114.9 crore, Up 49%.

Patanjali Keswani, Chairman & Managing Director, Lemon Tree Hotels, said: “Lemon Tree recorded its highest-ever third-quarter revenue this year. At Rs 355.8 crore, our revenue grew by 22% compared to Q3FY24, while Net EBITDA grew 30% YoY to Rs 184.8 crore, translating into a Net EBITDA Margin of 51.9%, which increased by 316 bps YoY. Q3FY25 recorded a Gross ARR of Rs 6,763, which increased by 7% YoY. The occupancy for the quarter stood at 74.2%, an increase of 826 bps YoY. This translated into a RevPAR of Rs 5,018, which increased by 21% YoY.

Fees from management and franchised contracts for third-party-owned hotels stood at Rs 18.4 crore in Q3FY25, an increase of 24% YoY. Fees from Fleur Hotels stood at Rs 25.3 crore in Q3FY25, an increase of 45% YoY. Total management fees for Lemon Tree stood at Rs 43.7 crore in Q3FY25, an increase of 35% YoY.

The company's profit after tax stood at Rs 79.9 crore in Q3FY25, an increase of 82% YoY. Cash profit for the company stood at Rs 114.9 crore in Q3FY25, an increase of 49% YoY.

On the business development front, this quarter, Lemon Tree received a Letter of Award from the Directorate of Tourism, Government of Meghalaya, for the redevelopment, operation, and maintenance of the existing Orchid Hotel, Shillong, under the Design, Build, Finance, Operate, and Transfer mode on a PublicPrivate Partnership basis. This will be redeveloped as Aurika, Shillong, and is expected to become operational within the next three years. The property will feature 120 elegantly designed rooms and suites, Mirasa – the all-day dining restaurant, Ariva – the bar, expansive banquet spaces, and rejuvenating recreational facilities, including a well-equipped fitness center and spa. This hotel is situated in the prime location of Polo Market, opposite the Chief Minister’s Bungalow. This is the first Public-Private Partnership undertaken by Lemon Tree Hotels. The project qualifies for capital subsidy and various incentives, including GST reimbursement, under the Meghalaya Industrial and Investment Promotion Policy 2024 and the Uttar Poorva Transformative Industrialisation Scheme 2024. On the asset-light side, we signed 13 new management and franchise contracts, adding 766 new rooms to our pipeline, and operationalized one hotel, adding 38 rooms to our portfolio. As of December 31, 2024, the inventory for the group stands at 112 operational hotels with 10,317 rooms and a pipeline of 88 hotels with 6,068 rooms.

Going forward, we are confident in the company’s ability to sustain this growth in the coming quarters by focusing on the following growth levers: (A) Accelerated growth in our management and franchised portfolio, with a proportionate increase in fee-based income. (B) Timely completion of renovation activities in the owned portfolio to further improve Gross ARR and occupancy. Please note that the increased investment in renovation expenses will continue into FY26 until the entire portfolio of owned hotels has been fully renovated and refreshed. Post this, renovation expenses will be close to 1.8% of revenue on an ongoing basis. With demand growth expected to outpace supply in the next few years and increasing discretionary spending on branded hotels in India, our increased investment in renovation will allow us to position Lemon Tree as the preferred brand in the mid-market segment.”

Result PDF

Result PDF

Hotels company Lemon Tree Hotels announced Q2FY25 results

  • Total Revenue: Rs 284.8 crore, growth Up 24% YoY.
  • EBITDA: Rs 131.2 crore, growth Up 25% YoY.
  • EBITDA Margin: 46.1% for Q2FY25, Up 53 bps.
  • PAT: Rs 35.0 crore, growth Up 33% YoY.
  • Cash Profit: Rs 69.8 crore, growth Up 43% YoY.
  • Cost of Debt: 8.68%, Down 16 bps.

Patanjali Keswani, Chairman & Managing Director, Lemon Tree Hotels, said: “Lemon Tree recorded its highest ever 2nd quarter revenue this year. At Rs 284.8 crore, our revenue grew by 24% as compared to Q2 last year while Net EBITDA grew 25% YoY translating into a Net EBITDA Margin of 46.1% which increased by 53 bps YoY. Q2FY25 recorded a Gross ARR of Rs 5,902 which increased by 12% YoY. The occupancy for the quarter stood at 68.4% which decreased by 328 bps YoY. This translated into a RevPAR of Rs 4,035 which increased by 7% YoY.

In Q2FY25, if we exclude the increase in renovation expenses of Rs 8 crore (above that spent last year), in Q2 our Net EBITDA margin would be 48.9%, a 340 bps increase YoY. With demand growth expected to exceed supply growth in the next few years accompanied by the structural tailwinds in discretionary consumption of branded rooms that India is starting to witness, our increased investment in renovation will allow us to better position our hotels going forward to capture superior pricing and position Lemon Tree as the brand of choice in the mid-market segment.

Fees from management & franchised contracts for 3rd party owned hotels stood at Rs 13.4 crore in Q2FY25 which increased by 28% YoY. Fees from Fleur Hotels stood at Rs 18.4 crore in Q2FY25 which increased by 35% YoY.

Total management fees for Lemon Tree stood at Rs 31.8 crore in Q2FY25 which increased by 32% YoY.

Our debt decreased by Rs 90 crore from Rs 1,912.6 crore as of 30th September 2023 to Rs 1,822.6 crore as of 30th September 2024. Cash profit for the company stood at Rs 69.8 crore in Q2FY25 which increased by 43% YoY.

During the quarter, we signed 19 new management & franchise contracts which added 1,373 new rooms to our pipeline and operationalized 5 hotels which added 193 rooms to our portfolio. As of 30th September, 2024 the inventory for the group stands at 112 operational hotels with 10,318 rooms, and a pipeline of 75 hotels with 5,220 rooms.”

Result PDF

Hotels company Lemon Tree Hotels announced Q1FY25 results:

Financial Highlights: 

  • Total Revenue: Rs 268.4 crore, Up 19%
  • EBITDA: Rs 115.4 crore, Up 8%
  • EBITDA %: 43.0%, Down 456 bps
  • PAT: Rs 20.1 crore, Down 27%
  • Cash Profit: Rs 54.7 crore, Up 9%
  • Cost of Debt %: 8.80%, Down 13 bps

Commenting on the performance for Q1FY25, Patanjali Keswani, Chairman & Managing Director – Lemon Tree Hotels Limited said, In Q1, despite the temporary headwinds faced by the hotel sector due to the election process and the extreme heat wave, Lemon tree recorded its highest ever Revenue in Q1 at Rs 268.4 crore. The revenue grew over 19% as compared to Q1FY24 while the EBITDA grew 8% YoY translating into a Net EBITDA Margin of 43% which decreased by 456 bps over Q1FY24. Of this fall in EBITDA margin YoY of ~4.6%, about 50% was due to one off increase in investments in renovation and digital transformation. Q1FY25 recorded a Gross ARR of Rs 5,686 which increased by 9% YoY. The occupancy for the quarter stood at 66.6% which decreased by 360 bps YoY. This translated into a RevPAR of Rs 3,788 which increased by 4% YoY.

As I had stated in earlier calls, the decrease in EBITDA margin YoY was owing to planned increases in renovation investments above that spent in Q1FY24 as well as investment in digital capabilities, expansion of our business development team and overall annual payroll increase. The Keys portfolio EBITDA Margin % decreased by ~10 percentage points YoY due to an increase in renovation expenses of Rs ~1.8 Cr over Q1FY24 which is an increase of 100% YoY. During the quarter, ~25% of the total Keys portfolio was shut for renovation which impacted the ability of the Keys portfolio to increase occupancy which decreased by 148 bps YoY. With demand growth expected to exceed supply growth in the next few years accompanied by the structural tailwinds that India is currently witnessing, this significant investment in renovation will allow us to better position our hotels going forward to capture superior pricing and position Lemon tree as the brand of choice in the mid-market segment.

Fees from management & franchised contracts for 3rd party owned hotels stood at Rs 12.5 Cr in Q1FY25 up 21% from Rs 10.4 Cr in Q1FY24. Total management fees for Lemon Tree in Q1 were up 22% YoY at Rs 29.1 Cr compared to Rs 23.9 Cr in Q1FY24.

During the quarter, we signed 3 new management & franchise contracts which added 187 new rooms to our pipeline and operationalized 4 hotels which added 331 rooms to our portfolio. As of 30th June 2024, the inventory for the group stands at 107 operational hotels with 10,125 rooms, and our pipeline comprises an additional ~4000 rooms.

Result PDF

Lemon Tree Hotels announced Q3FY24 results:

Financial Performance Summary

  • Total Revenue: Rs 290.9 crore in Q3FY24, marking an increase of 24% compared to Q3FY23.
  • EBITDA: Rs 141.9 crore in Q3FY24, which is a 12% rise YoY.
  • EBITDA Margin: Reported at 48.8% for Q3FY24, a decrease of 547 basis points from Q3FY23.
  • Profit After Tax (PAT): Fell by 10% to Rs 43.8 crore in Q3FY24.
  • Cash Profit: Up by 7% to Rs 77.1 crore in Q3FY24.

Operational Highlights

  • Inventory (Owned/Leased rooms): Increased by 13% year-over-year with the total count of operational rooms reaching 9,687.
  • Average Room Rate (ARR): Gross ARR reached Rs 6,333 in Q3FY24, which is a 10% increase year-over-year.
  • Occupancy Rate: Slight decrease of 163 basis points year-over-year, registering at 65.9% in Q3FY24.

Development and Expansion

  • New Signed Contracts: 9 new management & franchise contracts were signed in Q3FY24, adding 621 rooms to the pipeline.
  • Hotels Operationalized: 6 hotels operationalized in Q3FY24, contributing an additional 967 rooms.
  • Future Inventory: By the end of FY24, the company expects to have over 105 hotels with more than 10,000 rooms.

Commenting on the performance for Q3FY24, Patanjali Keswani, Chairman & Managing Director of Lemon Tree Hotels, stated: “In Q3, Lemon Tree Hotels continued its growth momentum from the previous year. Q3FY24 has been the best-ever Q3 performance in terms of Gross ARR, Revenue & EBITDA. Q3FY24 recorded a Gross ARR of Rs 6,333 which increased by 10.4% YoY and increased by 20.2% QoQ. Occupancy for the quarter decreased by 163 basis points (bps) YoY and by 572 bps QoQ. This translated into a RevPAR of Rs 4,176 which increased by 7.7% YoY and by 10.6% QoQ. Total Revenue for the company in Q3 was Rs 290.9 crore, which was higher by 24.2% YoY and 26.4% QoQ. The Net EBITDA margin for the company in Q3FY24 stood at 48.8%, which decreased by 547 bps YoY and increased by 325 bps QoQ. The decrease in EBITDA margin YoY was mainly owing to a planned increase in renovation expenses above that spent in Q3FY23 and the deflationary impact of Aurika, Mumbai Skycity which opened on 5th October 2023 and is not yet stable. The renovation expense for the portfolio increased by Rs 5.5 crore YoY and Rs 4.8 crore QoQ, which translated into a reduction in EBITDA Margin % by approximately 2 percentage points. The Keys portfolio EBITDA Margin % decreased by approximately 9 percentage points QoQ due to an increase in renovation expenses of Rs 1.8 crore over the previous quarter.

Fees from management & franchised contracts for 3rd party owned hotels stood at Rs 14.9 crore in Q3FY24, up 52% from Rs 9.8 crore in Q3FY23. Total management fees for Lemon Tree (including fees from Fleur Hotels) were up 25% YoY at Rs 32.3 crore compared to Rs 25.8 crore in Q3FY23. Hotel level revenue from the owned portfolio increased by 18% YoY and the Network Revenue for Lemon Tree (i.e., total system revenue of owned including Aurika, MIAL and managed/franchised hotels) also increased by 18% YoY. Total network revenue stood at Rs 1,128 crore for 9MFY24 as compared to Rs 954 crore in 9MFY23.

During the quarter, we signed 9 new management & franchise contracts which added 621 new rooms to our pipeline and operationalized 6 hotels which added 967 rooms to our portfolio. We are pleased to announce that as of 31st Dec 2023, our operational inventory comprised 100 hotels with 9,687 rooms and our pipeline comprised 55 hotels with 3,746 rooms. As of now, we expect our operational inventory to be 105 hotels with over 10,000 rooms by the end of FY24. The launch of Aurika, Mumbai Skycity represents a major milestone in our growth journey. The hotel has already started to contribute positively to our portfolio, attracting both business and leisure travelers with its luxury facilities, prime location, and exceptional service. With no major capital expenditure plans in the near future, we will focus on strengthening our balance sheet and starting next year we will be reducing our debt which will peak by the end of FY24.”

 

Result PDF

Lemon Tree Hotels announced Q2FY24 results:

  • Revenue from operations stood at Rs 227.2 crore in Q2FY24 which was up 2.2% from Rs 222.3 crore in Q1FY24 and was up 15.5% as compared to Rs 196.7 crore in Q2FY23
  • Gross ARR stood at Rs 5,268 in Q2FY24 which was up 0.6% from Rs 5,237 in Q1FY24 and was up 7.1% as compared to Rs 4,917 crore in Q2FY23
  • Occupancy% stood at 71.7% in Q2FY24 which was up 143 bps from 70.2% in Q1FY24 and was up 542 bps as compared to 66.2% in Q2FY23 
  • Total expenses stood at Rs 125.3 crore in Q2FY24 which was up 6.4% from Rs 117.8 crore in Q1FY24 and was up 21.6% as compared to Rs 103.1 crore in Q2FY23 
  • PAT stood at Rs 26.4 crore in Q2FY24 which was down 4.1% from Rs 27.5 crore in Q1FY24 and was up 36.3% as compared to Rs 19.4 crore in Q2FY23 
  • Net EBITDA stood at Rs 104.8 crore in Q2FY24 which was down 1.9% from Rs 106.8 crore in Q1FY24 and was up 11.1% as compared to Rs 94.3 crore in Q2FY23
  • Net EBITDA margin % stood at 45.5% in Q2FY24 which was down 203 bps from 47.6% in Q1FY24 and was down 225 bps as compared to 47.8% in Q2FY23
  • Cash Profit stood at Rs 49.0 crore in Q2FY24 which was down 2.6% from Rs 50.3 crore in Q1FY24 and was up 10.4% as compared to Rs 44.4 crore in Q2FY23

Commenting on the performance for Q2FY24, Patanjali Keswani, Chairman & Managing Director – Lemon Tree Hotels said, “In Q2, Lemon Tree Hotels continued its growth momentum from the previous year. Q2FY24 has been the best ever Q2 performance in terms of Gross ARR, Revenue, EBITDA, PBT and PAT for Lemon Tree Hotels.

This quarter, Lemon Tree’s focus was on increasing occupancy and maximizing RevPAR. Q2FY24 recorded a Gross ARR of Rs 5,268 which increased by 7.1% YoY and increased by 0.6% QoQ. Occupancy also increased by 542 bps YoY and by 143 bps QoQ. This translated into a RevPAR of Rs 3,678 which increased by 15.9% YoY and by 2.6% QoQ. Total Revenue for the company in Q2FY24 was Rs 230.1 crore which was higher by 16.6% YoY and 2.5% QoQ.

The Net EBITDA margin for the company in Q2FY24 stood at 45.5% which decreased by 225 bps vs Q2FY23 and by 203 bps vs Q1FY24 mainly owing to planned increase in renovation expenses above that spent in Q2FY23 and pre-operative expenses of Aurika, Mumbai Sky City. These two incremental expenses accounted for a total increase in expense of Rs 4.4 crore (beyond Q2FY23) which translated to a reduction in EBITDA margin % by 1.9 percentage points. The Keys portfolio also saw a drop in EBITDA margin % by 4.7 percentage points YoY due to increased investment in renovation during Q2FY24. Furthermore, the closing down of New Delhi during the G20 summit also impacted Lemon Tree, with most of the business of the event being diverted to 5 Star deluxe hotels, which is why you see a drop in our performance in New Delhi versus the industry. The PAT for Q2FY24 grew by 36.3% YoY from Rs 19.6 crore to 26.4 crore. Our cash profit stood at Rs 49.0 crore which increased by 10.4% YoY.

Fees from management & franchised contracts for 3rd party owned hotels stood at Rs 10.4 crore in Q2FY24 up 58.0% from Rs 6.6 crore in Q2FY23. Total management fees for Lemon Tree were up 29.0% YoY at Rs 24.0 crore compared to Rs 12.1 crore in Q2FY23.

Hotel level revenue from the owned portfolio increased by 15% YoY on a same store basis while the Network Revenue for Lemon Tree (i.e. total system revenue of owned and managed/franchised hotels) increased by 17% YoY. Total network revenue stood at Rs 691.0 crore for H1FY24 as compared to Rs 591 crore in H1FY23.

During the quarter, we signed 11 new management & franchise contracts which added 639 new rooms to our pipeline. As of 30th Sep 2023, our operational inventory comprised 95 hotels with 8,760 rooms and our pipeline comprised 52 hotels with 4,092 rooms. As of now, we expect our operational inventory to be 105 hotels with over 10,000 rooms by end of FY24.

I am happy to inform you about the launch of Aurika, Mumbai Sky City, on October 5, 2023. The hotel has 669 rooms and suites and is currently the largest hotel (by number of rooms) in India. Some pictures in the investor presentation will give you an idea about the hotels’ look and feel.”

 

Result PDF

Lemon Tree Hotels announced Q1FY24 results:

  • Revenue from operations stood at Rs 222.3 crore in Q1FY24 which was down 12.0% from Rs 252.7 crore in Q4FY23 and was up 15.7% as compared to Rs 192.0 crore in Q1FY23
  • Gross ARR stood at Rs 5,237 in Q1FY24 which was down 10.1% from Rs 5,824 in Q4FY23 and was up 8.6% as compared to Rs 4,822 crore in Q1FY23
  • Occupancy% stood at 70.2% in Q1FY24 which was down 339 bps from 73.6% in Q4FY23 and was up 514 bps as compared to 65.1% in Q1FY23
  • Total expenses stood at Rs 117.8 crore in Q1FY24 which was up 4.4% from Rs 112.8 crore in Q4FY23 and was up 18.1% as compared to Rs 99.7 crore in Q1FY23
  • Net EBITDA stood at Rs 106.8 crore in Q1FY24 which was down 24.7% from Rs 141.9 crore in Q4FY23 and was up 15.4% as compared to Rs 92.6 crore in Q1FY23
  • Net EBITDA margin% stood at 47.6% in Q1FY24 which was down 815 bps from 55.7% in Q4FY23 and was down 60 bps as compared to 48.2% in Q1FY23
  • PAT stood at Rs 27.5 crore in Q1FY24 which was down 53.4% from Rs 59.0 crore in Q4FY23 and was up 102.8% as compared to Rs 13.6 crore in Q1FY23
  • Cash Profit stood at Rs 50.3 crore in Q1FY24 which was down 39.0% from Rs 82.5 crore in Q4FY23 and was up 32.2% as compared to Rs 38.1 crore in Q1FY23

Commenting on the performance for Q1FY24, Patanjali Keswani, Chairman & Managing Director, Lemon Tree Hotels said, “In Q1FY24, Lemon Tree Hotels continued its growth momentum from the previous year. Q1FY24 has been the best-ever Q1 performance in terms of Gross ARR, Revenue, EBITDA, PBT, and PAT for Lemon Tree Hotels. Q1FY24 recorded a Gross ARR of Rs 5,237 which increased by 8.6% YoY and decreased by 10.1% QoQ. Occupancy followed a similar trend which increased by 514 bps YoY and decreased by 339 bps QoQ. This translated into a RevPAR of Rs 3,678 which increased by 17.2% YoY and decreased by 14.2% QoQ. Total Revenue for the company was Rs 224.6 crore for the quarter which increased 16.8% YoY and decreased 11.8% QoQ.

The Net EBITDA margin for the company in Q1FY24 stood at 47.6% which decreased by 60 bps YoY and decreased by 815 bps QoQ owing to an increase in variable costs as well as planned increases in fixed costs and renovation expenses. The increase in costs is somewhat less compared to the guidance shared in our previous call and we will ensure we keep our EBITDA margins intact. The PAT for Q1FY24 grew by 103% YoY from Rs 13.6 crore to 27.5 crore. Our cash profit stood at Rs 50.3 crore which increased by 32% YoY. Fee from management / franchised contracts for 3rd party-owned hotels stood at Rs 10.4 crore in Q1FY24 up 19.3% from Rs 8.7 crore in Q1FY23. Total management fees for Lemon Tree Hotels were up 20.7% YoY to Rs 23.9 crore compared to Rs 19.8 crore in Q1FY23.

During the quarter we signed 6 new management & franchise contracts which add 548 new rooms to our pipeline. As of June 30, 2023, our operational inventory comprised 90 hotels with 8,491 rooms and our pipeline comprised 46 hotels with 3,724 rooms.

From this quarter onwards, we will also be sharing the Network Revenue of Lemon Tree Hotels (i.e. total system revenue of owned, managed & franchised hotels) which stood at Rs 352 crore for Q1FY24 as compared to Rs 300 crore in Q1FY23.

Going forward, we are confident in the company’s ability to sustain this growth in the coming quarters by focusing on the following growth levers:

  • Opening of Aurika, MIAL in October’23
  • Accelerated growth in our managed and franchised portfolio, with a proportionate increase in fee-based income
  • Further improvement in Gross ARRs and Occupancy for the LTH-owned portfolio
  • Significant increase in Gross ARR and Occupancy in the Keys portfolio post renovations (visible in Q1 marginally)

The opening for Aurika, Sky City, Mumbai in October’23 is on track. As you can see from the pictures shown in the investor presentation, many facilities in the hotel are completely ready and most of the licenses about the operations of the hotel have already been obtained.”

 

Result PDF

Lemon Tree Hotels announced Q4FY23 results:

  • Revenue from operations stood at Rs 252.7 crore in Q4FY23 which was up 8.2% from Rs 233.5 crore in Q3FY23 and was up 43.5% as compared to Rs 176.1 crore in Q4FY20
  • Gross ARR stood at Rs 5,824 in Q4FY23 which was up 2% from Rs 5,738 in Q3FY23 and was up 29% as compared to Rs 4,530 crore in Q4FY20
  • Occupancy% stood at 73.6% in Q4FY23 which was up 604 bps from 67.6% in Q3FY23 and was up 1,259 bps as compared to 61.0% in Q4FY20
  • Total expenses stood at Rs 112.8 crore in Q4FY23 which was up 5.3% from Rs 107.1 crore in Q3FY23 and was up 0.5% as compared to Rs 112.2 crore in Q4FY20
  • Net EBITDA stood at Rs 141.9 crore in Q4FY23 which was up 11.7% from Rs 127.0 crore in Q3FY23 and was up 120.5% as compared to Rs 64.4 crore in Q4FY20
  • Net EBITDA margin % stood at 55.7% in Q4FY23 which was up 146 bps from 54.3% in Q3FY23 and was up 1,926 bps as compared to 36.5% in Q4FY20
  • PAT stood at Rs 59.0 crore in Q4FY23 which was up 21.5% from Rs 48.6 crore in Q3FY23 and was up Rs 78.0 crore as compared to Rs (19.0) crore in Q4FY20
  • Cash Profit stood at Rs 82.5 crore in Q4FY23 which was up 14.4% from Rs 72.1 crore in Q3FY23 and was up 845.2% as compared to Rs 8.7 crore in Q4FY20

Commenting on the performance for Q4FY23, Patanjali Keswani, Chairman & Managing Director – Lemon Tree Hotels said, “FY23 has been the best year for Lemon Tree Hotels. As anticipated and in line with our initial guidance, we have more than doubled our total revenue vs FY22 and have maintained more than 50% EBITDA margin for the full year. In FY23 our total revenue increased by 111% vs FY22 to Rs 879 Cr. with an EBITDA margin of 51.9%.

Q4FY23 was the best quarter to date, with growth across all metrics. As I had mentioned in the last earnings call, after increasing our ARR by 17% in Q3 vs Q2 FY23, in Q4 we focused on building up occupancy which increased by 604 bps vs Q3FY23 and by 1,259 bps vs Q4FY20. Gross ARR stood at Rs 5,824 which increased by 2% vs Q3FY23 and by 29% vs Q4FY20. This translated into an improved RevPAR of Rs 4,287 which increased by 11% vs Q3FY23 and by 55% vs Q4FY20. In Q4FY23, Lemon Tree Hotel’s RevPAR grew 55% whereas the branded hotel industry grew 41% vs Q4FY20.

The net EBITDA margin for the company in Q4FY23 was industry-leading at 55.7% which increased by 146 bps vs Q3FY23 and by 1,926 bps vs Q4FY20. The PAT for Q4FY23 stood at Rs 59 Cr, which increased by 22% vs Q3FY23. In Q4FY20, we had a negative PAT of Rs 19 Cr. Our cash profit stood at Rs 82.5 crore which increased by 14% vs Q3FY23 and by 845% vs Q4FY20.
As of 31st March 2023, our gross debt stood at Rs 1,746 crore and the average cost of borrowings stood at 9.08% while the weighted average cost of borrowing for the full year was 8.38%.

During the quarter we signed 9 new management & franchise contracts which add 538 new rooms to our pipeline. As of 31st March 2023, our operational inventory comprised 88 hotels with 8,382 rooms and our pipeline comprised 42 hotels with 3,285 rooms.

For FY24, I will refrain from giving any specific guidance other than saying that our growth momentum continues and that we will be investing significantly more than normal in renovating our hotels, especially the Keys portfolio, to catch up with the near absence of this during FY21 and FY22. This will increase our operating expenses by a further 2 to 2.5% on a revenue basis for this year, but will position our hotels to capture better pricing and demand in H2 and in the following years.

Finally, post-CoVID and with the impending opening of our largest hotel, Aurika Sky City Mumbai, we would now like to share the roadmap for the next five years which has been released alongside the earnings presentation where we have set forth clear and achievable outcomes for the next 5 years.”

 

Result PDF

 Lemon Tree Hotels announced Q1FY23 Result :

  • Revenue from operations stood at Rs. 192.0 Cr in Q1 FY23, up 356% as compared to Rs. 42.2 Cr in Q1 FY22. On a sequential basis, revenue from operations increased 61% from Rs. 119.5 Cr in Q4 FY22
  • ARR increased by 104% from 2,362 in Q1 FY22 to 4,822 in Q1 FY23. On a sequential basis, ARR increased by 18% from Rs. 4,093 in Q4 FY22
  • Occupancy on full inventory increased by 3,546 bps from 29.6% in Q1 FY22 to 65.1% in Q1 FY23. On a sequential basis, the occupancy on full inventory increased by 1,894 bps from 46.1% in Q4 FY22
  • Total expenses stood at Rs. 99.7 Cr in Q1 FY23, up 136% as compared to Rs. 42.2 Cr in Q1 FY22 on back of increase in occupancy level. On a sequential basis, expenses increased by 21% from Rs. 82.7 Cr in Q4 FY22
  • Net EBITDA increased by 4422% from Rs. 2.0 Cr in Q1 FY22 to Rs. 92.6 Cr in Q1 FY23. EBITDA without other income increased from Rs. -0.1 Cr in Q1 FY22 to Rs. 92.4 Cr in Q1 FY23. On a sequential basis, Net EBITDA increased 108% from Rs 44.5 Cr in Q4 FY22. EBITDA without other income increased from Rs. 36.8 Cr in Q4 FY22 to Rs. 92.4 Cr in Q1 FY23
  • Net EBITDA margin expanded by 4,354 bps from 4.6% in Q1 FY22 to 48.2% in Q1 FY23. EBITDA margin without other income increased from -0.2% in Q1 FY22 to 48.1% in Q1 FY23. On a sequential basis, the Net EBITDA margin has expanded by 1,320 bps from 35.0% in Q4 FY22. EBITDA margin without other income expanded by 1,728 bps from 30.8% in Q4 FY22.
  • Profit after tax improved from Rs. -59.8 Cr in Q1 FY22 to Rs. 13.6 Cr in Q1 FY23. The PAT in Q4 FY22 was Rs. -39.2 Cr
  • Cash Profit for Q1 FY23 stood at Rs. 42.9 Cr vs Rs. -33.6 Cr in Q1 FY22. The Cash Profit in Q4 FY22 was Rs. 2.6 Cr

 

 

Result PDF

Lemon Tree Hotels announced Q3FY22 results:

  • Revenue from operations stood at Rs. 143.7 Cr in Q3 FY22, up 110% as compared to Rs. 68.4 Cr in Q3 FY21. On a sequential basis, revenue from operations increased 48.3% from Rs. 96.9 Cr in Q2 FY22
  • ADR increased by 54.3% to 3,901 in Q3 FY22 from 2,528 in Q3 FY21. On a sequential basis, ADR increased by 28.8% from Rs. 3,028 in Q2 FY22
  • Occupancy on full inventory increased by 1,513 bps to 57.6% in Q3 FY22
  • Total expenses stood at Rs. 80.4 Cr in Q3 FY22 up by 66.4% as compared to Rs. 48.3 Cr in Q3 FY21. On a sequential basis, expenses increased by 27.5% from Rs. 63.0 Cr in Q2 FY22
  • EBITDA increased by 194% to Rs. 65.6 Cr in Q3 FY22 from Rs. 22.3 Cr in Q3 FY21. EBITDA without other income increased by 215% to Rs. 63.3 Cr in Q3 FY22 from Rs. 20.1 Cr in Q3 FY21. On a sequential basis, EBITDA increased 83.3% from Rs 35.8 Cr in Q2 FY22 and EBITDA without other income increased 86.8% from Rs. 33.9 Cr in Q2 FY22
  • EBITDA Margin increased by 1,334 bps to 44.9% in Q3 FY22 from 31.6% in Q3 FY21. EBITDA Margin without other income increased by 1,468 bps to 44.0% in Q3 FY22 from 29.4% in Q3 FY21. On a sequential basis, EBITDA Margin increased 873 from 36.2% in Q2 FY22 and EBITDA Margin without other income increased 909 bps from 35.0% in Q2 FY22
  • Profit after tax improved to Rs. -5.2 Cr in Q3 FY22 from Rs. -45.7 Cr in Q3 FY21. The PAT in Q2 FY22 was Rs. -33.2 Cr
  • Cash Profit for Q3 FY22 stood at Rs. 20.2 Cr vs Rs. -18.4 Cr in Q3 FY21. The Cash Profit in Q2 FY22 was Rs. -6.9 Cr

 

Result PDF

Consolidated Financial:

  • Revenue:
    • Revenue from operations stood at Rs. 96.9 Cr in Q2 FY22, up 104% as compared to Rs. 47.6 Cr in Q2 FY21. On a sequential basis, revenue from operations increased 129.9% from Rs. 42.2 Cr in Q1 FY22
    • ADR increased by 14.1% from 2,654 in Q2 FY21 to 3,028 in Q2 FY22. On a sequential basis, ADR increased by 28.2% from Rs. 2,362 in Q1 FY22
    • Occupancy on full inventory increased by 1,860 bps from 32.4% in Q2 FY21 to 51.0% in Q2 FY22. On a sequential basis, the occupancy on full inventory increased by 2,135 bps from 29.6% in Q1 FY22
  • Cost: 
    • Total expenses stood at Rs. 63.0 Cr in Q2 FY22 up by 60.4% as compared to Rs. 39.3 Cr in Q2 FY21. On a sequential basis, expenses increased by 49.2% from Rs. 42.2 Cr in Q1 FY22
  • Operating Margins
    • EBITDA increased by 150% from Rs. 14.3 Cr in Q2 FY21 to Rs. 35.8 Cr in Q2 FY22. EBITDA without other income increased by 308% from Rs. 8.3 Cr in Q2 FY21 to Rs. 33.9 Cr in Q2 FY22. On a sequential basis, EBITDA increased 1647% from Rs 2.0 Cr in Q1 FY22. EBITDA without other income increased from Rs. -0.1 Cr in Q1 FY22 to Rs. 33.9 Cr in Q2 FY22
    • EBITDA margin increased by 951 bps from 26.7% in Q2 FY21 to 36.2% in Q2 FY22. EBITDA margin without other income increased by 1,750 bps to 35.0% in Q2 FY22 from 17.5% in Q2 FY21. On a sequential basis, the EBITDA margin increased by 3159 bps from 4.6% in Q1 FY22. EBITDA margin without other income increased by 3514 bps to 35.0% in Q2 FY22 from -0.2% in Q2 FY21.
  • Profit after tax
    • Profit after tax improved from Rs. -53.5 Cr in Q2 FY21 to Rs. -33.2 Cr in Q2 FY22. The PAT in Q1 FY22 was Rs. -59.8 Cr
    • Cash Profit for Q2 FY22 stood at Rs. -6.9** Cr vs Rs. -4.6* Cr in Q2 FY21. The Cash Profit in Q1 FY22 was Rs. -33.6** Cr

 

Result PDF

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