Promoted by Patanjali Keswani, Lemon Tree is the largest hotel chain in the mid-priced segment in India. It operates 8,489 rooms in 87 hotels across 54 destinations in India and abroad under brands like Aurika (premium), Lemon Tree premier, Lemon Tree (midscale), RedFox (economy) and Keys.
The favourable location of its properties in prominent business and tourist districts supports revenue growth prospects and reduces concentration risk
Post completion of expansion, LTHL will be operating ~10,462 rooms in 105 hotels across 64 destinations, in India and abroad by FY24E
Q3FY23 Results:
Lemon tree’s Q3FY23 performance remained ahead of our estimates bolstered by strong room rates and focus on cost optimisation.
Revenues grew 62.6% YoY to ₹ 233.5 crore (up 18.7% QoQ). They were also up 17% from pre-Covid levels (i.e. Q3FY20)
On an absolute basis, operating costs were down 10% from pre-Covid levels This led to a sharp margin expansion of ~1348 bps to 54.2% (vs. our estimate of 49%) from pre-Covid levels
PAT improved to ₹ 48.3 crore in Q3FY23 vs. net loss of ₹ 5.2 crore last year and net profit of ₹ 11.1 crore during Q3FY20
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.
Lemon Tree Hotels Ltd. is India’s largest chain in the mid-priced hotel sector. It opened its first hotel in May 2004 with 49 rooms. The company’s headquarters are in New Delhi. During FY 2021-2022, the hotel chain reported a total revenue of Rs 416.27 crore, up 57.10% from the previous financial year, 2020-2021. On 29 August 2022, its market capitalisation stood at Rs HYPERLINK "https://www.moneycontrol.com/india/stockpricequote/hotels/lemontreehotelsltd/LTH" 5,387 crore.
The company is listed on the Bombay Stock Exchange with the code 541233 and on the National Stock Exchange with the code LEMONTREE.
Lemon Tree Hotels Ltd. operates under seven brands—Lemon Tree Premier, Aurika Hotels and Resorts, Lemon Tree Hotels, Keys Prima, Keys Lite, Keys Select, and Red Fox by Lemon Tree Hotels. The contemporary accommodation offers personal yet highly efficient service, along with premium amenities, such as a swimming pool, meeting rooms, fitness centre, business centre, and on-site restaurants.
On 30 June 2022, the company’s shareholding pattern revealed a public stake of 36.63%, a domestic institutional investor stake of 11.43%, a foreign institutional investor stake of 27.9%, and a promoter stake of 23.93%. During the June 2022 quarter, promoters unpledged 8.48% of shares, bringing the total pledge of promoters’ holdings to 14.72%. The promoters’ holdings decreased from 23.95% to 23.93%, while mutual fund holdings decreased from 12.02% to 11.03%.
Mr Patanjali Govind Keswani is the chairman and managing director of the company. Other members of the leadership team include Mr Arvind Singhania, Dr Arindam Kumar Bhattacharya, Mr Niten Malhan, Mr Ashish Kumar Guha, MrParmartha Saikia, Mr Pradeep Mathur, Mr Willem Albertus Hazeleger, Mr Aditya Madhav Keswani, and MsFreyan Jamshed Desai. The auditors of the company are Deloitte Haskins & Sells LLP. On 30 June 2022, the company had a total of 79.22 crore shares outstanding.
On 29 August 2022, Lemon Tree Hotels Ltd.’s share price closed at Rs 68.05 on BSE and it closed at Rs 68 on NSE. The 52-week high share price for Lemon Tree Hotels Ltd. was Rs 79.10, and the company’s 52-week low share price was Rs 37.30.
The company’s peers include Indian Hotels Company Ltd., Westlife Development Ltd., EIH Ltd., and Sapphire Foods India Ltd.
As of August 2022, SBI Conservative Hybrid Fund had a 0.42% stake in Lemon Tree Hotels Ltd.
Disclaimer: ICICI Securities Ltd. (I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code :07730), BSE Ltd (Member Code :103) and Member of Multi Commodity Exchange of India Ltd. (Member Code: 56250) and having SEBI registration no. INZ000183631. Name of the Compliance officer (broking): Mr. Anoop Goyal, Contact number: 022-40701000, E-mail address: complianceofficer@icicisecurities.com. Investment in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investors should consult their financial advisers whether the product is suitable for them before taking any decision. The contents herein mentioned are solely for informational and educational purpose
Lemon Tree Hotels Ltd. is India’s largest chain in the mid-priced hotel sector. It opened its first hotel in May 2004 with 49 rooms. The company’s headquarters are in New Delhi. During FY 2021-2022, the hotel chain reported a total revenue of Rs 416.27 crore, up 57.10% from the previous financial year, 2020-2021. On 29 August 2022, its market capitalisation stood at Rs HYPERLINK "https://www.moneycontrol.com/india/stockpricequote/hotels/lemontreehotelsltd/LTH" 5,387 crore.
The company is listed on the Bombay Stock Exchange with the code 541233 and on the National Stock Exchange with the code LEMONTREE.
Lemon Tree Hotels Ltd. operates under seven brands—Lemon Tree Premier, Aurika Hotels and Resorts, Lemon Tree Hotels, Keys Prima, Keys Lite, Keys Select, and Red Fox by Lemon Tree Hotels. The contemporary accommodation offers personal yet highly efficient service, along with premium amenities, such as a swimming pool, meeting rooms, fitness centre, business centre, and on-site restaurants.
On 30 June 2022, the company’s shareholding pattern revealed a public stake of 36.63%, a domestic institutional investor stake of 11.43%, a foreign institutional investor stake of 27.9%, and a promoter stake of 23.93%. During the June 2022 quarter, promoters unpledged 8.48% of shares, bringing the total pledge of promoters’ holdings to 14.72%. The promoters’ holdings decreased from 23.95% to 23.93%, while mutual fund holdings decreased from 12.02% to 11.03%.
Mr Patanjali Govind Keswani is the chairman and managing director of the company. Other members of the leadership team include Mr Arvind Singhania, Dr Arindam Kumar Bhattacharya, Mr Niten Malhan, Mr Ashish Kumar Guha, MrParmartha Saikia, Mr Pradeep Mathur, Mr Willem Albertus Hazeleger, Mr Aditya Madhav Keswani, and MsFreyan Jamshed Desai. The auditors of the company are Deloitte Haskins & Sells LLP. On 30 June 2022, the company had a total of 79.22 crore shares outstanding.
On 29 August 2022, Lemon Tree Hotels Ltd.’s share price closed at Rs 68.05 on BSE and it closed at Rs 68 on NSE. The 52-week high share price for Lemon Tree Hotels Ltd. was Rs 79.10, and the company’s 52-week low share price was Rs 37.30.
The company’s peers include Indian Hotels Company Ltd., Westlife Development Ltd., EIH Ltd., and Sapphire Foods India Ltd.
As of August 2022, SBI Conservative Hybrid Fund had a 0.42% stake in Lemon Tree Hotels Ltd.
Disclaimer: ICICI Securities Ltd. (I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code :07730), BSE Ltd (Member Code :103) and Member of Multi Commodity Exchange of India Ltd. (Member Code: 56250) and having SEBI registration no. INZ000183631. Name of the Compliance officer (broking): Mr. Anoop Goyal, Contact number: 022-40701000, E-mail address: complianceofficer@icicisecurities.com. Investment in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investors should consult their financial advisers whether the product is suitable for them before taking any decision. The contents herein mentioned are solely for informational and educational purpose
Lemon Tree Hotels share price as on 16 Sep 2024 is Rs. 133.2. Over the past 6 months, the Lemon Tree Hotels share price has increased by 6.56% and in the last one year, it has increased by 12.93%. The 52-week low for Lemon Tree Hotels share price was Rs. 100.75 and 52-week high was Rs. 158.
You can buy Lemon Tree Hotels Ltd shares through a brokerage firm. ICICIdirect is a registered broker through which you can place orders to buy Lemon Tree Hotels Ltd Share.
Company share prices and volatile and keep changing according to the market conditions. As of Sep 16, 2024 02:09 PM the closing price of Lemon Tree Hotels Ltd was Rs.133.20.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of Sep 16, 2024 02:09 PM, the market cap of Lemon Tree Hotels Ltd stood at Rs. 10,552.72 Cr.
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