Lemon Tree Hotels: Planning to add 30% inventory by FY25 (asset-light). Retail demand has picked up strongly & corporate demand is picking up as business events as well as flights are improving. Higher occupancy & better pricing would improve performance. Company has guided for EBITDA margins of 50% in FY23, compared to about 48% in H1FY23.
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Hotel - On a strong wicket - HSIE-202301271523464011426.pdf (2.2 MB)
Hotel sector Hdfc securities institutional research report enclosed
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G20 ,MICE,weddings,lower expenses cost control
hotels in a upcycle as per the hdfc report enclosed
Two hotels in two states bring on board more than 100 rooms
New Delhi, June 2, 2023: Lemon Tree Hotels Limited announced the opening of
two of its latest hotels ~Lemon Tree Hotel, Agra, and Lemon Tree Hotel, Bhopal.
With these two launches, the company makes its debut in both the cities and
also adds more than 100 rooms to its inventory.
The Company has signed a License Agreement for a 48-room property in Mashobra, Shimla, Himachal Pradesh under the Company’s brand “Lemon Tree Hotel”.
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Lemon Tree has signed license agreements for two new properties in Junagadh, Gujarat, and Chitwan, Nepal under the brand Lemon Tree Hotel and Lemon Tree Resort, respectively. Lemon Tree Hotel in Junagadh is expected to be operational by FY25, and Tigerland Safari – A Lemon Tree Resort in Chitwan, Nepal is expected to be operational in FY24 itself.
I also expect Lemon Tree to do record business this holiday season due to the continuous capacity expansion it has been doing recently, out of which many hotels are already operational. This surety is coming after I personally experienced a shortage of rooms in all premium hotels across India which are early signs of how happening all tourist spots are going to be.
Lemon Tree has opened doors to India’s largest hotel in Mumbai, Hotel Aurika which consists of 660 rooms and suites. This move is sure to add a lot to the top line as they had multiple wedding and corporate bookings even before they opened the hotel
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As it was mentioned in concall, last quarter company did not increase price, focused on occupancy. Upcoming two quarters I believe they will increase price due to events and short supply with already increased occupancy rate. Looks disposable income is rapidly rising and people are spending on higher ticket spending such as occupying branded hotels, travel, buying luxury goods.
Disclosure: Invested
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Lemon Tree in expansion spree across the country through franchise & non-franchise model: -
Mussoorie.pdf (605.5 KB)
Meerut.pdf (761.9 KB)
Kundapura.pdf (688.0 KB)
Hubli.pdf (308.9 KB)
Hissar.pdf (435.8 KB)
Gujarat.pdf (598.9 KB)
Dapoli.pdf (590.3 KB)
Bihar.pdf (449.3 KB)
Corporate amalgamantion as indicated above: -
Amalgamation.pdf (494.1 KB)
Fine performance from Lemon Tree.
Key points: -
Per mgmt, all India hotel occupancy stands at around 65% likely to increase to 70+ in the next 2 years with significant benefit likely for Lemon Tree.
Lemon Tree to focus more on retail customers than corporate
25% growth in 9M YOY seen on mgmt fees, which now contributes to ~13% of the revenue
The decrease in EBITDA margin Y-o-Y mainly due to planned increase in payroll and
renovation expenses and some impact of Aurika which is yet to stabalize
1.5 million loyalty members; 30%+ repeat customers
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Lemon Tree Hotels has opened a new franchised resort in Somnath, Gujarat, marking its seventh property in the state. The resort offers 52 rooms, a restaurant, and recreational facilities.
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Would it make sense if we extrapolate Q1-24 results with above generalized % ?
Q1-24 results:
- Income-268Cr
- PAT-20 cr.
https://www.bseindia.com/xml-data/corpfiling/AttachLive/3b48c58f-3ad0-4bbc-ba5a-9e1c1695b508.pdf
https://x.com/bastionresearch/status/1834939028023763386?t=yeYgfA_RhN54bpvxRiEuNg&s=19
Very interesting
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Lemon Tree Hotels announced execution of HOA for a new property in Gujarat
Hotel is expected to start its operations in FY 2029
This Hotel will feature 92 well-appointed rooms, a restaurant, a meeting room, a swimming pool, a spa and other public areas.
Lemon Tree | Financial Results
Lemon Tree | Management Interview
- Highest-ever revenue, EBITDA & net profit
- Q4FY25 will be strong & the momentum will continue in FY26 as well.
- Management added that company will be debt free in next 3-4 years.
Watch here
Can anybody post the complete article here. Thanks
Lemon Tree Hotels may list its subsidiary Fleur Hotels next year in an effort to become a debt-free company.
According to a source, Fleur Hotels’ listing would be completed sometime next year.
Lemon Tree has a consolidated debt of ₹1,760 crore as of December 2024, with its standalone debt being ₹300 crore, Kapil Sharma, chief financial officer (CFO), told analysts at the company’s earnings’ call during Q3 of FY25.
Patanjali Keswani, chairman and managing director, Lemon Tree Hotels, said during the earnings’ call that the company would be debt free in three years.
“I can say with certainty that it will happen in the next 1.5-2 years. If that happens, automatically we go debt free,” said Keswani.
He had also stated that Lemon Tree will continue to be a significant shareholder of Fleur Hotels.
“We think it will have a really solid listing because we think its earnings before interest, taxes, depreciation, and amortisation (Ebitda) will be $100 million when it lists,” Keswani stated in the earnings’ call.
Additionally, Lemon Tree Hotels — with 112 operational hotels as of Q3FY25 — currently has no immediate plans to add any new brand to its hotel company. It has 88 hotels in its pipeline.
“Lemon Tree is already running seven brands (Aurika Hotels and Resorts, Lemon Tree Premier, Lemon Tree Hotels, Red Fox by Lemon Tree Hotels, Keys Prima by Lemon Tree Hotels, Keys Select by Lemon Tree Hotels, and Keys Lite by Lemon Tree Hotels), and all segments are between a three-star and an upper, upscale segment,” the source added.
Corporate travellers generate most of the demand for the hotel, with 75 per cent of the company’s revenue coming from this travel segment. Leisure travellers contribute about 25-30 per cent of the revenue, the source further said.
Lemon Tree has a vast presence in India with 40 per cent of the company’s portfolio in Tier-II and Tier-III cities. The company expanded internationally with hotels opening in Dubai in December 2019, Bhutan in February 2020 and Nepal in April 2024.
The company currently has two operating hotels in Nepal and is slated to add another four. It also has two operating hotels in Bhutan and is in the process of adding another two. It is open to scouting more opportunities internationally.
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