Lemon Tree Hotels Limited — PPTs, 14-11-2024: Investor Presentation

**Financial Highlights:** Lemon Tree Hotels reported Q2 FY25 revenue of Rs. 284.8 Cr, marking a 24% increase year-over-year (YoY). Net EBITDA stood at Rs. 131.2 Cr, a 25% rise YoY, resulting in an EBITDA margin of 46.1%. Cash profit reached Rs. 69.8 Cr, up 43% YoY, indicating strong operational efficiency.

**Strategic Initiatives and Growth Drivers:** The company is focusing on renovation projects, positing these enhancements as key to capturing higher pricing within the mid-market segment. During Q2, 19 new management & franchise contracts were signed, adding 1,373 rooms to its development pipeline.

**Business Developments:** Lemon Tree opened five hotels, contributing 193 new rooms to its portfolio. Management fees from third-party owned hotels grew by 28% YoY, with total management fees increasing by 32% YoY to Rs. 31.8 Cr.

**Market Position and Competitive Advantage:** With 112 operational hotels totaling 10,318 rooms, Lemon Tree is well-positioned amidst robust demand growth in the hospitality sector. The occupancy rate was 68.4%, slightly down from the previous year, though RevPAR improved by 7% YoY to Rs. 4,035.

**Investor Implications:** The promising revenue growth and successful project execution signal a positive outlook. However, investors should monitor the impacts of renovation expenses and occupancy fluctuations on net profitability moving forward.