Lemon Tree Hotels Limited — PPTs, 29-05-2025: Investor Presentation

1. Financial Highlights:

Lemon Tree Hotels reported revenue of Rs. 379.4 Cr, up 15% YoY, with net EBITDA rising 17% to Rs. 205 Cr and margin expanding by 109 bps to 54%. Occupancy improved to 77.6%, boosting RevPAR by 15% to Rs. 5,462. Full-year revenue grew 20% to Rs. 1,288 Cr, EBITDA rose 20% to Rs. 637 Cr, PAT increased 34% to Rs. 243 Cr, and cash profit jumped 30% to Rs. 382 Cr. Net debt reduced by Rs. 190 Cr to Rs. 1,699 Cr, improving Debt/EBITDA to 2.67x from 3.57x. Management fees gained 16% in Q4 and 22% for the year. Renovation expenses edged up to 2.7% of revenue but are expected to stabilize.

2. Strategic Initiatives & Growth Drivers:

The company accelerated room additions with 15 new management/franchise contracts adding 833 rooms and two hotel openings contributing 121 rooms in Q4. The total portfolio stands at 212 hotels with 17,116 rooms across 130+ destinations, including 111 operational hotels (10,269 rooms). Lemon Tree aims to add over 3,000 rooms by FY26, hitting 20,000 rooms three years ahead of target. The revamped Infinity 2.0 loyalty program, backed by website tech upgrades, targets increasing retail demand share from 45% to 66% by CY28.

3. Business Developments:

New hotel launches include Keys Lite Vadodara and Keys Prima Kota (121 rooms). The development pipeline features projects in India and Nepal, such as Aurika Shimla and Aurika Shillong. Expansion focuses on urban and emerging markets using asset-light management and franchise models.

4. Market Position & Competitive Advantage:

Lemon Tree is a leading mid-market hotel chain in India with seven brands spanning metros, tier I-III cities, and international locations (Dubai, Bhutan, Nepal). It leverages digital capabilities, ESG initiatives, and a steady EBITDA margin (~50%) to differentiate. A strong balance sheet and consistent margin growth enhance its competitive edge.

5. Investor Implications:

Strong financial growth combined with an aggressive room expansion pipeline indicates positive growth potential. Stable margins despite renovation spend and reduced leverage highlight operational strength. Execution on room additions and retail demand ramp-up through loyalty and technology remain key areas to watch. Overall, the outlook is favorable with scalable, strategic growth momentum.