Lemon Tree Hotels delivered strong Q1 FY26 financial results, with revenue up 18% YoY to Rs. 317.4 crore, EBITDA up 23% YoY to Rs. 142 crore, and PAT surging 139% YoY to Rs. 48.1 crore. RevPAR increased 19% YoY. The company is strategically planning a potential demerger of its asset-heavy hotels into a separate listed entity, Fleur, transforming Lemon Tree into an asset-light management and branding firm. New leadership is in place to drive significant expansion, targeting potential total rooms of 30,000-40,000. Ongoing renovations are set to boost ARRs and reduce operating costs. Management is very positive on the outlook for the seasonally strong second half.