Latest news with #LemonTreeHotels
Entrepreneur
2 days ago
- Business
- Entrepreneur
How Is Air Connectivity Catalyzing India's Growth
You're reading Entrepreneur India, an international franchise of Entrepreneur Media. In 10-15 years India's aviation industry has potential to evolve into a 10 billion dollar market by domestically manufacturing avionics, structural components and electronics. With 2,200 aircraft orders expected to reach India, there is unprecedented scope of growth in the sector. "It's just the beginning of the aviation boom in India. Manufacturing and trade are critical components of the vision of making India grow further in the sector," said Ananth Narayanan, Senior Vice President & Chief Industry Officer, Invest India. Stating Infrastructure as one of the key growth drivers in India, Narayanan added that connectivity is a crucial factor that foreign investors often look for, before investing in India. There are high frequency indicators of consumption and finally the Indian economy is growing at scale. "About 75 to 80 percent of Indian consumption comes from 200 cities. And this will further grow as urbanization would jump by 40 to 50 percent. We want to be present in every city which is fostering this growth as connectivity improves over time," said Patu Keswani, Chairman and MD, Lemon Tree Hotels. "Wherever we have put up a hotel within half an hour of range from an airport, we have seen material difference in uptick of booking," Keswani added. Consumption of airline seats has grown 13 percent in the last five years. Hotel capacities have grown 16 percent in the last ten years. "In the next four years, tailwinds will lead to a discretionary change in tourism consumption in India. We estimate around 100 millions would be travelling outside India, and through our loyalty programme, we aim to leverage the opportunity, Keshwani explained. India's airlines continue to achieve double-digit growth, with 240 million passengers flying annually—surpassing the total population of most countries worldwide. Aspirations do not lie in top five to six cities, it resides in Tier II, III, IV and beyond. "We have moved from having 5 to 50 centers in India and next year we might reach 100 branch centers because the aspirational push in India is coming from across the country and not only lies in the top metros," said Radhika Gupta, MD & CEO, Edelweiss Asset Management Limited. "When you want to deliver financial products you have to be present on the ground. In order to make capital market products or financial products accessible, infrastructure and connectivity of geographies play a crucial role. Inflows of both foreign and domestic capital are dependent on on-ground developments such as factories, offices, etc. And these are further bolstered by seamless connectivity. Wherever there is connectivity there is scope of development," Gupta added. Indian aviation is realizing the enormous potential of a market of 1.4 billion people as it catalyzes growth in tourism and investment that is critical to India's national development. The panelists were speaking at the 81st Annual General Meeting (AGM) of the International Air Transport Association (IATA) at Bharat Mandapam in New Delhi. The panel examined the impact of aviation and how it contributes to social and economic development as a force.
Time of India
3 days ago
- Business
- Time of India
Lemon Tree Hotels Expands Presence in India with New Properties in Gujarat and Haryana, ET HospitalityWorld
Hotels 1 min read Lemon Tree Hotels signs two new properties in Gujarat & Haryana Lemon Tree Premier, Somnath will feature 70 rooms, a restaurant, a banquet, a meeting room, a swimming pool, a spa and other public areas while Keys Lite by Lemon Tree Hotels, Ambala will have 44 rooms, a restaurant, F & B venues like lounge, pool deck, a banquet hall, a swimming pool, a fitness centre and other public areas.
Yahoo
3 days ago
- Business
- Yahoo
Lemon Tree Hotels Ltd (BOM:541233) Q4 2025 Earnings Call Highlights: Record Revenue and ...
Release Date: May 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Lemon Tree Hotels Ltd (BOM:541233) recorded its highest ever fourth-quarter revenue at INR 379.4 crores, marking a 15% year-on-year growth. The company's net EBITDA grew by 17% year-on-year to INR 205 crores, translating into a net EBITDA margin of 54%, an increase of 109 basis points. The total revenue for the year stood at INR 1,288 crores, a 20% increase over the previous fiscal year. The company's profit after tax increased by 29% year-on-year to INR 108.1 crores in Q4. The debt of the company decreased by about INR 190 crores during the year, improving the debt-to-EBITDA ratio by 25%. The retail average room rate (ARR) in some locations, like Oria Mumbai, remains below expectations, impacting potential revenue growth. Renovation expenses increased to 2.7% of revenue, which is expected to continue into the next year, affecting short-term profitability. The occupancy rate, while improved, still requires strategic pricing adjustments to maximize revenue, especially in high-demand periods. The expansion of managed and franchise contracts is slower than anticipated, with delays attributed to third-party owners. Geopolitical developments and COVID-19 impacts have led to a significant revenue growth slowdown in certain regions, such as Northern India. Warning! GuruFocus has detected 2 Warning Sign with BOM:524332. Q: Can you provide an update on the developments at Oria Mumbai, particularly regarding the ARR and future pricing expectations? A: The retail pricing at Oria Mumbai varies significantly, and while current spot checks show lower rates, we expect the ARR to increase significantly during the high season. The focus has been on filling the hotel, and with occupancy now over 80%, we are confident that the ARR will reach the 11,000 to 12,000 range in the upcoming winter season. (Respondent: Chairman and Managing Director) Q: What steps are being taken to increase the retail share from 45% to 65%, and how will this impact the income statement? A: The increase in retail share is expected due to rising demand from individual travelers. We are enhancing our loyalty program and website to capture more direct bookings, which will reduce costs and increase margins. We anticipate achieving the 65% retail target within three years. (Respondent: Chairman and Managing Director) Q: With renovation costs expected to decrease by FY28, what is the projected EBITDA margin for that year? A: We expect the EBITDA margin to reach at least 55% by FY28, up from the current 50%. This is due to reduced renovation expenses and increased revenue growth. (Respondent: Chairman and Managing Director) Q: Can you explain the strategy behind the limited expansion in the upscale Lemon Tree Premier segment? A: Our strategy focuses on expanding into tier 2 and tier 3 cities, which typically support mid-market hotels rather than upscale ones. This network expansion aims to increase brand presence and drive demand across our portfolio. (Respondent: Chairman and Managing Director) Q: What is the status of the renovation projects, and how many rooms are expected to be renovated in the coming years? A: We have completed about 70% of the renovations, focusing on high-value hotels and Keys properties. We plan to renovate another 30% this year, with the remaining minor refurbishments continuing into the next year. (Respondent: Chairman and Managing Director) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Business Standard
6 days ago
- Business
- Business Standard
Lemon Tree Q4 PAT rises 26% YoY to Rs 85 cr
Lemon Tree Hotels reported a 26.37% jump in consolidated net profit to Rs 84.64 crore, while revenue from operations rose 15.64% to Rs 378.51 crore in Q4 March 2025 over Q4 March 2024. Profit before tax (PBT) stood at Rs 122.25 crore in Q4 FY25, up 37.31% year-on-year and 22.85% quarter-on-quarter. EBITDA came in at Rs 205 crore, registering a 17% increase YoY and an 11% rise sequentially. The EBITDA margin stood at 54% in Q4 FY25, supported by operating leverage and cost optimization initiatives. During the quarter, gross ARR (average revenue per room) increased 7% YoY to Rs 7,042 crore during the quarter, while the occupancy rate jumped to 77.6% in Q4 FY25. RevPAR (revenue per available room) jumped 15% to Rs 5,462 crore in Q4 FY25, compared with Rs 4,754 crore in Q4 FY24. Patanjali Keswani, chairman & managing director, Lemon Tree Hotels, said, In Q4, this year Lemon Tree recorded its highest-ever fourth-quarter revenue. At Rs 379.4 crore, our revenue grew by 15% compared to Q4 last year, while net EBITDA grew 17% Y-o-Y to Rs 205.0 crore, translating into a net EBITDA margin of 54.0%, which increased by 109 bps Y-o-Y. Fees from management and franchised contracts for third-party-owned hotels stood at Rs 16 crore in Q4 FY25, an increase of 11% Y-o-Y. Fees from Fleur Hotels stood at Rs 28.3 crore in Q4 FY25, an increase of 19% Y-o-Y. Total management fees for Lemon Tree stood at Rs 44.4 crore in Q4 FY25, an increase of 16% Y-o-Y, and Rs 149 crore for the full year, an increase of 22% over FY24. The company's profit after tax stood at Rs 108.1 crore in Q4 FY25, an increase of 29% Y-o-Y. Cash profit for the company stood at Rs 143.0 crore in Q4 FY25, an increase of 22% Y-o-Y. Total cash profit generated by the company during FY25 stood at Rs 382.4 crore, an increase of 30% over FY24. The debt for the company decreased by Rs 190 crore during the year, from Rs 1889 crore in FY24 to Rs 1699 crore in FY25. The debt/EBITDA ratio in FY25 for the company stood at 2.67x, which is a 25% reduction over 3.57x in FY24. On the asset-light side, in Q4 we signed 15 new management and franchise contracts, adding 833 new rooms to our pipeline, and operationalized 2 hotels, adding 121 rooms to our operational portfolio. As of March 31, 2025, the total inventory for the group stands at 212 hotels and 17,116 rooms, divided into 10,269 rooms and 111 hotels being operational and the rest in the pipeline. Lemon Tree Hotels (LTHL) is one of the largest hotel chains in India and owns/leases/operates/franchises hotels across the upscale, upper-midscale, midscale, and economy segments. The group offers seven brands to meet guests needs across all levels, viz., Aurika Hotels & Resorts, Lemon Tree Premier, Lemon Tree Hotels, Red Fox Hotels by Lemon Tree Hotels, Keys Prima by Lemon Tree Hotels, Keys Select by Lemon Tree Hotels, and Keys Lite by Lemon Tree Hotels. Shares of Lemon Tree Hotels (LTHL) fell 1.22% to Rs 140.50 on the BSE.
Mint
7 days ago
- Business
- Mint
Lemon Tree Hotels expects strong revenue growth in FY26, lifted by biz travel
Hospitality chain Lemon Tree Hotels expects a strong revenue growth this fiscal year, lifted by a rebound in business travel and expansion across its various hotel segments. The positive outlook is underpinned by rising room rates and increasing occupancy levels, the company said. The company has also seen a stabilization of key assets like its 670-room Aurika Mumbai hotel, which have helped buoy its revenue. Also Read | The great hotel rush to India's least explored corner Lemon Tree Hotels' chairman and managing director Patanjali G. Keswani, speaking exclusively to Mint, said the company crossed ₹100 crore in quarterly net profit for the first time in January-March 2025, driven by strong occupancies in core business hubs. With 100 new hotels in the pipeline and a push to list its Fleur Hotels subsidiary to become debt-free, Keswani said Lemon Tree is positioning itself to tap rising demand for branded hotels across India—including in the vast unorganized sub-40-room segment—as more Indian households begin to travel. For the fiscal year ended 31 March 2025, the company on Thursday reported a revenue from operations of ₹1,286 crore, up 20% from FY24's ₹1,071 crore. Net profit for the year rose 34% to ₹243.1 crore. Also Read | Lemon Tree eyes shared loyalty alliances with international hotel chains "Our growth was driven across our various brands, and across the board, partly driven by occupancy and partly by average room rates. In Q4, Aurika Mumbai also stabilized and our occupancy stood at 77-78%, growing 6-7% year-on-year," he said. Business travel has now returned to normal for the company. Markets like Hyderabad maintained their occupancy upwards of 80%, he said. Mumbai, Bengaluru and Delhi also picked up in terms of occupancies as well as room rates. "Most of our key markets—which anyway are focused on business travel—did well, with some cities like Bengaluru picking up. This helps as a large part of our capital structure is in business hotels and this led to us crossing ₹100 crore of net profit in a quarter," he added. Also Read | Lemon Tree's renovation drive leaves little room for re-rating The hospitality company with a market capitalization of more than ₹10,000 crore currently operates 116 hotels, consisting of 41 owned properties with about 5,800 rooms, and 75 managed hotels with around 4,900 rooms. The company is also developing 100 new hotels, which will add approximately 6,600 rooms to its portfolio. Since April 2024, it has signed about 50 new hotels across various locations in the country. In September, Fleur Hotels Pvt. Ltd was converted from a private limited company into an unlisted public company, with plans to list it by December 2026 to pare debt and fuel expansion. Fleur, which houses flagship properties like Lemon Tree Premier, Delhi Aerocity and Aurika Mumbai International Airport, and a few owned hotels, is expected to generate over ₹700 crore in annual Ebitda post-listing, with management fees from it contributing ₹150-180 crore annually to the parent company. "It will be our top-priority to list Fleur and go debt free, but even if we don't list it, it will be debt free in the next three years," he said. For Q1 FY26, he said some business demand for hotels and retail demand too came down owing to the Pahalgam terror attack as well as the subsequent resurgence of covid. "But despite that we do see that we will do mid-teens growth in Q1 and the full year on a same store and same hotel basis. Basis this, the company expects to target a mid-teen revenue growth this fiscal." The company had been spending on renovating its rooms across various hotels and has spent about ₹100-130 crore a year for the last two years. This will continue into FY26 as well. "We are maintaining and in some hotels increasing our Ebitda margins in spite of increasing our renovation costs. Costs in technology upgradation, distribution, payroll, marketing spends have also increased. Despite that, our revenue growth is greater than our cost growth," he added. The company is renovating the entire Keys portfolio, which operates in the budget to midmarket segment. Lemon Tree acquired this portfolio of hotels in 2019, which added about 7,800 rooms and about 77 hotels to its portfolio then. The Keys portfolio includes three distinct brands: Keys Prima, Keys Select and Keys Lite. When Mint spoke to Keswani in December 2024, he outlined the company's strategy to capture future growth as demand for branded hotel rooms in the country is expected to outpace supply. Keswani said the company planned to leverage its strong brand presence and move up the pricing curve. He said that Lemon Tree had added more rooms in the past 12 years than any other hotel chain in the country. In December, Keswani also spoke about plans to create a brand to capture the vast unorganized hotel segment of sub-40-room properties across the country's smaller cities, aiming to tap into an under-penetrated market of over 1.2 million such rooms. Currently, India has about 200,000 branded hotel rooms, a number which is expected to grow to 300,000 by FY30. The country's growing economy and rising domestic travel, he said, are likely to push the number of households using branded hotels to 30 million, from the current five million, creating unprecedented demand for organized accommodation.
