Lemon Tree Hotels Limited has informed the Exchange about Transcript
LEMONTREE · price
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Lemon Tree Hotels reported its highest-ever Q1 revenue of Rs. 317.4 crore, up 18% YoY, with net EBITDA rising 23% to Rs. 142 crore (margin of 44.8%, up 178 bps) and PAT jumping 139% to Rs. 48.1 crore. Cash profit grew 51% to Rs. 82.3 crore, while debt fell by Rs. 206 crore YoY to Rs. 1,658 crore, with the company targeting to be debt-free as a group in the next 18 months. Management signed 14 new management and franchise contracts adding 1,273 rooms to the pipeline, raised its long-term room target to 30,000–40,000 (from 20,000), and outlined a demerger plan to separately list Fleur Hotels as an asset-heavy entity by end of next year. They also guided that renovation and tech costs will drop from 6% to 2–2.25% of revenue over the next 15 months, leading to meaningful margin expansion.
Strong Q1 performance, falling debt, and a clear roadmap for the Fleur demerger and aggressive asset-light growth are positive for shareholders. Margin tailwinds should kick in once the heavy renovation cycle winds down, and the loyalty program (2.1 million members) supports future occupancy growth.