Conference Call with Lemon Tree Hotels Management and Analysts on Q3FY25 Performance and Outlook. Listen to the full earnings transcript.
Hotels company Lemon Tree Hotels announced Q3FY25 results Total Revenue: Rs 355.8 crore, Up 22%. EBITDA: Rs 184.8 crore, Up 30%. EBITDA margin: 51.9%, Up 316 bps. PAT: Rs 79.9 crore, Up 82%. Cash Profit: Rs 114.9 crore, Up 49%. Patanjali Keswani, Chairman & Managing Director, Lemon Tree Hotels, said: “Lemon Tree recorded its highest-ever third-quarter revenue this year. At Rs 355.8 crore, our revenue grew by 22% compared to Q3FY24, while Net EBITDA grew 30% YoY to Rs 184.8 crore, translating into a Net EBITDA Margin of 51.9%, which increased by 316 bps YoY. Q3FY25 recorded a Gross ARR of Rs 6,763, which increased by 7% YoY. The occupancy for the quarter stood at 74.2%, an increase of 826 bps YoY. This translated into a RevPAR of Rs 5,018, which increased by 21% YoY. Fees from management and franchised contracts for third-party-owned hotels stood at Rs 18.4 crore in Q3FY25, an increase of 24% YoY. Fees from Fleur Hotels stood at Rs 25.3 crore in Q3FY25, an increase of 45% YoY. Total management fees for Lemon Tree stood at Rs 43.7 crore in Q3FY25, an increase of 35% YoY. The company's profit after tax stood at Rs 79.9 crore in Q3FY25, an increase of 82% YoY. Cash profit for the company stood at Rs 114.9 crore in Q3FY25, an increase of 49% YoY. On the business development front, this quarter, Lemon Tree received a Letter of Award from the Directorate of Tourism, Government of Meghalaya, for the redevelopment, operation, and maintenance of the existing Orchid Hotel, Shillong, under the Design, Build, Finance, Operate, and Transfer mode on a PublicPrivate Partnership basis. This will be redeveloped as Aurika, Shillong, and is expected to become operational within the next three years. The property will feature 120 elegantly designed rooms and suites, Mirasa – the all-day dining restaurant, Ariva – the bar, expansive banquet spaces, and rejuvenating recreational facilities, including a well-equipped fitness center and spa. This hotel is situated in the prime location of Polo Market, opposite the Chief Minister’s Bungalow. This is the first Public-Private Partnership undertaken by Lemon Tree Hotels. The project qualifies for capital subsidy and various incentives, including GST reimbursement, under the Meghalaya Industrial and Investment Promotion Policy 2024 and the Uttar Poorva Transformative Industrialisation Scheme 2024. On the asset-light side, we signed 13 new management and franchise contracts, adding 766 new rooms to our pipeline, and operationalized one hotel, adding 38 rooms to our portfolio. As of December 31, 2024, the inventory for the group stands at 112 operational hotels with 10,317 rooms and a pipeline of 88 hotels with 6,068 rooms. Going forward, we are confident in the company’s ability to sustain this growth in the coming quarters by focusing on the following growth levers: (A) Accelerated growth in our management and franchised portfolio, with a proportionate increase in fee-based income. (B) Timely completion of renovation activities in the owned portfolio to further improve Gross ARR and occupancy. Please note that the increased investment in renovation expenses will continue into FY26 until the entire portfolio of owned hotels has been fully renovated and refreshed. Post this, renovation expenses will be close to 1.8% of revenue on an ongoing basis. With demand growth expected to outpace supply in the next few years and increasing discretionary spending on branded hotels in India, our increased investment in renovation will allow us to position Lemon Tree as the preferred brand in the mid-market segment.” Result PDF