Lemon Tree Hotels announced Q3FY24 results: Financial Performance Summary Total Revenue: Rs 290.9 crore in Q3FY24, marking an increase of 24% compared to Q3FY23. EBITDA: Rs 141.9 crore in Q3FY24, which is a 12% rise YoY. EBITDA Margin: Reported at 48.8% for Q3FY24, a decrease of 547 basis points from Q3FY23. Profit After Tax (PAT): Fell by 10% to Rs 43.8 crore in Q3FY24. Cash Profit: Up by 7% to Rs 77.1 crore in Q3FY24. Operational Highlights Inventory (Owned/Leased rooms): Increased by 13% year-over-year with the total count of operational rooms reaching 9,687. Average Room Rate (ARR): Gross ARR reached Rs 6,333 in Q3FY24, which is a 10% increase year-over-year. Occupancy Rate: Slight decrease of 163 basis points year-over-year, registering at 65.9% in Q3FY24. Development and Expansion New Signed Contracts: 9 new management & franchise contracts were signed in Q3FY24, adding 621 rooms to the pipeline. Hotels Operationalized: 6 hotels operationalized in Q3FY24, contributing an additional 967 rooms. Future Inventory: By the end of FY24, the company expects to have over 105 hotels with more than 10,000 rooms. Commenting on the performance for Q3FY24, Patanjali Keswani, Chairman & Managing Director of Lemon Tree Hotels, stated: “In Q3, Lemon Tree Hotels continued its growth momentum from the previous year. Q3FY24 has been the best-ever Q3 performance in terms of Gross ARR, Revenue & EBITDA. Q3FY24 recorded a Gross ARR of Rs 6,333 which increased by 10.4% YoY and increased by 20.2% QoQ. Occupancy for the quarter decreased by 163 basis points (bps) YoY and by 572 bps QoQ. This translated into a RevPAR of Rs 4,176 which increased by 7.7% YoY and by 10.6% QoQ. Total Revenue for the company in Q3 was Rs 290.9 crore, which was higher by 24.2% YoY and 26.4% QoQ. The Net EBITDA margin for the company in Q3FY24 stood at 48.8%, which decreased by 547 bps YoY and increased by 325 bps QoQ. The decrease in EBITDA margin YoY was mainly owing to a planned increase in renovation expenses above that spent in Q3FY23 and the deflationary impact of Aurika, Mumbai Skycity which opened on 5th October 2023 and is not yet stable. The renovation expense for the portfolio increased by Rs 5.5 crore YoY and Rs 4.8 crore QoQ, which translated into a reduction in EBITDA Margin % by approximately 2 percentage points. The Keys portfolio EBITDA Margin % decreased by approximately 9 percentage points QoQ due to an increase in renovation expenses of Rs 1.8 crore over the previous quarter. Fees from management & franchised contracts for 3rd party owned hotels stood at Rs 14.9 crore in Q3FY24, up 52% from Rs 9.8 crore in Q3FY23. Total management fees for Lemon Tree (including fees from Fleur Hotels) were up 25% YoY at Rs 32.3 crore compared to Rs 25.8 crore in Q3FY23. Hotel level revenue from the owned portfolio increased by 18% YoY and the Network Revenue for Lemon Tree (i.e., total system revenue of owned including Aurika, MIAL and managed/franchised hotels) also increased by 18% YoY. Total network revenue stood at Rs 1,128 crore for 9MFY24 as compared to Rs 954 crore in 9MFY23. During the quarter, we signed 9 new management & franchise contracts which added 621 new rooms to our pipeline and operationalized 6 hotels which added 967 rooms to our portfolio. We are pleased to announce that as of 31st Dec 2023, our operational inventory comprised 100 hotels with 9,687 rooms and our pipeline comprised 55 hotels with 3,746 rooms. As of now, we expect our operational inventory to be 105+ hotels with over 10,000+ rooms by the end of FY24. The launch of Aurika, Mumbai Skycity represents a major milestone in our growth journey. The hotel has already started to contribute positively to our portfolio, attracting both business and leisure travelers with its luxury facilities, prime location, and exceptional service. With no major capital expenditure plans in the near future, we will focus on strengthening our balance sheet and starting next year we will be reducing our debt which will peak by the end of FY24.” Result PDF