10 August 2020 Lemon Tree Hotels (LEMONTRE) cost saving initiatives have aided in achieving positive EBITDA (higher than est.). This is commendable in our view, especially at a time when hotel players have either reported or are likely to post EBITDA loss (for players yet to announce results). Although EBITDA was above our estimates, we have maintained our FY21/22E estimates as 1QFY21 is not expected to contribute materially to FY21 EBITDA. We have a rating on the stock with TP of INR33. 1QFY21 revenue was down 71% YoY to INR407m (v/s est. ARR declined 34% YoY to INR2,626, while occupancy decreased 48.7pp to 28.9%, leading to RevPAR drop of 76% YoY to INR759. EBITDA plunged 90% YoY to INR44m (v/s est. INR3m) while Adj. loss stood at INR419m (v/s loss of INR17m last year). On same hotel basis (excluding hotels, which were commissioned over the past 12 months i.e.