Lemon Tree Hotels announced Q1FY24 results: Revenue from operations stood at Rs 222.3 crore in Q1FY24 which was down 12.0% from Rs 252.7 crore in Q4FY23 and was up 15.7% as compared to Rs 192.0 crore in Q1FY23 Gross ARR stood at Rs 5,237 in Q1FY24 which was down 10.1% from Rs 5,824 in Q4FY23 and was up 8.6% as compared to Rs 4,822 crore in Q1FY23 Occupancy% stood at 70.2% in Q1FY24 which was down 339 bps from 73.6% in Q4FY23 and was up 514 bps as compared to 65.1% in Q1FY23 Total expenses stood at Rs 117.8 crore in Q1FY24 which was up 4.4% from Rs 112.8 crore in Q4FY23 and was up 18.1% as compared to Rs 99.7 crore in Q1FY23 Net EBITDA stood at Rs 106.8 crore in Q1FY24 which was down 24.7% from Rs 141.9 crore in Q4FY23 and was up 15.4% as compared to Rs 92.6 crore in Q1FY23 Net EBITDA margin% stood at 47.6% in Q1FY24 which was down 815 bps from 55.7% in Q4FY23 and was down 60 bps as compared to 48.2% in Q1FY23 PAT stood at Rs 27.5 crore in Q1FY24 which was down 53.4% from Rs 59.0 crore in Q4FY23 and was up 102.8% as compared to Rs 13.6 crore in Q1FY23 Cash Profit stood at Rs 50.3 crore in Q1FY24 which was down 39.0% from Rs 82.5 crore in Q4FY23 and was up 32.2% as compared to Rs 38.1 crore in Q1FY23 Commenting on the performance for Q1FY24, Patanjali Keswani, Chairman & Managing Director, Lemon Tree Hotels said, “In Q1FY24, Lemon Tree Hotels continued its growth momentum from the previous year. Q1FY24 has been the best-ever Q1 performance in terms of Gross ARR, Revenue, EBITDA, PBT, and PAT for Lemon Tree Hotels. Q1FY24 recorded a Gross ARR of Rs 5,237 which increased by 8.6% YoY and decreased by 10.1% QoQ. Occupancy followed a similar trend which increased by 514 bps YoY and decreased by 339 bps QoQ. This translated into a RevPAR of Rs 3,678 which increased by 17.2% YoY and decreased by 14.2% QoQ. Total Revenue for the company was Rs 224.6 crore for the quarter which increased 16.8% YoY and decreased 11.8% QoQ. The Net EBITDA margin for the company in Q1FY24 stood at 47.6% which decreased by 60 bps YoY and decreased by 815 bps QoQ owing to an increase in variable costs as well as planned increases in fixed costs and renovation expenses. The increase in costs is somewhat less compared to the guidance shared in our previous call and we will ensure we keep our EBITDA margins intact. The PAT for Q1FY24 grew by 103% YoY from Rs 13.6 crore to 27.5 crore. Our cash profit stood at Rs 50.3 crore which increased by 32% YoY. Fee from management / franchised contracts for 3rd party-owned hotels stood at Rs 10.4 crore in Q1FY24 up 19.3% from Rs 8.7 crore in Q1FY23. Total management fees for Lemon Tree Hotels were up 20.7% YoY to Rs 23.9 crore compared to Rs 19.8 crore in Q1FY23. During the quarter we signed 6 new management & franchise contracts which add 548 new rooms to our pipeline. As of June 30, 2023, our operational inventory comprised 90 hotels with 8,491 rooms and our pipeline comprised 46 hotels with 3,724 rooms. From this quarter onwards, we will also be sharing the Network Revenue of Lemon Tree Hotels (i.e. total system revenue of owned, managed & franchised hotels) which stood at Rs 352 crore for Q1FY24 as compared to Rs 300 crore in Q1FY23. 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: Opening of Aurika, MIAL in October’23 Accelerated growth in our managed and franchised portfolio, with a proportionate increase in fee-based income Further improvement in Gross ARRs and Occupancy for the LTH-owned portfolio Significant increase in Gross ARR and Occupancy in the Keys portfolio post renovations (visible in Q1 marginally) The opening for Aurika, Sky City, Mumbai in October’23 is on track. As you can see from the pictures shown in the investor presentation, many facilities in the hotel are completely ready and most of the licenses about the operations of the hotel have already been obtained.” Result PDF