Lemon Tree Hotels announced Q2FY24 results: Revenue from operations stood at Rs 227.2 crore in Q2FY24 which was up 2.2% from Rs 222.3 crore in Q1FY24 and was up 15.5% as compared to Rs 196.7 crore in Q2FY23 Gross ARR stood at Rs 5,268 in Q2FY24 which was up 0.6% from Rs 5,237 in Q1FY24 and was up 7.1% as compared to Rs 4,917 crore in Q2FY23 Occupancy% stood at 71.7% in Q2FY24 which was up 143 bps from 70.2% in Q1FY24 and was up 542 bps as compared to 66.2% in Q2FY23 Total expenses stood at Rs 125.3 crore in Q2FY24 which was up 6.4% from Rs 117.8 crore in Q1FY24 and was up 21.6% as compared to Rs 103.1 crore in Q2FY23 PAT stood at Rs 26.4 crore in Q2FY24 which was down 4.1% from Rs 27.5 crore in Q1FY24 and was up 36.3% as compared to Rs 19.4 crore in Q2FY23 Net EBITDA stood at Rs 104.8 crore in Q2FY24 which was down 1.9% from Rs 106.8 crore in Q1FY24 and was up 11.1% as compared to Rs 94.3 crore in Q2FY23 Net EBITDA margin % stood at 45.5% in Q2FY24 which was down 203 bps from 47.6% in Q1FY24 and was down 225 bps as compared to 47.8% in Q2FY23 Cash Profit stood at Rs 49.0 crore in Q2FY24 which was down 2.6% from Rs 50.3 crore in Q1FY24 and was up 10.4% as compared to Rs 44.4 crore in Q2FY23 Commenting on the performance for Q2FY24, Patanjali Keswani, Chairman & Managing Director – Lemon Tree Hotels said, “In Q2, Lemon Tree Hotels continued its growth momentum from the previous year. Q2FY24 has been the best ever Q2 performance in terms of Gross ARR, Revenue, EBITDA, PBT and PAT for Lemon Tree Hotels. This quarter, Lemon Tree’s focus was on increasing occupancy and maximizing RevPAR. Q2FY24 recorded a Gross ARR of Rs 5,268 which increased by 7.1% YoY and increased by 0.6% QoQ. Occupancy also increased by 542 bps YoY and by 143 bps QoQ. This translated into a RevPAR of Rs 3,678 which increased by 15.9% YoY and by 2.6% QoQ. Total Revenue for the company in Q2FY24 was Rs 230.1 crore which was higher by 16.6% YoY and 2.5% QoQ. The Net EBITDA margin for the company in Q2FY24 stood at 45.5% which decreased by 225 bps vs Q2FY23 and by 203 bps vs Q1FY24 mainly owing to planned increase in renovation expenses above that spent in Q2FY23 and pre-operative expenses of Aurika, Mumbai Sky City. These two incremental expenses accounted for a total increase in expense of Rs 4.4 crore (beyond Q2FY23) which translated to a reduction in EBITDA margin % by 1.9 percentage points. The Keys portfolio also saw a drop in EBITDA margin % by 4.7 percentage points YoY due to increased investment in renovation during Q2FY24. Furthermore, the closing down of New Delhi during the G20 summit also impacted Lemon Tree, with most of the business of the event being diverted to 5 Star deluxe hotels, which is why you see a drop in our performance in New Delhi versus the industry. The PAT for Q2FY24 grew by 36.3% YoY from Rs 19.6 crore to 26.4 crore. Our cash profit stood at Rs 49.0 crore which increased by 10.4% YoY. Fees from management & franchised contracts for 3rd party owned hotels stood at Rs 10.4 crore in Q2FY24 up 58.0% from Rs 6.6 crore in Q2FY23. Total management fees for Lemon Tree were up 29.0% YoY at Rs 24.0 crore compared to Rs 12.1 crore in Q2FY23. Hotel level revenue from the owned portfolio increased by 15% YoY on a same store basis while the Network Revenue for Lemon Tree (i.e. total system revenue of owned and managed/franchised hotels) increased by 17% YoY. Total network revenue stood at Rs 691.0 crore for H1FY24 as compared to Rs 591 crore in H1FY23. During the quarter, we signed 11 new management & franchise contracts which added 639 new rooms to our pipeline. As of 30th Sep 2023, our operational inventory comprised 95 hotels with 8,760 rooms and our pipeline comprised 52 hotels with 4,092 rooms. As of now, we expect our operational inventory to be 105+ hotels with over 10,000+ rooms by end of FY24. I am happy to inform you about the launch of Aurika, Mumbai Sky City, on October 5, 2023. The hotel has 669 rooms and suites and is currently the largest hotel (by number of rooms) in India. Some pictures in the investor presentation will give you an idea about the hotels’ look and feel.” Result PDF