Lemon Tree Hotels Ltd. share price target

We are optimistic about the company’s growth prospects, supported by the completion of its extensive renovation program, which is already yielding higher Average Room Rates (ARR) and occupancy gains across key properties.

Quarterly Update Q1FY26

Lemon Tree Hotels (LEMONTRE) reported Q1FY26 consolidated revenue of INR 3.2bn (up 18% YoY) – in line with I-sec estimates – as portfolio ARRs (including Mumbai Aurika) grew 10% YoY, while occupancy for the quarter stood at 72.5%, which increased 591bps YoY.

Lemon Tree Hotels Ltd.'s (LTH) Q1FY26 result was in-line with our estimates on key parameters. The company continued its outperformance and reported yet another the best ever Q1 performance. The management anticipates continued growth in demand, driven by the addition of approximately 1,800 planes in India and improving connectivity through Vande Bharat trains, growing airports, and ambitious highway construction. LTH aims is to complete renovations for the entire portfolio of owned hotels by FY27, with about 65-70% of 4,300 rooms already completed in the last two and a half years. The company is confident of...

RevPAR increases 19.4% YoY to Rs4,523 in 1QFY26 We cut our EBITDA estimates by ~2% over FY25-FY27E as we fine tune our fee income assumptions amid delays in opening timelines of managed & franchised hotels. LEMONTRE IN's operational performance was marginally better than our estimate with EBITDA margin of 44.5% (PLe 43.2%) led by 19.4% growth in RevPAR to Rs4,523 and 6.3% YoY fall in power & fuel cost amid investments...

Quarterly Update Q4FY25

Lemon Tree Hotels Ltd.'s (LTH) Q4FY25 result was broadly in-line with our estimates on net sales and EBTDA front, while PAT was beat to forecast. The company reported the best ever Q4 results, aided by healthy RevPAR growth. The management is confident to sustain this growth in coming quarters by focusing on growth levers such as growth in managed and franchised portfolio, timely completion of renovation in the current portfolio. Renovation expenses stood at 2.7% of revenue in FY25 as compared to 2.4% in FY24. This increased investment in renovation expenses will continue into FY26 and a lesser amount...

LEMONTRE's operational performance was broadly in-line our estimate with EBITDA margin of 53.9% (PL 53.0%), led by 14.9% growth in RevPAR to Rs5,462 while PAT was aided by a lower tax rate of 11.5%. Aurika, MIAL's performance showed an improvement with an occupancy of 80% and EBITDA margin of 67% in 4QFY25. Led by stabilization of Aurika, MIAL and improvement in RevPAR amid the ongoing renovation exercise, we estimate revenue/EBITDA CAGR of...

Squeezing out strong growth

Lemon Tree Hotels (LEMONTRE) reported Q3FY25 consolidated revenue of INR 3.6bn (up 23% YoY), in line with I-Sec’s estimate as portfolio ARRs (including Mumbai Aurika) grew 7% YoY, while occupancy stood at 74.2%, up 826bps YoY.

Quarterly Update Q3FY25

As of Sep’24, Lemon Tree Hotels (LEMONTRE) has 10,318 operational keys across 112 hotels. The company has an aggressive room expansion plan for H2FY25–FY29 with an incremental 5,220 keys – should take overall operational keys to 15,538 by FY29–30E.

Quarterly Update Q2FY25

Quarterly Update Q1FY25

Led by a ~13% y/y rise in inventory (Aurika MIAL property operational from Q3 FY24) and ~9% y/y ARR growth, Lemon Tree Hotel’s Q1 revenue grew 19.5%.