Lemon Tree Hotels Ltd. share price target

Quarterly Update Q3FY26

Lemon Tree Hotels Ltd.'s (LTH) Q3FY26 result was in-line with our estimates on key parameters. The management highlighted a structural demand shift postCOVID, with younger travelers increasingly preferring branded hotels, indicating the current upcycle is not purely cyclical but supported by long-term changes in consumer behavior. National hotel occupancy remains around mid-60%, suggesting the industry is still below peak-cycle levels, leaving room for further repricing as occupancies approach the 7580% threshold in key micro-markets. MICE demand is expected to grow structurally with India's expanding corporate and events ecosystem, prompting Lemon Tree to design newer hotels with...

About the stock: Lemon Tree Hotels (LTHL) is India's largest hotel chain in the mid-priced hotel sector and the third largest overall, based on controlling interest in owned and leased rooms. LTHL currently operates 11,772 rooms in 130 hotels in India and abroad, under its various brands viz. Aurika Hotels & Resorts, Lemon Tree Premier, Lemon Tree Hotels, Red Fox Hotels and Keys etc. Q3FY26 performance: LTHL consolidated revenues witnessed 14.4% YoY growth to Rs.406.1cr. Growth was aided by 9% RevPAR growth. RevPAR growth was largely driven by 11% YoY growth in ARR. Occupancy for the quarter declined by...

Lemon Tree Hotels (LEMONTRE) reported healthy revenue growth of 14% YoY in 3QFY26, led by 34% YoY growth in FnB revenue and 7% YoY growth in room revenue.

Company Update

About the stock: Lemon Tree Hotels (LTHL) is India's largest hotel chain in the mid-priced hotel sector and the third largest overall, based on controlling interest in owned and leased rooms. LTHL currently operates 10,956 rooms in 121 hotels in India and abroad, under its various brands viz. Aurika Hotels & Resorts, Lemon Tree...

Quarterly Update Q2FY26

About the stock: Lemon Tree Hotels (LTHL) is India's largest hotel chain in the mid-priced hotel sector and the third largest overall, based on controlling interest in owned and leased rooms. LTHL currently operates 10,956 rooms in 121 hotels in India and abroad, under its various brands viz. Aurika Hotels & Resorts, Lemon Tree Premier, Lemon Tree Hotels, Red Fox Hotels and Keys etc. Q2FY26 performance: LTHL consolidated revenues witnessed 7.7% YoY growth to Rs.306.3cr. Growth was aided by 8% RevPAR growth. RevPAR growth was driven by 6% YoY growth in ARR and 140bps YoY improvement in occupancy. EBIDTA...

Lemon Tree Hotels Ltd.'s (LTH) Q2FY26 result was in-line with our estimates on key parameters. The hospitality industry witnessed multiple headwinds during H1FY26 including geopolitical tensions, floods, tariff wars, and GST revisions, which led to muted demand in Q2. Despite these challenges, LTH reported the best ever Q2 performance. Management noted that demand continues to outpace supply, especially in Tier 2 and Tier 3 markets where branded inventory remains limited and pricing power is improving. Room rates across the industry are still about 20% lower than 200708 levels (inflation-adjusted), indicating...

Lemon Tree Hotels (LEMONTRE) reported muted Q2FY26 consol. revenue of INR 3.1bn (up 8% YoY) – in line with ISec’s estimate – as portfolio ARRs (including Mumbai Aurika) grew 6% YoY.

Lemon Tree Hotels (LEMONTRE) reported decent revenue growth of 8% YoY in 2QFY26, led by average room rate (ARR) growth of 6% YoY to INR6,247.

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

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...

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...