Lemon Tree Hotels Limited – Investor Presentation Summary

Key Operational Highlights

  • Gross ARR stood at ₹6,361, up 2% YoY from ₹6,236 in Q1 FY26
  • Occupancy was 75.7%, up 314 basis points YoY from 72.5%
  • RevPAR was ₹4,814, up 6% YoY from ₹4,523
  • 6 managed and franchised hotels with 334 rooms opened in Q1 FY27
  • 13 managed and franchised hotels with 1,020 rooms signed in Q1 FY27
  • Combined operational and pipeline inventory: 23,381 rooms across 279 hotels in 170+ cities
  • 135 hotels with 11,946 rooms across 80+ cities are operational
  • Renovated 300 rooms in Q1 FY27 at cost of ~₹10 Cr
  • Keys portfolio renovation was 2/3rd complete as of 30th June 2026
  • Keys portfolio RevPAR in Q1 FY27 up 19% YoY to ₹2,885

Key drivers of operational performance: Strong demand across locations, renovation improvements, expansion of managed and franchised properties

Segment-wise Performance

  • Aurika Hotels & Resorts (808 rooms): RevPAR ₹6,548 (0% YoY), Occupancy 71% (-79 bps), ADR ₹9,189 (1%)
  • Lemon Tree Premier (1,603 rooms): RevPAR ₹6,095 (6% YoY), Occupancy 84% (339 bps), ADR ₹7,252 (2%)
  • Lemon Tree Hotels (1,769 rooms): RevPAR ₹4,619 (8% YoY), Occupancy 78% (416 bps), ADR ₹5,938 (3%)
  • Red Fox by Lemon Tree Hotels (643 rooms): RevPAR ₹2,785 (4% YoY), Occupancy 67% (416 bps), ADR ₹4,137 (-3%)
  • Keys by Lemon Tree Hotels (936 rooms): RevPAR ₹2,885 (19% YoY), Occupancy 67% (350 bps), ADR ₹4,311 (13%)

Explanation of significant changes in segment performance: Keys portfolio showed strongest growth with 19% RevPAR increase driven by occupancy improvement and rate growth. Lemon Tree Premier maintained high occupancy at 84%. Red Fox showed rate pressure despite occupancy gains.

Financial Highlights

Revenue: ₹346.8 Cr

EBITDA: ₹151.9 Cr

PAT: ₹57.3 Cr

EPS: Not Specified

Margins: Net EBITDA Margin 43.8% (down 99 bps YoY)

YoY/QoQ comparison: Revenue up 9% YoY, PAT up 19% YoY, but down 50.8% QoQ from Q4 FY26

Drivers of financial performance: Higher revenue growth, operational efficiencies, but impacted by GST changes and provision for Stock Appreciation Rights

Comparison to market estimates: Not Specified

Key Risks: GST impact on input credit, renovation expenses, regulatory approvals for expansion projects

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not Specified

Regional Breakdown:

  • Delhi (636 rooms): RevPAR ₹5,880 (13% YoY), Occupancy 86% (992 bps)
  • Gurugram (529 rooms): RevPAR ₹3,866 (-3% YoY), Occupancy 72% (27 bps)
  • Hyderabad (663 rooms): RevPAR ₹5,691 (4% YoY), Occupancy 80% (382 bps)
  • Bengaluru (874 rooms): RevPAR ₹4,109 (13% YoY), Occupancy 72% (293 bps)
  • Mumbai (972 rooms): RevPAR ₹6,781 (-1% YoY), Occupancy 77% (-322 bps)
  • Pune (426 rooms): RevPAR ₹4,905 (13% YoY), Occupancy 84% (638 bps)
  • Rest of India (1,659 rooms): RevPAR ₹3,553 (11% YoY), Occupancy 71% (420 bps)

Balance Sheet Snapshot

Net Debt/Equity: Not Specified

Reserves: Not Specified

Current Assets/Liabilities: Not Specified

Working Capital/Leverage Metrics: Gross debt ₹1,475 Cr as of 30th June 2026 (down 11% YoY)

Financial Health Insights: Cost of debt reduced to 7.48%, down 53 basis points YoY

Capex & Cash Flow Health

Capital Expenditure: ~₹108 Cr deployed for Aurika Shimla, ~₹33 Cr for Aurika Shillong as of 30th June 2026

Free Cash Flow: Not Specified

Operating Cash Flow: Not Specified

Net Debt Movement: Gross debt reduced from ₹1,657.9 Cr to ₹1,475 Cr YoY

Investment Rationale: Focus on owned hotel development (Aurika brand) and portfolio expansion through managed contracts

Strategic & R&D Initiatives

Investments in Innovation: Technology investments impacting EBITDA at ~5% of revenue

Expected impact on growth: Digital transformation with AI/ML solutions to boost profitability and guest experience

Strategic Rationale: Expanding into high-growth markets, reducing operational costs, asset-light growth strategy

Industry Trends & Business Environment

Macro/Industry Trends: India's largely unbranded hotel market, rising middle class, infrastructure build-out creating multi-decade demand

Impact on Company: Favorable demand-supply dynamics in top-6 cities where Fleur derives ~80% Revenue/EBITDA

Management Commentary & Growth Outlook

Strategic Outlook: "Our combined operational and pipeline inventory now stands at 23,381 rooms across 279 hotels in 170+ cities" - Patanjali Keswani

FY Guidance: Aurika Shimla expected to open shortly, Aurika Shillong expected opening in H2 FY28, Aurika Varanasi expected opening in FY29

Market Share Targets: Largest mid to upscale hotel chain with ~6% of total branded inventory in India

Risks and Opportunities: Regulatory approvals for expansion projects, GST impact on margins, renovation expenses

ESG Updates: Not Specified

Digital Transformation: Proprietary tech platform Totally Foxed Solutions (TFS) drives 'Lemon Tree's 2.0' digital transformation