This stock is a prominent Indian hotel chain, recognized as the largest in the mid-priced segment and the third largest overall in the country. The stock has jumped 2.24 percent after signing a new property in Maharashtra.
Stock Price Movement:
With a market capitalization of Rs. 11,871.81 crores, the share of Lemon Tree Hotels Limited has reached an intraday high of Rs. 153.10 per equity share, rising nearly around 2.24 percent from its previous day’s close price of Rs. 149.75.
What Happened:
Lemon Tree Hotels has signed a new property in Bapane, Maharashtra, expected to open in FY 2026. Managed by Carnation Hotels, the hotel will feature 76 rooms, a restaurant, a meeting room, a swimming pool, a spa, and more.
The property is located in the industrialized Vasai area and offers excellent connectivity to Mumbai, with the international airport 43 km away and Borivali Railway Station 28.8 km away, ensuring convenience for travelers.
Management Guidance:
Lemon Tree Hotels expects an annual EBITDA of Rs. 125 crore from its renovated properties, with a projected 15%-20% revenue growth after stabilization.
The company plans to attract new corporate clients and expand its retail business in Aurika Mumbai, aiming for a balanced mix of corporate and retail room bookings.
Future Strategy:
Lemon Tree Hotels anticipates a revenue growth of over 15% for Q3 and Q4. The company plans to invest Rs. 250-300 crore in renovations through FY26, with expenses stabilizing at 1.5%-1.6% of revenue.
Additionally, the company has signed 19 new management and franchise contracts, adding 1,373 rooms to its pipeline.
Brands:
Lemon Tree Hotels operates a diverse portfolio of brands, including Aurika Hotels and Resorts, Lemon Tree Premier, Lemon Tree Hotels, Red Fox by Lemon Tree Hotels, Keys Prima, Keys Select, and Keys Lite, catering to various customer needs from luxury to budget accommodations.
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Recent Quarter Results:
Lemon Tree Hotels Limited reported a revenue increase from Rs. 227 crore in Q2 FY24 to Rs. 284 crore in Q2 FY25, marking a growth of 25.11%. The company’s net profit also grew by 34.61%, rising from Rs. 26 crore in Q2 FY24 to Rs. 35 crore in Q2 FY25.
Financial Ratios:
Over the past five years, Lemon Tree Hotels Limited’s revenue and net profit have grown at a compound annual growth rate (CAGR) of 14.26% and 26.58%, respectively.
Regarding return ratios, the company’s return on capital employed (ROCE) and return on equity (ROE) are projected to be 11.4% and 16.3%, respectively. The company’s debt-to-equity ratio is expected to be 2.23x. Lemon Tree Hotels Limited’s earnings per share (EPS) is projected to be Rs. 1.92.
Company Overview:
Lemon Tree Hotels Limited was founded in 2002 and is India’s largest mid-priced hotel chain and the third largest overall. The company operates more than 100 hotels with around 9,700 rooms across 64 cities, providing affordable yet high-quality services in the mid-scale and upscale hotel segments.
Written By – Nikhil Naik
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