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Lemon Tree Hotels (LEMONTREE) investor relations material

Lemon Tree Hotels Q1 25/26 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q1 25/26 earnings summary11 Aug, 2025

Executive summary

  • Achieved record Q1 revenue of INR 317.4 crores, up 18% year-over-year despite industry headwinds from geopolitical tensions and COVID concerns.

  • Net EBITDA grew 23% year-over-year to INR 142 crores, with EBITDA margin rising 178 bps to 44.8%.

  • Profit after tax surged 139% year-over-year to INR 48.1 crores; cash profit increased 51% to INR 82.3 crores.

  • Signed 14 new management/franchise contracts and opened 5 hotels in Q1.

  • Major board-level changes and business reorganization, including new leadership and sale of subsidiaries to Fleur Hotels.

Financial highlights

  • Gross ARR rose 10% year-over-year to INR 6,236; occupancy increased 591 bps to 72.5%, driving RevPAR up 19% to INR 4,523.

  • Debt reduced by INR 206 crores year-over-year to INR 1,658 crores; cost of borrowing lowered to 8.01% from 8.8%.

  • Management and franchise fees grew 29% year-over-year to INR 37.4 crores.

  • Standalone and consolidated revenue and profit rose significantly year-over-year.

  • Payroll and power/fuel expenses as a percentage of revenue decreased year-over-year.

Outlook and guidance

  • Confident of accelerated management fee growth despite some delays in hotel openings.

  • Renovation and tech costs expected to drop to 2–2.5% of revenue from 6% after 15 months.

  • Targeting 50% renewable energy in owned portfolio within 12–18 months.

  • Five-year plan aims to exceed 20,000 rooms, with potential to reach 30,000–40,000 rooms.

  • Results note the seasonal nature of the hotel industry; Q1 not indicative of full-year performance.

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Frequently asked questions

Lemon Tree Hotels Limited is a hospitality company engaged in the ownership, management, and operation of hotels across various segments. The company offers accommodations ranging from upscale to economy hotels, catering to business and leisure travelers. Its services include lodging, dining, event spaces, and extended stay options. Lemon Tree Hotels Limited is headquartered in New Delhi, India, and its shares are listed on the NSE and BSE.

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