Lemon Tree Hotels (LEMONTREE) investor relations material

Executive summary

• Q1 FY27 revenue rose 9% year-over-year to ₹346.8 Cr, with net EBITDA up 7% to ₹151.9 Cr and PAT up 19% to ₹57.3 Cr; adjusted net EBITDA (excluding GST and SAR) increased 14% year-over-year.

• Occupancy improved to 75.7%, up 314 bps, and gross ARR rose 2% year-over-year to ₹6,361.

• Asset-light expansion continued with six new managed/franchised hotels opened and 13 more signed, expanding the pipeline to 23,381 rooms.

• Pro forma financials post-demerger show Lemon Tree revenue up 22% and Fleur up 7% year-over-year.

• Board approved unaudited financial results for Q1 FY27 and a joint venture for Aurika Shillong, with leadership transition plans announced.

Financial highlights

• Network revenue grew 16% year-over-year to ₹576 Cr, with owned hotels contributing 56%.

• Fee income from management/franchise contracts rose 42% to ₹22.8 Cr.

• Gross debt reduced 11% year-over-year to ₹1,475 Cr; cost of debt fell to 7.48%.

• Cash profit increased 17% to ₹96 Cr.

• Keys portfolio RevPAR up 19% year-over-year, with 13% growth in average room rate.

Outlook and guidance

• Management expects Q2 and H2 FY27 to show stronger performance, with ARR and margins improving as renovation expenses taper and GST impact is mitigated.

• Targeting 2,000 new keys in FY27, with confidence in achieving this despite minor slippage risks.

• EBITDA margin guidance for FY28 is at least 50%, with further expansion expected as renovation costs normalize.

• Aurika Shimla expected to open shortly; Aurika Shillong and Varanasi in pipeline.

• The company notes the seasonal nature of the hotel industry, with Q1 not indicative of full-year performance.