Lemon Tree Hotels (LEMONTREE) Q1 24/25 earnings summary

Executive summary

• Achieved record Q1 FY25 revenue of INR 268.4 crore (₹26,801.83 lakhs), up 19% year-over-year, despite sector headwinds from elections and heatwave.

• EBITDA grew 8% year-over-year to INR 115.4 crore, with a margin of 43%, down 4.56 percentage points due to renovation and digital transformation investments.

• Gross ARR rose 9% year-over-year to INR 5,686; RevPAR increased 4% to INR 3,788; occupancy declined to 66.6%.

• Management and franchise fee income grew 22% year-over-year to INR 29.1 crore; 3 new contracts signed and 4 hotels operationalized, adding 518 rooms.

• Board approved unaudited standalone and consolidated financial results for Q1 FY25, reflecting the impact of the recent amalgamation of four wholly owned subsidiaries.

Financial highlights

• Revenue: INR 268.4 crore, up 19% year-over-year; consolidated revenue at ₹26,801.83 lakhs.

• EBITDA: up 8% year-over-year; margin at 43%, down 4.56 percentage points.

• PAT declined 27% year-over-year to ₹20.1 crore; cash profit increased 9% to ₹54.7 crore.

• Gross ARR: INR 5,686 (+9% year-over-year); RevPAR: INR 3,788 (+4% year-over-year); occupancy: 66.6%.

• Management fees: INR 29.1 crore (+22% year-over-year).

Outlook and guidance

• Confident in sustaining growth via Aurika Mumbai stabilization, management/franchise expansion, and timely renovation completion.

• Renovation and CapEx investments to continue into FY2026; renovation expenses expected to normalize to 1.5%-1.6% of revenue post-completion.

• Targeting over 20% ROCE from next year; expects full portfolio renovation by end of FY2026.

• Revenue guidance for FY2025 north of INR 1,250 crore; aiming for 50% net EBITDA margin as one-off costs subside.

• Results for the quarter are not indicative of full-year performance due to the seasonal nature of the hotel industry.