Lemon Tree Hotels (LEMONTREE) Q3 24/25 earnings summary

Executive summary

• Achieved highest-ever Q3 revenue at INR 355.8 crores, up 22% year-on-year, with net EBITDA rising 30% to INR 184.8 crores and margin expanding to 51.9% (up 316 bps year-on-year).

• Q3 profit after tax was INR 79.9 crores, up 82% year-on-year; cash profit stood at INR 114.9 crores, up 49%.

• Q3 occupancy reached 74.2% (up 826 bps year-on-year), gross ARR increased 7% to INR 6,763, and RevPAR rose 21% to INR 5,080.

• Signed 13 new management/franchise contracts (766 rooms) and operationalized one hotel (38 rooms); total inventory at 200 hotels and 16,385 rooms as of Dec 31, 2024.

• Secured first Public-Private Partnership for Aurika Shillong, qualifying for capital subsidy and incentives.

Financial highlights

• Q3 revenue: INR 355.8 crores (+22% YoY); net EBITDA: INR 184.8 crores (+30% YoY); EBITDA margin: 51.9% (+316 bps YoY).

• Q3 profit after tax: INR 79.9 crores (+82% YoY); cash profit: INR 114.9 crores (+49% YoY).

• Gross ARR: INR 6,763 (+7% YoY); occupancy: 74.2% (+826 bps YoY); RevPAR: INR 5,080 (+21% YoY).

• Management fees: INR 43.7 crores (+35% YoY); third-party fees: INR 18.4 crores (+24% YoY); Fleur fees: INR 25.3 crores (+45% YoY).

• Cost of debt as of December 31, 2024, was 8.64%, down 21 bps year-on-year.

Outlook and guidance

• Confident of sustaining growth via accelerated management/franchise expansion and timely completion of renovations.

• Renovation expenses to continue into FY 2026 and part of FY 2027; post-renovation, ongoing expenses to normalize at 1.5%-1.8% of revenue.

• Targeting 20,000 rooms within 12-15 months, with strong demand from asset owners.

• Expects demand growth to outpace supply, supporting continued growth in the mid-market segment.

• Expecting mid-teens RevPAR growth and margin expansion post-renovation, aiming for 60% EBITDA margin.