Lemon Tree Hotels (LEMONTREE) Q4 23/24 earnings summary

Executive summary

• Achieved record Q4 performance in ARR, revenue, EBITDA, EBT/PBT, and PAT, with Q4 ARR up 13.4% YoY and 4.3% QoQ; Q4 revenue grew 30% YoY and 13.9% QoQ, and full-year revenue reached INR 1,076.8 crore, up 23% over FY23.

• Q4 occupancy at 72%, down 163 bps YoY but up 605 bps QoQ; RevPAR rose 10.9% YoY and 13.9% QoQ.

• Net EBITDA margin for Q4 was 52.9% (down 278 bps YoY, up 415 bps QoQ); full-year margin at 49.1%.

• PAT for Q4 FY24 was Rs. 84.0 Cr (up 42% YoY, 92% QoQ); full-year PAT at Rs. 181.7 Cr (up 29% YoY).

• Signed 12 new management/franchise contracts (667 rooms) and opened 4 hotels (176 rooms) in Q4; operational inventory surpassed 10,000 rooms.

Financial highlights

• Q4 gross ARR: INR 6,605 (+13.4% YoY, +4.3% QoQ); RevPAR: INR 4,754 (+10.9% YoY, +13.9% QoQ).

• Q4 revenue from operations: Rs. 327.3 Cr (up 30% YoY, 13% QoQ); Q4 EBITDA: Rs. 175.3 Cr (up 24% YoY, 24% QoQ); PAT: Rs. 84.0 Cr (up 42% YoY, 92% QoQ).

• FY24 revenue: Rs. 1,076.8 Cr (up 23% YoY); EBITDA: Rs. 528.9 Cr (up 16% YoY); PAT: Rs. 181.7 Cr (up 29% YoY).

• Cash profit for FY24: Rs. 293.8 Cr (up 24% YoY).

• Cost of debt reduced to 8.86% (down 22 bps YoY); debt increased by Rs. 143.3 Cr to Rs. 1,889.1 Cr due to Aurika, Mumbai SkyCity borrowing.

Outlook and guidance

• Operational inventory expected to exceed 11,000 rooms and 120+ hotels by end FY25; five-year plan targets 20,000+ rooms, stable 50% EBITDA margin, and a debt-free balance sheet by CY28/FY29.

• Expecting at least 15% annual revenue growth for the next three years, driven by ARR, occupancy, and management contracts.

• Renovation investments to continue at INR 100 crore per year through FY26, with full impact visible by October 2025.

• Keys portfolio EBITDA targeted at INR 60 crore annually post-renovation, with early signs from October 2024.

• Asset-light growth, digital transformation, and ESG leadership are strategic priorities.