Lemon Tree Hotels Ltd is India's largest mid-priced hotel chain, ranking third overall. They operate 104 hotels with 9,863 keys, targeting the upscale and mid-priced segments
In Q4 FY’24, Lemon Tree Hotels reported a consolidated revenue of INR 3.3 billion, marking a 30% YoY increase and a 13% QoQ rise, driven by a 13% growth in average room rates (ARR).
During the quarter, Lemon Tree signed 12 new management and franchise contracts, adding 667 rooms. The development pipeline includes 4,156 keys across 62 properties.
For FY24, Lemon Tree forecasts sales of INR 10,711 million and EBITDA of INR 5,233 million, with an EBITDA margin of 48.9%. The company's net profit (PAT) is expected to reach INR 1,811 million.
Lemon Tree targets a share price of INR 192, reflecting a 30% upside from the current price of INR 148. The company aims to be debt-free within the next four years.
The management projects a minimum 15% increase in consolidated revenue over the next three years, driven by growth in ARR, increased occupancy, and expansion of the fee business.