Lemon Tree Hotels Ltd. · NSE:LEMONTREE
Lemon Tree Hotels — Q2 FY24 Earnings Presentation
45 slides from Lemon Tree Hotels's earnings presentation, Nov 9, 2023
Slide 1: Lemon Tree Hotels Limited Q2 FY24 Earnings Presentation
09-November-2023 Q2 FY24 Earnings Presentation 1 Lemon Tree Hotels Limited Q2 FY24 Earnings Presentation | 9th November 2023 Aurika, Mumbai Sky City
Slide 2: Disclaimer
09-November-2023 Q2 FY24 Earnings Presentation 2 Disclaimer Certain statements in this communication may be ‘forward looking statements’ within the meaning of applicable laws and regulations. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause
Slide 3: Chairman & Managing Director's Message
Q2 FY24 Earnings Presentation 09-November-2023 3 Chairman & Managing Director’s Message Commenting on the performance for Q2 FY24, Mr. Patanjali Keswani, Chairman & Managing Director – Lemon Tree Hotels Limited said, “In Q2, Lemon Tree Hotels continued its growth momentum from the previous year. Q2
Slide 4: Strong Q2 FY24 performance across key financial metrics
09-November-2023 Q2 FY24 Earnings Presentation 4 Strong Q2 FY24 performance across key financial metrics Q2 FY24 performance snapshot vs Q2 FY23 Total Revenue EBITDA EBITDA % Rs. 230.1 Cr Rs. 104.8 Cr 45.5% Up 17% Up 11% Down 225 bps PAT Cash Profit Cost of Debt % Rs. 26.4 Cr Rs. 49.0 Cr 8.84%* Up 3
Slide 5: Q2 FY24 Performance Highlights – Operational Metrics (Consolidated)
09-November-2023 Q2 FY24 Earnings Presentation 5 Q2 FY24 Performance Highlights – Operational Metrics (Consolidated) Inventory Average Room Rate (Rs.) Owned/Leased rooms Managed/Franchised Total rooms 1% rooms QoQ 6% 7% 5,268 5,237 5,268 8,303 YoY 8,760 4,917 YoY 14% 5,090 5,090 YoY 3,213 3,670 Q2 F
Slide 6: Q2 FY24 Performance Highlights – Financial Metrics (Consolidated)
09-November-2023 Q2 FY24 Earnings Presentation 6 Q2 FY24 Performance Highlights – Financial Metrics (Consolidated) Revenue from Operations (Rs. Cr) EBITDA (Rs. Cr) 11% -2% 16% 2% 106.8 YoY QoQ YoY QoQ 227.2 227.2 104.8 104.8 222.3 196.7 94.3 Q2 FY23 Q2 FY24 Q1 FY24 Q2 FY24 Q2 FY23 Q2 FY24 Q1 FY24 Q2
Slide 7: Month on Month Occupancy % and Gross ARR Trend
09-November-2023 Q2 FY24 Earnings Presentation 7 Month on Month Occupancy % and Gross ARR Trend Gross ARR (Rs.) Trend Occupancy % Trend RevPAR (Rs.) Trend 5,329 75% 5,284 73% 5,238 5,244 3,855 3,843 3,722 3,690 5,194 72% 3,584 3,601 5,156 70% 69% 3,342 3,224 3,234 3,197 4,998 3,095 3,120 67% 4,984 6
Slide 8: Q-o-Q performance of FY23 and FY24
09-November-2023 Q2 FY24 Earnings Presentation 8 Q-o-Q performance of FY23 and FY24 Q2 FY24 was the best ever “Q2” Particulars Q2 FY24 Q1 FY24 Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Gross ARR (Rs.) 5,268 5,237 5,824 5,738 4,917 4,822 Occupancy % 71.7% 70.2% 73.6% 67.6% 66.2% 65.1% Revenue (Rs. Cr) 230.1 22
Slide 9: Total Management Fees | Q2 FY24 vs Q2 FY23
09-November-2023 Q2 FY24 Earnings Presentation 9 Total Management Fees | Q2 FY24 vs Q2 FY23 24.0 18.7 13.6 12.1 10.4 + = 6.6 Management / Franchise fees from 3rd party Management Fees from Fleur Hotels Total Management Fees hotels Q2 FY23 Q2 FY24 Fees to Lemon Tree Hotels (Rs. Cr) Q2 FY23 Q2 FY24 Gr
Slide 10: Total Management Fees | H1 FY24 vs H1 FY23
09-November-2023 Q2 FY24 Earnings Presentation 10 Total Management Fees | H1 FY24 vs H1 FY23 47.9 38.5 27.1 + 23.2 = 20.8 15.3 Management / Franchise fees from 3rd party Management Fees from Fleur Hotels Total Management Fees hotels H1 FY23 H1 FY24 Fees to Lemon Tree Hotels (Rs. Cr) H1 FY23 H1 FY24
Slide 11: Market Segments: Q2 FY24 vs Q2 FY23
09-November-2023 Q2 FY24 Earnings Presentation 11 Market Segments: Q2 FY24 vs Q2 FY23 Market Segments Room Nights Sold – Q2 FY24 vs Q2 FY23 44% 50 % 39% 45 % 40 % 35 % 34% 34% 30 % 25 % 20 % 15 % 7% 7% 9% 10 % 5% 6% 7% 6% 5% 2% 0% Corporate Airline Travel Trade OTA LT.com Other FITs Q2 FY23 Q2 FY24
Slide 12: LTH vs Industry, Y-o-Y Growth (Q2 FY24 vs Q2 FY23)
09-November-2023 Q2 FY24 Earnings Presentation 12 LTH vs Industry, Y-o-Y Growth (Q2 FY24 vs Q2 FY23) Gross ARR Occupancy RevPAR (Growth % vs Q2 FY23) (Growth in bps vs Q2 FY23) (Growth % vs Q2 FY23) 16% 542 16% 16% 7% -10 Industry Lemon Tree Hotels Industry Lemon Tree Hotels Industry Lemon Tree Hote
Slide 13: City level: LTH vs Industry – Q2 FY24 vs Q2 FY23
09-November-2023 Q2 FY24 Earnings Presentation 13 City level: LTH vs Industry – Q2 FY24 vs Q2 FY23 RevPAR (Growth % vs Q2 FY23) 43% 39% 37% 23% 23% 21% 18% 19% 18% 16% 16% 15% 15% 14% 13% 13% 11% 11% 10% 10% 11% 9% 3% -1% All India Kochi Chennai Chandigarh Mumbai Bengaluru Goa Pune Gurugram Hyderaba
Slide 14: Q2 FY24 Operational Performance by Brands & Region
09-November-2023 Q2 FY24 Earnings Presentation 14 Q2 FY24 Operational Performance by Brands & Region (On full inventory basis) Hotel level Average Daily Rate EBITDAR/room/qtr. Hotel level EBITDAR Parameters RevPAR (Rs.) Occupancy Rate (%) (Rs.) Margin % (Rs. Lacs) Q2 Q2 Change Q2 Q2 Change Q2 Q2 Cha
Slide 15: Consolidated P&L: Q2 FY24 vs Q2 FY23
09-November-2023 Q2 FY24 Earnings Presentation 15 Consolidated P&L: Q2 FY24 vs Q2 FY23 Q2 FY24 Consolidated P&L Waterfall – Revenue to Cash Profit (Rs. Cr) Excluding renovation and Aurika, Mumbai pre-operative exp. Q2 FY24 vs Q2 FY23 Consolidated P&L waterfall to explain delta (Rs. Cr) Excluding ren
Slide 16: Consolidated P&L: H1 FY24 vs H1 FY23
09-November-2023 Q2 FY24 Earnings Presentation 16 Consolidated P&L: H1 FY24 vs H1 FY23 H1 FY24 Consolidated P&L Waterfall – Revenue to Cash Profit (Rs. Cr) Excluding renovation and Aurika, Mumbai pre-operative exp. H1 FY24 vs H1 FY23 Consolidated P&L waterfall to explain delta (Rs. Cr) Excluding ren
Slide 17: Cost Structure: Q2 FY24 vs Q2 FY23
09-November-2023 Q2 FY24 Earnings Presentation 17 Cost Structure: Q2 FY24 vs Q2 FY23 * Expenses as a percentage of total revenue Up 225 bps 54% 52% Other expenses includes renovation expenses and Aurika, Mumbai Sky City’s pre-operative expenses Up 185 bps Up 176 bps 20% 20% 18% Down 87 bps 19% Down
Slide 18: Lemon Tree Consolidated Profit & Loss Statement – Q2 FY24
09-November-2023 Q2 FY24 Earnings Presentation 18 Lemon Tree Consolidated Profit & Loss Statement – Q2 FY24 Q2 FY24 vs Q2 FY24 vs Rs. Cr Q2 FY24 Q1 FY24 Q2 FY23 Q1 FY24 Q2 FY23 Change (%) Change (%) Revenue from operations 227.2 222.3 196.7 2% 15% Other income 2.9 2.4 0.7 24% 306% Total revenue 230.
Slide 19: Lemon Tree Consolidated Profit & Loss Statement Breakup
09-November-2023 Q2 FY24 Earnings Presentation 19 Lemon Tree Consolidated Profit & Loss Statement Breakup Lemon Tree Consolidated Keys Hotels Lemon Tree Consolidated excluding Keys Hotels Rs. Cr Q2 Q1 Q2 QoQ YoY Q2 Q1 Q2 QoQ YoY Q2 Q1 Q2 QoQ YoY FY24 FY24 FY23 Change Change FY24 FY24 FY23 Change Cha
Slide 20: Discussion on Consolidated Financial & Operational Performance – Q2 FY24
09-November-2023 Q2 FY24 Earnings Presentation 20 Discussion on Consolidated Financial & Operational Performance – Q2 FY24 ❖ Revenue from operations stood at Rs. 227.2 Cr in Q2 FY24 which was up 2.2% from Rs. 222.3 Cr in Q1 FY24 and was up 15.5% as compared to Rs. 196.7 Cr in Q2 FY23 ❖ Gross ARR sto
Slide 21: Lemon Tree Consolidated Profit & Loss Statement – H1 FY24
09-November-2023 Q2 FY24 Earnings Presentation 21 Lemon Tree Consolidated Profit & Loss Statement – H1 FY24 H1 FY24 vs Rs. Cr H1 FY24 H1 FY23 H1 FY23 Change Revenue from operations 449.5 388.8 16% Other income 5.3 1.0 443% Total Income 454.7 389.7 17% Total expenses 243.1 202.8 20% Net EBITDA 211.6
Slide 22: Lemon Tree Consolidated Balance Sheet – H1 FY24
09-November-2023 Q2 FY24 Earnings Presentation 22 Lemon Tree Consolidated Balance Sheet – H1 FY24 H1 FY24 vs Rs. Cr H1 FY24 H1 FY23 H1 FY23 Change Shareholder's Funds 864.4 847.0 2% Non-controlling interests 554.2 567.5 -2% Total Shareholder’s equity 1418.7 1414.6 0% Total Debt 1912.6 1680.9 14% Oth
Slide 23: Lemon Tree Hotel Network Revenue – H1 FY24
09-November-2023 Q2 FY24 Earnings Presentation 23 Lemon Tree Hotel Network Revenue – H1 FY24 H1 FY24 vs H1 Hotel Network Revenue H1 FY24 H1 FY23 FY23 Change (Rs. Cr) (%) Owned Hotels 430 374 15% Managed and Franchised Hotels 261 217 21% Total Network Revenue 691 591 17%
Slide 24: Expansion Plans – Hotels under Development
09-November-2023 Q2 FY24 Earnings Presentation 24 Expansion Plans – Hotels under Development Under-development hotels Type Rooms Expected Opening date Ownership (%) Aurika, SkyCity, Mumbai International Airport Owned 669 Opened on 5th Oct 2023 58.91% Lemon Tree Mountain Resort, Shimla Owned 69 TBD 1
Slide 25: Expansion Plans – Snapshot of managed & franchised contracts pipeline
09-November-2023 Q2 FY24 Earnings Presentation 25 Expansion Plans – Snapshot of managed & franchised contracts pipeline
Slide 26: Opening of inventory in pipeline of managed & franchised contracts
09-November-2023 Q2 FY24 Earnings Presentation 26 Opening of inventory in pipeline of managed & franchised contracts (as of 30th September 2023) FY24 Total To be announced Brands (Oct’23 to FY25 FY26 FY27 Rooms (TBA) Mar’24) (Hotels) 242 242 Aurika Hotels & Resorts (2) (2) 117 160 120 82 479 Lemon T
Slide 27: Hotels opened and signed in Q2 FY24 (managed & franchised contracts)
09-November-2023 Q2 FY24 Earnings Presentation 27 Hotels opened and signed in Q2 FY24 (managed & franchised contracts) Hotels opened in Q2 FY24 # Hotels States Rooms Opening Dates 1 Lemon Tree Hotel, Manali (Franchised) Himachal Pradesh 34 July-23 2 Lemon Tree Hotel, Rajkot Gujarat 45 Aug-23 3 Penin
Slide 28: Expansion Plans – Pipeline of managed & franchised contracts (1 of 2)
09-November-2023 Q2 FY24 Earnings Presentation 28 Expansion Plans – Pipeline of managed & franchised contracts by opening (1 of 2) # Hotels Pipeline States Rooms Expected Opening 1 Lemon Tree Hotel, Hubli Karnataka 65 FY24 2 Lemon Tree Hotel, Dapoli Maharashtra 50 FY24 3 Keys Lite by Lemon Tree Hote
Slide 29: Expansion Plans – Pipeline of managed & franchised contracts (2 of 2)
09-November-2023 Q2 FY24 Earnings Presentation 29 Expansion Plans – Pipeline of managed & franchised contracts by opening (2 of 2) # Hotels Pipeline States Rooms Expected Opening 26 Lemon Tree Resort, Lumbini (Franchised) Nepal 81 FY25 27 Keys Lite by Lemon Tree Hotel, Dehradun (Franchised) Uttarakh
Slide 30: Opened on 5th Oct 2023 – Aurika, Mumbai Sky City
09-November-2023 Q2 FY24 Earnings Presentation 30 OPENED ON 5TH OCT 2023 Aurika, Mumbai Sky City
Slide 31: Aurika, Mumbai Sky City | Deluxe King Room
09-November-2023 Q2 FY24 Earnings Presentation 31 Aurika, Mumbai Sky City | Deluxe King Room
Slide 32: Aurika, Mumbai Sky City | Deluxe King Room
09-November-2023 Q2 FY24 Earnings Presentation 32 Aurika, Mumbai Sky City | Deluxe King Room
Slide 33: Aurika, Mumbai Sky City | Deluxe King Room
09-November-2023 Q2 FY24 Earnings Presentation 33 Aurika, Mumbai Sky City | Deluxe King Room
Slide 34: Aurika, Mumbai Sky City | 'Mirasa' - all day dining restaurant
09-November-2023 Q2 FY24 Earnings Presentation 34 Aurika, Mumbai Sky City | ‘Mirasa’ - all day dining restaurant
Slide 35: Aurika, Mumbai Sky City | Lobby
09-November-2023 Q2 FY24 Earnings Presentation 35 Aurika, Mumbai Sky City | Lobby
Slide 36: Lemon Tree Mountain Resort, Shimla | Representation
09-November-2023 Q2 FY24 Earnings Presentation 36 Lemon Tree Mountain Resort, Shimla | Representation
Slide 37: Lemon Tree Mountain Resort, Shimla | Current (Front)
09-November-2023 Q2 FY24 Earnings Presentation 37 Lemon Tree Mountain Resort, Shimla | Current (Front)
Slide 38: Lemon Tree Mountain Resort, Shimla | Current (Back)
09-November-2023 Q2 FY24 Earnings Presentation 38 Lemon Tree Mountain Resort, Shimla | Current (Back)
Slide 39: Lemon Tree – Snapshot as on 30th September 2023
09-November-2023 Q2 FY24 Earnings Presentation 39 Lemon Tree – Snapshot as on 30th September 2023 Operational Pipeline Operational + Pipeline Group 8,760 4,092 12,852 rooms; rooms; rooms; 95 hotels 52 hotels 147 hotels Brand Current Pipeline Operational + Pipeline Aurika Hotels & Resorts 194 Rooms;
Slide 40: Portfolio Breakup as on 30th September 2023 - Operational
09-November-2023 Q2 FY24 Earnings Presentation 40 Portfolio Breakup as on 30th September 2023 - Operational Owned (incl. on leased Operational Portfolio Leased Managed/ Franchised Total land) Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Aurika Hotels & Resorts 1 139 - - 1 55 2 194 Lemon Tree
Slide 41: Portfolio Breakup as on 30th September 2023 - Pipeline
09-November-2023 Q2 FY24 Earnings Presentation 41 Portfolio Breakup as on 30th September 2023 - Pipeline Owned (incl. on leased Pipeline Portfolio Leased Managed/ Franchised Total land) Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Aurika Hotels & Resorts 1 669 - - 2 242 3 911 Lemon Tree Premi
Slide 42: 09-November-2023 Q2 FY24 Earnings Presentation
09-November-2023 Q2 FY24 Earnings Presentation 42
Slide 43: ESG | Highlights of FY23 initiatives
09-November-2023 Q2 FY24 Earnings Presentation 43 ESG | Highlights of FY23 initiatives Energy Renewable energy Green building Diversity and inclusion 15% 10% 50% 10.97% 100% 25% 30% 13% Reduction in Reduction in Renewable energy Renewable energy Certified Green Certified Green ODIs1 in the ODIs1 in
Slide 44: Conference Call Details
09-November-2023 Q2 FY24 Earnings Presentation 44 Conference Call Details Time • 2:00 PM IST, Friday, November 10, 2023 Conference dial-in Primary number • Primary number: +91 22 6280 1141 / +91 22 7115 8042 Local access number • +91 70456 71221 (Available all over India) • Hong Kong: 800 964 448 •
Slide 45: About Lemon Tree Hotels
09-November-2023 Q2 FY24 Earnings Presentation 45 About Lemon Tree Hotels Lemon Tree Hotels Limited is India’s largest hotel chain in the mid-priced hotel sector, and the third largest overall, on the basis of controlling interest in owned and leased rooms, as of June 30, 2017, according to the Horw