Lemon Tree Hotels Ltd. · NSE:LEMONTREE
Lemon Tree Hotels — Q1 FY2021 Earnings Presentation
39 slides from Lemon Tree Hotels's earnings presentation, Aug 6, 2020
Slide 1: Filing letter to NSE and BSE on Q1 results
emontree HOTELS August 6, 2020 National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, Block G Phiroze Jeejeebhoy Towers Bandra Kurla Complex Dalal Street, Mumbai — 400001 Bandra (E), Mumbai - 400051 NSE Scrip Symbol: LEMONTREE BSE Scrip Code: 541233 Re: Unaudited Financial Results
Slide 2: Independent Auditor's Review Report (Consolidated)
Deloit te Sees 7 Cuartered Recountants 8 Haskins & Sells LLP carn Haegana, India Phone: +94 124 679 2090 Fax: #91 124 679 2012 INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM CONSOLIDATED FINANCIAL RESULTS, TO THE BOARD OF DIRECTORS OF LEMON TREE HOTELS LIMITED 1, We have reviewed the accom
Slide 3: Auditor's Review Report: entities and emphasis of matter
Deloitte Haskins & SellsLLP Sukhsagar Complexes Private Limited Wholly owned subsidiary company 7. Oriole Dr Fresh Hotels Private Limited Wholly owned subsidiary company 8. Grey Fox Project Management Company | Whatly owned subsidiary company Private Limited 9. Dandelion Hotels Private Limited Wholl
Slide 4: Auditor's Review Report (continued)
Deloitte Haskins & SellsLLP 7. We did not review the interim financial results of Krizm Hotel Private Limited Employee Welfare Trust (the “Trust”) included in the standalone unaudited financial results of the entity included in the Group, whose interim financial results reflect total revenues of Rs.
Slide 5: Statement of Unaudited Consolidated Financial Results
Lemon Tree Hotels Limited Regd Office:- Asset No. 6, AerocityHospitalityDistrict, New Delhi-110037____ Tel.: 01 1-46050101; Fax.: 011-46050110; E-Mail: sectdeptt@lemontreehotels.com: Website:www lemontreehotels. com CIN: L74899DL1992PLC049022 Statement of Unauudited Consolidated Financial Results fo
Slide 6: Notes to Consolidated Financial Results
Notes: \_ The é,Audit Augan 50d.Commit tin tee stator hasy review auditor haveabove eds the conga ae ne Board of Directors has approved the above results at their respect results i ive meetings held on August 5, 2020 and ‘ d review of the above Consolidated financial results. | 2. The figures for th
Slide 7: Independent Auditor's Review Report (Standalone)
Deloitte i Aa roar Chartered Accountants, gue ce acy gero, Haskinj s & Sells LLP Se ae Phone: +91 124 679 2000 Fant #91 225 679 2012 INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE FINANCIAL RESULTS TO THE BOARD OF DIRECTORS OF LEMON TREE HOTELS LIMITED 1. We have reviewed the ac
Slide 8: Auditor's Review Report: Emphasis of Matter
Deloitte Haskins & SellsLLP 5. Emphasis of Matter Attention is invited to Note7 of the Statement of Standalone Unaudited Financial Results ich sets out the Company's assessment of going concer assumption and financial inypaet on account of COVED 19 pandemic situation. Based on these assessments, the
Slide 9: Statement of Unaudited Standalone Financial Results
Lemon Tree Hotels Limited Regd Office:- Asset No. 6, Aerocity Hospitality District, New Delhi-110037 Tel.: 011-46050101; Fax.: 011-46050110; E-Mail:sectdeptt@lemontreehotels.com:Website: www.lemontreehotels.com CIN: L74899DL1992PLC049022 Statement of Unaudited Standalone Financial Results for the Qu
Slide 10: Notes to Standalone Financial Results
Notes: I. The Audit Committee has reviewed the above results meetings held on August 5, and the Board of Directors 2020 and August 6, 2020. has approved the above resul The Statutory auditors have carried ts at their respective results. out a limited review of the above financial 2. The figures for
Slide 11: Segment note and signature
a 9. The Company is into Hot eliering business. As the Operating segments in accord Com Pany operates in a Single operating ance with Ind AS 108 - Oper segment, it did not give rise results for the Quarter are . ating Segments, Since, the company is in Hote to different not indicative of a ful lieri
Slide 12: Lemon Tree Hotels Limited Q1 FY21
Lemon Tree Hotels Limited Q1 FY21 Earnings Presentation 6th Aug, 2020
Slide 13: Disclaimer
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 actual results to differ materially from those s
Slide 14: Table of Contents
Table of Contents 1 Company Overview 2 Chairman & Managing Director’s Message 3 Q1 FY21 Operating Performance Trends 4 CoVID-19 – Update 5 Financial & Operational Metrics 6 Pipeline 7 Annexures 3
Slide 15: Lemon Tree – Snapshot as on 31st July, 2020
Lemon Tree – Snapshot as on 31st July, 2020 Current (17% of Branded Pipeline By CY22 (20% of Branded Mid Market Hotels in India*) Mid Market Hotels in India*) 8,006 2,759 10,765 rooms; rooms; rooms; 80 hotels 29 hotels 109 hotels Brand Current Pipeline by FY22 Aurika 139 Rooms; 1 Hotel 669 Rooms; 1
Slide 16: Lemon Tree – Portfolio
Lemon Tree – Portfolio Key Statistics Q1 FY20 Q1 FY21 YoY Var (%) Cities 34 48 41% Hotels 57 80 40% Rooms 5,828 8,006 37% Loyalty 1,008,307 1,171,494 16% Members 5
Slide 17: Chairman & Managing Director's Message
Chairman & Managing Director’s Message Commenting on the performance for Q1 FY21, Mr. Patanjali Keswani, Chairman & Managing Director – Lemon Tree Hotels Limited said, “Hospitality and tourism is among the worst affected industry due to ongoing lockdowns, corporate travel restrictions and the fear o
Slide 18: Q1 FY21 Operating Performance Trends
Q1 FY21 Operating Performance Trends Increasing Operational Inventory Rising Occupancy Levels From March End Lows Operational Pick-up Performance Trend 5,000 100.0% 50.0% 85.5% 41.7% 40.5% 3,400 % Operational Invetory 4,000 71.5% 80.0% 40.0% 37.4% Operational Invetory 34.6% Occupancy (%) Gross ARR (
Slide 19: Q1 FY21 Operating Performance Trends
Q1 FY21 Operating Performance Trends Constantly Improving Operating Efficiency Revenue vs Operating Expenses Trend 18.0 15.8 16.0 14.0 14.0 12.0 10.9 10.0 10.7 10.4 10.3 Rs Cr 8.0 6.0 4.0 2.0 - April May June Total Revenue Operating Expenses Notes: 1. Total Revenue includes Revenue from Owned and Le
Slide 20: Q1 FY21 Performance Highlights – Operational Metrics
Q1 FY21 Performance Highlights – Operational Metrics (Consolidated) Operational Inventory Average Daily Rate (Rs.) Owned/Leased rooms Managed rooms Total rooms 37.4% 4,002 8,006 30.6% 51.8% -34.4% 5,828 -32.6% 5,192 3,975 2,814 2,699 2,626 1,853 End of Q1 FY20 Same Hotels All Hotels Q1 FY20 Q1 FY21
Slide 21: Q1 FY21 Performance Highlights – Financial Metrics
Q1 FY21 Performance Highlights – Financial Metrics (Consolidated) Revenue from Operation (Rs. Cr) EBITDA (Rs. Cr) 46.0 140.9 -71.1% -83.8% 40.7 7.5 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Cash profit EBITDA Margin (%) (Rs. Cr) 32.4% 15.9 10.4 (1,529) bps 17.1% -34.3% Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Notes: 1
Slide 22: Consolidated Profit & Loss Statement – Q1 FY21
Consolidated Profit & Loss Statement – Q1 FY21 Rs. Cr Q1 FY20 Q1 FY21 YoY Change (%) Revenue from operations 140.9 40.7 -71.1% Other income 1.3 3.1 147.2% Total expenses 96.2 36.3 -62.2% EBITDA 46.0 7.5 -83.8% EBITDA margin (%) 32.4% 17.1% (1,529) Finance costs 30.9 48.7 57.5% Depreciation & amortiz
Slide 23: Consolidated Profit & Loss Statement Breakup – Q1 FY21
Consolidated Profit & Loss Statement Breakup – Q1 FY21 New Same Hotels Total without Keys Hotels Keys Hotels Total Hotels1 Rs. Cr YoY YoY YoY Q1FY20 Q1FY21 Q1FY21 Q1FY20 Q1FY21 Q1FY21 Q1FY20 Q1FY21 Change Change Change Inventory 3,672 3,672 0.0% 584 3,672 4,256 15.9% 936 3,672 5,192 41.4% ARR 4,002
Slide 24: Operational Performance by Brands & Region
Operational Performance by Brands & Region – Q1 FY20 vs. Q1 FY21 Hotel level EBITDAR/room (Rs. Parameters Occupancy Rate (%) Average Daily Rate (Rs.) Hotel level EBITDAR Margin Lacs) Change Change Change By Brand (#Rooms) Q1 FY20 Q1 FY21 (bps) Q1 FY20 Q1 FY21 (%) Q1 FY20 Q1 FY21 Change (%) Q1 FY20 Q
Slide 25: Discussion on Consolidated Financial & Operational Performance
Discussion on Consolidated Financial & Operational Performance – Q1 FY21 Revenue from operations stood at Rs. 40.7 Cr in Q1 FY21, down 71.1% as compared to Rs. 140.9 Cr in Q1 FY20. On same hotels basis, revenue from operations was down by 77.8% ADR decreased by 34.4% from 4,002 in Q1 FY20 to 2,6
Slide 26: Expansion Plans – Hotels under Development
Expansion Plans – Hotels under Development Expected Opening Under-development hotels Type Rooms Ownership (%) date Lemon Tree Mountain Resort, Shimla Owned 69 TBD 100.00% Lemon Tree Vembanad Lake Resort, Alleppey, Owned 10 TBD 100.00% Kerela1 Aurika, Intl. Airport, Mumbai2 Owned 669 End of CY22 57.9
Slide 27: Expansion Plans – Pipeline of Management Contracts
Expansion Plans – Pipeline of Management Contracts (as of 31st July, 2020) Management Contracts Pipeline Rooms Expected Opening date Tenure (years) Lemon Tree Premier, Dwarka 108 Sep-20 12 Lemon Tree Hotel, Baga, Goa 44 Oct-20 15 Lemon Tree Premier, Bhubaneshwar 76 Jan-21 10 Lemon Tree Hotel, Jhansi
Slide 28: Annexures
lente ANNEXURES
Slide 29: Portfolio Breakup as on 31st July 2020 - Operational
Portfolio Breakup as on 31st July 2020 - Operational Operational Owned Leased Managed/Franchised Total Portfolio 15.05.2020 Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Aurika 1 139 0 0 0 0 1 139 Lemon Tree Premier 7 1,442 2 161 6 604 15 2,207 Lemon Tree Hotels 13 1,241 4 321 18 1,084 35 2,64
Slide 30: Portfolio Breakup as on 31st July 2020 - Pipeline
Portfolio Breakup as on 31st July 2020 - Pipeline In Pipeline Owned Leased Managed/Franchised Total 1.02.2020 Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Aurika 1 669# 0 0 0 0 1 669 Lemon Tree Premier 0 0 0 0 6 457 6 457 Lemon Tree Hotels 1 79 0 0 19 1,434 20 1,513 Red Fox Hotels 0 0 0 0 1 8
Slide 31: Strategically positioned in key geographies
Strategically positioned in key geographies with Lemon Tree share of total branded hotel sector Jaipur: FY20 – 5.2% FY24E – 3.5% Delhi NCR: FY20 – 6.8% FY24E – 7.1% Ahmedabad:FY20 – 5.4% FY24E – 3.3% Kolkata: FY20 – 3.8% Mumbai: FY20 – 3.2% FY24E – 2.6% FY24E – 6.4% Pune: FY20 – 9.4% FY24E – 8.4% Hy
Slide 32: Strong operating performance
Strong operating performance Rooms are being added… …and occupancy levels increasing… Owned Leased Hotels Managed Hotels FY16 FY17 FY18 FY19 FY20 25% 8,006 2814 79% 4,870 5,411 78% 78% 77% 77% 77%78% 3,698 1841 675 3,249 1593 75% 75% 843 74%74% 461 481 573 73% 74% 283 317 4,517 71% 72% 2,505 2,538 2
Slide 33: Strong Growth and improving margins
Strong Growth and improving margins Revenue has increased at 20% over the last 5 years… …coupled with increasing EBITDA margins Revenue from operations (Rs. million) EBITDA & EBITDA margins 16% 36.2% 6,694 31.9% 27.9% 29.7% 29.3% 5,495 4,843 4,121 3,680 1,033 1,247 1,440 1,787 2,441 FY16 FY17 FY18 F
Slide 34: Consolidated Profit & Loss Statement – FY20
Consolidated Profit & Loss Statement – FY20 FY20 FY20 YoY Change IndAS 116 YoY Change Rs. Cr FY19 Before IndAS 116 After IndAS 116 (%) Impact (%) Impact Impact Revenue from operations 549.5 669.4 21.8% 669.4 21.8% Total expenses 380.7 464.3 21.9% -33.2 431.1 13.2% EBITDA 168.8 205.1 21.6% 33.2 238.3
Slide 35: Consolidated Balance Sheet Snapshot – FY20
Consolidated Balance Sheet Snapshot – FY20 Rs. Cr FY19 H1 FY20 FY20 Shareholder's Funds 875.0 824.7 823.0 Non-controlling interests 432.2 430.9 721.8 Total Shareholder’s equity 1,307.2 1,255.6 1,544.8 Total Debt 1,204.2 1,334.9 1,577.5 Other Non-current liabilities 38.0 381.4 464.2 Other Current lia
Slide 36: Operational Performance by Ageing – FY19 vs. FY20
Operational Performance by Ageing – FY19 vs. FY20 Adult Hotels Toddler Hotels Infant Hotels Under-development Parameters Financial year (Stable - older than 3 (Stabilizing - between (New - less than 1 hotels years) 1-3 years old) year old) FY20 24 6 11 Hotels1 2 FY19 21 7 2 Operating Rooms FY20 2,85
Slide 37: The hotel business cycle
The hotel business cycle Occupancy 70% Illustrative: 15 Room Hotel with 65% Investment = 300 60% Cycle Top (2) Middle (3) Bottom (2) Occupancy 70% or more 63-68% 60% or less Rooms Sold 12 10 8 Average Daily Rate 13 10 7 Revenue 156 100 56 3:2:1 Expenses 60 50 40 EBITDA 96 50 16 Hotel RoCE 32% 17% 5%
Slide 38: Conference Call Details
Conference Call Details Lemon Tree Hotels Limited (LTH) Q1 FY21 Earnings Conference Call Time • 4:00 PM IST on Monday, August 10, 2020 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) International
Slide 39: About Us
About Us Lemon Tree Hotels (LTH) is the largest mid-priced hotel sector chain, and the third largest overall, on the basis of controlling interest in owned and leased rooms, as of June 30, 2017, according to the Horwath Report. LTH operates in the mid market sector, consisting of the upscale, upper