Slide 1: Outcome of the Board Meeting
emon tree HOTELS August 11, 2021 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: Outcome of the Board Meet
Slide 2: Independent Auditor's Review Report (Consolidated)
Chartered Accountants = 7th Floor, Building 10, Tower B, Deloitte DLF Cyber City Complex, Haskins & Sells LLP Gurugram - 122 002, = DLF City Phase II, Haryana, India Phone: +91 124 679 2000 Fax: +91 124 679 2012 INDEPENDENT AUDITOR’S REVIEW REPORT ON REVIEW OF INTERIM CONSOLIDATED FINANCIAL RESULTS
Slide 3: Auditor's Review Report (Consolidated) continued
Deloitte Haskins & Sells LLP 15. _| Berggruen Hotels Private Limited Subsidiary company 16. _| Manakin Resorts Private Limited Subsidiary company 17. _| Celsia Hotels Private Limited Subsidiary company 18. | Inovoa Hotels and Resorts Limited Subsidiary company 19. | Iora Hotels Private Limited Subsi
Slide 4: Auditor's Review Report signature page
Deloitte Haskins & Sells LLP reviewed by us. These interim financial statements have been reviewed by other auditors whose reports have been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these subs
Slide 5: Statement of Unaudited Consolidated Financial Results Q1 FY22
Lemon Tree Hotels Limited Regd Office:- Asset No. 6, Aerocity Hospitality District, New Delhi-110037 Tel: 611-46030101; Fax; 011-16050110; E-Mail:sectdepita@i hotels.com: Website: wo01-k CEN: LT4899DL 1992 PLCO59922 Statement of Unaundited Consolidated Financial Results for the Quarter ended June 30
Slide 6: Notes to Consolidated Financial Results
Notes: 1. The Andi Conmnittee has reviewed the above results and the Board of Directors has approved the above consolidated financial results at their respective meetings held on Angust 10, 2021 and Angust 11, 2021. Figures for the quarter ended March 31, 2021 are balancing figures between audited G
Slide 7: Notes to Consolidated Results continued
6. The Code on Wages. 2019 and Code on social security, 7020 (“the codes} relating to employee compensation and post-employment benefits that received Presidential assent have not been notified. Further, the related nies for quantifying the financial impact have not been notified. The Group vall ass
Slide 8: Independent Auditor's Review Report (Standalone)
= Chartered Accountants Deloitte 7th Floor, Building 10, Tower B, DLF City Phase 1, = DLF Cyber City Complex, Haskins & Sells LLP Gurugram - 122 002, Haryana, India Phone: +91 124 679 2000 Fax: +91 124 679 2012 INDEPENDENT AUDITOR’S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE FINANCIAL RESULTS TO
Slide 9: Auditor's Review Report (Standalone) continued
Deloitte Haskins & Sells LLP after tax of Rs. 0.01 lakhs and total comprehensive loss of Rs. 6.01 lakhs for the quarter ended June 30, 2021 respectively, as considered in this Statement. The interim financial results have been reviewed by other auditor whose report have been furnished to us, and our
Slide 10: Statement of Unaudited Standalone Financial Results Q1 FY22
Lemon Tree Hotels Limited Read Office:- Asset No. 6, Aerocity Hospitality District, New Delhi-110037 Tel.: 011-46050101; Fax.: 011-46050110: E-Mail:sectdeptt@ lemontreehotels.com: Website: www .lemontreebotels.com CIN: L74899DL1992PLC049022 Statement of Unaudited Standalone Financial Results for the
Slide 11: Notes to Standalone Financial Results
Notes: 1, The Audit Committee has reviewed the above results and the Board of Directors has approved the above standalone financial results at their respective meetings held on August 10. 2021 and August 11. 2021. Figures for the quarter ended March 31. 2021 are balancing figures between audited heu
Slide 12: Notes to Standalone Results continued
7. The Code on Wages. 2019 and Code on social security, 2020 (“the codes”) relating to employee compensation and post-employment benefits that received Presidential assent have not been notified. Further. the related rules for quantifying the financial impact have not been notified. The Company will
Slide 13: Lemon Tree Hotels Limited Q1 FY22
Lemon Tree Hotels Limited Q1 FY22 Earnings Presentation 11th August, 2021
Slide 14: 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 15: Table of Contents
Table of Contents 1 Company Overview 2 Chairman & Managing Director’s Message 3 Q1 FY22 Operating Performance Trends 4 Q1 FY22 Financial Highlights & Results 5 Pipeline 6 Annexures 3
Slide 16: Lemon Tree – Snapshot as on 11th August 2021
Lemon Tree – Snapshot as on 11th August 2021 Current (17% of Branded By CY23 (20% of Branded Pipeline Mid Market Hotels in India*) Mid Market Hotels in India*) 8,309 2,109 10,418 rooms; rooms; rooms; 84 hotels 21 hotels 105 hotels Brand Current Pipeline By FY23 Aurika 139 Rooms; 1 Hotel 669 Rooms; 1
Slide 17: Lemon Tree – Portfolio
Lemon Tree – Portfolio Key Statistics Q1 FY22 Q1 FY21 YoY Var (%) Cities 52 48 8% Hotels 84 80 5% Rooms 8,309 8,006 4% 5
Slide 18: Chairman & Managing Director's Message
Chairman & Managing Director’s Message Commenting on the performance for Q1 FY22, Mr. Patanjali Keswani, Chairman & Managing Director – Lemon Tree Hotels Limited said, The new fiscal year started amidst a challenging operating environment due to lockdowns and restrictions on account of the second wa
Slide 19: Q1 FY22 Operating Performance Trends: Increasing Operational Inventory
Q1 FY22 Operating Performance Trends Increasing Operational Inventory Operational Pick-up 5,200 97.0% 100.0% 5,000 95.0% 5,037 % Operational Invetory Operational Invetory 4,800 90.0% 4,600 84.9% 81.9% 85.0% 4,400 4,408 80.0% 4,200 4,252 4,000 75.0% 3,800 70.0% April May June Avg Operational Inventor
Slide 20: Q1 FY22 Operating Performance Trends: Rising Occupancy Levels
Q1 FY22 Operating Performance Trends Rising Occupancy Levels Occupancy-ADR Trend 45.0% 2,429 2,450 39.6% 40.8% 40.0% 34.8% 35.0% 2,400 2,369 29.5% Gross ADR (Rs) Occupancy (%) 30.0% 24.5% 2,350 25.0% 20.0% 20.0% 2,300 15.0% 2,288 10.0% 2,250 5.0% 0.0% 2,200 April May June Total Occupancy Occupancy i
Slide 21: Q1 FY22 Operating Performance Trends
Q1 FY22 Operating Performance Trends Improving Operating Efficiency and Fast Recovery Revenue vs OPEX Trend Revenue Trend 20.00 18.64 80.00 74.49 18.00 68.15 70.00 16.00 14.15 60.00 14.00 14.33 50.00 12.00 10.19 Rs. Cr Rs Cr 10.00 11.63 40.00 32.19 28.74 8.00 30.00 54% 9.11 32.41 21.61 31.03 6.00 29
Slide 22: Performance Highlights – Operational Metrics (Consolidated)
Q1 FY22 Performance Highlights – Operational Metrics (Consolidated) Inventory Average Daily Rate (Rs.) Owned/Leased rooms Managed rooms Total rooms 2,654 -11.0% 2,626 -10.1% 3.8% 8,309 YoY QoQ 8,006 0% 10.8% 5,192 5,192 2,362 2,362 2,814 3,117 End of Q1 FY21 Q1 FY22 Q4 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Q
Slide 23: Performance Highlights – Financial Metrics (Consolidated)
Q1 FY22 Performance Highlights – Financial Metrics (Consolidated) Revenue from Operations (Rs. Cr) EBITDA (Rs. Cr) 3.7% 95.1 -55.7% -72.6% -93.3% YoY QoQ YoY 30.4 QoQ 40.7 42.2 42.2 7.5 2.0 2.0 Q1 FY21 Q1 FY22 Q4 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Q4 FY21 Q1 FY22 EBITDA Margin (%) Cash profit (Rs. Cr) -2,
Slide 24: Consolidated Profit & Loss Statement – Q1 FY22
Consolidated Profit & Loss Statement – Q1 FY22 Rs. Cr Q1 FY22 Q4 FY21 Q1 FY21 QoQ Change (%) YoY Change (%) Revenue from operations 42.2 95.1 40.7 -55.7% 3.7% Other income 2.1 1.9 3.1 12.4% -31.8% Total expenses 42.2 66.6 36.3 -36.5% 16.3% EBITDA 2.0 30.4 7.5 -93.3% -72.6% EBITDA margin (%) 4.6% 31.
Slide 25: Cost Rationalization Q1 FY22 vs Q4 FY21
Cost Rationalization Q1 FY22 vs Q4 FY21 (on sequential basis) -48% Cost Rationalization QoQ 30.0 -23% QoQ 26.8 25.0 22.6 20.0 -26% 17.4 QoQ Rs. Cr 15.0 -54% 14.0 QoQ 10.2 10.0 6.9 7.6 5.0 3.2 - Employee Benefit Expense Cost of F&B Consumed Power & Fuel Expenses Other Expenses Q4 FY21 Q1 FY22 13
Slide 26: Consolidated Profit & Loss Statement Breakup – Q1 FY22
Consolidated Profit & Loss Statement Breakup – Q1 FY22 Total without Keys Hotels Keys Hotels Total Rs. Cr YoY Change YoY Change YoY Change Q1 FY22 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Q1 FY21 (%) (%) (%) Inventory 4,256 4,256 0% 936 936 0% 5,192 5,192 0% ADR 2,445 2,796 -13% 1,737 1,588 9% 2,362 2,626 -1
Slide 27: Operational Performance by Brands & Region
Operational Performance by Brands & Region – Q1 FY22 vs. Q1 FY21 (On full inventory basis) Parameters Occupancy Rate (%) Average Daily Rate (Rs.) Hotel level EBITDAR/room (Rs. Lacs) Hotel level EBITDAR Margin Change Change Change By Brand (#Rooms) Q1 FY22 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Q1 FY21 Chan
Slide 28: Discussion on Consolidated Financial & Operational Performance
Discussion on Consolidated Financial & Operational Performance – Q1 FY22 Revenue from operations stood at Rs. 42.2 Cr in Q1 FY22, up 3.7% as compared to Rs. 40.7 Cr in Q1 FY21. On a sequential basis, revenue from operations decreased 55.7% from Rs. 95.1 Cr in Q4 FY21 Revenue ADR decreased by 10.
Slide 29: Expansion Plans – Hotels under Development
Expansion Plans – Hotels under Development Under-development hotels Type Rooms Expected Opening date Ownership (%) Lemon Tree Mountain Resort, Shimla Owned 69 TBD 100.00% Aurika, Intl. Airport, Mumbai# Owned 669 CY23 58.91% Total 738 Total estimated project cost2 is Rs. 10,060 Million Total capi
Slide 30: Expansion Plans – Pipeline of Management Contracts
Expansion Plans – Pipeline of Management Contracts (as on 11th August, 2021) Management Contracts Pipeline Rooms Expected Opening date Keys Prima, Dehradun 40 Aug-21 Lemon Tree Premier, Coorg 63 Sep-21 Red Fox Hotel, Neelkanth 80 Sep-21 Lemon Tree Hotel Kalina/BKC, Mumbai 70 Oct-21 Lemon Tree Resort
Slide 31: Annexures
kena ANNEXURES
Slide 32: Portfolio Breakup as on 11th August 2021 - Operational
Portfolio Breakup as on 11th August 2021 - Operational Owned (incl. on leased Operational Portfolio Leased Managed/ Franchised Total land) 11.08.2021 Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Aurika 1 139 0 0 0 0 1 139 Lemon Tree Premier 7 1442 2 161 9 911 18 2514 Lemon Tree Hotels 13 1241
Slide 33: Portfolio Breakup as on 11th August 2021 - Pipeline
Portfolio Breakup as on 11th August 2021 - Pipeline Owned (incl. on leased Pipeline Portfolio Leased Managed/ Franchised Total land) 11.08.2021 Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Aurika # 1 669 0 0 0 0 1 669 Lemon Tree Premier 0 0 0 0 2 113 2 113 Lemon Tree Hotels 1 69 0 0 15 1138 1
Slide 34: Strategically positioned in key geographies
Strategically positioned in key geographies with Lemon Tree share of total branded hotel sector Jaipur: FY20 – 5.2% Kolkata: FY20 – 3.8% FY24E – 3.5% FY24E – 2.6% Ahmedabad:FY20 – 5.4% Hyderabad: FY20 – 9.5% FY24E – 3.3% FY24E – 7.5% Mumbai: FY20 – 3.2% Chennai: FY20 – 1.9% FY24E – 6.4% FY24E – 1.9%
Slide 35: Operating performance
Operating performance Rooms are being added Occupancy Owned Leased Hotels Managed Hotels FY16 FY17 FY18 FY19 FY20 FY21 8,309 8,006 17% CAGR 5,411 2814 3117 4,870 3,698 3,249 1841 675 978 1593 461 843 481 573 283 317 72% 37% 71% 53% 74% 36% 4,517 78% 75% 77% 78% 73% 77% 74% 74% 75% 79% 77% 78% 4,214
Slide 36: Operating margins
Operating margins Revenue from operations (Rs. Million) EBITDA (Rs. Million) & EBITDA margins 36.9% 6,694 29.7% 31.9% 27.9% 29.3% 28.1% 5,495 4,843 3,680 4,121 2,517 1,033 1,247 1,440 1,787 2,492 745 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 Cash profit Debt to Equity Ratio 1.02 1.
Slide 37: Consolidated Profit & Loss Statement – FY21
Consolidated Profit & Loss Statement – FY21 Rs. Cr FY21 FY20 FY19 Revenue from operations 251.7 669.4 549.5 Other income 13.3 5.8 9.9 Total Income 265.0 675.2 559.4 Total expenses 190.5 426.0 380.7 EBITDA 74.5 249.2 178.7 EBITDA w/o Other Income 61.3 243.4 168.8 EBITDA margin (%) 28.1% 36.9% 31.9% F
Slide 38: Consolidated Balance Sheet Snapshot – FY21
Consolidated Balance Sheet Snapshot – FY21 Rs. Cr FY21 FY20 FY19 Shareholder's Funds 917.6 988.9 875.0 Non-controlling interests 617.4 555.9 432.2 Total Shareholder’s equity 1,535.0 1,544.8 1,307.2 Total Debt 1,685.0 1,577.5 1,204.2 Other Non-current liabilities 470.0 464.3 38.0 Other Current liabil
Slide 39: Operational Performance by Ageing – FY21 vs. FY20
Operational Performance by Ageing – FY21 vs. FY20 Adult Hotels Toddler Hotels Infant Hotels Under-development Parameters Financial year (Stable - older than 3 (Stabilizing - between 1- (New - less than 1 year hotels years) 3 years old) old) FY20 24 6 11 Hotels1 2 FY21 28 13 0 Operating Rooms FY20 2,
Slide 40: 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 41: Conference Call Details
Conference Call Details Lemon Tree Hotels Limited (LTH) Q1 FY22 Earnings Conference Call Time • 3:00 PM IST on Thursday, August 12, 2021 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
Slide 42: About Us
About Us 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 Horwath Report. We operate in the upscale segment and in the mid-mark