Lemon Tree Hotels Ltd. · NSE:LEMONTREE
Lemon Tree Hotels — Q3 FY21 Earnings Presentation
32 slides from Lemon Tree Hotels's earnings presentation, Feb 9, 2021
Slide 1: Lemon Tree Hotels Limited Q3 FY21 Earnings Presentation
Lemon Tree Hotels Limited Q3 FY21 Earnings Presentation 9th February, 2021
Slide 2: 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 3: Table of Contents
Table of Contents 1 Company Overview 2 Chairman & Managing Director’s Message 3 9M FY21 Operating Performance Trends 4 Q3 FY21 Financial Highlights & Results 5 9M FY21 Financial Results 6 Pipeline 7 Annexures 3
Slide 4: Lemon Tree – Snapshot as on 31st Jan, 2021
Lemon Tree – Snapshot as on 31st Jan, 2021 Current (17% of Branded Pipeline By CY22 (20% of Branded Mid Market Hotels in India*) Mid Market Hotels in India*) 8,294 2,202 10,406 rooms; rooms; rooms; 84 hotels 22 hotels 106 hotels Brand Current Pipeline by FY23 Aurika 139 Rooms; 1 Hotel 669 Rooms; 1 H
Slide 5: Lemon Tree – Portfolio
Lemon Tree – Portfolio Key Statistics Q3 FY20 Q3 FY21 YoY Var (%) Cities 46 51 11% Hotels 78 84 8% Rooms 7,914 8,294 5% Loyalty 1.12 mn 1.26 mn 12% Members 5
Slide 6: Chairman & Managing Director’s Message
Chairman & Managing Director’s Message Commenting on the performance for Q3 FY21, Mr. Patanjali Keswani, Chairman & Managing Director – Lemon Tree Hotels Limited said, “We are pleased to report a resilient performance during this quarter driven by some improvement in the macro-economic environment a
Slide 7: 9M FY21 Operating Performance Trends: Increasing Operational Inventory
9M FY21 Operating Performance Trends Increasing Operational Inventory Operational Pick-up 6,000 92.1% 92.2% 100.0% 89.6% 85.5% 86.9% 83.9% 89.2% 90.0% 5,000 % Operational Invetory 80.0% Operational Invetory 71.5% 4,000 70.0% 57.5% 60.0% 3,000 50.0% 4,439 4,513 4,650 4,634 4,784 4,792 40.0% 2,000 4,3
Slide 8: Rising Occupancy Levels
9M FY21 Operating Performance Trends Rising Occupancy Levels Occupancy-ADR Trend 60.0% 3,600 54.5% 50.3% 3,400 50.0% 45.2% 3,200 41.7% 41.6% 40.5% 39.7% 39.6% 40.0% 38.6% 38.1% 3,000 35.4% Gross ADR (Rs) 2,854 34.3% Occupancy (%) 34.6% 33.1% 33.3% 30.7% 2,796 2,800 29.8% 30.0% 2,595 2,638 2,664 2,56
Slide 9: Constantly Improving Operating Efficiency
9M FY21 Operating Performance Trends Constantly Improving Operating Efficiency Revenue vs OPEX Trend 35.00 30.00 28.74 25.00 21.61 20.00 17.41 Rs Cr 15.80 15.91 15.76 16.17 15.00 14.02 16.23 10.94 13.86 10.00 12.55 10.76 10.43 10.37 11.33 11.21 11.75 5.00 - April May June July August September Octob
Slide 10: Q3 FY21 Performance Highlights – Operational Metrics (Consolidated)
Q3 FY21 Performance Highlights – Operational Metrics (Consolidated) Operational Inventory Average Daily Rate (Rs.) Owned/Leased rooms Managed rooms Total rooms 4.8% 8,294 4,644 7,914 0% 13.9% -45.6% YoY 5,192 5,192 -4.7% QoQ 2,722 3,102 2,654 2,528 End of Q3 FY20 Q2 FY21 Q3 FY21 Q3 FY20 Q3 FY21 Q3 F
Slide 11: Q3 FY21 Performance Highlights – Financial Metrics (Consolidated)
Q3 FY21 Performance Highlights – Financial Metrics (Consolidated) Revenue from Operation (Rs. Cr) EBITDA (Rs. Cr) 84.4 199.6 -66% YoY 44% QoQ -74% YoY 56% QoQ 68.4 22.3 47.6 14.3 Q3 FY20 Q2 FY21 Q3 FY21 Q3 FY20 Q2 FY21 Q3 FY21 Cash profit EBITDA Margin (%) (Rs. Cr) 33.7 41.6% (1,000) bps 489 bps 31.
Slide 12: Consolidated Profit & Loss Statement – Q3 FY21
Consolidated Profit & Loss Statement – Q3 FY21 Rs. Cr Q3 FY20 Q2 FY21 Q3 FY21 QoQ Change (%) YoY Change (%) Revenue from operations 199.6 47.6 68.4 43.7% -65.7% Other income 3.2 6.0 2.2 -62.8% -29.6% Total expenses 118.4 39.3 48.3 22.9% -59.2% EBITDA 84.4 14.3 22.3 55.8% -73.5% EBITDA w/o Other Inco
Slide 13: Consolidated Expenses – Q3 FY20 vs Q3 FY21
Consolidated Expenses – Q3 FY20 vs Q3 FY21 Cost Rationalization YoY 45.0 40.0 35.0 30.0 25.0 -63% Rs Cr 42.1 -59% 20.0 39.3 15.0 -45% -68% -45% -15% 10.0 15.8 16.7 16.0 16.0 5.0 8.7 8.9 7.5 5.4 4.3 2.4 - Employee Cost of F&B Power & Fuel Repairs and Other Expenses Lease Rental Benefit Expense Consum
Slide 14: Consolidated Profit & Loss Statement Breakup – Q3 FY21
Consolidated Profit & Loss Statement Breakup – Q3 FY21 Total without Keys Hotels Keys Hotels Total Rs. Cr YoY YoY YoY Q3FY20 Q3FY21 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Change Change Change Inventory 4,256 4,256 0.0% 936 936 0.0% 5,192 5,192 0.0% ARR 4,869 2,627 -46.1% 2,985 1,854 -37.9% 4,644 2,528 -45.6% O
Slide 15: Operational Performance by Brands & Region – Q3 FY20 vs. Q3 FY21
Operational Performance by Brands & Region – Q3 FY20 vs. Q3 FY21 (On Full inventory basis) Hotel level EBITDAR/room (Rs. Parameters Occupancy Rate (%) Average Daily Rate (Rs.) Hotel level EBITDAR Margin Lacs) Change Change Change By Brand (#Rooms) Q3 FY20 Q3 FY21 (bps) Q3 FY20 Q3 FY21 (%) Q3 FY20 Q3
Slide 16: Discussion on Consolidated Financial & Operational Performance – Q3 FY21
Discussion on Consolidated Financial & Operational Performance – Q3 FY21 Revenue from operations stood at Rs. 68.4 Cr in Q3 FY21, down 65.7% as compared to Rs. 199.6.8 Cr in Q3 FY20. On a sequential basis, revenue from operations increased 43.7% from Rs 47.6 Cr in Q2 FY21 ADR decreased by 45.6%
Slide 17: Consolidated Profit & Loss Statement – 9M FY21
Consolidated Profit & Loss Statement – 9M FY21 Rs. Cr 9M FY20 9M FY21 YoY Change (%) Revenue from operations 493.3 156.6 -68.2% Other income 5.4 11.4 111.9% Total expenses 318.9 123.9 -61.2% EBITDA 179.7 44.1 -75.5% EBITDA w/o Other Income 174.4 32.7 -81.2% EBITDA margin (%) 35.4% 20.9% (1,445) Fina
Slide 18: Consolidated Balance Sheet Snapshot - H1 FY21
Consolidated Balance Sheet Snapshot - H1 FY21 Rs. Cr Sep ‘19 Mar ‘20 Sep ‘20 Shareholder's Funds 824.7 823.0 744.0 Non-controlling interests 430.9 721.8 861.4 Total Shareholder’s equity 1,255.6 1,544.8 1,605.4 Gross Debt 1,334.9 1,577.5 1,661.7 Other Non-current liabilities 381.4 464.2 467.4 Other C
Slide 19: 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 20: Expansion Plans – Pipeline of Management Contracts
Expansion Plans – Pipeline of Management Contracts (as on 31st Jan, 2021) Management Contracts Pipeline Rooms Expected Opening date Keys Prima, Dehradun 40 Mar-21 Lemon Tree Premier, Coorg 63 Mar-21 Management Rooms to be Commissioned in FY21 103 Lemon Tree Premier, Bhubaneshwar 76 Apr-21 Red Fox Ho
Slide 21: Annexures
kena ANNEXURES
Slide 22: Portfolio Breakup as on 31st January 2021 - Operational
Portfolio Breakup as on 31st January 2021 - Operational Operational Owned Leased Managed/Franchised Total Portfolio 31.01.2021 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 8 835 17 2,438 Lemon Tree Hotels 13 1,241 4 321 21 1,256 38 2
Slide 23: Portfolio Breakup as on 31st January 2021 - Pipeline
Portfolio Breakup as on 31st January 2021 - Pipeline In Pipeline Owned Leased Managed/Franchised Total 31.01.2021 Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Aurika 1 669# 0 0 0 0 1 669 Lemon Tree Premier 0 0 0 0 4 229 4 229 Lemon Tree Hotels 1 79 0 0 14 1,105 15 1,184 Red Fox Hotels 0 0 0 0
Slide 24: Strategically positioned in key geographies with Lemon Tree share of branded hotel sector
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 25: 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 26: 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 27: 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 28: Consolidated Balance Sheet Snapshot – FY20
Consolidated Balance Sheet Snapshot – FY20 Rs. Cr FY19 FY20 Shareholder's Funds 875.0 823.0 Non-controlling interests 432.2 721.8 Total Shareholder’s equity 1,307.2 1,544.8 Total Debt 1,204.2 1,577.5 Other Non-current liabilities 38.0 464.2 Other Current liabilities 222.4 176.3 Total Equity & Liabil
Slide 29: 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 30: 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 31: Conference Call Details
Conference Call Details Lemon Tree Hotels Limited (LTH) Q3 FY21 Earnings Conference Call Time • 2:00 PM IST on Thursday, February 11th, 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) Interna
Slide 32: 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