Lemon Tree Hotels Ltd. · NSE:LEMONTREE
Lemon Tree Hotels — Q3 FY19 Earnings Presentation
28 slides from Lemon Tree Hotels's earnings presentation, Feb 14, 2019
Slide 1: Exchange disclosure letter for updated investor presentation
February 14, 2019 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 Subject: Disclosure under Regulation 30 of S
Slide 2: Q3 FY19 Earnings Presentation
Lemon Tree Hotels Limited Q3 FY19 Earnings Presentation February 13, 2019
Slide 3: 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 4: Table of Contents
Table of Contents 1 Company Overview 2 Chairman & Managing Director’s Message 3 Performance Highlights 4 Financial & Operational Metrics 5 Key Developments / Business Updates 6 Growth Outlook 7 Annexures Note: Slides 15, 18-26 are either generic or have annual numbers. These will be updated on annua
Slide 5: Lemon Tree – Snapshot as on 31st January, 2019
Lemon Tree – Snapshot as on 31st January, 2019 5342 rooms; 53 hotels 1,502 1,273 2,567 rooms; rooms; rooms; 11 hotels 10 hotels 32 hotels 4
Slide 6: Lemon Tree – Portfolio
Lemon Tree – Portfolio Key Statistics Q3 FY18 Q2 FY19 Q3 FY19 31st Jan FY19 Cities 27 31 31 32 Hotels 42 50 52 53 Rooms 4516 4999 5291 5342 Loyalty 663,095 835,732 889,080 908,726 Members 5
Slide 7: Portfolio Breakup as on 31st January, 2019
Portfolio Breakup as on 31st January, 2019 Operational Portfolio Owned Leased Managed Total 31.01.2019 Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Lemon Tree Premier 5 995 2 161 4 344 11 1,502 Lemon Tree Hotels 13 1241 4 321 15 1,005 32 2,567 Red Fox Hotels 5 759 1 91 4 423 10 1,273 Total 23
Slide 8: Strategically positioned in key geographies with share of mid-priced hotel sector
Strategically positioned in key geographies with Lemon Tree share of total mid- priced hotel sector Geographical spread across India and presence in key markets to Jaipur: FY17 – 11% Delhi NCR: FY17 – 14% cater effectively to corporate FY21E – 16% FY21E – 10% clients and business travelers Hotel
Slide 9: Chairman & Managing Director's Message
Chairman & Managing Director’s Message Commenting on the performance for Q3 FY19, Mr. Patanjali Keswani, Chairman & Managing Director – Lemon Tree Hotels Limited said, “We have delivered a topline growth of 15% YoY in the 9 month period ended Dec 18. Growth was driven by a 8.5% YoY increase in ADR w
Slide 10: Performance Highlights – Operational Metrics
Performance Highlights – Operational Metrics Operational Inventory Average Daily Rate (Rs.) Owned/Leased rooms Managed rooms Total rooms 5% 8.5% 13% 5,291 4,262 4,465 4,871 4,099 3,896 4,516 3,780 3,449 3,570 3,698 3,193 3,278 2,855 1,721 1,323 1,593 843 Q3 FY18 Q3 FY19 9M FY18 9MFY19 FY17 FY18 End
Slide 11: Performance Highlights – Financial Metrics (Consolidated)
Performance Highlights – Financial Metrics (Consolidated) 16% Total Income (Rs. million) EBITDA (Rs. million) 17% 1,440 15% 29% 1,272 1,247 4,921 9.5% 4,203 18% 4,064 986 3,529 430 508 1,326 1,452 Q3 FY18 Q3 FY19 9M FY18 9M FY19 FY17 FY18 Q3 FY18 Q3 FY19 9M FY18 9M FY19 FY17 FY18 Cash profit (PAT +
Slide 12: Discussion on Consolidated Financial & Operational Performance – Q3 FY19
Discussion on Consolidated Financial & Operational Performance – Q3 FY19 As of 31th December 2018, operational portfolio comprised of 52 hotels and 5,291 rooms : 2,997 owned, 573 leased and 1,721 managed rooms; Pipeline includes of 1,240 owned/leased and 2,218 managed rooms. Operational Propose
Slide 13: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) Change Change Rs. million2 Q3 FY19 Q3 FY18 9M FY19 9M FY18 Change (%) FY18 FY17 (%) (%) Revenue from operations 1,434 1,324 8.3% 3,990 3,523 13.3% 4,843 4,121 18% Other income 18 1 1181% 74 6 1082% 78 82 (5%) Total income 1,452 1,326 9.5% 4,064 3,529 15.2% 4,92
Slide 14: Balance Sheet Snapshot (Consolidated)
Balance Sheet Snapshot (Consolidated) Rs. million 9M FY19 9M FY18 FY18 FY17 Shareholder's Funds 8,417 8,004 8,148 8,086 Non-controlling interests 4,309 4,239 4,286 4,284 Total Shareholder’s equity 12,726 12,243 12,435 12,370 Total Debt 11,551 9,740 10,110 7,987 Other Non-current liabilities 319 242
Slide 15: Operational Performance by Brands – FY19 vs. FY18
Operational Performance by Brands – FY19 vs. FY18 Q3 FY19 vs Q3 FY18 Hotel level EBITDAR2/room Parameters Occupancy Rate (%) Average Daily Rate (Rs.) Hotel level EBITDAR2 Margin (Rs. million) Change Change Change By Brand Q3 FY19 Q3 FY18 (bps) Q3 FY19 Q3 FY18 (%) Q3 FY19 Q3 FY18 Change (%) Q3 FY19 Q
Slide 16: Operational Performance by Ageing – FY18 vs. FY17
Operational Performance by Ageing – FY18 vs. FY17 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) FY18 21 3 4 Hotels 7 FY17 21 3 - Operating Rooms FY18 2,727
Slide 17: Expansion Plans – Hotels under Development
Expansion Plans – Hotels under Development Expected Opening Under-development hotels Type Rooms Ownership (%) date Lemon Tree Premier, Andheri (East), Mumbai Owned 303 Apr-19 100.00% Lemon Tree Premier, Kolkata Owned 142 May-19 57.98% Lemon Tree Premier, Udaipur Owned 139 Oct-19 57.98% Lemon Tree Ve
Slide 18: Expansion Plans – Pipeline of Management Contracts
Expansion Plans – Pipeline of Management Contracts (as of December 31st , 2019) Management Contracts Pipeline Rooms Expected Opening date Tenure (years) Lemon Tree Hotel, Viman Nagar, Pune 69 Mar-19 10 Lemon Tree Hotel, Amritsar 65 Apr-19 10 Red Fox Hotel, Alwar 49 Apr-19 15 Lemon Tree Hotel, BKC, M
Slide 19: Growth Strategies
Growth Strategies • Strong competitive position in mid-priced hotel sector to • Geographical diversification to reduce exposure to local, drive market share gains seasonal and cyclical fluctuations as well as provide greater choice to an expanding loyal (repeat) guest o Strong pipeline of owned, lea
Slide 20: Annexures
kena ANNEXURES
Slide 21: Strong operating performance
Strong operating performance Room additions CAGR Occupancy levels Owned Leased Hotels Managed Hotels FY15 FY16 FY17 FY18 20% 4,870 3,698 1593 79% 3,001 3,249 78% 2,708 77% 77% 77% 274 461 843 75% 171 481 75% 74% 1,920 283 283 317 73% 283 283 2,444 2,505 2,538 2,796 68% 68% 68% 2,254 1,637 FY13 FY14
Slide 22: Strong Growth and improving margins
Strong Growth and improving margins Revenue from operations (Rs. million) CAGR EBITDA & EBITDA margins EBITDA (Rs. million) EBITDA Margins (%) 22% 27.9% 29.7% 29.3% 4,843 4,121 3,680 2,904 17.8% 2,217 11.0% 246 519 1,033 1,247 1,440 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 Cash Profit (PAT
Slide 23: The hotel business cycle
The hotel business cycle Occupancy 70% Illustrative: 15 Room Hotel 65% with 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 Expenses 60 50 40 EBITDA 96 50 16 Hotel RoCE 32% 17% 5% 6:3:1
Slide 24: Indian hotel industry is at an inflection point
Indian hotel industry is at an inflection point Slowing supply and rising demand is expected to increase occupancy and ADR Occupancy (%) Rooms demand per day ('000) Rooms supply per day ('000) 200 Demand 10.8% Demand 15.1% Demand 13.7% Demand 12.5% Supply 14.9% Supply 15.1% Supply 8.4%
Slide 25: Increasing occupancy leading to increase in room rates
Increasing occupancy leading to increase in room rates Average Daily Rate (ADR) is increasing with increase in occupancy rates ADR (Rs.) Occupancy (RHS) ADR (INR) Occupancy 9000 80% 75% 8000 7543 70% 7000 65% 60% 6000 5745 55% 69% 68% 59% 59% 60% 58% 57% 58% 59% 63% 65% 5000 50% FY07 FY08 FY09 FY10
Slide 26: Mid-priced hotel sector expected to have higher demand supply gap
Mid-priced hotel sector expected to have higher demand supply gap resulting in higher growth in occupancy Mid-priced hotel sector expected to continue having higher demand-supply gap leading to… Demand Growth Supply Growth Demand Supply Gap FY12-17 FY17-21 19% 19% 16% 16% 15% 12% 12% 12% 13% 11% 8%
Slide 27: Conference Call Details
Conference Call Details Lemon Tree Hotels Limited (LTH) Q2 FY19 Earnings Conference Call Time • 2:00 PM IST on Friday, February 15, 2019 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) Internation
Slide 28: 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-priced hotel sector, consisting of the upper mid