Lemon Tree Hotels Ltd. · NSE:LEMONTREE
Lemon Tree Hotels — Q3 FY23 Earnings Presentation
48 slides from Lemon Tree Hotels's earnings presentation, Feb 10, 2023
Slide 1: Lemon Tree Hotels Limited Q3 FY23 Earnings Presentation
Aurika, Udaipur 10-02-2023 Q3 FY23 Earnings 1 Lemon Tree Hotels Limited Q3 FY23 Earnings Presentation | 10th February 2023
Slide 2: Disclaimer
10-02-2023 Q3 FY23 Earnings 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 actual results to
Slide 3: Lemon Tree – Snapshot as on 31st December 2022
10-02-2023 Q3 FY23 Earnings 3 Lemon Tree – Snapshot as on 31st December 2022 Current Pipeline By FY25 Group 8,451 2,789 11,240 rooms; rooms; rooms; 88 hotels 34 hotels 122 hotels Brand Current Pipeline By FY25 Aurika Hotels & Resorts 194 Rooms; 2 Hotels 801 Rooms; 2 Hotels 995 Rooms; 4 Hotels Lemon
Slide 4: Chairman & Managing Director’s Message
Q3 FY23 Earnings 10-02-2023 4 Chairman & Managing Director’s Message Commenting on the performance for Q3 FY23, Mr. Patanjali Keswani, Chairman & Managing Director – Lemon Tree Hotels Limited said, “Q3 FY23 occupancy increased by 133 bps and Gross ARR increased by 17% vs Q2 FY23. The total revenue f
Slide 5: Strong Q3 FY23 performance across key financial metrics
10-02-2023 Q3 FY23 Earnings 5 Strong Q3 FY23 performance across key financial metrics Q3 FY23 performed better than Pre-CoVID Q3 FY20 Revenue EBITDA EBITDA % Rs. 234.1 Cr Rs. 127.0 Cr 54.3% 15% up 51% up 1,265 up PAT Cash Profit Cost of Debt % Rs. 48.6 Cr Rs. 72.1 Cr 8.65% 338% up 114% up 95 bps red
Slide 6: Q-o-Q performance
10-02-2023 Q3 FY23 Earnings 6 Q-o-Q performance Despite occupancy not being at Pre-CoVID levels, Q3 FY23 recorded the best ever Gross ARR, EBITDA, PBT, and PAT: Particulars Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 Q4 FY20 Q3 FY20 Q2 FY20 Q1 FY20 Gross ARR (Rs.) 5,738 4,917 4,822 4,093
Slide 7: Q-o-Q Gross ARR Recovery
10-02-2023 Q3 FY23 Earnings 7 Q-o-Q Gross ARR Recovery Gross ARR in Q3 FY23 is highest ever since listing and 24% higher than same quarter Pre-CoVID i.e. Q3 FY20 5,738 4,822 4,917 4,644 4,530 4,133 4,093 4,002 3,901 3,028 2,626 2,654 2,654 2,528 2,362 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21
Slide 8: EBITDA Margin Expansion driven by permanent cost rationalization
10-02-2023 Q3 FY23 Earnings 8 EBITDA Margin Expansion driven by permanent cost rationalization Revenue (Rs. Cr) | EBITDA and EBITDA Margins (%) EBITDA and EBITDA Margin % is highest in the last 15 quarters EBITDA Margin expanded by 1,265 bps 54.3% 48.2% 47.8% 44.9% 41.6% 35.0% 36.5% 36.2% 32.4% 32.1
Slide 9: Q3 FY23 Brand level performance
10-02-2023 Q3 FY23 Earnings 9 Q3 FY23 Brand level performance Despite occupancy not being at Pre-CoVID levels, our brands in Q3 FY23 recorded improved Gross ARR, RevPAR, EBITDA, EBITDA % compared to Pre-CoVID i.e. Q3 FY20: Red Fox by Aurika Hotels Lemon Tree Lemon Tree Keys by Lemon Q3 FY23 vs Q3 FY
Slide 10: Q3 FY23 City level performance
10-02-2023 Q3 FY23 Earnings 10 Q3 FY23 City level performance Overall, all the key cities in Q3 FY23 recorded an improved EBITDA Margin % compared to Pre-CoVID i.e. Q3 FY20: Q3 FY23 vs Q3 Rest of Delhi Gurugram Hyderabad Bengaluru Mumbai Pune FY20 India Gross ARR 12% up 20% up 25% up 20% up 27% up 2
Slide 11: Q3 FY23 Operational Performance by Brands & Region
10-02-2023 Q3 FY23 Earnings 11 Q3 FY23 Operational Performance by Brands & Region (On full inventory basis) Hotel level EBITDAR/room Hotel level EBITDAR Parameters RevPAR (Rs.) Occupancy Rate (%) Average Daily Rate (Rs.) Margin % (Rs. Lacs) Q3 Q3 Change Q3 Q3 Change Q3 Q3 Change Q3 Q3 Change Q3 Q3 C
Slide 12: LTH vs Industry – Q3 FY23 vs Q3 FY20 (Pre-CoVID)
10-02-2023 Q3 FY23 Earnings 12 LTH vs Industry – Q3 FY23 vs Q3 FY20 (Pre-CoVID) LTH same store hotels recovered faster than the industry in Q3 FY23 vs Q3 FY20 (Pre-CoVID) Gross ARR Occupancy RevPAR (Change % vs Pre-CoVID) (Change % vs Pre-CoVID) (Change % vs Pre-CoVID) Lemon Tree Hotels Industry (Sa
Slide 13: City level: LTH vs Industry – Q3 FY23 vs Q3 FY20
10-02-2023 Q3 FY23 Earnings 13 City level: LTH vs Industry – Q3 FY23 vs Q3 FY20 (Pre-CoVID) In 7 out of 9 key cities, LTH same store hotels recovered faster than the industry in Q3 FY23 vs Q3 FY20 RevPAR (Change % vs Pre-CoVID) 61% 33% 33% 20% 18% 17% 13% 12% 12% 7% 9% 8% 10% 8% 2% 2% 3% -5% -9% -17
Slide 14: Asset Light Growth: Fee from managed hotels and managed rooms
10-02-2023 Q3 FY23 Earnings 14 Asset Light Growth: Fee from managed hotels and Managed rooms as a % of total inventory Fee from Managed Hotels Managed rooms as % of (Rs. Cr) total inventory 538 bps up 94% up 39.8% 25.1 12.9 34.4% 9M FY20 9M FY23 9M FY20 9M FY23
Slide 15: Market Segments: Q3 FY23 vs Q3 FY20 (Pre-CoVID)
10-02-2023 Q3 FY23 Earnings 15 Market Segments: Q3 FY23 vs Q3 FY20 (Pre-CoVID) Market Segments Room Revenue Share – Q3 FY23 vs Q3 FY20 45 % 42% 36% 33% 40 % 29% 35 % 30 % 25 % 20 % 11% 9% 9% 11% 8% 15 % 4% 5% 3% 10 % 5% 0% Corporate Airline Travel Trade OTA Web Others FITs Q3 FY20 Q3 FY23 Market Seg
Slide 16: Hotel level Revenue and EBITDAR expansion: Q3 FY23 vs Q3 FY20
10-02-2023 Q3 FY23 Earnings 16 Hotel level Revenue and EBITDAR expansion: Q3 FY23 vs Q3 FY20 (Pre-CoVID) 9% 16% 46% addition up up 7% addition * New Hotels includes 9 hotels: Aurika Hotels & Resorts - Udaipur, Lemon Tree Premier - Kolkata and 7 Keys by Lemon Tree Hotels Trends for owned/leased rooms
Slide 17: Cost Optimization: Q3 FY23 vs Q3 FY20 (Pre-CoVID)
10-02-2023 Q3 FY23 Earnings 17 Cost Optimization: Q3 FY23 vs Q3 FY20 (Pre-CoVID) Down 1,265 bps 59% 46% Down 445 bps Down 479 bps Down 77 bps 21% Down 265 bps 22% 16% 17% 8% 8% 7% 6% Employee Benefit Cost of F&B Consumed Power & Fuel Expenses Other Expenses as a % Total Expenses as a % of Expense as
Slide 18: Q3 FY23 Performance Highlights – Operational Metrics (Consolidated)
10-02-2023 Q3 FY23 Earnings 18 Q3 FY23 Performance Highlights – Operational Metrics (Consolidated) Inventory Average Room Rate (Rs.) Owned/Leased rooms Managed/Franchised Total rooms 17% rooms QoQ 7% 8,451 24% 5,738 5,738 7,914 YoY YoY 4,917 23% 4,644 5,192 5,090 YoY 3,361 2,722 Q3 FY20 Q3 FY23 Q3 F
Slide 19: Q3 FY23 Performance Highlights – Financial Metrics (Consolidated)
10-02-2023 Q3 FY23 Earnings 19 Q3 FY23 Performance Highlights – Financial Metrics (Consolidated) Revenue from Operations (Rs. Cr) EBITDA (Rs. Cr) 50% 35% 17% 19% YoY QoQ YoY 127.0 QoQ 127.0 233.5 233.5 94.3 84.4 199.6 196.7 Q3 FY20 Q3 FY23 Q2 FY23 Q3 FY23 Q3 FY20 Q3 FY23 Q2 FY23 Q3 FY23 EBITDA Margi
Slide 20: Month on Month Occupancy % and Gross ARR Trend
10-02-2023 Q3 FY23 Earnings 20 Month on Month Occupancy % and Gross ARR Trend 80 % 76.8% 7,5 00 71.8% 68% 66.9% 67.0% 65% 64.8% 70 % 62% 6,5 00 60 % 5,922 5,939 54.1% 5,218 5,5 00 50 % 4,998 4,933 4,984 4,728 4,776 4,837 40 % 4,5 00 30 % 3,5 00 20 % 2,5 00 10 % 0% 1,5 00 Apr'22 May'22 Jun'22 Jul'22
Slide 21: Lemon Tree Consolidated Profit & Loss Statement Breakup
10-02-2023 Q3 FY23 Earnings 21 Lemon Tree Consolidated Profit & Loss Statement Breakup Lemon Tree Consolidated ex. Keys Hotels Keys Hotels* Lemon Tree Consolidated Rs. Cr Q3 Q2 Q3 QoQ YoY Q3 Q2 Q3 QoQ YoY Q3 Q2 Q3 QoQ YoY FY23 FY23 FY20 Change Change FY23 FY23 FY20* Change Change FY23 FY23 FY20 Chan
Slide 22: Q3 FY23 Consolidated P&L: Waterfall vs Q3 FY20
10-02-2023 Q3 FY23 Earnings 22 Q3 FY23 Consolidated P&L: Waterfall to explain changes vis-a-viz Q3 FY20 Cash Profit = PAT + Depreciation Cash Profit = PAT + Depreciation 51% up 126% flow through due to cost reduction 15% up
Slide 23: Lemon Tree Consolidated Profit & Loss Statement – Q3 FY23
10-02-2023 Q3 FY23 Earnings 23 Lemon Tree Consolidated Profit & Loss Statement – Q3 FY23 Q3 FY23 vs Q3 FY23 vs Rs. Cr Q3 FY23 Q2 FY23 Q3 FY20 Q2 FY23 Q3 FY20 Change (%) Change (%) Revenue from operations 233.5 196.7 199.6 19% 17% Other income 0.6 0.7 3.2 -22% -82% Total revenue 234.1 197.4 202.8 19%
Slide 24: Lemon Tree Consolidated Profit & Loss Statement – 9 Months FY23
10-02-2023 Q3 FY23 Earnings 24 Lemon Tree Consolidated Profit & Loss Statement – 9 Months FY23 9M FY23 EBITDA Margin % is >50% for LTH Consolidated 9M FY23 vs 9M FY23 vs Rs. Cr 9M FY23 9M FY22 9M FY20 9M FY22 9M FY20 Change Change Revenue from operations 622.3 282.7 493.3 120% 26% Other income 1.5 6
Slide 25: Lemon Tree Consolidated Balance Sheet – 9 Months FY23
10-02-2023 Q3 FY23 Earnings 25 Lemon Tree Consolidated Balance Sheet – 9 Months FY23 9M FY23 vs Rs. Cr 9M FY23 9M FY22 9M FY22 Change Shareholder's Funds 887.2 855.2 4% Non-controlling interests 576.2 582.0 -1% Total Shareholder’s equity 1463.4 1437.2 2% Total Debt 1670.3 1680.9 -1% Other Non-curren
Slide 26: Discussion on Consolidated Financial & Operational Performance – Q3 FY23
10-02-2023 Q3 FY23 Earnings 26 Discussion on Consolidated Financial & Operational Performance – Q3 FY23 Revenue from operations stood at Rs. 233.5 Cr in Q3 FY23, up 17% as compared to Rs. 199.6 Cr in Q3 FY20. On a sequential basis, revenue from operations increased 19% from Rs. 196.7 Cr in Q2 FY23
Slide 27: Expansion Plans – Pipeline of Management Contracts
10-02-2023 Q3 FY23 Earnings 27 Expansion Plans – Pipeline of Management Contracts
Slide 28: Expansion Plans – Pipeline of Management Contracts
10-02-2023 Q3 FY23 Earnings 28 Expansion Plans – Pipeline of Management Contracts Opening date Opening date # Hotel Pipeline City Rooms As of 30/09/2022 (Q2 FY23) As of 31/12/2022 (Q3 FY23) A (A1 to A28) Total hotel pipeline as of 30/09/2022 (Q2 FY23) 1867 A1 Lemon Tree Hotel, Tapovan, Rishikesh Ris
Slide 29: Expansion Plans – Hotels under Development
10-02-2023 Q3 FY23 Earnings 29 Expansion Plans – Hotels under Development Expected Opening Under-development hotels Type Rooms Ownership (%) date Aurika, Mumbai International Airport Owned 669 CY23 58.91% Lemon Tree Mountain Resort, Shimla Owned 69 TBD 100.00% Total 738 Total estimated project cos
Slide 30: ESG – FY22 Progress
10-02-2023 Q3 FY23 Earnings 30 ESG – FY22 Progress * * *Note: Opportunity Deprived Indians (ODIs) includes: • Employees with Disability (EWD) – Speech & Hearing Impaired (SHI), Orthopedically Handicapped (OH), Low Vision (LV); Down Syndrome/Slow Learner/Intellectual and Developmental Disability (IDD
Slide 31: Aurika, Mumbai Airport (MIAL) | Artistic Representation
10-02-2023 Q3 FY23 Earnings 31 Aurika, Mumbai Airport (MIAL) | Artistic Representation
Slide 32: Aurika, Mumbai Airport (MIAL) | Current Status
10-02-2023 Q3 FY23 Earnings 32 Aurika, Mumbai Airport (MIAL) | Current Status
Slide 33: Aurika, Mumbai Airport (MIAL) | Mock-up room
10-02-2023 Q3 FY23 Earnings 33 Aurika, Mumbai Airport (MIAL) | Mock-up room
Slide 34: Lemon Tree Mountain Resort, Shimla | Artistic Representation
10-02-2023 Q3 FY23 Earnings 34 Lemon Tree Mountain Resort, Shimla | Artistic Representation
Slide 35: Lemon Tree Mountain Resort, Shimla | Current Status
10-02-2023 Q3 FY23 Earnings 35 Lemon Tree Mountain Resort, Shimla | Current Status
Slide 36: Annexures
10-02-2023 Q3 FY23 Earnings 36 Annexures
Slide 37: Consolidated Profit & Loss Statement – FY22 vs FY21
10-02-2023 Q3 FY23 Earnings 37 Consolidated Profit & Loss Statement – FY22 vs FY21 FY22 vs FY21 Rs. Cr FY22 FY21 YoY Change (%) Revenue from operations 402.2 251.7 60% Other income 14.0 13.3 6% Total Income 416.3 265.0 57% Total expenses 268.3 190.5 41% EBITDA 147.9 74.5 99% EBITDA margin (%) 35.5%
Slide 38: Consolidated Balance Sheet – FY22 vs FY21
10-02-2023 Q3 FY23 Earnings 38 Consolidated Balance Sheet – FY22 vs FY21 FY22 vs FY21 Rs. Cr FY22 FY21 YoY Change (%) Shareholder's Funds 831.1 917.6 -9% Non-controlling interests 567.7 617.4 -8% Total Shareholder’s equity 1,398.9 1,535.0 -9% Total Debt 1,698.6 1,685.3 0.8% Other Non-current liabili
Slide 39: Operating performance over 5 years
10-02-2023 Q3 FY23 Earnings 39 Operating performance over 5 years Rooms are being added Occupancy (%) FY18 FY19 FY20 FY21 FY22 Trends for owned/leased rooms 8,006 8,309 8,489 5,411 2814 3117 3297 4,870 1841 675 675 675 1593 481 573 4,517 4,517 4,517 74% 27% 26% 23% 36% 77% 78% 71% 53% 59% 74% 72% 37
Slide 40: Operating Performance over 5 years
10-02-2023 Q3 FY23 Earnings 40 Operating Performance over 5 years Revenue from operations (Rs. Million) EBITDA (Rs. Million) & EBITDA margins 36.9% 35.5% 6,694 31.9% 29.3% 28.1% 5,495 4,843 4,022 2,517 1,440 1,787 2,492 745 1,479 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY22 EBITDA Margin%
Slide 41: Environment Social Governance (ESG) – Vision FY26
10-02-2023 Q3 FY23 Earnings 41 Environment Social Governance (ESG) – Vision FY26 At the center of our ESG approach is our commitment to creating sustained value. This is across all stakeholders - shareholders and investors, employees, customers, suppliers and the society at large. Vision FY26 reflec
Slide 42: ESG – Vision FY26 linked to Sustainable Development Goals
10-02-2023 Q3 FY23 Earnings 42 ESG – Vision FY26 linked to Sustainable Development Goals Our ambitions for FY26 are based on the following goals and aspirations: 15% 50% 40% 10% 100% 30% 15% Reduction in Renewable Reduction in Reduction in Certified Green ODIs in the Women across Energy energy (RE)
Slide 43: Portfolio Breakup as on 31st Dec 2022 - Operational
10-02-2023 Q3 FY23 Earnings 43 Portfolio Breakup as on 31st Dec 2022 - 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 0 0 1 55 2 194 Lemon Tree Premier 7 1442 2 161 9 91
Slide 44: Portfolio Breakup as on 31st Dec 2022 - Pipeline
10-02-2023 Q3 FY23 Earnings 44 Portfolio Breakup as on 31st Dec 2022 - 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 0 0 1 132 2 801 Lemon Tree Premier 0 0 0 0 2 95 2 95 Lemo
Slide 45: Strategically positioned in key geographies
10-02-2023 Q3 FY23 Earnings 45 Strategically positioned in key geographies
Slide 46: The hotel business cycle
10-02-2023 Q3 FY23 Earnings 46 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 3:2:1 Expenses 60 50 40 EBITDA
Slide 47: Conference Call Details
10-02-2023 Q3 FY23 Earnings 47 Conference Call Details Time • 02:00 PM IST on Monday, February 13, 2022 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 • Singapore: 800 1
Slide 48: About Lemon Tree Hotels
10-02-2023 Q3 FY23 Earnings 48 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 Horwath Report. We oper