Lemon Tree Hotels Ltd. · NSE:LEMONTREE
Lemon Tree Hotels — Q1 FY23 Earnings Presentation
39 slides from Lemon Tree Hotels's earnings presentation, Aug 2, 2022
Slide 1: Lemon Tree Hotels Limited Q1 FY23 Earnings Presentation
Lemon Tree Hotels Limited Q1 FY23 Earnings Presentation 2nd August, 2022 Aurika, Udaipur
Slide 2: Disclaimer
Q1 FY23 Earnings Presentation 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: Table of Contents
Table of Contents 1 Company Overview 2 Chairman & Managing Director’s Message 3 Q1 FY23 Operating Performance Trends 4 Q1 FY23 Financial Highlights & Results 5 Pipeline 6 Annexures 3
Slide 4: Brands – Lemon Tree Snapshot as on 30th June 2022
Q1 FY23 Earnings Presentation Lemon Tree – Snapshot as on 30th June 2022 Current (17% of Branded Pipeline By CY25 Mid Market Hotels in India*) 8,251 2,424 10,675 Group rooms; rooms; rooms; 84 hotels 26 hotels 110 hotels Brand Current Pipeline By FY25 Aurika Hotels & Resorts 194 Rooms; 2 Hotels 801 R
Slide 5: Chairman & Managing Director's Message
Chairman & Managing Director’s Message Commenting on the performance for Q1 FY23, Mr. Patanjali Keswani, Chairman & Managing Director – Lemon Tree Hotels Limited said, "FY23 began on a strong note, bolstered by strong demand. Corporate travel increased, resulting in a recovery in our business destin
Slide 6: Sequential focus: Apr'20 – Jun'22
Sequential focus: Apr’20 – Jun’22 Cost optimization ARR Recovery EBITDA Margin expansion 6
Slide 7: Cost Optimization
Q1 FY23 Earnings Presentation Cost Optimization EBITDA margin % has expanded by approx. 1500 bps (48% in Q1FY23 vs 32% in Q1FY20) ~Down 1500 bps 67% 56% 52% Down 595 bps Down 531 bps 24% 24% Down 112 bps 21% 19% 18% Down 273 bps 19% 9% 10% 9% 9% 7% 6% Employee Benefit Expense as Cost of F&B Consumed
Slide 8: Q-o-Q ARR Recovery
Q1 FY23 Earnings Presentation Q-o-Q ARR Recovery ARR in Q1 FY23 is highest ever since listing and 20% higher than same quarter Pre-CoVID ie. Q1 FY20 6,0 00 4,822 4,644 5,0 00 4,530 4,133 4,093 4,002 3,901 4,0 00 3,028 2,626 2,654 2,654 3,0 00 2,528 2,362 2,0 00 1,0 00 0 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q
Slide 9: EBITDA Margin Expansion driven by permanent cost rationalization
Q1 FY23 Earnings Presentation EBITDA Margin Expansion driven by permanent cost rationalization Revenue (Rs. Cr) | EBITDA and EBITDA Margins (%) Recorded highest ever EBITDA and EBITDA margin% 25 0.0 60 .0% 48% 50 .0% 20 0.0 45% 42% 36% 36% 40 .0% 35% 32% 33% 32% 31% 15 0.0 27% 30 .0% 10 0.0 17% 20 .
Slide 10: Q1 FY23 Operating Performance
Q1 FY23 Operating Performance 10
Slide 11: Performance Highlights – Operational Metrics (Consolidated)
Q1 FY23 Earnings Presentation Q1 FY23 Performance Highlights – Operational Metrics (Consolidated) Inventory Average Room Rate (Rs.) Owned/Leased rooms Managed/Franchised Total rooms rooms 104% 4,822 18% 4,822 8,309 YoY QoQ 8,251 4,093 5,192 5,090 3,117 3,161 2,362 End of Q1 FY22 Q1 FY23 Q1 FY22 Q1 F
Slide 12: Performance Highlights – Financial Metrics (Consolidated)
Q1 FY23 Earnings Presentation Q1 FY23 Performance Highlights – Financial Metrics (Consolidated) Revenue from Operations (Rs. Cr) EBITDA (Rs. Cr) 92.6 92.6 356% 192 61% 108% 192 4422% YoY QoQ QoQ YoY 120 44.5 42 2.0 Q1 FY22 Q1 FY23 Q4 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q4 FY22 Q1 FY23 EBITDA Margin (%) Cas
Slide 13: Month on Month Occupancy-ARR Trend
Q1 FY23 Earnings Presentation Last 3 Quarters - Month on Month Occupancy-ARR Trend 80% 5,500 68% 70% 65% 5,000 61% 62% 59% 60% 57% 4,500 55% 47% Occupancy (%) 50% 4,000 ARR (Rs) 40% 32% 3,500 30% 3,000 20% 2,500 3,415 3,981 4,263 3,959 4,038 4,204 4,728 4,998 4,776 10% 2,000 0% 1,500 Oct'21 Mov'21 D
Slide 14: Month on Month Revenue and Expense Trend
Q1 FY23 Earnings Presentation Last 3 Quarters - Month on Month - Revenue and Expense Trend 70.0 64.1 63.8 64.1 60.0 55.8 53.0 48.7 50.0 39.2 39.7 40.0 Rs Cr 26.9 30.0 33.8 33.6 32.7 32.2 29.5 26.7 26.5 20.0 24.2 23.5 10.0 - Oct'21 Mov'21 Dec'21 Jan'22 Feb'22 Mar'22 Apr'22 May'22 Jun'22 Total Revenue
Slide 15: Lemon Tree Standalone Profit & Loss Statement – Q1 FY23
Q1 FY23 Earnings Presentation Lemon Tree Standalone Profit & Loss Statement – Q1 FY23 Q1 FY23 vs Q1 FY23 vs Q1 FY23 vs Rs. Cr Q1 FY23 Q4 FY22 Q1 FY22 Q1 FY20 Q4 FY22 Q1 FY22 Q1 FY20 Change (%) Change (%) Change (%) Revenue from operations 65.4 37.2 12.5 64.8 76% 422% 1% Other income 0.1 2.0 0.4 0.7
Slide 16: Lemon Tree Consolidated Profit & Loss Statement – Q1 FY23
Q1 FY23 Earnings Presentation Lemon Tree Consolidated Profit & Loss Statement – Q1 FY23 Q1 FY23 vs Q1 FY23 vs Q1 FY23 vs Rs. Cr Q1 FY23 Q4 FY22 Q1 FY22 Q1 FY20 Q4 FY22 Q1 FY22 Q1 FY20 Change (%) Change (%) Change (%) Revenue from operations 192.0 119.5 42.2 140.9 61% 356% 36% Other income 0.3 7.6 2.
Slide 17: Consolidated P&L Breakup – Q1 FY23 vs Q1 FY22
Q1 FY23 Earnings Presentation Lemon Tree Consolidated Profit & Loss Statement Breakup – Q1 FY23 vs Q1 FY22 Total without Keys Hotels Keys Hotels Total Rs. Cr YoY Change YoY Change YoY Change Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 (%) (%) (%) Inventory 4,154 4,256 -2% 936 936 0% 5,090 5,192
Slide 18: Operational Performance by Brands & Region
Q1 FY23 Earnings Presentation Q1 FY23 Operational Performance by Brands & Region (On full inventory basis) Hotel level Average Daily Rate Hotel level EBITDAR Parameters RevPAR (Rs.) Occupancy Rate (%) EBITDAR/room (Rs.) Margin (Rs. Lacs) Q1 Q1 Change Q1 Q1 Change Q1 Q1 Change Q1 Q1 Change Q1 Q1 Chan
Slide 19: Gross ARR – LTH vs Market in key cities
Q1 FY23 Earnings Presentation Q1 FY23 Gross ARR – LTH vs Market in key cities All ARRs are normalized on a base of All India ARR (Rs. 5,850) and these 9 cities account for 66% of LTH’s owned/leased inventory DELHI MUMBAI BENGALURU HYDERABAD 145 140 100 103 93 93 138 113 106 103 91 86 92 131 116 118
Slide 20: Discussion on Consolidated Financial & Operational Performance
Q1 FY23 Earnings Presentation Discussion on Consolidated Financial & Operational Performance – Q1 FY23 Revenue from operations stood at Rs. 192.0 Cr in Q1 FY23, up 356% as compared to Rs. 42.2 Cr in Q1 FY22. On a sequential basis, revenue from operations increased 61% from Rs. 119.5 Cr in Q4 FY22
Slide 21: Expansion Plans
Q1 FY23 Earnings Presentation Lemon Tree Premier, Mumbai Expansion Plans 21
Slide 22: Expansion Plans – Pipeline of Management Contracts
Q1 FY23 Earnings Presentation Expansion Plans – Pipeline of Management Contracts Opening date # Hotel Pipeline as of 30/06/2022 (Q1 FY23) City Rooms As of 30/06/2022 (Q1 FY23) 1 Lemon Tree Hotel Kalina, Mumbai Mumbai 70 Oct-22 2 Keys Lite by Lemon Tree Hotels, Sreekanya Visakhapatnam 44 Added in Q1
Slide 23: Expansion Plans – Hotels under Development
Q1 FY23 Earnings Presentation Expansion Plans – Hotels under Development Expected Under-development hotels Type Rooms Ownership (%) Opening date Lemon Tree Mountain Resort, Shimla Owned 69 TBD 100.00% Aurika, Mumbai International Airport Owned 669 CY23 58.91% Total 738 Total estimated project cost
Slide 24: Aurika, Mumbai Airport (MIAL) | Artistic Representation
Q1 FY23 Earnings Presentation Aurika, Mumbai Airport (MIAL) | Artistic Representation 24
Slide 25: Lemon Tree Mountain Resort, Shimla | Artistic Representation
Q1 FY23 Earnings Presentation Lemon Tree Mountain Resort, Shimla | Artistic Representation 25
Slide 26: Lemon Tree Mountain Resort, Shimla | Artistic Representation
Q1 FY23 Earnings Presentation Lemon Tree Mountain Resort, Shimla | Artistic Representation 26
Slide 27: Annexures
Q1 FY23 Earnings Presentation ANNEXURES Aurika, Udaipur 27
Slide 28: Consolidated Profit & Loss Statement – FY22 vs FY21
Q1 FY23 Earnings Presentation 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% 2
Slide 29: Consolidated Balance Sheet – FY22 vs FY21
Q1 FY23 Earnings Presentation 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 liabilit
Slide 30: Operating performance over 5 years
Q1 FY23 Earnings Presentation Operating performance over 5 years Rooms are being added Occupancy (%) FY18 FY19 FY20 FY21 FY22 8,006 8,309 8,489 Trends for owned/leased rooms 2814 3117 3297 5,411 4,870 1841 675 675 675 1593 481 573 4,517 4,517 4,517 78% 26% 23% 36% 77% 78% 71% 53% 59% 74% 74% 72% 37%
Slide 31: Operating Performance over 5 years
Q1 FY23 Earnings Presentation 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% i
Slide 32: Environment Social Governance (ESG) – Vision FY26
Q1 FY23 Earnings Presentation Environment Social Governance (ESG) – Vision FY26 In the area of Environment, we are focused on becoming more energy At the center of our ESG approach is our commitment to efficient, adopting renewable creating sustained value. This is across all stakeholders - energy,
Slide 33: ESG – Vision FY26 linked to Sustainable Development Goals
Q1 FY23 Earnings Presentation 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) G
Slide 34: Portfolio Breakup as on 30th June 2022 - Operational
Q1 FY23 Earnings Presentation Portfolio Breakup as on 30th June 2022 - Operational Owned (incl. on Operational Portfolio Leased Managed/ Franchised Total leased 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 35: Portfolio Breakup as on 30th June 2022 - Pipeline
Q1 FY23 Earnings Presentation Portfolio Breakup as on 30th June 2022 - Pipeline Owned (incl. on Pipeline Portfolio Leased Managed/ Franchised Total leased 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 1 80 1 80 Lemo
Slide 36: Strategically positioned in key geographies
Q1 FY23 Earnings Presentation Strategically positioned in key geographies Map is updated as of 15th July 2022 36
Slide 37: The hotel business cycle
Q1 FY23 Earnings Presentation 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
Slide 38: Conference Call Details
Q1 FY23 Earnings Presentation Conference Call Details Lemon Tree Hotels Limited (LTH) Q1 FY23 Earnings Conference Call Time • 2:30 PM IST on Thursday, August 4, 2022 • Primary number: +91 22 6280 1141 / +91 22 7115 Conference dial-in Primary number 8042 Local access number • +91 70456 71221(Availabl
Slide 39: About Lemon Tree Hotels
Q1 FY23 Earnings Presentation About Lemon Tree Hotels Lemon Tree Hotels Limited is India’s largest hotel chain in the mid-priced 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