Lemon Tree Hotels Ltd. · NSE:LEMONTREE
Lemon Tree Hotels — Q1 FY24 Earnings Presentation
41 slides from Lemon Tree Hotels's earnings presentation, Aug 10, 2023
Slide 1: Lemon Tree Hotels Limited Q1 FY24 Earnings Presentation
10-08-2023 Q1 FY24 Earnings 1 Lemon Tree Hotels Limited Q1 FY24 Earnings Presentation | 10th August 2023 Aurika, Udaipur
Slide 2: Disclaimer
10-08-2023 Q1 FY24 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: Chairman & Managing Director’s Message
Q1 FY24 Earnings 10-08-2023 3 Chairman & Managing Director’s Message Commenting on the performance for Q1 FY24, Mr. Patanjali Keswani, Chairman & Managing Director – Lemon Tree Hotels Limited said, “In Q1 FY24, Lemon Tree Hotels continued its growth momentum from the previous year. Q1 FY24 has been
Slide 4: Strong Q1 FY24 performance across key financial metrics
10-08-2023 Q1 FY24 Earnings 4 Strong Q1 FY24 performance across key financial metrics Q1 FY24 performance snapshot vs Q1 FY23 Total Revenue EBITDA EBITDA % Rs. 224.6 Cr Rs. 106.8 Cr 47.6% 17% up 15% up 60 bps down PAT Cash Profit Cost of Debt % Rs. 27.5 Cr Rs. 50.3 Cr 8.93%* 103% up 32% up 80 bps up
Slide 5: Q1 FY24 Performance Highlights – Operational Metrics (Consolidated)
10-08-2023 Q1 FY24 Earnings 5 Q1 FY24 Performance Highlights – Operational Metrics (Consolidated) Inventory Average Room Rate (Rs.) Owned/Leased rooms Managed/Franchised Total rooms -10% rooms QoQ 8,251 3% 8,491 9% YoY YoY 5,824 5,237 5,237 8% 4,822 5,090 5,090 YoY 3,161 3,401 Q1 FY23 Q1 FY24 Q1 FY2
Slide 6: Q1 FY24 Performance Highlights – Financial Metrics (Consolidated)
10-08-2023 Q1 FY24 Earnings 6 Q1 FY24 Performance Highlights – Financial Metrics (Consolidated) Revenue from Operations (Rs. Cr) EBITDA (Rs. Cr) 15% -25% 16% -12% YoY QoQ YoY QoQ 141.9 252.7 222.3 222.3 106.8 106.8 192.0 92.6 Q1 FY23 Q1 FY24 Q4 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q4 FY23 Q1 FY24 EBITDA Mar
Slide 7: Month on Month Occupancy % and Gross ARR Trend
10-08-2023 Q1 FY24 Earnings 7 Month on Month Occupancy % and Gross ARR Trend Occupancy Trend ARR (Rs.) Trend RevPAR (Rs.) Trend 75% 5,329 5,238 5,237 3,855 3,584 3,601 3,678 5,156 70% 69% 4,998 3,224 3,138 68% 3,095 3,120 67% 4,822 65% 65% 4,728 4,776 62% April May June Q1 April May June Q1 April Ma
Slide 8: Q-o-Q performance of FY20, FY22, FY23 and FY24
10-08-2023 Q1 FY24 Earnings 8 Q-o-Q performance of FY20, FY22, FY23 and FY24 Q1 FY24 was the best ever “Q1” Q1FY20 Q1FY22 (CoVID) Q1FY23 Q1FY24 224.6 192.3 142.2 106.8 92.6 44.3 46.0 27.5 13.6 2.0 -2.1 -59.8 Revenue (Rs. Cr) EBITDA (Rs. Cr) PAT (Rs. Cr) EBITDA and EBITDA Margin% of Q1 FY23 is before
Slide 9: Q-o-Q performance of FY20, FY22, FY23 and FY24
10-08-2023 Q1 FY24 Earnings 9 Q-o-Q performance of FY20, FY22, FY23 and FY24 Q1 FY24 was the best ever “Q1” Particulars Q1 FY24 Q4 FY23 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.) 5,237 5,824 5,738 4,917 4,822 4,093 3,901 3,028 2,362 4,530
Slide 10: Total Management Fees
10-08-2023 Q1 FY24 Earnings 10 Total Management Fees 23.9 19.8 13.5 10.4 + 11.1 = 8.7 Management / Franchise fees from 3rd party Management Fees from Fleur Hotels Total Management Fees hotels Q1 FY23 Q1 FY24 Fees to Lemon Tree Hotels (Rs. Cr) Q1 FY23 Q1 FY24 Growth % Management / Franchise Fees from
Slide 11: Market Segments: Q1 FY24 vs Q1 FY23
10-08-2023 Q1 FY24 Earnings 11 Market Segments: Q1 FY24 vs Q1 FY23 Market Segments Room Nights Sold – Q1 FY24 vs Q1 FY23 43% 50 % 38% 45 % 33% 40 % 35 % 31% 30 % 25 % 20 % 8% 8% 11% 8% 7% 15 % 4% 6% 2% 10 % 5% 0% Corporate Airline Travel Trade OTA Web Others FITs Q1 FY23 Q1 FY24 Market Segments Room
Slide 12: LTH vs Industry, Y-o-Y Growth (Q1 FY24 vs Q1 FY23)
10-08-2023 Q1 FY24 Earnings 12 LTH vs Industry, Y-o-Y Growth (Q1 FY24 vs Q1 FY23) Gross ARR Occupancy RevPAR (Growth % vs Q1 FY23) (Growth in bps vs Q1 FY23) (Growth % vs Q1 FY23) 18% 17% 16% 16% 511 16% 14% 12% 10% 8% 8% 6% 4% 2% -18 0% Industry Lemon Tree Industry Lemon Tree Hotels Industry Lemon
Slide 13: City level: LTH vs Industry – Q1 FY24 vs Q1 FY23
10-08-2023 Q1 FY24 Earnings 13 City level: LTH vs Industry – Q1 FY24 vs Q1 FY23 RevPAR (Growth % vs Q1 FY23) 28% 28% 26% 26% 22% 20% 19% 17% 16% 14% 11% 10% 9% 4% All India Mumbai Gurugram Pune Hyderabad Bengaluru New Delhi Industry LTHL Source: STR India
Slide 14: Q1 FY24 Operational Performance by Brands & Region
10-08-2023 Q1 FY24 Earnings 14 Q1 FY24 Operational Performance by Brands & Region (On full inventory basis) Hotel level Average Daily RateEBITDAR/room/qtr. Hotel level EBITDAR Parameters RevPAR (Rs.) Occupancy Rate (%) (Rs.) Margin % (Rs. Lacs) Q1 Q1 Change Q1 Q1 Change Q1 Q1 Change Q1 Q1 Change Q1
Slide 15: Consolidated P&L: Q1 FY24 vs Q1 FY23
10-08-2023 Q1 FY24 Earnings 15 Consolidated P&L: Q1 FY24 vs Q1 FY23 Q1 FY24 Consolidated P&L Waterfall – Revenue to Cash Profit (Rs. Cr) Q1 FY24 vs Q1 FY23 Consolidated P&L waterfall to explain delta (Rs. Cr) Cash Profit = PAT + Depreciation
Slide 16: Cost Structure: Q1 FY24 vs Q1 FY23
10-08-2023 Q1 FY24 Earnings 16 Cost Structure: Q1 FY24 vs Q1 FY23 *Expenses as a % of Total Revenue Up 60 bps 51.8% 52.4% Up 100 bps Up 86 bps 18.0% 19.0% 18.5% 19.3% Down 77 bps Down 50 bps 9.4% 8.6% 6.0% 5.5% Payroll expenses* F&B/Raw Material expenses* Power & Fuel expenses* Other Expenses* Total
Slide 17: Lemon Tree Standalone Profit & Loss Statement – Q1 FY24
10-08-2023 Q1 FY24 Earnings 17 Lemon Tree Standalone Profit & Loss Statement – Q1 FY24 Q1 FY24 vs Q1 FY24 vs Rs. Cr Q1 FY24 Q4 FY23 Q1 FY23 Q4 FY23 Q1 FY23 Change (%) Change (%) Revenue from operations 74.7 95.2 65.4 -22% 14% Other income 0.2 0.3 0.1 -29% 91% Total revenue 74.9 95.5 65.5 -22% 14% To
Slide 18: Lemon Tree Consolidated Profit & Loss Statement – Q1 FY24
10-08-2023 Q1 FY24 Earnings 18 Lemon Tree Consolidated Profit & Loss Statement – Q1 FY24 Q1 FY24 vs Q1 FY24 vs Rs. Cr Q1 FY24 Q4 FY23 Q1 FY23 Q4 FY23 Q1 FY23 Change (%) Change (%) Revenue from operations 222.3 252.7 192.0 -12% 16% Other income 2.4 2.0 0.3 15% 835% Total revenue 224.6 254.7 192.3 -12
Slide 19: Lemon Tree Hotel Network Revenue – Q1 FY24
10-08-2023 Q1 FY24 Earnings 19 Lemon Tree Hotel Network Revenue – Q1 FY24 Q1 FY24 vs Q1 Hotel Network Revenue Q1 FY24 Q1 FY23 FY23 Change (Rs. Cr) (%) Owned Hotels 212 184 16% (5,090 rooms / 40 hotels) Managed and Franchised Hotels (3rd party owned) 140 116 21% (3,401 rooms / 50 hotels) Total Networ
Slide 20: Lemon Tree Consolidated Profit & Loss Statement Breakup
10-08-2023 Q1 FY24 Earnings 20 Lemon Tree Consolidated Profit & Loss Statement Breakup Lemon Tree Consolidated Keys Hotels Lemon Tree Consolidated excluding Keys Hotels Rs. Cr Q1 Q4 Q1 QoQ YoY Q1 Q4 Q1 QoQ YoY Q1 Q4 Q1 QoQ YoY FY24 FY23 FY23 Change Change FY24 FY23 FY23 Change Change FY24 FY23 FY23
Slide 21: Discussion on Consolidated Financial & Operational Performance – Q1 FY24
10-08-2023 Q1 FY24 Earnings 21 Discussion on Consolidated Financial & Operational Performance – Q1 FY24 ❖ Revenue from operations stood at Rs. 222.3 Cr in Q1 FY24 which was down 12.0% from Rs. 252.7 Cr in Q4 FY23 and was up 15.7% as compared to Rs. 192.0 Cr in Q1 FY23 ❖ Gross ARR stood at Rs. 5,237
Slide 22: Expansion Plans – Hotels under Development
10-08-2023 Q1 FY24 Earnings 22 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 23: Expansion Plans – Snapshot of managed & franchised contracts pipeline
10-08-2023 Q1 FY24 Earnings 23 Expansion Plans – Snapshot of managed & franchised contracts pipeline
Slide 24: Opening of inventory in pipeline of managed & franchised contracts
10-08-2023 Q1 FY24 Earnings 24 Opening of inventory in pipeline of managed & franchised contracts (as of 30th June 2023) FY24 Total Brands (Aug’23 to FY25 FY26 FY27 TBA Rooms Mar’24) (Hotels) 132 110 242 Aurika Hotels & Resorts (1) (1) (2) 117 80 82 120 399 Lemon Tree Premier (2) (1) (1) (1) (5) 1,0
Slide 25: Hotels opened and signed in Q1 FY24
10-08-2023 Q1 FY24 Earnings 25 Hotels opened and signed in Q1 FY24 (managed & franchised contracts) Hotels opened in Q1 FY24 # Hotel City Rooms Opening Date 1 Lemon Tree Hotel, Agra Agra 62 Q1 FY24 2 Lemon Tree Hotel Bhopal Bhopal 47 Q1 FY24 109 New hotels signed in Q1 FY24 # Hotel City Rooms Openin
Slide 26: Pipeline of managed & franchised contracts by opening (1 of 2)
10-08-2023 Q1 FY24 Earnings 26 Expansion Plans – Pipeline of managed & franchised contracts by opening (1 of 2) # Hotel Pipeline City Rooms Expected Opening 1 Lemon Tree Hotel Manali Himachal Pradesh 34 FY24 2 Lemon Tree Hotel, Hubli Hubli 65 FY24 3 Lemon Tree Hotel, Rajkot Rajkot 45 FY24 4 Lemon Tr
Slide 27: Pipeline of managed & franchised contracts by opening (2 of 2)
10-08-2023 Q1 FY24 Earnings 27 Expansion Plans – Pipeline of managed & franchised contracts by opening (2 of 2) # Hotel Pipeline City Rooms Expected Opening 23 Keys Select by Lemon Tree Hotels, Chirang Chirang, Assam 40 FY25 24 Keys Lite by Lemon Tree Hotels, Jaipur Jaipur 47 FY25 25 Lemon Tree Hote
Slide 28: Aurika, SkyCity, Mumbai | Representation
10-08-2023 Q1 FY24 Earnings 28 Aurika, SkyCity, Mumbai | Representation
Slide 29: Aurika, SkyCity, Mumbai | Current Status
10-08-2023 Q1 FY24 Earnings 29 Aurika, SkyCity, Mumbai | Current Status As of Q4 FY23 Current
Slide 30: Aurika, SkyCity, Mumbai | Current Status
10-08-2023 Q1 FY24 Earnings 30 Aurika, SkyCity, Mumbai | Current Status
Slide 31: Aurika, SkyCity, Mumbai | Current Status
10-08-2023 Q1 FY24 Earnings 31 Aurika, SkyCity, Mumbai | Current Status
Slide 32: Aurika, SkyCity, Mumbai | Current Status
10-08-2023 Q1 FY24 Earnings 32 Aurika, SkyCity, Mumbai | Current Status Staff Cafeteria Hotel’s Office
Slide 33: Aurika, SkyCity, Mumbai | Current Status
10-08-2023 Q1 FY24 Earnings 33 Aurika, SkyCity, Mumbai | Current Status
Slide 34: Aurika, SkyCity, Mumbai | Current Status
10-08-2023 Q1 FY24 Earnings 34 Aurika, SkyCity, Mumbai | Current Status
Slide 35: Lemon Tree Mountain Resort, Shimla | Representation
10-08-2023 Q1 FY24 Earnings 35 Lemon Tree Mountain Resort, Shimla | Representation
Slide 36: Lemon Tree – Snapshot as on 30th June 2023
10-08-2023 Q1 FY24 Earnings 36 Lemon Tree – Snapshot as on 30th June 2023 Operational Pipeline Operational + Pipeline Group 8,491 3,724 12,215 rooms; rooms; rooms; 90 hotels 46 hotels 136 hotels Brand Current Pipeline Operational + Pipeline Aurika Hotels & Resorts 194 Rooms; 2 Hotels 911 Rooms; 3 Ho
Slide 37: Portfolio Breakup as on 30th June 2023 - Operational
10-08-2023 Q1 FY24 Earnings 37 Portfolio Breakup as on 30th June 2023 - 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 9
Slide 38: Portfolio Breakup as on 30th June 2023 - Pipeline
10-08-2023 Q1 FY24 Earnings 38 Portfolio Breakup as on 30th June 2023 - 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 2 242 3 911 Lemon Tree Premier 0 0 0 0 5 399 5 399 L
Slide 39: Q1 FY24 Earnings
10-08-2023 Q1 FY24 Earnings 39
Slide 40: Conference Call Details
10-08-2023 Q1 FY24 Earnings 40 Conference Call Details Time • 02:00 PM IST on Friday, August 11, 2023 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: 800 101
Slide 41: About Lemon Tree Hotels
10-08-2023 Q1 FY24 Earnings 41 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