Lemon Tree Hotels Ltd. · NSE:LEMONTREE
Lemon Tree Hotels — Q2 FY22 Earnings Presentation
37 slides from Lemon Tree Hotels's earnings presentation, Oct 21, 2021
Slide 1: Lemon Tree Hotels Limited Q2 FY22 Earnings Presentation
Lemon Tree Hotels Limited Q2 FY22 Earnings Presentation 21st Oct, 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 Q2 FY22 Operating Performance Trends 4 Q2 FY22 Financial Highlights & Results 5 Pipeline 6 Annexures 3
Slide 4: Lemon Tree – Snapshot as on 21st October 2021
Lemon Tree – Snapshot as on 21st October 2021 Current (17% of Branded By CY23 (20% of Branded Pipeline Mid Market Hotels in Mid Market Hotels in India*) India*) 8,497 1,965 10,462 rooms; rooms; rooms; 87 hotels 19 hotels 106 hotels Brand Current Pipeline By FY23 Aurika Hotels & Resorts 202 Rooms; 2
Slide 5: Lemon Tree – Portfolio
Lemon Tree – Portfolio Key Statistics Q2 FY22 Q2 FY21 YoY Var (%) Cities 54 49 10% Hotels 87 81 7% Rooms 8,497 8,044 6% 5
Slide 6: Chairman & Managing Director’s Message
Chairman & Managing Director’s Message Commenting on the performance for Q2 FY22, Mr. Patanjali Keswani, Chairman & Managing Director – Lemon Tree Hotels Limited said, We saw a significant improvement in performance against the previous quarter due to a strong recovery in demand. The gradual easing
Slide 7: Q2 FY22 Operating Performance Trends: Operational Inventory
Q2 FY22 Operating Performance Trends Increasing Operational Inventory Operational Pick-up 5,200 97.0% 100.0% 95.4% 94.5% 94.2% 5,000 95.0% 5,037 % Operational Invetory Operational Invetory 4,953 4,800 4,908 4,888 90.0% 4,600 84.9% 85.0% 81.9% 4,400 4,408 80.0% 4,200 4,252 4,000 75.0% 3,800 70.0% Apr
Slide 8: Q2 FY22 Operating Performance Trends: Occupancy
Q2 FY22 Operating Performance Trends Rising Occupancy Levels Occupancy-ADR Trend 60.0% 3,600 53.8% 53.6% 54.0% 50.9% 50.5% 51.5% 3,400 50.0% 3,200 39.6% 40.8% 3,230 40.0% Gross ADR (Rs) Occupancy (%) 34.8% 3,000 3,075 29.5% 30.0% 2,800 24.5% 2,775 20.0% 2,600 20.0% 2,400 2,429 10.0% 2,369 2,288 2,20
Slide 9: Q2 FY22 Operating Performance Trends
Q2 FY22 Operating Performance Trends Improving Operating Efficiency and ‘V-Shaped’ Recovery Revenue vs OPEX Trend Revenue Trend 40.00 80.00 74.49 32.86 33.98 68.15 35.00 70.00 29.71 30.00 60.00 25.00 50.00 18.64 Rs. Cr Rs Cr 20.00 40.00 33.98 32.19 32.86 14.15 19.10 19.55 29.71 28.74 15.00 17.37 30.
Slide 10: Q2 FY22 Performance Highlights – Operational Metrics (Consolidated)
Q2 FY22 Performance Highlights – Operational Metrics (Consolidated) Inventory Average Daily Rate (Rs.) Owned/Leased rooms Managed rooms Total rooms 14.1% 28.2% 5.6% 8,497 YoY 3,028 QoQ 3,028 8,044 15.8% 5,192 5,192 2,654 2,852 3,305 2,362 End of Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 Q2 FY2
Slide 11: Q2 FY22 Performance Highlights – Financial Metrics (Consolidated)
Q2 FY22 Performance Highlights – Financial Metrics (Consolidated) Revenue from Operations (Rs. Cr) EBITDA (Rs. Cr) 35.8 35.8 103.6% 129.9% YoY 96.9 QoQ 96.9 149.9% 1,647% YoY QoQ 47.6 42.2 14.3 2.0 Q2 FY21 Q2 FY22 Q1 FY22 Q2 FY22 Q2 FY21 Q2 FY22 Q1 FY22 Q2 FY22 EBITDA Margin (%) Cash profit (Rs. Cr)
Slide 12: Consolidated Profit & Loss Statement – Q2 FY22
Consolidated Profit & Loss Statement – Q2 FY22 Rs. Cr Q2 FY22 Q1 FY22 Q2 FY21 QoQ Change (%) YoY Change (%) Revenue from operations 96.9 42.2 47.6 129.9% 103.6% Other income 1.9 2.1 6.0 -9.6% -68.0% Total expenses 63.0 42.2 39.3 49.2% 60.4% EBITDA 35.8 2.0 14.3 1647.4% 149.9% EBITDA margin (%) 36.2%
Slide 13: Consolidated Profit & Loss Statement Breakup – Q2 FY22 vs Q2 FY21
Consolidated Profit & Loss Statement Breakup – Q2 FY22 vs Q2 FY21 Total without Keys Hotels Keys Hotels Total Rs. Cr YoY Change YoY Change YoY Change Q2 FY22 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 Q2 FY21 (%) (%) (%) Inventory 4,256 4,256 0% 936 936 0% 5,192 5,192 0% ARR 2,445 2,796 -13% 2,053 2,122 -3% 3,
Slide 14: Operational Performance by Brands & Region
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) Q2 Q2 Change Q2 Q2 Change Q2 Q2 Change Q2 Q2 Change Q2 Q2 Change By Brand (#Rooms) FY22 FY21 (bps) F
Slide 15: Discussion on Consolidated Financial & Operational Performance – Q2 FY22
Discussion on Consolidated Financial & Operational Performance – Q2 FY22 Revenue from operations stood at Rs. 96.9 Cr in Q2 FY22, up 104% as compared to Rs. 47.6 Cr in Q2 FY21. On a sequential basis, revenue from operations increased 129.9% from Rs. 42.2 Cr in Q1 FY22 ADR increased by 14.1% from 2
Slide 16: Consolidated Profit & Loss Statement – H1 FY22 vs H1 FY21
Consolidated Profit & Loss Statement – H1 FY22 vs H1 FY21 Rs. Cr H1 FY22 H1 FY21 YoY Change (%) FY21 Revenue from operations 139.0 88.3 57.5% 251.7 Other income 4.0 9.1 -55.6% 13.3 Total Income 143.1 97.4 46.9% 265.0 Total expenses 105.3 75.6 39.2% 190.5 EBITDA 37.8 21.8 73.6% 74.5 EBITDA w/o Other
Slide 17: Consolidated Balance Sheet – H1 FY22 vs H1 FY21
Consolidated Balance Sheet – H1 FY22 vs H1 FY21 Rs. Cr H1 FY22 H1 FY21 YoY Change (%) Shareholder's Funds 857.0 744.0 15% Non-controlling interests 585.4 861.4 -32% Total Shareholder’s equity 1,442.3 1,605.4 -10% Total Debt 1,697.2 1,661.7 2.1% Other Non-current liabilities 472.6 467.4 1% Other Curr
Slide 18: Expansion Plans – Hotels under Development
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 is Rs. 10,060 Million Tota
Slide 19: Expansion Plans – Pipeline of Management Contracts
Expansion Plans – Pipeline of Management Contracts (as on 21st Oct, 2021) Management Contracts Pipeline Rooms Expected Opening date Lemon Tree Hotel Kalina/BKC, Mumbai 70 Dec-21 Lemon Tree Hotel, Sonamarg 40 Mar-22 Lemon Tree Hotel, Rishikesh 102 Mar-22 Keys Lite, Rishikesh 39 Mar-22 The Spectrum, G
Slide 20: Extracts from first ESG Report of Lemon Tree Hotels for FY21
Extracts from first ESG Report of Lemon Tree Hotels for FY21 To read the full report please visit: https://www.lemontreehotels.com/factsheet/Policies/LTH_ESG_ Report_2021.pdf This report covers all 41 owned/leased hotels across 23 cities for the reporting period from 1st April 2020 to 31st March 202
Slide 21: FY21 ESG Report – Impact
FY21 ESG Report – Lemon Tree’s first | Impact Impact of our Environment, Social and Governance initiatives: Renewable energy in the Operations audited (internally) for Opportunity Deprived Indians electricity mix in FY21 cases of corruption and bribery (ODIs) employed in FY21 Reduction in normalized
Slide 22: FY21 ESG Report – Vision FY26
FY21 ESG Report – Lemon Tree’s first | 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, mitigating and adapting to sh
Slide 23: FY21 ESG Report – Vision FY26
FY21 ESG Report – Lemon Tree’s first | Vision FY26 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) GHG emissions water Buildings workforc
Slide 24: FY21 ESG Report – Policy Architecture
FY21 ESG Report – Lemon Tree’s first | Policy Architecture In a rapidly evolving business Embracing Redefining Providing environment addressing ESG issues Environmental Social Effective is crucial to ensure the longevity of Stewardship Engagement Governance an organization. Through our well- defined
Slide 25: FY21 ESG Report – Governance Structure
FY21 ESG Report – Lemon Tree’s first | Governance Structure Our efforts to integrate ESG across our business operations is effectively supported by a dynamic governance structure The Board ESG Taskforce Management Sets the vision for meeting Develops ESG strategy, Implements ESG related ESG requirem
Slide 26: Annexures
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Slide 27: Portfolio Breakup as on 21st Oct 2021 - Operational
Portfolio Breakup as on 21st Oct 2021 - Operational Owned (incl. on Operational Portfolio Leased Managed/ Franchised Total leased land) 21.10.2021 Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Aurika Hotels & Resorts 1 139 0 0 1 63 2 202 Lemon Tree Premier 7 1442 2 161 9 911 18 2514 Lemon Tree
Slide 28: Portfolio Breakup as on 21st Oct 2021 - Pipeline
Portfolio Breakup as on 21st Oct 2021 - Pipeline Owned (incl. on Pipeline Portfolio Leased Managed/ Franchised Total leased land) 21.10.2021 Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Aurika Hotels & Resorts 1 669 0 0 0 0 1 669 Lemon Tree Premier 0 0 0 0 2 130 2 130 Lemon Tree Hotels 1 69 0
Slide 29: Strategically positioned in key geographies with Lemon Tree’s share of branded hotel sector
Strategically positioned in key geographies with Lemon Tree’s share of total branded hotel sector Jaipur: FY20 – 5.1% Kolkata: FY20 – 2.9% FY26E – 4.0% FY26E – 2.6% Ahmedabad:FY20 – 4.2% Hyderabad: FY20 – 8.9% FY26E – 3.4% FY26E – 8.5% Mumbai: FY20 – 2.1% Chennai: FY20 – 2.5% FY26E – 6.0% FY26E – 2.
Slide 30: Operating performance
Operating performance Rooms are being added Occupancy Owned Leased Hotels Managed Hotels FY16 FY17 FY18 FY19 FY20 FY21 8,309 8,006 Note: Drop in occupancy levels is on account of second wave of CoVID-19 17% CAGR 5,411 2814 3117 4,870 3,698 3,249 1841 675 978 1593 461 843 481 573 283 317 71% 53% 72%
Slide 31: Operating margins
Operating margins Revenue from operations (Rs. Million) EBITDA (Rs. Million) & EBITDA margins 36.9% 6,694 29.7% 31.9% 27.9% 29.3% 28.1% 5,495 4,843 3,680 4,121 2,517 1,033 1,247 1,440 1,787 2,492 745 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 Cash profit Debt to Equity Ratio 1.02 1.
Slide 32: Consolidated Profit & Loss Statement – FY21
Consolidated Profit & Loss Statement – FY21 Rs. Cr FY21 FY20 FY19 Revenue from operations 251.7 669.4 549.5 Other income 13.3 5.8 9.9 Total Income 265.0 675.2 559.4 Total expenses 190.5 426.0 380.7 EBITDA 74.5 249.2 178.7 EBITDA w/o Other Income 61.3 243.4 168.8 EBITDA margin (%) 28.1% 36.9% 31.9% F
Slide 33: Consolidated Balance Sheet Snapshot – FY21
Consolidated Balance Sheet Snapshot – FY21 Rs. Cr FY21 FY20 FY19 Shareholder's Funds 917.6 988.9 875.0 Non-controlling interests 617.4 555.9 432.2 Total Shareholder’s equity 1,535.0 1,544.8 1,307.2 Total Debt 1,685.0 1,577.5 1,204.2 Other Non-current liabilities 470.0 464.3 38.0 Other Current liabil
Slide 34: Operational Performance by Ageing – FY21 vs. FY20
Operational Performance by Ageing – FY21 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 FY21 28 13 0 Operating Rooms FY20 2,8
Slide 35: 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 36: Conference Call Details
Conference Call Details Lemon Tree Hotels Limited (LTH) Q2 FY22 Earnings Conference Call Time • 3:00 PM IST on Thursday, October 25, 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) • Hong Kon
Slide 37: About Lemon Tree Hotels
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 operate in the upscale segment and