Lemon Tree Hotels Ltd. · NSE:LEMONTREE
Lemon Tree Hotels — 25th Annual CITIC CLSA India Forum 2022
39 slides from Lemon Tree Hotels's conference presentation, Nov 15, 2022
Slide 1: Intimation of investor meet (Regulation 30 filing)
emontree HOTELS November 15, 2022 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 Re
Slide 2: Lemon Tree Hotels Limited Q2 FY23 Corporate Presentation
Aurika, Udaipur 16-11-2022 Q2 FY23 Corporate PPT 1 Lemon Tree Hotels Limited Q2 FY23 Corporate Presentation
Slide 3: Our Journey So Far
16-11-2022 Q2 FY23 Corporate PPT 2 Our Journey So Far
Slide 4: Lemon Tree Snapshot as on 30th September 2022
16-11-2022 Q2 FY23 Corporate PPT 3 Lemon Tree – Snapshot as on 30th September 2022 Current Pipeline By FY25 Group 8,303 2,605 10,908 rooms; rooms; rooms; 85 hotels 30 hotels 115 hotels Brand Current Pipeline By FY25 Aurika Hotels & Resorts 194 Rooms; 2 Hotels 801 Rooms; 2 Hotels 995 Rooms; 4 Hotels
Slide 5: Supply of rooms in India's hotel industry was primarily at the top-end
16-11-2022 Q2 FY23 Corporate PPT 4 Supply of rooms in India’s hotel industry was primarily at the top-end When Lemon Tree commenced business in 2002, India’s Hotel industry was an inverted pyramid 2002* 2019* No. of rooms No. of rooms Luxury- 15,052 51,170 Upper Upscale Upscale 4,661 30,490 Upper Mi
Slide 6: Hotel Inventory by Segment and Lemon Tree Brand Positioning
16-11-2022 Q2 FY23 Corporate PPT 5 Hotel Inventory by Segment and Lemon Tree Brand Positioning Segment Industry Inventory Our Inventory Lemon Tree Brand Positioning Luxury and Upper Upscale 51,170 Upscale 30,490 194 Upper Midscale 30,100 2554 Midscale and Economy 37,500 5741 250,000 (suitable for br
Slide 7: Our Inventory Vis-à-vis The Industry: 5th largest hotel chain by hotels
16-11-2022 Q2 FY23 Corporate PPT 6 Our Inventory Vis-à-vis The Industry 5th largest hotel chain by no. of hotels Source: Hotelivate Trends and Opportunity Report FY22 for India
Slide 8: Our Inventory Vis-à-vis The Industry: 6th largest chain by inventory
16-11-2022 Q2 FY23 Corporate PPT 7 Our Inventory Vis-à-vis The Industry chain by inventory 6th largest hotel Source: Hotelivate Trends and Opportunity Report FY22 for India
Slide 9: Strong Q2 FY23 performance across key financial metrics
16-11-2022 Q2 FY23 Corporate PPT 8 Strong Q2 FY23 performance across key financial metrics Q2 FY23 performed better than Pre-CoVID Q2 FY20 Revenue EBITDA EBITDA % Rs. 197.4 Cr Rs. 94.3 Cr 47.8% 28% up 91% up 1567 up PAT Cash Profit Cost of Debt % Rs. 19.4 Cr Rs. 44.4 Cr 8.28% 742% up 168% up 134 bps
Slide 10: Q-o-Q performance
16-11-2022 Q2 FY23 Corporate PPT 9 Q-o-Q performance Despite occupancy not being at Pre-CoVID levels, Q2 FY23 recorded the best Gross ARR, EBITDA, PBT, and PAT in the last 14 quarters: Particulars Q2 FY23 Q1 FY23 Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 Q4 FY20 Q3 FY20 Q2 FY20 Q1 FY20 Gross ARR (Rs.) 4,917 4
Slide 11: Q2 FY23 Operational Performance by Brands & Region
16-11-2022 Q2 FY23 Corporate PPT 10 Q2 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) Q2 Q2 Change Q2 Q2 Change Q2 Q2 Change Q2 Q2 Change Q2
Slide 12: LTH vs Industry - Q2 FY23 vs Q2 FY20
16-11-2022 Q2 FY23 Corporate PPT 11 LTH vs Industry - Q2 FY23 vs Q2 FY20 (Pre-CoVID) LTH same store hotels recovered faster than the industry in Q2 FY23 vs Q2 FY20 (Pre-CoVID) Gross ARR Occupancy RevPAR (Recovery % vs Pre-CoVID) (Recovery % vs Pre-CoVID) (Recovery % vs Pre-CoVID) 98% 121% 94% 114% 1
Slide 13: City level: LTH vs Industry - Q2 FY23 vs Q2 FY20
16-11-2022 Q2 FY23 Corporate PPT 12 City level: LTH vs Industry - Q2 FY23 vs Q2 FY20 (Pre-CoVID) In 7 out of 9 key cities, LTH same store hotels recovered faster than the industry in Q2 FY23 vs Q2 FY20 RevPAR (Recovery % vs Pre-CoVID) 175% 149% 126% 121% 118% 119% 114% 107% 109% 105% 109% 105%106% 1
Slide 14: Asset Light Growth: Fee and Rooms Mix
16-11-2022 Q2 FY23 Corporate PPT 13 Asset Light Growth: Fee and Rooms Mix Fee from Managed Hotels Managed Rooms Mix % (Rs. Cr) 7 pp up 39% 94% up 15.3 32% 7.9 H1 FY20 H1 FY23 H1 FY20 H1 FY23
Slide 15: Market Segments: Q2 FY23 vs Q2 FY20
16-11-2022 Q2 FY23 Corporate PPT 14 Market Segments: Q2 FY23 vs Q2 FY20 (Pre-CoVID) Market Segments Room Revenue Share – Q2 FY23 vs Q2 FY20 60 % 51% 50 % 41% 40 % 36% 30 % 27% 20 % 10% 5% 8% 6% 5% 6% 10 % 4% 2% 0% Corporate Airline Travel Trade OTA Web Others FITs Q2 FY20 Q2 FY23 Market Segments Roo
Slide 16: Cost Optimization: Q2 FY23 vs Q2 FY20
16-11-2022 Q2 FY23 Corporate PPT 15 Cost Optimization: Q2 FY23 vs Q2 FY20 (Pre-CoVID) Down 1567 bps 68% 52% Down 557 bps Down 643 bps 24% 25% Down 127 bps 18% Down 239 bps 19% 10% 9% 9% 6% Employee Benefit Expense as a % Cost of F&B Consumed as a % of Power & Fuel Expenses as a % of Other Expenses a
Slide 17: Learnings From COVID: Building Operational Efficiencies - Manpower
16-11-2022 Q2 FY23 Corporate PPT 16 Learnings From COVID: Building Operational Efficiencies Manpower Staff Per Room 1.20 • One of our biggest learnings has been that our 1.00 0.96 hotels can operate with lesser manpower without compromising on service quality 0.80 0.60 - 0.70 0.60 0.44 • During Covi
Slide 18: Learnings From COVID: Building Operational Efficiencies - Heat, Light and Power
16-11-2022 Q2 FY23 Corporate PPT 17 Learnings From COVID: Building Operational Efficiencies Heat, Light and Power Cost Per Unit • We have been aggressively expanding the share of 11.20 electricity from renewable sources, which comes at 11.03 a lower cost as compared to thermal power 11.00 • In FY20,
Slide 19: Learnings From COVID: Building Operational Efficiencies - Raw Material Cost
16-11-2022 Q2 FY23 Corporate PPT 18 Learnings From COVID: Building Operational Efficiencies Raw Material Cost Raw Material Cost 40% 35% • With our continuously expanding geographical 30% 27% - 30% As % of FnB Revenue footprint we are in a position to negotiate contracts 26% with our suppliers more f
Slide 20: Gross Debt Position with repayments as per terms of borrowing
16-11-2022 Q2 FY23 Corporate PPT 19 Gross Debt Position with repayments as per terms of borrowing Gross Debt Position (in Cr.) 1,800 Peak Debt Remains < Rs. 1700cr 1,699 1,600 111 111 175 1,400 175 196 1,200 Revenue Rs Crs 194 1,000 162 1,699 1698 1698 800 1502 1308 1147 600 400 200 - FY22 FY22 FY23
Slide 21: Expansion Plans – Pipeline of Management Contracts
16-11-2022 Q2 FY23 Corporate PPT 20 Expansion Plans – Pipeline of Management Contracts Opening date # Hotel Pipeline as of 30/09/2022 (Q2 FY23) City Rooms As of 30/09/2022 (Q2 FY23) 1 Keys Lite by Lemon Tree Hotels, Sreekanya Visakhapatnam 44 Oct-22 (Now open) 2 Lemon Tree Hotel, Kalina Mumbai 63 Oc
Slide 22: Expansion Plans – Hotels under Development
16-11-2022 Q2 FY23 Corporate PPT 21 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 projec
Slide 23: Lemon Tree Hotels RoCE: Hotel Buckets by opening 2006-20
16-11-2022 Q2 FY23 Corporate PPT 22 Lemon Tree Hotels RoCE : Hotel Buckets by opening 2006-20 70% 75% First Five hotels opened during FY05 - FY08 Second Five hotels opened in FY09 60% Third Seven hotels opened in FY10 & FY11 Fourth Five hotels opened during FY12 - FY15 69% 70% 53% 68% Fifth Eight Ho
Slide 24: Hotel level Revenue and EBITDAR expansion: Q2 FY23 vs Q2 FY20
16-11-2022 Q2 FY23 Corporate PPT 23 Hotel level Revenue and EBITDAR expansion: Q2 FY23 vs Q2 FY20 (Pre-CoVID) 27% 67% expansion up 21% 29% addition up 40% 8% growth addition * New Hotels includes 9 hotels: Aurika Hotels & Resorts - Udaipur, Lemon Tree Premier - Kolkata and 7 Keys by Lemon Tree Hotel
Slide 25: Q2 FY23 Performance Highlights – Operational Metrics (Consolidated)
16-11-2022 Q2 FY23 Corporate PPT 24 Q2 FY23 Performance Highlights – Operational Metrics (Consolidated) Inventory Average Room Rate (Rs.) Owned/Leased rooms Managed/Franchised Total rooms 2% rooms QoQ 42% 8,303 19% 28% YoY YoY 4,917 4,822 4,917 YoY 73% 5,828 4,133 5,090 YoY 3,975 3,213 1,853 Q2 FY20
Slide 26: Q2 FY23 Performance Highlights – Financial Metrics (Consolidated)
16-11-2022 Q2 FY23 Corporate PPT 25 Q2 FY23 Performance Highlights – Financial Metrics (Consolidated) Revenue from Operations (Rs. Cr) EBITDA (Rs. Cr) 91% 2% 29% 2% YoY 94.3 92.6 QoQ 94.3 YoY QoQ 196.7 192.0 196.7 152.8 49.4 Q2 FY20 Q2 FY23 Q1 FY23 Q2 FY23 Q2 FY20 Q2 FY23 Q1 FY23 Q2 FY23 EBITDA Marg
Slide 27: Q2 FY23 Consolidated P&L: Waterfall vs Q2 FY20
16-11-2022 Q2 FY23 Corporate PPT 26 Q2 FY23 Consolidated P&L: Waterfall to explain changes vis-a-viz Q2 FY20 Cash Profit = PAT + Depreciation Cash Profit = PAT + Depreciation 91% up 28% up 103% flow through due to cost reduction
Slide 28: Lemon Tree Consolidated Profit & Loss Statement – Q2 FY23
16-11-2022 Q2 FY23 Corporate PPT 27 Lemon Tree Consolidated Profit & Loss Statement – Q2 FY23 Q2 FY23 vs Q2 FY23 vs Q2 FY23 vs Rs. Cr Q2 FY23 Q1 FY23 Q2 FY22 Q2 FY20 Q1 FY23 Q2 FY22 Q2 FY20 Change (%) Change (%) Change (%) Revenue from 196.7 192.0 96.9 152.8 2% 103% 29% operations Other income 0.7 0
Slide 29: Lemon Tree Consolidated Profit & Loss Statement – H1 FY23
16-11-2022 Q2 FY23 Corporate PPT 28 Lemon Tree Consolidated Profit & Loss Statement – H1 FY23 H1 FY23 vs H1 FY23 vs Rs. Cr H1 FY23 H1 FY22 H1 FY20 H1 FY22 H1 FY20 Change Change Revenue from operations 388.8 139.0 293.7 180% 32% Other income 1.0 4.0 2.2 -76% -56% Total Income 389.7 143.1 295.9 172% 3
Slide 30: Lemon Tree Consolidated Balance Sheet – H1 FY23
16-11-2022 Q2 FY23 Corporate PPT 29 Lemon Tree Consolidated Balance Sheet – H1 FY23 H1 FY23 vs H1 FY23 vs Rs. Cr H1 FY23 H1 FY22 H1 FY20 H1 FY22 H1 FY20 Change Change Shareholder's Funds 847.0 857.0 824.7 -1% 3% Non-controlling interests 567.5 585.4 430.9 -3% 32% Total Shareholder’s equity 1414.6 14
Slide 31: ESG – FY22 Progress
16-11-2022 Q2 FY23 Corporate PPT 30 ESG – FY22 Progress
Slide 32: Aurika, Mumbai Airport (MIAL) | Representation
16-11-2022 Q2 FY23 Corporate PPT 31 Aurika, Mumbai Airport (MIAL) | Representation Representation Current
Slide 33: Lemon Tree Mountain Resort, Shimla | Representation
16-11-2022 Q2 FY23 Corporate PPT 32 Lemon Tree Mountain Resort, Shimla | Representation Representation Current
Slide 34: Environment Social Governance (ESG) – Vision FY26
16-11-2022 Q2 FY23 Corporate PPT 33 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 r
Slide 35: ESG – Vision FY26 linked to Sustainable Development Goals
16-11-2022 Q2 FY23 Corporate PPT 34 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
Slide 36: Portfolio Breakup as on 30th Sep 2022 - Operational
16-11-2022 Q2 FY23 Corporate PPT 35 Portfolio Breakup as on 30th Sep 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
Slide 37: Portfolio Breakup as on 30th Sep 2022 - Pipeline
16-11-2022 Q2 FY23 Corporate PPT 36 Portfolio Breakup as on 30th Sep 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
Slide 38: Strategically positioned in key geographies
16-11-2022 Q2 FY23 Corporate PPT 37 Strategically positioned in key geographies Map is updated as of 10th November 2022
Slide 39: About Lemon Tree Hotels
16-11-2022 Q2 FY23 Corporate PPT 38 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 opera
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