Lemon Tree Hotels Ltd. · NSE:LEMONTREE

Lemon Tree Hotels — Ambit India Access, Singapore and Motilal Oswal Annual Global Investor Conference, Mumbai (August 2024)

65 slides from Lemon Tree Hotels's conference presentation, Aug 19, 2024

1. Slide 1: Regulation 30 disclosure cover letter

   August 19, 2024 National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra Kurla Complex, Phiroze Jeejeebhoy Towers Bandra (East) Dalal Street, Mumbai – 400 001 Mumbai – 400 051 Name of Scrip: LEMONTREE BSE Scrip Code: 541233 Subject: Disclosure under Regulation 30 of SEBI (Listing

2. Slide 2: Lemon Tree Hotels Limited Corporate Presentation August 2024

   August 2024 Corporate Presentation 1 Lemon Tree Hotels Limited Corporate Presentation | August 2024 Aurika, Mumbai Sky City

3. Slide 3: Our Journey

   August 2024 Corporate Presentation 2 Our Journey

4. Slide 4: Two decades of transforming the Indian hospitality landscape

   August 2024 Corporate Presentation 3 Two decades of transforming the Indian hospitality landscape 2022 2024 (Q1 FY25) 2028 2018 • ~8,400 rooms • 20K+ rooms** • Lemon Tree Hotels IPO • 88 hotels • 14,161 rooms** • 300+ hotels*** • 50th hotel opened • 54 destinations • 168 hotels*** 2010 • Lemon Tree

5. Slide 5: We've come a long way in 20 years

   August 2024 Corporate Presentation 4 We've come a long way in 20 years: from a single 49 room hotel in 2004 to over 10,000 rooms across 100+ hotels in 60+ destinations in India and 3 overseas.

6. Slide 6: We Are Everywhere

   August 2024 Corporate Presentation 5 WE ARE EVERYWHERE

7. Slide 7: Distinct portfolio of brands, operating pan India

   August 2024 Corporate Presentation 6 Distinct portfolio of brands, operating pan India Value for money hotel brands to cater from PAN – India network of owned, Expanding Wallet Share economy to upscale Managed & Franchised hotels of India's growing middle-class requirements captured by Lemon Tree So

8. Slide 8: Lemon Tree Snapshot as on 30th June 2024

   August 2024 Corporate Presentation 7 Lemon Tree – Snapshot as on 30th June 2024 Operational Pipeline Operational + Pipeline Group 10,125 rooms; 4,036 rooms; 14,161 rooms; 107 hotels 61 hotels 168 hotels Brand Current Pipeline Operational + Pipeline Aurika Hotels & Resorts 863 Rooms; 3 Hotels 311 Roo

9. Slide 9: Large underserved mid-scale market

   August 2024 Corporate Presentation 8 Large underserved mid-scale market India is transitioning from the inverted supply pyramid to a corrected future with strong base of midscale and economy supply India's transitioning to global standards on hotel room supply Potential Future 2002 India: 2022* US:

10. Slide 10: Leaders in upper midscale to economy segment, expanding in upscale

    August 2024 Corporate Presentation 9 Lemon Tree Hotels are leaders in upper midscale to economy segment, and expanding in upscale Our Operating Our Operating Inventory Segment Industry Inventory Inventory as % of Industry Lemon Tree Brand Positioning Luxury and Upper Upscale 62,107* 863 0.9% * Upsca

11. Slide 11: Roadmap for next 5 years

    August 2024 Corporate Presentation 10 Roadmap for next 5 years

12. Slide 12: Lemon Tree 2.0: Roadmap for next 5 years – CY24 to CY28

    August 2024 Corporate Presentation 11 Lemon Tree 2.0: Roadmap for next 5 years – CY24 to CY28 Lemon Tree 2.0 Superior financial Mid-market hotel Strong balance Leader in Leader in performance flagbearer sheet digital ESG Strategic Levers Asset Light (How will we make this Digital Simplifying Growth

13. Slide 13: Outcomes

    August 2024 Corporate Presentation 12 OUTCOMES

14. Slide 14: LT 2.0: clear and achievable outcomes over the next 5 years

    August 2024 Corporate Presentation 13 LT 2.0: setting clear and achievable outcomes over the next 5 years Superior financial Mid-market hotel Strong balance Leader in digital Leader in ESG performance leader sheet Bionic Revenue 100% green 20k+ hotel certified Management rooms buildings Stable 50% n

15. Slide 15: Strategic Levers

    August 2024 Corporate Presentation 14 STRATEGIC LEVERS

16. Slide 16: Strategic levers (1 of 5): Asset light growth, network effect

    August 2024 Corporate Presentation 15 Lemon Tree 2.0: Strategic levers (1 on 5) Asset Light Growth Network Effect Rapid expansion at negligible cost 300+ hotels**: Spread across length & breadth of India ~15k rooms network* of managed & franchised Pan-India hotel presence: We are everywhere portfoli

17. Slide 17: Strategic levers (2 of 5): Digital transformation, build on retail

    August 2024 Corporate Presentation 16 Lemon Tree 2.0: Strategic levers (2 on 5) Digital Transformation Build on Retail Bionic Pricing & Revenue Management 65% retail share target Next Gen Sales: Data driven sales recommendations Dynamic & Market driven pricing Data Driven decision making across func

18. Slide 18: Strategic levers (3 of 5): Nourish loyalty, operate lean

    August 2024 Corporate Presentation 17 Lemon Tree 2.0: Strategic levers (3 on 5) Nourish Loyalty Operate Lean Rewards Program: loyalty and churn management 50% EBIDTA: Industry leading efficiencies >40% repeat customers Smart operations: Real-time cost control towers Personalization: Improved custome

19. Slide 19: Strategic levers (4 of 5): Capital recycling of owned network

    August 2024 Corporate Presentation 18 Lemon Tree 2.0: Strategic levers (4 on 5) Capital recycling of owned network Large network of owned hotels: 40 operational hotels with 5k+ rooms, 2 hotels with 700+ rooms in pipeline ~40% of total capital employed, operationalized in just the last 3 years ~20% o

20. Slide 20: Strategic levers (5 of 5): Simplifying group structure

    August 2024 Corporate Presentation 19 Lemon Tree 2.0: Strategic levers (5 on 5) Simplifying group structure Current group structure Lemon Tree Hotels Brand Owner + Asset Owner + Operator As of CY23/Q1 FY25, owns (directly/through 100% subsidiaries) & operates 17 hotels, 1.7k+ rooms By/before CY28, p

21. Slide 21: Simplified group structure by/before CY28

    August 2024 Corporate Presentation 20 Simplified group structure by/before CY28 Simplified group structure Proposed group structure Lemon Tree Hotels Brand Owner + Asset Owner + Operator With Carnation Hotels merged into Lemon Tree Hotels and all 100% owned assets (owned directly/through 100% subsid

22. Slide 22: Enablers

    August 2024 Corporate Presentation 21 ENABLERS

23. Slide 23: Consumption in India at tipping point

    August 2024 Corporate Presentation 22 Consumption in India at tipping point Consumer spending, specially on Hospitality related categories expected to grow significantly faster than Nominal GDP in the coming years Indian GDP Consumer Spending CAGR Average CAGR (Nominal LCU) Multiplier (Nominal GDP t

24. Slide 24: Demand outpacing supply in Indian hospitality till FY28

    August 2024 Corporate Presentation 23 Demand outpacing supply in Indian hospitality landscape till FY28 High demand period expected in next 5 years, to drive strong growth in ARR and occupancy % FY08-20 FY23-28E Demand-supply mismatch has significant impact on hotel industry ARR & revenues Hotel Dem

25. Slide 25: Hotel business shows cyclicality, higher returns at top of cycle

    August 2024 Corporate Presentation 24 Hotel business shows cyclicality, returns disproportionately higher in top of cycle Top of cycle yields disproportionately higher returns, business expected to be top of cycle in coming years Observed peak From FY04 to FY08 performance in FY07 to Industry ARR in

26. Slide 26: Growing aspirations, affluence & willingness to pay in Bharat

    August 2024 Corporate Presentation 25 Growing aspirations, affluence & willingness to pay in Bharat Average Household (HH) income to increase ~1.4x in the current decade, along with growth of affluence, especially in Tier 2,3 and 4 towns Average Household(HH) India - 2016 India - 2025 income (Lakhs.

27. Slide 27: Rigorous approach to risk management and risk mitigation

    August 2024 Corporate Presentation 26 Rigorous approach to risk management and risk mitigation Identified Assessed Prioritized Mitigated Monitoring LTH's approach to the 14 risk that Tolerance limits Basis the the risks as per Ongoing / Enterprise Risk matters likelihood & Remove / Periodic manageme

28. Slide 28: ESG Vision FY26

    August 2024 Corporate Presentation 27 ESG Vision FY26 Ambitious Targets set for owned properties to become an ESG Leader 100% Certified green building 15% Lower energy consumption* 15% Women in the workforce 50% Renewable energy 30% ODIs** in the workforce 10% Lower water consumption* Majority indep

29. Slide 29: ESG Highlights of FY23 initiatives

    August 2024 Corporate Presentation 28 ESG | Highlights of FY23 initiatives Energy Renewable energy Green building Diversity and inclusion 15% 10% 50% 10.97% 100% 25% 30% 13% Reduction in Reduction in Renewable energy Renewable energy Certified Green Certified Green ODIs1 in the ODIs1 in the Energy E

30. Slide 30: Strategic Assets

    August 2024 Corporate Presentation 29 STRATEGIC ASSETS

31. Slide 31: Purpose driven culture

    August 2024 Corporate Presentation 30 Purpose driven culture ESG* Vision FY26 Office of DE & I** Creating Sustained Value across Employees from Economically/ all stakeholders Socially marginalized Belief: Our business operations backgrounds are inherently integrated with delivering social and enviro

32. Slide 32: Unique expertise as developer, owner & operator of hotels

    August 2024 Corporate Presentation 31 LTH has unique expertise as developer, owner & operator of hotels Sales and Development Ownership Operations Land marketing Guest of hotels of hotels of hotels of hotels Development Ownership Management Brand • Identify strategically located land • Ability to at

33. Slide 33: Q1 FY25 Performance

    August 2024 Corporate Presentation 32 Q1 FY25 Performance

34. Slide 34: Q1 FY25 performance across key financial metrics

    August 2024 Corporate Presentation 33 Q1 FY25 performance across key financial metrics Q1 FY25 performance snapshot vs Q1 FY24 Total Revenue EBITDA EBITDA % Rs. 268.4 Cr Rs. 115.4 Cr 43.0% Up 19% Up 8% Down 456 bps PAT Cash Profit# Cost of Debt % Rs. 20.1 Cr Rs. 54.7 Cr 8.80%* Down 27% Up 9% Down 13

35. Slide 35: Q1 FY25 Operational Metrics (Consolidated)

    August 2024 Corporate Presentation 34 Q1 FY25 Performance Highlights – Operational Metrics (Consolidated) Inventory Average Room Rate (Rs.) Owned/Leased rooms Managed/Franchised Total rooms -14% rooms 19% 6,605 QoQ 9% YoY 10,125 YoY 5,686 5,686 13% 8,491 YoY 28% 5,207 5,759 YoY 5,090 4,366 3,401 Q1

36. Slide 36: Q1 FY25 Financial Metrics (Consolidated)

    August 2024 Corporate Presentation 35 Q1 FY25 Performance Highlights – Financial Metrics (Consolidated) Revenue from Operations (Rs. Cr) Net EBITDA (Rs. Cr) 20% 8% -34% -18% YoY YoY 175.3 QoQ 327.3 QoQ 268.0 268.0 224.2 106.8 115.4 115.4 Q1 FY24 Q1 FY25 Q4 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q4 FY24 Q1 FY2

37. Slide 37: Q-o-Q performance of FY25, FY24 and FY23

    August 2024 Corporate Presentation 36 Q-o-Q performance of FY25, FY24 and FY23 Particulars Q1 FY25 Q4 FY24 Q3 FY24 Q2 FY24 Q1 FY24 Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Gross ARR (Rs.) 5,686 6,605 6,333 5,268 5,237 5,824 5,738 4,917 4,822 Occupancy % 66.6% 72.0% 65.9% 71.7% 70.2% 73.6% 67.6% 66.2% 65.1% R

38. Slide 38: Total Management Fees Q1 FY25 vs Q1 FY24

    August 2024 Corporate Presentation 37 Total Management Fees | Q1 FY25 vs Q1 FY24 29.1 23.9 16.6 12.5 + 13.5 = 10.4 Management / Franchise fees from 3rd party Management Fees from Fleur Hotels Total Management Fees hotels Q1 FY24 Q1 FY25 Fees to Lemon Tree Hotels (Rs. Cr) Q1 FY24 Q1 FY25 Growth % Man

39. Slide 39: Market Segments: Q1 FY25 vs Q1 FY24

    August 2024 Corporate Presentation 38 Market Segments: Q1 FY25 vs Q1 FY24 (with Aurika, Mumbai SkyCity) Market Segments Room Nights Sold – Q1 FY25 vs Q1 FY24 38% 36% 39% 33% 7% 9% 8% 6% 6% 8% 6% 5% Corporate Airline Travel Trade OTA LT.com Other FITs Q1 FY24 Q1 FY25 Market Segments Room Revenue – Q1

40. Slide 40: Q1 FY25 Operational Performance by Brands & Region

    August 2024 Corporate Presentation 39 Q1 FY25 Operational Performance by Brands & Region (On full inventory basis including Aurika, Mumbai SkyCity) Hotel level Hotel level EBITDAR Margin Parameters RevPAR (Rs.) Occupancy Rate (%) EBITDAR/room/qtr. Average Daily Rate (Rs.) %** (Rs. Lacs)** Change Cha

41. Slide 41: Consolidated P&L: Q1 FY25 vs Q1 FY24

    August 2024 Corporate Presentation 40 Consolidated P&L: Q1 FY25 vs Q1 FY24 2 Q1 FY25 Consolidated P&L Waterfall – Revenue to Cash Profit (Rs. Cr) 23 2 3 3 2 2 2 3 t Ot t t t c 3 Q1 FY25 vs Q1 FY24 Consolidated P&L waterfall to explain delta (Rs. Cr) 32 2 t Ot t t t c Cash Profit = PAT + Depreciation

42. Slide 42: Cost Structure: Q1 FY25 vs Q1 FY24

    August 2024 Corporate Presentation 41 Cost Structure: Q1 FY25 vs Q1 FY24 * Expenses as a percentage of total revenue Up 456 bps 57.0% 52.4% Down 7 bps Up 167 bps 19.0% 18.9% 18.8% 17.1% Up 13 bps Up 59 bps 8.6% 8.7% Up 180 bps 5.5% 6.1% Up 45 bps 4.0% 2.2% 0.0% 0.4% Payroll expenses* F&B/Raw Materia

43. Slide 43: Consolidated Profit & Loss Statement – Q1 FY25

    August 2024 Corporate Presentation 42 Lemon Tree Consolidated Profit & Loss Statement – Q1 FY25 Q1 FY25 vs Q1 FY25 vs Rs. Cr Q1 FY25 Q4 FY24 Q1 FY24 Q4 FY24 Q1 FY24 Change (%) Change (%) Revenue from operations 268.0 327.3 224.2 -18% 20% Other income 0.4 3.9 0.4 -91% -6% Total revenue 268.4 331.2 22

44. Slide 44: Hotel Network Revenue – Q1 FY25 vs Q1 FY24

    August 2024 Corporate Presentation 43 Lemon Tree Hotel Network Revenue – Q1 FY25 vs Q1 FY24 Incremental revenue from Incremental revenue from Hotel Network Revenue Q1 FY25 Q1 FY24 Q1 FY25 vs Q1 FY24 Change (%) (Rs. Cr) Owned Hotels 255.5 214.1 19% Managed and Franchised Hotels 168.0 140.0 20% Total

45. Slide 45: Expected opening of managed & franchised pipeline inventory

    August 2024 Corporate Presentation 44 Expected opening of inventory in pipeline of managed & franchised contracts (as of 30th June 2024) Total J y’ ’ Brands FY26 FY27 To be announced Rooms FY25 (Hotels) 132 110 242 Aurika Hotels & Resorts - - (1) (1) (2) 95 282 377 Lemon Tree Premier - - (2) (3) (5)

46. Slide 46: Hotels opened and signed in Q1 FY25

    August 2024 Corporate Presentation 45 Hotels opened and signed in Q1 FY25 (managed & franchised contracts) Hotels opened in Q1 FY25 # Hotels States Rooms Opening Dates 1 Lemon Tree Hotel, Tapovan, Rishikesh Uttarakhand 126 Apr-24 2 Lemon Tree Premier, Budhanilkantha, Kathmandu Nepal 102 Apr-24 3 Tig

47. Slide 47: Pipeline of managed & franchised contracts by opening (1 of 2)

    August 2024 Corporate Presentation 46 Expansion Plans – Pipeline of managed & franchised contracts by opening (1 of 2) # Hotels Pipeline States Rooms Expected Opening 1 Lemon Tree Hotel, Jamshedpur Jharkhand 42 FY25 2 Lemon Tree Premier, Kanha Madhya Pradesh 15 FY25 3 The Spectrum, operated by Lemon

48. Slide 48: Pipeline of managed & franchised contracts by opening (2 of 2)

    August 2024 Corporate Presentation 47 Expansion Plans – Pipeline of managed & franchised contracts by opening (2 of 2) # Hotels Pipeline States Rooms Expected Opening 33 Keys Lite by Lemon Tree Hotels, Somnath Gujarat 52 FY26 34 Lemon Tree Hotel, Jamnagar Gujarat 60 FY26 35 Lemon Tree Premier, Dehra

49. Slide 49: Annexure

    August 2024 Corporate Presentation 48 Annexure

50. Slide 50: Aurika, Shimla | Representation

    August 2024 Corporate Presentation 49 Aurika, Shimla (redesigned from Lemon Tree Mountain Resort, Shimla)| Representation

51. Slide 51: Aurika, Shimla | Current

    August 2024 Corporate Presentation 50 Aurika, Shimla (redesigned from Lemon Tree Mountain Resort, Shimla) | Current

52. Slide 52: Aurika, Shimla | Current

    August 2024 Corporate Presentation 51 Aurika, Shimla (redesigned from Lemon Tree Mountain Resort, Shimla) | Current

53. Slide 53: Aurika, Shimla | Current

    August 2024 Corporate Presentation 52 Aurika, Shimla (redesigned from Lemon Tree Mountain Resort, Shimla) | Current

54. Slide 54: Aurika, Mumbai Skycity | Façade

    August 2024 Corporate Presentation 53 Aurika, Mumbai Skycity | Façade Aurika, Mumbai Skycity

55. Slide 55: Aurika, Mumbai Skycity | Swimming Pool

    August 2024 Corporate Presentation 54 Aurika, Mumbai Skycity | Swimming Pool

56. Slide 56: Aurika, Mumbai Skycity | Ekaara, The Ballroom

    August 2024 Corporate Presentation 55 Aurika, Mumbai Skycity | Ekaara, The Ballroom

57. Slide 57: Aurika, Mumbai Skycity | Pre-function Area

    August 2024 Corporate Presentation 56 Aurika, Mumbai Skycity | Pre-function Area

58. Slide 58: Aurika, Mumbai Skycity | Meeting Room

    August 2024 Corporate Presentation 57 Aurika, Mumbai Skycity | Meeting Room

59. Slide 59: Aurika, Mumbai Skycity | Board Room

    August 2024 Corporate Presentation 58 Aurika, Mumbai Skycity | Board Room

60. Slide 60: Aurika, Mumbai Skycity | Ariva, The Bar

    August 2024 Corporate Presentation 59 Aurika, Mumbai Skycity | Ariva, The Bar

61. Slide 61: Aurika, Mumbai Skycity | Lobby

    August 2024 Corporate Presentation 60 Aurika, Mumbai Skycity | Lobby

62. Slide 62: Aurika, Mumbai Skycity | Presidential Suite

    August 2024 Corporate Presentation 61 Aurika, Mumbai Skycity | Presidential Suite

63. Slide 63: Aurika, Mumbai Skycity | Presidential Suite

    August 2024 Corporate Presentation 62 Aurika, Mumbai Skycity | Presidential Suite

64. Slide 64: Aurika, Mumbai Skycity | Suite

    August 2024 Corporate Presentation 63 Aurika, Mumbai Skycity | Suite

65. Slide 65: Aurika, Mumbai Skycity | Room

    August 2024 Corporate Presentation 64 Aurika, Mumbai Skycity | Room

Lemon Tree Hotels — Ambit India Access, Singapore and Motilal Oswal Annual Global Investor Conference, Mumbai (August 2024) on 6ix