Slide 1: Lemon Tree Hotels Limited Q1 FY20 Earnings Presentation
Lemon Tree Hotels Limited Q1 FY20 Earnings Presentation Aug 7, 2019
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 Performance Highlights 4 Financial & Operational Metrics 5 Key Developments / Business Updates 6 Annexures 3
Slide 4: Lemon Tree – Snapshot as on 31st July, 2019
Lemon Tree – Snapshot as on 31st July, 2019 5,828 rooms; 57 hotels 2,000 2,506 1,322 rooms; rooms; rooms; 13 hotels 33 hotels 11 hotels 4
Slide 5: Lemon Tree – Portfolio
Lemon Tree – Portfolio Key Statistics Q1 FY19 Q4 FY19 Q1 FY20 31th Jul FY20 Cities 31 32 34 34 Hotels 49 54 57 57 Rooms 4888 5411 5828 5828 Loyalty 786,159 947,776 1,008,307 1,029,669 Members 5
Slide 6: Portfolio Breakup as on 30th June, 2019
Portfolio Breakup as on 30th June, 2019 Operational Portfolio Owned Leased Managed Total 30.06.2019 Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Lemon Tree Premier 6 1300 2 161 5 539 13 2,000 Lemon Tree Hotels 13 1241 4 321 16 944 33 2,506 Red Fox Hotels 5 759 2 193 4 370 11 1,322 Total 24 33
Slide 7: Strategically positioned in key geographies with share of mid-priced hotel sector
Strategically positioned in key geographies with Lemon Tree share of total mid- priced hotel sector Geographical spread across India and presence in key markets to Jaipur: FY17 – 11% Delhi NCR: FY17 – 14% cater effectively to corporate FY21E – 16% FY21E – 10% clients and business travelers Hotel
Slide 8: Chairman & Managing Director’s Message
Chairman & Managing Director’s Message Commenting on the performance for Q1 FY20, Mr. Patanjali Keswani, Chairman & Managing Director – Lemon Tree Hotels Limited said, “We have delivered a topline growth of 11.8% YoY in Q1 FY20 driven by a 2.7% YoY increase in ADR and addition of 394 rooms since the
Slide 9: Performance Highlights – Operational Metrics (Consolidated)
Performance Highlights – Operational Metrics (Consolidated) Operational Inventory Owned/Leased rooms Managed rooms Total rooms Average Daily Rate (Rs.) 5,828 2.7% 5,411 4,888 4,002 3,899 3,975 3,278 3,570 1,610 1,841 1,853 End of Q1 FY19 FY19 Q1 FY20 Q1 FY19 FY19 Q1 FY20 Q1 FY19 FY19 Q1 FY20 Q1 FY19
Slide 10: Performance Highlights – Financial Metrics (Consolidated)
Performance Highlights – Financial Metrics (Consolidated) Total Income (Rs. Crores) EBITDA (Rs. Crores) 46 142 35 31.4% 11.8% 127 Q1FY19 Q1 FY20 Q1 FY19 Q1 FY20 Cash profit (Rs. Crores) PAT (Rs. Crores) 16 2 (195.5%) 2.6% 15 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 (2) Note: The results of this quarter are n
Slide 11: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) Q1 FY20 YoY Change Q1 FY20 YoY Change (In Rs. Crores) Q1 FY19 After IndAS 116 Before IndAS 116 FY19 Adjustment (%) Adjustment (%) Revenue from operations 126.9 140.9 11.0% 140.9 11.0% 549.5 Other income 0.2 1.3 508.5% 1.3 508.5% 9.9 Total income 127.1 142.2 11.
Slide 12: Discussion on Consolidated Financial & Operational Performance – Q1 FY20
Discussion on Consolidated Financial & Operational Performance – Q1 FY20 As of 31st July 2019, operational portfolio comprised of 57 hotels and 5,828 rooms : 3,300 owned, 675 leased and 1,853 managed rooms; Pipeline includes of 937 owned/leased and 2,035 managed rooms Operational Propose to add
Slide 13: Ind AS 116 - Overview
Ind AS 116 - Overview • Ind AS 116 – “Leases”, the new Accounting Standard came into effect from April 01, 2019 • Impact on Balance Sheet Statement Lease liability will be recognized for the obligation to make lease payments and a corresponding Right to Use Asset will be created which will be depr
Slide 14: Impact of Ind AS 116 on Consolidated Q1FY20 Results
Impact of Ind AS 116 on Consolidated Q1FY20 Results Profit and Loss Statement Impact (In Rs. Crores) Before Ind AS 116 Ind AS 116 Impact After Ind AS 116 Lease Rent 8.1 (6.3) 1.7 Other Expenses 34.8 (1.2) 33.6 Net EBITDA 38.5 7.5 46.0 Interest Expense 22.6 8.3 30.9 Depreciation 14.0 3.2 17.2 Profit
Slide 15: Impact of Ind AS 116 on LHTL Q1FY20 Results as Waterfall
Impact of Ind AS 116 on LHTL Q1FY20 Results as Waterfall EBITDA Waterfall Lease Waterfall 50.0 9.0 45.0 8.0 7.5 0.8 40.0 7.0 2.5 35.0 Lease Rent Rs Cr 6.0 EBITDA Rs Cr 30.0 5.0 6.3 25.0 46.0 4.0 20.0 7.4 7.3 35.0 36.0 3.0 15.0 10.0 2.0 5.0 1.0 1.7 0.0 0.0 Q1FY19 Old Q1 FY20 Old New Hotels AS 116 Imp
Slide 16: Operational Performance by Brands & Region – Q1FY20 vs. Q1FY19
Operational Performance by Brands & Region – Q1FY20 vs. Q1FY19 Q1 FY20 vs. Q1 FY19 Hotel level EBITDAR/room (Rs. Parameters Occupancy Rate (%) Average Daily Rate (Rs.) Hotel level EBITDAR Margin Lacs) Change Change Change By Brand Q1 FY20 Q1 FY19 (bps) Q1 FY20 Q1 FY19 (%) Q1 FY20 Q1 FY19 Change (%)
Slide 17: Expansion Plans – Hotels under Development
Expansion Plans – Hotels under Development Expected Opening Under-development hotels Type Rooms Ownership (%) date Lemon Tree Premier, Kolkata Owned 142 Oct-19 57.98% Lemon Tree Premier, Udaipur Owned 139 Oct-19 57.98% Lemon Tree Mountain Resort, Shimla Owned 69 Apr-21 100.00% Lemon Tree Vembanad La
Slide 18: Expansion Plans – Pipeline of Management Contracts
Expansion Plans – Pipeline of Management Contracts (as of 31st July , 2019) Management Contracts Pipeline Rooms Expected Opening date Tenure (years) Lemon Tree Premier, Rishikesh 66 Nov-19 12 Lemon Tree Hotel, Dubai 114 Nov-19 10 Red Fox Hotel, Vijaywada 90 Dec-19 10 Lemon Tree Hotel, Thimpu 27 Dec-
Slide 19: Annexures
kena ANNEXURES
Slide 20: Strong operating performance
TBA Strong operating performance Rooms are being added… …and occupancy levels increasing… Owned Leased Hotels Managed Hotels FY15 FY16 FY17 FY18 FY19 19% 5,411 4,870 1841 3,249 3,698 1593 78% 78% 77% 79% 78% 2,708 3,001 77% 77% 274 461 843 573 75% 74% 75% 73% 74% 171 481 1,920 283 283 317 283 283 2,
Slide 21: Strong Growth and improving margins
Strong Growth and improving margins Revenue has increased at 20% over the last 5 years… …coupled with increasing EBITDA margins Revenue from operations (Rs. million) EBITDA & EBITDA margins 20% 5,495 31.9% 27.9% 29.7% 29.3% 4,843 4,121 3,680 2,904 17.8% 2,217 11.0% 246 519 1,033 1,247 1,440 1,787 FY
Slide 22: 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 23: Indian hotel industry is at an inflection point
Indian hotel industry is at an inflection point Slowing supply and rising demand is expected to increase occupancy No. of rooms in ‘000s Occupancy Occupancy (%) Rooms demand per day ('000) Rooms supply per day ('000) 200 Demand 10.8% Demand 15.1% Demand 14.1% Demand 11.6% 85% Supply 14.9%
Slide 24: Increasing occupancy leading to increase in room rates
Increasing occupancy leading to increase in room rates Average Daily Rate (ADR) is increasing with increase in occupancy rates ADR (INR) Occupancy (RHS) ADR (INR) Occupancy % 9,000 71% 69% 68% 8,000 67% 67% 65% 7,543 63% 7,000 63% 60% 59% 59% 59% 6,000 58% 58% 5,7455,759 59% 57% 5,000 55% FY07 FY08
Slide 25: Mid-priced hotel sector expected to have higher demand supply gap
Mid-priced hotel sector expected to have higher demand supply gap resulting in higher growth in occupancy Mid-priced hotel sector expected to continue having higher demand-supply gap leading to… Demand Growth Supply Growth Demand Supply Gap FY12-17 FY17-21 19% 19% 16% 16% 15% 12% 12% 12% 13% 11% 8%
Slide 26: Conference Call Details
Conference Call Details Lemon Tree Hotels Limited (LTH) Q1 FY20 Earnings Conference Call Time • 6:30 PM IST on Wednesday, August 7, 2019 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) Internation
Slide 27: About Us
About Us Lemon Tree Hotels (LTH) is the largest mid-priced hotel sector chain, 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. LTH operates in the mid-priced hotel sector, consisting of the upper mid