Lemon Tree Hotels Ltd. · NSE:LEMONTREE
Lemon Tree Hotels — Conference Presentation (February 2024)
69 slides from Lemon Tree Hotels's conference presentation, Feb 12, 2024
Slide 1: Exchange filing cover letter for corporate presentation
February 12, 2024 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 Regulation 30(6) o
Slide 2: Lemon Tree Hotels Limited Corporate Presentation
February 2024 Corporate Presentation 1 Lemon Tree Hotels Limited Corporate Presentation | February 2024 Aurika, Mumbai Sky City
Slide 3: Our Journey
February 2024 Corporate Presentation 2 Our Journey
Slide 4: Two decades of transforming the Indian hospitality landscape
February 2024 Corporate Presentation 3 Two decades of transforming the Indian hospitality landscape 2022 2028 2018 • ~8,400 rooms • 20K+ rooms** • Lemon Tree Hotels IPO • 88 hotels • 300+ hotels*** • 50th hotel opened • 54 destinations 2010 • Lemon Tree Premier 2019 2023 brand launched • 13,433 room
Slide 5: Distinct portfolio of brands, operating pan India
February 2024 Corporate Presentation 4 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
Slide 6: Brands: A snapshot of our network
February 2024 Corporate Presentation 5 A snapshot of our network Operational Pipeline Operational + Pipeline Group 9,687 3,746 13,433 rooms; rooms; rooms; 100 55 hotels 155 hotels hotels Brand Current Pipeline Operational + Pipeline Aurika Hotels & Resorts 863 Rooms; 3 Hotels 242 Rooms; 2 Hotels 110
Slide 7: Large underserved mid-scale market
February 2024 Corporate Presentation 6 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
Slide 8: Leaders in upper midscale to economy segment, expanding in upscale
February 2024 Corporate Presentation 7 Lemon Tree Hotels are leaders in upper midscale to economy segment, and expanding in upscale Our Inventory as Segment Industry Inventory Our Inventory % of Industry Lemon Tree Brand Positioning Luxury and Upper Upscale 62,107* 863 0.9% * Upscale 33,715 Upper Mi
Slide 9: Roadmap for next 5 years
February 2024 Corporate Presentation 8 Roadmap for next 5 years
Slide 10: Lemon Tree 2.0: Roadmap for next 5 years – CY24 to CY28
February 2024 Corporate Presentation 9 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
Slide 11: Outcomes
February 2024 Corporate Presentation 10 OUTCOMES
Slide 12: LT 2.0: clear and achievable outcomes over next 5 years
February 2024 Corporate Presentation 11 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%
Slide 13: Strategic Levers
February 2024 Corporate Presentation 12 STRATEGIC LEVERS
Slide 14: Strategic levers (1 of 5): Asset Light Growth, Network Effect
February 2024 Corporate Presentation 13 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 portfo
Slide 15: Strategic levers (2 of 5): Digital Transformation, Build on Retail
February 2024 Corporate Presentation 14 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 fu
Slide 16: Strategic levers (3 of 5): Nourish Loyalty, Operate Lean
February 2024 Corporate Presentation 15 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 custo
Slide 17: Strategic levers (4 of 5): Capital recycling of owned network
February 2024 Corporate Presentation 16 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%
Slide 18: Strategic levers (5 of 5): Simplifying group structure
February 2024 Corporate Presentation 17 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#, owns (directly/through 100% subsidiaries) & operates 17 hotels, 1.7k+ rooms By/before CY28, propos
Slide 19: Simplified group structure by/before CY28
February 2024 Corporate Presentation 18 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% subs
Slide 20: Enablers
February 2024 Corporate Presentation 19 ENABLERS
Slide 21: Consumption in India at tipping point
February 2024 Corporate Presentation 20 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
Slide 22: Demand outpacing supply in Indian hospitality landscape till FY28
February 2024 Corporate Presentation 21 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 D
Slide 23: Hotel business shows cyclicality, returns higher at top of cycle
February 2024 Corporate Presentation 22 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
Slide 24: Growing aspirations, affluence & willingness to pay in Bharat
February 2024 Corporate Presentation 23 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 (Lakh
Slide 25: Rigorous approach to risk management and risk mitigation
February 2024 Corporate Presentation 24 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 manage
Slide 26: ESG Vision FY26
February 2024 Corporate Presentation 25 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 ind
Slide 27: ESG | Highlights of FY23 initiatives
February 2024 Corporate Presentation 26 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
Slide 28: Strategic Assets
February 2024 Corporate Presentation 27 STRATEGIC ASSETS
Slide 29: Purpose driven culture
February 2024 Corporate Presentation 28 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 envi
Slide 30: Unique expertise as developer, owner & operator of hotels
February 2024 Corporate Presentation 29 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
Slide 31: February 2024 Corporate Presentation
February 2024 Corporate Presentation 30
Slide 32: Q3 & 9M FY24 Performance
February 2024 Corporate Presentation 31 Q3 & 9M FY24 Performance
Slide 33: Strong Q3 FY24 performance across key financial metrics
06-February-2024 Q3 FY24 Earnings Presentation 32 Strong Q3 FY24 performance across key financial metrics Q3 FY24 performance snapshot vs Q3 FY23 Total Revenue EBITDA EBITDA % Rs. 290.9 Cr Rs. 141.9 Cr 48.8% Up 24% Up 12% Down 547 bps PAT Cash Profit# Cost of Debt % Rs. 43.8 Cr Rs. 77.1 Cr 8.85%* Do
Slide 34: Q3 FY24 Performance Highlights – Operational Metrics
06-February-2024 Q3 FY24 Earnings Presentation 33 Q3 FY24 Performance Highlights – Operational Metrics (Consolidated) Inventory Average Room Rate (Rs.) Owned/Leased rooms Managed/Franchised Total rooms 20% rooms QoQ 15% 10% YoY 6,333 6,333 9,687 YoY 13% 5,738 YoY 8,451 5,268 17% YoY 5,759 5,090 3,36
Slide 35: Q3 FY24 Performance Highlights – Financial Metrics
06-February-2024 Q3 FY24 Earnings Presentation 34 Q3 FY24 Performance Highlights – Financial Metrics (Consolidated) Revenue from Operations (Rs. Cr) EBITDA (Rs. Cr) 12% 35% 24% 27% YoY QoQ YoY QoQ 141.9 141.9 127.0 288.7 288.7 104.8 233.5 227.2 Q3 FY23 Q3 FY24 Q2 FY24 Q3 FY24 Q3 FY23 Q3 FY24 Q2 FY24
Slide 36: Q-o-Q performance of FY23 and FY24
06-February-2024 Q3 FY24 Earnings Presentation 35 Q-o-Q performance of FY23 and FY24 Q3 FY24 was the best ever “Q3” in terms of Gross ARR, Revenue and EBITDA Particulars Q3 FY24 Q2 FY24 Q1 FY24 Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Gross ARR (Rs.) 6,333 5,268 5,237 5,824 5,738 4,917 4,822 Occupancy % 65.9
Slide 37: Total Management Fees | Q3 FY24 vs Q3 FY23
06-February-2024 Q3 FY24 Earnings Presentation 36 Total Management Fees | Q3 FY24 vs Q3 FY23 32.3 25.8 16.0 17.4 14.9 + = 9.8 Management / Franchise fees from 3rd party Management Fees from Fleur Hotels Total Management Fees hotels Q3 FY23 Q3 FY24 Fees to Lemon Tree Hotels (Rs. Cr) Q3 FY23 Q3 FY24 G
Slide 38: Total Management Fees | 9M FY24 vs 9M FY23
06-February-2024 Q3 FY24 Earnings Presentation 37 Total Management Fees | 9M FY24 vs 9M FY23 80.2 64.3 44.5 35.7 39.2 + = 25.1 Management / Franchise fees from 3rd party Management Fees from Fleur Hotels Total Management Fees hotels 9M FY23 9M FY24 Fees to Lemon Tree Hotels (Rs. Cr) 9M FY23 9M FY24
Slide 39: Market Segments: Q3 FY24 vs Q3 FY23
06-February-2024 Q3 FY24 Earnings Presentation 38 Market Segments: Q3 FY24 vs Q3 FY23 Market Segments Room Nights Sold – Q3 FY24 vs Q3 FY23 40 % 38% 36% 35 % 31% 30% 30 % 25 % 14% 20 % 15 % 8% 9% 9% 10% 10 % 6% 6% 5% 3% 0% Corporate Airline Travel Trade OTA LT.com Other FITs Q3 FY23 Q3 FY24 Market S
Slide 40: Consolidated Profit & Loss Statement – Q3 FY24
06-February-2024 Q3 FY24 Earnings Presentation 39 Lemon Tree Consolidated Profit & Loss Statement – Q3 FY24 Q3 FY24 vs Q3 FY24 vs Rs. Cr Q3 FY24 Q2 FY24 Q3 FY23 Q2 FY24 Q3 FY23 Change (%) Change (%) Revenue from operations 288.7 227.2 233.5 27% 24% Other income 2.2 2.9 0.6 -26% 288% Total revenue 29
Slide 41: Consolidated Profit & Loss Statement – 9M FY24
06-February-2024 Q3 FY24 Earnings Presentation 40 Lemon Tree Consolidated Profit & Loss Statement – 9M FY24 9M FY24 vs Rs. Cr 9M FY24 9M FY23 9M FY23 Change Revenue from operations 738.1 622.3 19% Other income 7.4 1.5 386% Total Income 745.6 623.8 20% Total expenses 392.0 309.8 27% Net EBITDA 353.6
Slide 42: Lemon Tree Hotel Network Revenue – 9M FY24
06-February-2024 Q3 FY24 Earnings Presentation 41 Lemon Tree Hotel Network Revenue – 9M FY24 9M FY24 vs 9M Hotel Network Revenue 9M FY24 9M FY23 FY23 Change (Rs. Cr) (%) Owned Hotels 705 598 18% Managed and Franchised Hotels 423 356 19% Total Network Revenue 1128 954 18% Figures include Aurika, Mumb
Slide 43: Hotels opened and signed in Q3 FY24
06-February-2024 Q3 FY24 Earnings Presentation 42 Hotels opened and signed in Q3 FY24 (managed & franchised contracts) Hotels opened in Q3 FY24 # Hotels States Rooms Opening Dates 1 Lemon Tree Hotel, Sonmarg Jammu and Kashmir 40 Oct-23 2 Lemon Tree Hotel, Hubli Karnataka 65 Dec-23 3 Lemon Tree Hotel
Slide 44: Expansion Plans – Pipeline of managed & franchised contracts (1 of 2)
06-February-2024 Q3 FY24 Earnings Presentation 43 Expansion Plans – Pipeline of managed & franchised contracts by opening (1 of 2) # Hotels Pipeline States Rooms Expected Opening 1 Keys Lite by Lemon Tree Hotels, Dapoli Maharashtra 20 FY24 2 Lemon Tree Resort, Kumbalgarh (Franchised) Rajasthan 59 FY
Slide 45: Expansion Plans – Pipeline of managed & franchised contracts (2 of 2)
06-February-2024 Q3 FY24 Earnings Presentation 44 Expansion Plans – Pipeline of managed & franchised contracts by opening (2 of 2) # Hotels Pipeline States Rooms Expected Opening 29 Lemon Tree Hotel, Badrinath Uttarakhand 72 FY25 30 Lemon Tree Hotel, Kasauli Himachal Pradesh 49 FY25 31 Lemon Tree Ho
Slide 46: Opening of inventory in pipeline of managed & franchised contracts
06-February-2024 Q3 FY24 Earnings Presentation 45 Opening of inventory in pipeline of managed & franchised contracts (as of 31st December 2023) FY24 Total To be announced Brands (Jan’24 to FY25 FY26 FY27 Rooms (TBA) Mar’24) (Hotels) 242 242 Aurika Hotels & Resorts (2) (2) 117 160 120 82 479 Lemon Tr
Slide 47: Annexure
February 2024 Corporate Presentation 46 Annexure
Slide 48: Aurika, Mumbai Skycity | Façade
06-February-2024 Q3 FY24 Earnings Presentation 47 Aurika, Mumbai Skycity | Façade OPENED ON 5TH OCT 2023 Aurika, Mumbai Skycity
Slide 49: Aurika, Mumbai Skycity | Swimming Pool
06-February-2024 Q3 FY24 Earnings Presentation 48 Aurika, Mumbai Skycity | Swimming Pool
Slide 50: Aurika, Mumbai Skycity | Ekaara, The Ballroom
06-February-2024 Q3 FY24 Earnings Presentation 49 Aurika, Mumbai Skycity | Ekaara, The Ballroom
Slide 51: Aurika, Mumbai Skycity | Pre-function Area
06-February-2024 Q3 FY24 Earnings Presentation 50 Aurika, Mumbai Skycity | Pre-function Area
Slide 52: Aurika, Mumbai Skycity | Meeting Room
06-February-2024 Q3 FY24 Earnings Presentation 51 Aurika, Mumbai Skycity | Meeting Room
Slide 53: Aurika, Mumbai Skycity | Board Room
06-February-2024 Q3 FY24 Earnings Presentation 52 Aurika, Mumbai Skycity | Board Room
Slide 54: Aurika, Mumbai Skycity | Ariva, The Bar
06-February-2024 Q3 FY24 Earnings Presentation 53 Aurika, Mumbai Skycity | Ariva, The Bar
Slide 55: Aurika, Mumbai Skycity | Lobby
06-February-2024 Q3 FY24 Earnings Presentation 54 Aurika, Mumbai Skycity | Lobby
Slide 56: Aurika, Mumbai Skycity | Presidential Suite
06-February-2024 Q3 FY24 Earnings Presentation 55 Aurika, Mumbai Skycity | Presidential Suite
Slide 57: Aurika, Mumbai Skycity | Presidential Suite
06-February-2024 Q3 FY24 Earnings Presentation 56 Aurika, Mumbai Skycity | Presidential Suite
Slide 58: Aurika, Mumbai Skycity | Suite
06-February-2024 Q3 FY24 Earnings Presentation 57 Aurika, Mumbai Skycity | Suite
Slide 59: Aurika, Mumbai Skycity | Room
06-February-2024 Q3 FY24 Earnings Presentation 58 Aurika, Mumbai Skycity | Room
Slide 60: Lemon Tree Mountain Resort, Shimla | Representation
06-February-2024 Q3 FY24 Earnings Presentation 59 Lemon Tree Mountain Resort, Shimla | Representation
Slide 61: Lemon Tree Mountain Resort, Shimla | Current
06-February-2024 Q3 FY24 Earnings Presentation 60 Lemon Tree Mountain Resort, Shimla | Current
Slide 62: Lemon Tree Mountain Resort, Shimla | Current
06-February-2024 Q3 FY24 Earnings Presentation 61 Lemon Tree Mountain Resort, Shimla | Current
Slide 63: Lemon Tree Mountain Resort, Shimla | Front
06-February-2024 Q3 FY24 Earnings Presentation 62 Lemon Tree Mountain Resort, Shimla | Front
Slide 64: Lemon Tree Mountain Resort, Shimla | Back
06-February-2024 Q3 FY24 Earnings Presentation 63 Lemon Tree Mountain Resort, Shimla | Back
Slide 65: Renovations Update
06-February-2024 Q3 FY24 Earnings Presentation 64 Renovations Update
Slide 66: Lemon Tree Premier, Delhi International Airport Before After
06-February-2024 Q3 FY24 Earnings Presentation 65 Lemon Tree Premier, Delhi International Airport Before After
Slide 67: Lemon Tree Premier, HITEC City, Hyderabad Before After
06-February-2024 Q3 FY24 Earnings Presentation 66 Lemon Tree Premier, HITEC City, Hyderabad Before After
Slide 68: Lemon Tree Premier-2, Leisure Valley, Gurugram Before After
06-February-2024 Q3 FY24 Earnings Presentation 67 Lemon Tree Premier-2, Leisure Valley, Gurugram Before After
Slide 69: Keys Select By Lemon Tree Hotels, Pimpri Pune Before After
06-February-2024 Q3 FY24 Earnings Presentation 68 Keys Select By Lemon Tree Hotels, Pimpri Pune Before After
Lemon Tree Hotels — Conference Presentation (February 2024) on 6ix