Lemon Tree Hotels Ltd. · NSE:LEMONTREE
Lemon Tree Hotels — Q4 FY22 Earnings Presentation
38 slides from Lemon Tree Hotels's earnings presentation, May 27, 2022
Slide 1: Lemon Tree Hotels Limited Q4 FY22 Earnings Presentation
Lemon Tree Hotels Limited Q4 FY22 Earnings Presentation 27th May, 2022 Aurika, Hotels and Resorts, Udaipur
Slide 2: Disclaimer
Q4 FY22 Earnings Presentation 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
Slide 3: Included in the India Small Cap Index
Q4 FY22 Earnings Presentation Lemon Tree Premier, Mumbai Lemon Tree Hotels has been included in the India Small Cap Index effective from 1st June 2022 3
Slide 4: Lemon Tree Snapshot as on 31st March 2022
Q4 FY22 Earnings Presentation Lemon Tree – Snapshot as on 31st March 2022 Current (17% of Branded Pipeline By CY25 Mid Market Hotels in India*) 8,489 2,179 10,668 Group rooms; rooms; rooms; 87 hotels 22 hotels 109 hotels Brand Current Pipeline By FY25 Aurika Hotels & Resorts 194 Rooms; 2 Hotels 801
Slide 5: Sequential focus: Apr'20 – Mar'22
Sequential focus: Apr’20 – Mar’22 Cost optimization ARR Recovery EBITDA Margin expansion 5
Slide 6: EBITDA Margin Expansion driven by permanent cost rationalization
Q4 FY22 Earnings Presentation EBITDA Margin Expansion driven by permanent cost rationalization Revenue (Rs. Cr) & EBITDA Margins Revenue (Rs. Cr) & EBITDA Margins 37% 45% 36% 42% 25 0.0 50 .0% 32% 36% 36% 30% 35% 29% 45 .0% 33% 32% 28% 28% 32% 31% 20 0.0 40 .0% 27% 35 .0% 15 0.0 30 .0% 17% 25 .0% 5%
Slide 7: Gross ARR Recovery
Q4 FY22 Earnings Presentation Gross ARR Recovery 4,644 4,530 4,133 4,093 4,002 3,901 3,028 2,626 2,654 2,654 2,528 2,362 Gross ARR In Q4FY22, Lemon Tree Gross ARR was 90% compared to Q4FY20 Trends for the 5,192 owned/leased rooms 7
Slide 8: FY22 Gross ARR – LTH vs All India
Q4 FY22 Earnings Presentation FY22 Gross ARR – LTH vs All India LTH vs All India 7000 5850 6000 5480 5400 5000 5120 4800 5000 4200 4300 4300 3800 3700 4000 4298 3200 4204 4025 3959 4038 3000 3429 3075 3230 2775 2000 2369 2429 2288 1000 0 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21
Slide 9: Lemon Tree 'RESET' Resilience in FY22
Lemon Tree ‘RESET’ Resilience in FY22 9
Slide 10: FY22 Month on Month Occupancy-ARR Trend
Q4 FY22 Earnings Presentation FY22 Month on Month Occupancy-ARR Trend Post an expected steep drop in Jan’22 due to reports of new infections, Feb’22 and Mar’22 showed recovery with Mar’22 equivalent ~60% Occupancy 62% 58% 60% 57% 6,0 00 62 .0% 54% 54% 54% 5,5 00 51% 52 .0% 5,0 00 41% 42 .0% 35% 34%
Slide 11: FY22 Revenue and Expense Trend
Q4 FY22 Earnings Presentation FY22 Revenue and Expense Trend Improving Operating Efficiency and Superior Recovery Revenue vs OPEX Trend 55.2 52.0 48.1 38.8 38.9 32.9 34.0 29.7 Rs Cr 26.4 18.6 26.1 26.3 14.2 23.7 21.4 21.3 10.2 19.1 19.5 18.9 17.4 14.3 11.6 9.1 Apr May Jun Jul Aug Sep Oct Nov Dec Jan
Slide 12: Q4 and FY22 Operating Performance
Q4 and FY22 Operating Performance 12
Slide 13: Q4 FY22 Performance Highlights – Operational Metrics
Q4 FY22 Earnings Presentation Q4 FY22 Performance Highlights – Operational Metrics (Consolidated) Inventory Average Room Rate (Rs.) Owned/Leased rooms Managed rooms Total rooms 54% 5% 2% YoY 4,093 QoQ 4,093 6% 8,309 YoY 8,489 3,901 YoY 5,192 5,192 3,117 3,297 2,654 End of Q4 FY21 Q4 FY22 Q4 FY21 Q4
Slide 14: Q4 FY22 Performance Highlights – Financial Metrics
Q4 FY22 Earnings Presentation Q4 FY22 Performance Highlights – Financial Metrics (Consolidated) Revenue from Operations (Rs. Cr) -17% EBITDA (Rs. Cr) QoQ 26% 46% 65.6 -32% YoY 143.7 QoQ YoY 119.5 119.5 95.1 44.5 44.5 30.4 Q4 FY21 Q4 FY22 Q3 FY22 Q4 FY22 Q4 FY21 Q4 FY22 Q3 FY22 Q4 FY22 EBITDA Margin
Slide 15: Consolidated Profit & Loss Statement – Q4 FY22
Q4 FY22 Earnings Presentation Consolidated Profit & Loss Statement – Q4 FY22 Rs. Cr Q4 FY22 Q4 FY21 Q3 FY22 QoQ Change (%) YoY Change (%) Revenue from operations 119.5 95.1 143.7 -16.8% 25.7% Other income 7.6 1.9 2.4 223.9% 303.1% Total expenses 82.7 66.6 80.4 2.9% 24.3% EBITDA 44.5 30.4 65.6 -32.2%
Slide 16: Consolidated P&L Breakup – Q4 FY22 vs Q4 FY21
Q4 FY22 Earnings Presentation Consolidated Profit & Loss Statement Breakup – Q4 FY22 vs Q4 FY21 Total without Keys Hotels Keys Hotels Total Rs. Cr Q4 FY22 Q4 FY21 YoY Change Q4 FY22 Q4 FY21 YoY Change Q4 FY22 Q4 FY21 YoY Change (%) (%) (%) Inventory 4,256 4,256 0% 936 936 0% 5,192 5,192 0% ARR 4,338
Slide 17: Operational Performance by Brands & Region
Q4 FY22 Earnings Presentation Q4 FY22 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) Q4 Q4 Change Q4 Q4 Change Q4 Q4 Change Q4 Q4 Change Q4 Q4 Chan
Slide 18: Consolidated Profit & Loss Statement – FY22 vs FY21
Q4 FY22 Earnings Presentation Consolidated Profit & Loss Statement – FY22 vs FY21 FY22 vs FY21 Rs. Cr FY22 FY21 YoY Change (%) Revenue from operations 402.2 251.7 60% Other income 14.0 13.3 6% Total Income 416.3 265.0 57% Total expenses 268.3 190.5 41% EBITDA 147.9 74.5 99% EBITDA margin (%) 35.5% 2
Slide 19: Consolidated Balance Sheet – FY22 vs FY21
Q4 FY22 Earnings Presentation Consolidated Balance Sheet – FY22 vs FY21 FY22 vs FY21 Rs. Cr FY22 FY21 YoY Change (%) Shareholder's Funds 831.1 917.6 -9% Non-controlling interests 567.7 617.4 -8% Total Shareholder’s equity 1,398.9 1,535.0 -9% Total Debt 1,698.6 1,685.3 0.8% Other Non-current liabilit
Slide 20: Operating performance over 5 years
Q4 FY22 Earnings Presentation Operating performance over 5 years Rooms are being added Occupancy (%) FY18 FY19 FY20 FY21 FY22 8,006 8,309 8,489 Trends for the 5,192 owned/leased rooms 2814 3117 3297 5,411 4,870 1841 675 675 675 1593 481 573 4,517 4,517 4,517 78% 26% 23% 36% 77% 78% 71% 53% 59% 74% 7
Slide 21: Operating Performance over 5 years
Q4 FY22 Earnings Presentation Operating Performance over 5 years Revenue from operations (Rs. Million) EBITDA (Rs. Million) & EBITDA margins 36.9% 35.5% 6,694 31.9% 29.3% 28.1% 5,495 4,843 4,022 2,517 1,440 1,787 2,492 745 1,479 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY22 EBITDA Margin% i
Slide 22: Expansion Plans
Q4 FY22 Earnings Presentation Lemon Tree Premier, Mumbai Expansion Plans 22
Slide 23: Management contracts – Signings/Opening over the years
Q4 FY22 Earnings Presentation Management contracts – Signings/Opening over the years In the last 5 years: 1400 3,052 rooms were signed 2856 rooms were opened 1200 1146 Deal Pipeline For Q4 FY22 1000 927 No. of Rooms 800 679 Term Sheets signed 600 for 8 hotels – 777 507 rooms 378 400 317 305 225 171
Slide 24: Portfolio Breakup as on 31st March 2022 – Pipeline
Q4 FY22 Earnings Presentation Portfolio Breakup as on 31st March 2022 – Pipeline (Owned + Managed) Hotels (Total: 22) Rooms (Total: 2179) 2 2 91 1 801 1207 80 17 Aurika Hotels & Resorts Lemon Tree Premier Aurika Hotels & Resorts Lemon Tree Premier Lemon Tree Hotels Keys by Lemon Tree Hotels Lemon Tr
Slide 25: Expansion Plans – Pipeline of Management Contracts
Q4 FY22 Earnings Presentation Expansion Plans – Pipeline of Management Contracts (as on 31st March 2022) # Management Contracts Pipeline City Rooms Expected Opening date 1 Keys Lite, Tapovan, Rishikesh Rishikesh 39 Apr-22 2 Keys Select by Lemon Tree Hotels, Gandhi Ashram, Ahmedabad Ahmedabad 52 Jul-
Slide 26: Expansion Plans – Hotels under Development
Q4 FY22 Earnings Presentation 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
Slide 27: Aurika, Mumbai Airport (MIAL) | Image Representation
Q4 FY22 Earnings Presentation Aurika, Mumbai Airport (MIAL) | Image Representation 27
Slide 28: Lemon Tree Mountain Resort, Shimla | Image Representation
Q4 FY22 Earnings Presentation Lemon Tree Mountain Resort, Shimla | Image Representation 28
Slide 29: Lemon Tree Mountain Resort, Shimla | Image Representation
Q4 FY22 Earnings Presentation Lemon Tree Mountain Resort, Shimla | Image Representation 29
Slide 30: Annexures
Q4 FY22 Earnings Presentation ANNEXURES Aurika, Hotels and Resorts, Udaipur 30
Slide 31: Environment Social Governance (ESG) – Vision FY26
Q4 FY22 Earnings Presentation Environment Social Governance (ESG) – 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,
Slide 32: ESG – Vision FY26 linked to Sustainable Development Goals
Q4 FY22 Earnings Presentation 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 (RE) G
Slide 33: Portfolio Breakup as on 31st March 2022 - Operational
Q4 FY22 Earnings Presentation Portfolio Breakup as on 31st March 2022 - Operational Owned (incl. on Operational Portfolio Leased Managed/ Franchised Total leased 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 9 9
Slide 34: Portfolio Breakup as on 31st March 2022 - Pipeline
Q4 FY22 Earnings Presentation Portfolio Breakup as on 31st March 2022 - Pipeline Owned (incl. on Pipeline Portfolio Leased Managed/ Franchised Total leased 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 1 80 1 80 Lem
Slide 35: Strategically positioned in key geographies
Q4 FY22 Earnings Presentation Strategically positioned in key geographies Map is updated as of 15th May 2022 35
Slide 36: The hotel business cycle
Q4 FY22 Earnings Presentation 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
Slide 37: Conference Call Details
Q4 FY22 Earnings Presentation Conference Call Details Lemon Tree Hotels Limited (LTH) Q4 & FY22 Earnings Conference Call Time • 2:00 PM IST on Monday, May 30, 2022 Conference dial-in Primary number • Primary number: +91 22 6280 1141 / +91 22 7115 8042 Local access number • +91 70456 71221(Available
Slide 38: About Lemon Tree Hotels
Q4 FY22 Earnings Presentation About Lemon Tree Hotels Lemon Tree Hotels Limited is India’s largest mid market hotel chain and the third largest overall, on the basis of controlling interest in owned and leased rooms. We operate across the upper upscale, upscale, upper-midscale, midscale and economy