Lemon Tree Hotels Ltd. · NSE:LEMONTREE
Lemon Tree Hotels — Q3 FY22 Earnings Presentation
39 slides from Lemon Tree Hotels's earnings presentation, Feb 10, 2022
Slide 1: Lemon Tree Hotels Limited Q3 FY22 Earnings Presentation
Lemon Tree Hotels Limited Q3 FY22 Earnings Presentation 10th February, 2022
Slide 2: Disclaimer
Q3 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: Table of Contents
Q3 FY22 Earnings Presentation Table of Contents 1 Company Overview 2 Chairman & Managing Director’s Message 3 Q3 FY22 Operating Performance Trends 4 Q3 FY22 Financial Highlights & Results 5 Pipeline 6 Annexures 3
Slide 4: Lemon Tree – Snapshot as on 31st December 2021
Q3 FY22 Earnings Presentation Lemon Tree – Snapshot as on 31st December 2021 Current (17% of Branded By CY23 (20% of Branded Pipeline Mid Market Hotels in Mid Market Hotels in India*) India*) 8,489 2,006 10,495 Group rooms; rooms; rooms; 87 hotels 20 hotels 107 hotels Brand Current Pipeline By FY23
Slide 5: Lemon Tree – Portfolio Key Statistics
Q3 FY22 Earnings Presentation Lemon Tree – Portfolio Key Statistics Q3 FY22 Q3 FY21 YoY Var (%) Cities 54 51 6% Hotels 87 84 4% Rooms 8,489 8,294 2% 5
Slide 6: Chairman & Managing Director's Message
Q3 FY22 Earnings Presentation Chairman & Managing Director’s Message Commenting on the performance for Q3 FY22, Mr. Patanjali Keswani, Chairman & Managing Director – Lemon Tree Hotels Limited said, “We are pleased to share that we have delivered a strong performance during the quarter, registering a
Slide 7: Increasing Operational Inventory
Q3 FY22 Earnings Presentation Q3 FY22 Operating Performance Trends Increasing Operational Inventory Operational Pick-up 6,000 105.0% 99.5% 5,000 97.0% 96.8% 100.0% 96.4% 95.4% % Operational Invetory 94.5% 94.2% Operational Invetory 95.0% 4,000 90.0% 3,000 84.9% 81.9% 85.0% 2,000 80.0% 5,037 4,252 4,
Slide 8: Rising Occupancy Levels
Q3 FY22 Earnings Presentation Q3 FY22 Operating Performance Trends Rising Occupancy Levels Occupancy-ADR Trend 70.0% 4,263 4,500 3,981 60.0% 4,000 50.0% 3,415 3,500 Gross ADR (Rs) Occupancy (%) 3,230 40.0% 3,075 2,775 3,000 30.0% 2,369 2,429 2,500 20.0% 2,288 39.6% 40.8% 20.0% 24.5% 29.5% 34.8% 50.9
Slide 9: Improving Operating Efficiency and Superior Recovery
Q3 FY22 Earnings Presentation Q3 FY22 Operating Performance Trends Improving Operating Efficiency and Superior Recovery Revenue vs OPEX Trend Revenue Trend 60 55.2 80 Highest revenue recorded in Q3 FY22 compared to 48.1 70 the last 7 quarters 50 74.5 68.2 55.2 38.8 60 40 34.0 48.1 32.9 50 29.7 Rs. C
Slide 10: Performance Highlights – Operational Metrics (Consolidated)
Q3 FY22 Earnings Presentation Q3 FY22 Performance Highlights – Operational Metrics (Consolidated) Inventory Average Daily Rate (Rs.) Owned/Leased rooms Managed rooms Total rooms 54% 3,901 29% 3,901 8,294 2.4% 8,489 YoY QoQ 6.3% 5,192 5,192 3,028 3,102 3,297 2,528 End of Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY
Slide 11: Performance Highlights – Financial Metrics (Consolidated)
Q3 FY22 Earnings Presentation Q3 FY22 Performance Highlights – Financial Metrics (Consolidated) Revenue from Operations (Rs. Cr) EBITDA (Rs. Cr) 110% 48% 65.6 65.6 YoY 143.7 QoQ 143.7 194% 83% 96.9 YoY QoQ 35.8 68.4 22.3 Q3 FY21 Q3 FY22 Q2 FY22 Q3 FY22 Q3 FY21 Q3 FY22 Q2 FY22 Q3 FY22 EBITDA Margin (
Slide 12: Cost Rationalization
Q3 FY22 Earnings Presentation Cost Rationalization as a % of Revenue as a % of Revenue 24% 44% 30% 23% 24% 41% 24% 19% 8% 6% 7% 8% 7% 8% 7% 7% Employee Benefit Expense Cost of F&B Consumed Pre-CoVID Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Last Quarter Q4 FY21 Q1 FY22 Q2 FY22
Slide 13: Consolidated Profit & Loss Statement – Q3 FY22
Q3 FY22 Earnings Presentation Consolidated Profit & Loss Statement – Q3 FY22 Rs. Cr Q3 FY22 Q2 FY22 Q3 FY21 QoQ Change (%) YoY Change (%) Revenue from operations 143.7 96.9 68.4 48.3% 110.1% Other income 2.4 1.9 2.2 22.5% 5.3% Total expenses 80.4 63.0 48.3 27.5% 66.4% EBITDA 65.6 35.8 22.3 83.3% 194
Slide 14: Consolidated P&L Breakup – Q3 FY22 vs Q3 FY21
Q3 FY22 Earnings Presentation Consolidated Profit & Loss Statement Breakup – Q3 FY22 vs Q3 FY21 Total without Keys Hotels Keys Hotels Total Rs. Cr YoY Change YoY Change YoY Change Q3 FY22 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 Q3 FY21 (%) (%) (%) Inventory 4,256 4,256 0% 936 936 0% 5,192 5,192 0% ARR 4,115
Slide 15: Operational Performance by Brands & Region
Q3 FY22 Earnings Presentation 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) Q3 Q3 Change Q3 Q3 Change Q3 Q3 Change Q3 Q3 Change Q3 Q3 Change By Br
Slide 16: Discussion on Consolidated Financial & Operational Performance – Q3 FY22
Q3 FY22 Earnings Presentation Discussion on Consolidated Financial & Operational Performance – Q3 FY22 Revenue from operations stood at Rs. 143.7 Cr in Q3 FY22, up 110% as compared to Rs. 68.4 Cr in Q3 FY21. On a sequential basis, revenue from operations increased 48.3% from Rs. 96.9 Cr in Q2 FY22
Slide 17: Consolidated Profit & Loss Statement – 9M FY22 vs 9M FY21
Q3 FY22 Earnings Presentation Consolidated Profit & Loss Statement – 9M FY22 vs 9M FY21 Rs. Cr 9M FY22 9M FY21 YoY Change (%) Revenue from operations 282.7 156.6 80% Other income 6.4 11.4 -44% Total Income 289.1 168.0 72% Total expenses 185.6 123.9 50% EBITDA 103.5 44.1 135% EBITDA w/o Other Income
Slide 18: Consolidated Balance Sheet – 9M FY22 vs H1 FY22 vs FY21
Q3 FY22 Earnings Presentation Consolidated Balance Sheet – 9M FY22 vs H1 FY22 vs 12 FY21 Rs. Cr 9M FY22 H1 FY22 12M FY21 Shareholder's Funds 855.2 857.0 917.6 Non-controlling interests 582.0 585.4 617.4 Total Shareholder’s equity 1,437.2 1,442.3 1,535.0 Total Debt 1,680.9 1,697.2 1,685.0 Other Non-c
Slide 19: Expansion Plans – Hotels under Development
Q3 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 20: Expansion Plans – Pipeline of Management Contracts
Q3 FY22 Earnings Presentation Expansion Plans – Pipeline of Management Contracts (as on 31st Dec, 2021) Expected Management Contracts Pipeline City Rooms Opening date Keys Lite by Lemon Tree Hotels, Tapovan, Rishikesh Rishikesh 39 Apr-22 Keys Select by Lemon Tree Hotels, Gandhi Ashram, Ahmedabad Ahm
Slide 21: Annexures
Q3 FY22 Earnings Presentation ANNEXURES 21
Slide 22: Consolidated Profit & Loss Statement – Q3 FY22 vs Q3 FY20
Q3 FY22 Earnings Presentation Consolidated Profit & Loss Statement – Q3 FY22 vs Q3 FY20 Rs. Cr Q3 FY22 Q3 FY20 Revenue from operations 143.7 199.6 Other income 2.4 3.2 Total expenses 80.4 118.4 EBITDA 65.6 84.4 EBITDA margin (%) 44.9% 41.6% EBITDA w/o Other Income 63.3 81.2 EBITDA margin before Othe
Slide 23: Portfolio Breakup as on 31st Dec 2021 - Operational
Q3 FY22 Earnings Presentation Portfolio Breakup as on 31st Dec 2021 - Operational Owned (incl. on Operational Portfolio Leased Managed/ Franchised Total leased land) 31.12.2021 Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Aurika Hotels & Resorts 1 139 0 0 1 55 2 194 Lemon Tree Premier 7 1442
Slide 24: Portfolio Breakup as on 31st Dec 2021 - Pipeline
Q3 FY22 Earnings Presentation Portfolio Breakup as on 31st Dec 2021 - Pipeline Owned (incl. on Pipeline Portfolio Leased Managed/ Franchised Total leased land) 31.12.2021 Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Aurika Hotels & Resorts 1 669 0 0 0 0 1 669 Lemon Tree Premier 0 0 0 0 1 80 1
Slide 25: Strategically positioned in key geographies
Q3 FY22 Earnings Presentation Strategically positioned in key geographies with Lemon Tree’s share of total branded hotel sector Jaipur: FY20 – 5.1% Kolkata: FY20 – 2.9% FY26E – 4.0% FY26E – 2.6% Ahmedabad:FY20 – 4.2% Hyderabad: FY20 – 8.9% FY26E – 3.4% FY26E – 8.5% Mumbai: FY20 – 2.1% Chennai: FY20
Slide 26: Operating performance
Q3 FY22 Earnings Presentation Operating performance Rooms are being added Occupancy Owned Leased Hotels Managed Hotels FY16 FY17 FY18 FY19 FY20 FY21 8,309 8,006 Note: Drop in occupancy levels is on account of second wave of CoVID-19 17% CAGR 5,411 2814 3117 4,870 3,698 3,249 1841 675 978 1593 461 84
Slide 27: Operating margins
Q3 FY22 Earnings Presentation Operating margins Revenue from operations (Rs. Million) EBITDA (Rs. Million) & EBITDA margins 36.9% 6,694 29.7% 31.9% 27.9% 29.3% 28.1% 5,495 4,843 3,680 4,121 2,517 1,033 1,247 1,440 1,787 2,492 745 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 Cash profi
Slide 28: Consolidated Profit & Loss Statement – FY21
Q3 FY22 Earnings Presentation Consolidated Profit & Loss Statement – FY21 Rs. Cr FY21 FY20 FY19 Revenue from operations 251.7 669.4 549.5 Other income 13.3 5.8 9.9 Total Income 265.0 675.2 559.4 Total expenses 190.5 426.0 380.7 EBITDA 74.5 249.2 178.7 EBITDA w/o Other Income 61.3 243.4 168.8 EBITDA
Slide 29: Consolidated Balance Sheet Snapshot – FY21
Q3 FY22 Earnings Presentation Consolidated Balance Sheet Snapshot – FY21 Rs. Cr FY21 FY20 FY19 Shareholder's Funds 917.6 988.9 875.0 Non-controlling interests 617.4 555.9 432.2 Total Shareholder’s equity 1,535.0 1,544.8 1,307.2 Total Debt 1,685.0 1,577.5 1,204.2 Other Non-current liabilities 470.0 4
Slide 30: Operational Performance by Ageing – FY21 vs. FY20
Q3 FY22 Earnings Presentation Operational Performance by Ageing – FY21 vs. FY20 Adult Hotels Toddler Hotels Infant Hotels Under-development Parameters Financial year (Stable - older than 3 (Stabilizing - between (New - less than 1 hotels years) 1-3 years old) year old) FY20 24 6 11 Hotels1 2 FY21 28
Slide 31: The hotel business cycle
Q3 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 32: FY21 ESG Report - Lemon Tree's first
Q3 FY22 Earnings Presentation FY21 ESG Report - Lemon Tree’s first Click here to read the report: ESG Report 32
Slide 33: FY21 ESG Report – Impact
Q3 FY22 Earnings Presentation FY21 ESG Report – Lemon Tree’s first | Impact Impact of our Environment, Social and Governance initiatives: Renewable energy in the Operations audited (internally) for Opportunity Deprived Indians electricity mix in FY21 cases of corruption and bribery (ODIs) employed i
Slide 34: FY21 ESG Report – Vision FY26
Q3 FY22 Earnings Presentation FY21 ESG Report – Lemon Tree’s first | 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 35: FY21 ESG Report – Vision FY26
Q3 FY22 Earnings Presentation FY21 ESG Report – Lemon Tree’s first | Vision FY26 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) GHG emis
Slide 36: FY21 ESG Report – Policy Architecture
Q3 FY22 Earnings Presentation FY21 ESG Report – Lemon Tree’s first | Policy Architecture In a rapidly evolving business Embracing Redefining Providing environment addressing ESG issues Environmental Social Effective is crucial to ensure the longevity of Stewardship Engagement Governance an organizat
Slide 37: FY21 ESG Report – Governance Structure
Q3 FY22 Earnings Presentation FY21 ESG Report – Lemon Tree’s first | Governance Structure Our efforts to integrate ESG across our business operations is effectively supported by a dynamic governance structure The Board ESG Taskforce Management Sets the vision for meeting Develops ESG strategy, Imple
Slide 38: Conference Call Details
Q3 FY22 Earnings Presentation Conference Call Details Lemon Tree Hotels Limited (LTH) Q3 FY22 Earnings Conference Call Time • 4:00 PM IST on Friday, February 11, 2022 Conference dial-in Primary number • Primary number: +91 22 6280 1141 / +91 22 7115 8042 Local access number • +91 70456 71221(Availab
Slide 39: About Lemon Tree Hotels
Q3 FY22 Earnings Presentation About Lemon Tree Hotels Lemon Tree Hotels Limited is India’s largest hotel chain in the mid-priced hotel 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