Lemon Tree Hotels Ltd. · NSE:LEMONTREE
Lemon Tree Hotels — Motilal Oswal 11th India Ideation Conference (March 2025)
68 slides from Lemon Tree Hotels's conference presentation, Mar 19, 2025
Slide 1: Intimation of Analysts'/Investors' Meeting
March 19, 2025 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 Ref: Disclosure under Regulation 30 of SEBI (Listing Oblig
Slide 2: Lemon Tree Hotels Limited
Lemon Tree Hotels Limited Aurika, Mumbai SkyCity
Slide 3: 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 4: We Are Everywhere
WE ARE EVERYWHERE INTERNATIONAL DESTINATIONS Bhutan © Thimphu Nepal © Biratnagar © Budhanilkantha © Chitwan National Park © Kathmandu © Nagarkot United Arab Emirates © Dubai @ OPERATIONAL HOTELS @ UPCOMING HOTELS @ OPERATIONAL AND UPCOMING HOTELS 110+Hotels kel] SELECT PREMIER HOTELS Las ‘BY LEMON T
Slide 5: Our Journey
Our Journey leone OOH
Slide 6: Two decades of transforming the Indian hospitality landscape
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 brand launched 2019 2023 • 13K+ rooms** • Aurika Hotels & Resorts brand launc
Slide 7: Distinct portfolio of brands, operating pan India
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 Source : *Horwath HTL - India Hotel Mar
Slide 8: Lemon Tree – Snapshot as on 31st December 2024
Lemon Tree – Snapshot as on 31st December 2024 Operational Pipeline Operational + Pipeline Group 10,317 rooms; 6,068 rooms; 16,385 rooms; 112 hotels 88 hotels 200 hotels Brand Current Pipeline Operational + Pipeline Aurika Hotels & Resorts 863 Rooms; 3 Hotels 688 Rooms; 6 Hotels 1,551 Rooms; 9 Hotel
Slide 9: Large underserved mid-scale market
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: 2020** #Rooms US to 2 (Total rooms: 2
Slide 10: Leaders in upper midscale to economy segment, and expanding in upscale
Lemon Tree Hotels are leaders in upper midscale to economy segment, and expanding in upscale Our Inventory Our Inventory as Segment Industry Inventory As of 31 stDec’23 % of Industry Lemon Tree Brand Positioning Luxury and Upper Upscale 62,107* 863 0.9% Upscale 33,715* 35,490* 2,556 7.2% Upper Midsc
Slide 11: Roadmap for next 5 years
Roadmap for next 5 years leone OOH
Slide 12: Why Lemon Tree is poised to win in the next decade?
Strong growth outlook: Key upcoming properties & asset light model will pave aggressive growth; Strong growth forecast for India with demand outpacing supply will provide tailwinds Segment disruptor & Largest mid market hotel chain: Lemon Tree has ~6% of the total branded inventory and segment disru
Slide 13: Lemon Tree 2.0: Roadmap for next 5 years – CY24 to CY28
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 Growth and Digital Simplifying Retail Loyalty Cost Capital happen
Slide 14: Outcomes
OUTCOMES lemontree
Slide 15: LT 2.0: setting clear and achievable outcomes over the next 5 years
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% network** EBITDA Debt-Free Ecologically
Slide 16: Strategic Levers
STRATEGIC LEVERS leone OOH
Slide 17: Lemon Tree 2.0: Strategic levers (1 on 5)
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 portfolio 70%+ managed / franchised properties
Slide 18: Lemon Tree 2.0: Strategic levers (2 on 5)
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 functions & processes Increased Referrals
Slide 19: Lemon Tree 2.0: Strategic levers (3 on 5)
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 customer experience Traffic assurance for new
Slide 20: Lemon Tree 2.0: Strategic levers (4 on 5)
Lemon Tree 2.0: Strategic levers (4 on 5) Capital recycling of owned network Large network of owned hotels: 41 operational hotels with 5k+ rooms, 1 hotel with 69 rooms in pipeline ~40% of total capital employed, operationalized in just the last 3 years High ROCE & Cash flow: Owned hotels, once stabi
Slide 21: Lemon Tree 2.0: Strategic levers (5 on 5)
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 FY24#, owns (directly/through 100% subsidiaries) & operates 17 hotels, 1.7k+ rooms By/before CY28, propose to transfer all 100% owned assets to F
Slide 22: Simplified group structure by/before CY28
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% subsidiaries) transferred to Fleur to recycl
Slide 23: Enablers
| © ENABLERS lemontree
Slide 24: Consumption in India at tipping point
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 to (Nominal LCU) Restaurants & Hotels R
Slide 25: Demand outpacing supply in Indian hospitality landscape till FY28
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 Demand to outpace Hotel room Period FY 08
Slide 26: Demand expected to outpace supply in the next 5 years, drive up ARR & Occ%
Demand expected to outpace supply in the next 5 years, drive up ARR & Occ% FY08-20 FY23-28E 79% 2,5 0,0 00 80 .0% 2,20,772 69% 66% 66% 66% 66% 70 .0% 65% 63% 2,0 0,0 00 60% 60% 61% 60% 59% 58% 58% 60 .0% Hotel Supply CAGR (FY08-20 +9.5%) 1,65,712 1,73,667 50 .0% 1,5 0,0 00 1,39,406 1,26,565 1,29,401
Slide 27: Hotel business shows cyclicality, returns higher at top of cycle
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 increased FY09-Industry ARR at 21% CAGR
Slide 28: Growing aspirations, affluence & willingness to pay in Bharat
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.p.a) 2010 3.87 Lemon Tree rightly plac
Slide 29: Rigorous approach to risk management and risk mitigation
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 management impact Transfer / Accept Accountabi
Slide 30: ESG Vision FY26
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 independent directors 30% Women directors 4
Slide 31: ESG | Highlights of FY24 initiatives
ESG | Highlights of FY24 initiatives Energy Renewable energy Green building Diversity and inclusion 15% 6.93% 50% 10.75% 100% 29.27% 30% 16.96% Reduction in ODIs1in the ODIs1in the Reduction in Renewable energy Renewable energy Certified Green Certified Green workforce by FY26 workforce in FY24 Ener
Slide 32: Strategic Assets
| ¢** STRATEGIC ASSETS leone OOH
Slide 33: Purpose driven culture
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 environmental impact Employees with Disabili
Slide 34: LTH has unique expertise as developer, owner & operator of hotels
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 reasonable prices take hotels • Stand
Slide 35: Breakdown of the Roadmap
Breakdown of the Roadmap leone OOH
Slide 36: On track to meet guidance given for the next 5 years – CY24 to CY28
On track to meet guidance given for the next 5 years – CY24 to CY28 Target for Particulars End of FY24 Status CY28 / FY29 Net EBITDA % Stable 50% 49.1% On-track Gross Debt (Rs. Cr) Debt Free Rs. 1,889 Cr On-track 4,104 rooms operational (a) and Managed & Franchised Rooms 15,000+ 4,087 rooms in pipel
Slide 37: Q3 FY25 performance across key financial metrics
Q3 FY25 performance across key financial metrics Q3 FY25 performance snapshot vs Q3 FY24 (YoY change) Total Revenue EBITDA EBITDA % Rs. 355.8 Cr Rs. 184.8 Cr 51.9% Up 22% Up 30% Up 316 bps PAT Cash Profit# Cost of Debt % Rs. 79.9 Cr Rs. 114.9 Cr 8.64%* Up 82% Up 49% Down 21 bps Aurika, Udaipur * As
Slide 38: Q3 FY25 Performance Highlights – Operational Metrics
Q3 FY25 Performance Highlights – Operational Metrics (Consolidated) Inventory Average Room Rate (Rs.) Owned/Leased rooms Managed/Franchised Total rooms 15% rooms 7% QoQ YoY 7% 10,317 YoY 9,687 6,763 6,763 6,302 16% 5,902 YoY 5,759 5,759 4,558 3,928 Q3 FY25 Q3 FY24 Q3 FY25 Q3 FY24 Q3 FY25 Q3 FY24 Q3
Slide 39: Q3 FY25 Performance Highlights – Financial Metrics
Q3 FY25 Performance Highlights – Financial Metrics (Consolidated) Revenue from Operations (Rs. Cr) Net EBITDA (Rs. Cr) 30% 41% 22% 25% YoY QoQ 184.8 YoY 184.8 QoQ 355.2 355.2 141.9 290.2 284.4 131.2 Q3 FY25 Q3 FY24 Q3 FY25 Q2 FY25 Q3 FY25 Q3 FY24 Q3 FY25 Q2 FY25 EBITDA Margin (%) Cash profit (Rs. Cr
Slide 40: Q-o-Q performance of FY25, FY24 and FY23
Q-o-Q performance of FY25, FY24 and FY23 Best ever Q3 –highest Q3 revenue, EBITDA, PBT, PAT and Cash Profit Particulars Q3 FY25 Q2 FY25 Q1 FY25 Q4 FY24 Q3 FY24 Q2 FY24 Q1 FY24 Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Gross ARR (Rs.) 6,763 5,902 5,686 6,605 6,333 5,268 5,237 5,824 5,738 4,917 4,822 Occupancy
Slide 41: Total Management Fees | Q3 FY25 vs Q3 FY24
Total Management Fees | Q3 FY25 vs Q3 FY24 43.7 32.3 25.3 18.4 + 17.4 = 14.9 Management / Franchise fees from 3rd Management Fees from Fleur Hotels Total Management Fees party hotels Q3 FY25 Q3 FY24 Fees to Lemon Tree Hotels (Rs. Cr) Q3 FY25 Q3 FY24 % Management / Franchise Fees from 3rd party owned
Slide 42: Total Management Fees | 9M FY25 vs 9M FY24
Total Management Fees | 9M FY25 vs 9M FY24 104.5 80.2 60.3 44.3 + 44.5 = 35.7 Management / Franchise fees from 3rd Management Fees from Fleur Hotels Total Management Fees party hotels 9M FY25 9M FY24 Fees to Lemon Tree Hotels (Rs. Cr) 9M FY25 9M FY24 % Management / Franchise Fees from 3rd party owne
Slide 43: Market Segments: Q3 FY25 vs Q3 FY24
Market Segments: Q3 FY25 vs Q3 FY24 (with Aurika, Mumbai SkyCity) Market Segments Room Nights Sold – Q3 FY25 vs Q3 FY24 37% 36% 33% 40% 35% 30% 30% 25% 12% 14% 20% 8% 9% 8% 15% 7% 3% 4% 10% 5% 0% Corporate Airline Travel Trade OTA LT.com Other FITs Q3 FY25 Q3 FY24 Market Segments Room Revenue – Q3 F
Slide 44: Q3 FY25 Operational Performance by Brands & Region
Q3 FY25 Operational Performance by Brands & Region (including Aurika, Mumbai SkyCity) Hotel level Average Daily Rate Hotel level EBITDAR Parameters RevPAR (Rs.) Occupancy Rate (%) EBITDAR/room/qtr. (Rs.) Margin %** (Rs. Lacs)** Q3 Q3 Change Q3 Q3 Change Q3 Q3 Change Q3 Q3 Change Q3 Q3 Change By Bran
Slide 45: Consolidated P&L: Q3 FY25 vs Q3 FY24
Consolidated P&L: Q3 FY25 vs Q3 FY24 355.8 Q3 FY25 Consolidated P&L Waterfall – Revenue to Cash Profit (Rs. Cr) (19.6) (56.4) (21.5) 184.8 (64.9) (8.5) 2.3 0.1 99.5 35.1 114.9 (52.6) 79.9 (35.1) (19.7) Total Rev. RMC Payroll HLP Other Reno- EBITDA Fin. Fin. Dep. Share PBT Tax PAT Dep. Cash Profit Ex
Slide 46: Consolidated P&L: 9M FY25 vs 9M FY24
Consolidated P&L: 9M FY25 vs 9M FY24 909.0 9M FY25 Consolidated P&L Waterfall – Revenue to Cash Profit (Rs. Cr) (53.2) (161.4) (67.6) 431.5 (163.0) (32.3) 7.2 104.4 239.5 (160.6) 0.4 174.0 135.0 (104.4) (39.0) Total Rev. RMC Payroll HLP Other Reno- EBITDA Fin. Fin. Dep. Share PBT Tax PAT Dep. Cash P
Slide 47: Cost Structure: Q3 FY25 vs Q3 FY24
Cost Structure: Q3 FY25 vs Q3 FY24 * Expenses as a percentage of total revenue Down 316 bps 51.2% 48.1% Down 115 bps Down 99 bps 20.6% 21.8% 15.9% 16.8% Down 82 bps Down 20 bps 5.5% 5.7% 6.0% 6.9% Payroll expenses* F&B/Raw Material expenses* Power & Fuel expenses* Other Expenses* Total Expenses* Q3
Slide 48: Lemon Tree Consolidated Profit & Loss Statement – Q3 FY25
Lemon Tree Consolidated Profit & Loss Statement – Q3 FY25 Q3 FY25 vs Q3 FY25 vs Rs. Cr Q3 FY25 Q2 FY25 Q3 FY24 Q2 FY25 Q3 FY24 Change (%) Change (%) Revenue from operations 355.2 284.4 290.2 25% 22% Other income 0.6 0.5 0.7 31% -9% Total revenue 355.8 284.8 290.9 25% 22% Total expenses 171.0 153.6 1
Slide 49: Lemon Tree Consolidated Profit & Loss Statement Breakup
Lemon Tree Consolidated Profit & Loss Statement Breakup
Slide 50: Discussion on Consolidated Financial & Operational Performance – Q3 FY25
Discussion on Consolidated Financial & Operational Performance – Q3 FY25 ❖ Revenue from operations stood at Rs. 335.2 Cr in Q3 FY25 which was up 24.9% from Rs. 284.4 Cr in Q2 FY25 and was up 22.4% as compared to Rs. 290.2 Cr in Q3 FY24 ❖ Gross ARR stood at Rs. 6,763 in Q3 FY25 which was up 14.6% fro
Slide 51: Lemon Tree Consolidated Profit & Loss Statement – 9M FY25
Lemon Tree Consolidated Profit & Loss Statement – 9M FY25 Cash Profit = PAT + Depreciation Revenue from Operations is inclusive of fee from managed & franchised hotels
Slide 52: Hotel Network Revenue – Q3 FY25 vs Q3 FY24
Lemon Tree Hotel Network Revenue – Q3 FY25 vs Q3 FY24 50.4 549.5 61.7 437.5 Q3 FY24 Total Network Revenue Owned Hotels Managed and Franchised Hotels Q3 FY25 Total Network Revenue Hotel Network Revenue Q3 FY25 vs Q3 FY24 Change Q3 FY25 Q3 FY24 (Rs. Cr) (%) Owned Hotels 22% 337.4 275.7 Managed and Fra
Slide 53: Hotel Network Revenue – 9M FY25 vs 9M FY24
Lemon Tree Hotel Network Revenue – 9M FY25 vs 9M FY24 109.0 1,396.4 155.2 1,132.3 9M FY24 Total Network Revenue Owned Hotels Managed and Franchised Hotels 9M FY25 Total Network Revenue Hotel Network Revenue 9M FY25 vs 9M FY24 Change 9M FY25 9M FY24 (Rs. Cr) (%) Owned Hotels 709.5 22% 864.6 Managed a
Slide 54: Expansion Plans – Hotels under Development
Expansion Plans – Hotels under Development Type Expected Under-development hotels Rooms Opening date Aurika, Shimla (redesigned from Lemon Tree Mountain Resort, Shimla) Owned 69 TBD Aurika, Shillong Owned 120 TBD For Aurika, Shimla total capital deployed/capital expenditure already incurred (i.e.
Slide 55: Hotel opened in Q3 FY25 (managed & franchised contracts)
Hotel opened in Q3 FY25 (managed & franchised contracts) # Hotels Pipeline States / Country Rooms Type Opened in 1 Lemon Tree Resort, Thimphu Bhutan 38 Managed Dec’24
Slide 56: Hotels signed in Q3 FY25 (managed & franchised contracts)
Hotels signed in Q3 FY25 (managed & franchised contracts)
Slide 57: Pipeline of managed & franchised contracts by opening (1 of 3)
Expansion Plans – Pipeline of managed & franchised contracts by opening (1 of 3) Note: The inventory and the dates are as per the latest update from the 3rd party owners
Slide 58: Pipeline of managed & franchised contracts by opening (2 of 3)
Expansion Plans – Pipeline of managed & franchised contracts by opening (2 of 3) Note: The inventory and the dates are as per the latest update from the 3rd party owners
Slide 59: Pipeline of managed & franchised contracts by opening (3 of 3)
Expansion Plans – Pipeline of managed & franchised contracts by opening (3 of 3) Note: The inventory and the dates are as per the latest update from the 3rd party owners
Slide 60: Expected opening of inventory in pipeline of managed & franchised contracts
Expected opening of inventory in pipeline of managed & franchised contracts (as of 31st December 2024) To be Total FY25 Brands FY26 FY27 FY28 FY29 FY30 announced Rooms (Q4) (TBA) (Hotels) Aurika Hotels & 257 242 499 - - - - - Resorts (2) (2) (4) Lemon Tree 160 202 362 - - - - - Premier (2) (2) (4) L
Slide 61: Portfolio Breakup as on 31st December 2024 - Operational
Portfolio Breakup as on 31st December 2024 - Operational Owned (incl. on leased Operational Portfolio Leased Managed/ Franchised Total land) Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Aurika Hotels & Resorts 2 808 0 0 1 55 3 863 Lemon Tree Premier 7 1,442 2 161 12 1,121 21 2,724 Lemon Tree
Slide 62: Portfolio Breakup as on 31st December 2024 - Pipeline
Portfolio Breakup as on 31st December 2024 - Pipeline Owned (incl. on Public Private Managed/ Pipeline Portfolio Leased Total leased land) Partnership Franchised Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Aurika Hotels & Resorts 1 69 0 0 1 120 4 499 6 688 Lemon Tree Premier 0 0
Slide 63: Annexure
Annexure lemoree HOTELS
Slide 64: Aurika, Shimla | Representation
Aurika, Shimla (redesigned from Lemon Tree Mountain Resort, Shimla) | Representation
Slide 65: Aurika, Shimla | Current
Aurika, Shimla (redesigned from Lemon Tree Mountain Resort, Shimla) | Current
Slide 66: Aurika, Shimla | Current
Aurika, Shimla (redesigned from Lemon Tree Mountain Resort, Shimla) | Current
Slide 67: Aurika, Shimla | Current
Aurika, Shimla (redesigned from Lemon Tree Mountain Resort, Shimla) | Current
Slide 68: About Lemon Tree Hotels
About Lemon Tree Hotels Lemon Tree Hotels Limited (LTHL) is one of the largest hotel chains in India, and owns/leases/operates/franchises hotels across the upscale, upper-midscale, midscale and economy segments. LTHL delivers differentiated yet superior service offerings, with a compelling value pro
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