Lemon Tree Hotels Ltd. · NSE:LEMONTREE
Lemon Tree Hotels — Q3 FY2020 Earnings Presentation
40 slides from Lemon Tree Hotels's earnings presentation, Feb 13, 2020
Slide 1: Outcome of the Board Meeting
lemo!ee 11 0 T I I ', February 13, 2020 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 Re: Outcome of the Boa
Slide 2: Independent Auditor's Review Report (Consolidated)
wu Chartered Accountants Deloitte 7" Floor, Building 10, TowerB DLF Cyber City Complex Haskins & Sells LLP DLF city Phase I Haryana, India Tel: +91 124 679 2000 Fax: +91 124 679 2012 INDEPENDENT AUDITOR’S REVIEW REPORT ON REVIEW OF INTERIM CONSOLIDATED FINANCIAL RESULTS TO THE BOARD OF DIRECTORS OF
Slide 3: Auditor's Review Report – List of Entities
Deloitte Haskins & Sells LLP 6. Sukhsagar Complexes Private | Wholly owned subsidiary company Limited qs Oriole Dr Fresh Hotels Private | Wholly owned subsidiary company Limited 8. Grey Fox Project Management | Wholly owned subsidiary company Company Private Limited 9. Dandelion Hotels Private Limit
Slide 4: Auditor's Review Report (continued)
Deloitte Haskins & Sells LLP Rs. Nil and Rs. 0.05 lacs for the quarter and nine months ended December 31, 2019 respectively, total net loss of Rs. (0.03) lacs and Rs. (0.01) lacs for the quarter and nine months ended December 31, 2019 respectively and total comprehensive loss of Rs. (0.03) lacs and
Slide 5: Statement of Unaudited Consolidated Financial Results
Lemon Tree Hotels Limited Regd Office:- Asset No. 6, Acrocity Hospitality District, Ne w: Website: Delhi-110037 www.lemontreehotels.com ‘Tel: 011-46050101; Fax,; 011-460501 10; E-Mail:sectdeptt@lemontreehotels.com: CIN: L74899DL1992PLC049022 and Nine months ended December 31, 2019 Statement of Unaud
Slide 6: Notes to Consolidated Financial Results
Notes: months are not indicative ofa full year's working due to the seasonal nature of the Indian Hotel Industry. D The Consolidated financial results for the Quarter and Nine Committee and approved by the Board of Directors at its meeting held on February 13, 2020, The statutory auditors have carri
Slide 7: Notes to Consolidated Financial Results (continued)
p operating segment, it did not gi ve rise to different operating segments in accordance with Ind AS 108 - Operating 9, The Company is into Hoteliering business. As the Company operates in a single Segments. Place : New Delhi Date : February 13, 2020 Chartered Accountants
Slide 8: Independent Auditor's Review Report (Standalone)
D ] itt Chartered Accountants e Ol e 7" Floor, Building 10, Tower B DLF Cyber City Complex Haskins & Sells LLP DLE City Phase = Gurugram - 122 002 Haryana, India Tel: +91 124 679 2000 Fax: +91 124 679 2012 INDEPENDENT AUDITOR’S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE FINANCIAL RESULTS TO THE B
Slide 9: Auditor's Review Report (continued)
Deloitte Haskins & Sells LLP reflect total revenues of Rs. Nil and Rs. 0.05 lacs for the quarter and nine months ended December 31, 2019 respectively, total net loss of Rs. (0.03) lacs and Rs. (0.01) lacs for the quarter and nine months ended December 31, 2019 respectively and total comprehensive lo
Slide 10: Statement of Unaudited Standalone Financial Results
Lemon Tree Hotels Limited Regd Office:- Asset No. 6, Aerocity Hospitality District, New Delhi-110037 Tel.: 011-46050101; Fax.: 011-46050110; E-Mail:sectdeptt@lemontreehotels.com: Website: www.lemontrechotels.com CIN: L74899DL1992PLC049022 Statement of Unaudited Standalone Financial Results for the Q
Slide 11: Notes to Standalone Financial Results
Notes: Industry. a full year’s working due to the seasonal nature of the Indian Hotel 1. The results for the Quarter and Nine months are not indicative of at its meeting held on February 13, 2020. The Audit Committe e and approved by the Board of Directors 2. The Standalone financial results have be
Slide 12: Notes to Standalone Results (continued)
shares) of Berggruen Hotels Private Limited has acquired 100% shareholding (representing 5,45,51,616 8. Fleur Hotels Private Limited, subsidiary of the Company s (Seller) by Fleur Hotels Private Limited is < 500 net consideration paid to Berggruen Investments, Mauritiu (‘BHPL’) on November 01, 2019
Slide 13: Lemon Tree Hotels Limited Q3 FY20
Lemon Tree Hotels Limited Q3 FY20 Earnings Presentation Feb 13, 2020
Slide 14: 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 15: 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 16: Lemon Tree – Snapshot as on 31st Jan, 2020
Lemon Tree – Snapshot as on 31st Jan, 2020 Current (17% of Branded Pipeline By CY22 (20% of Branded Mid Market Hotels in India*) Mid Market Hotels in India*) 7,979 2,673 10,652 rooms; rooms; rooms; 79 hotels 28 hotels 107 hotels Brand Current Pipeline by CY22 Aurika 139 Rooms, 1 Hotel 669 Rooms, 1 H
Slide 17: Lemon Tree – Portfolio
Lemon Tree – Portfolio Key Statistics Q3 FY19 Q3 FY20 YoY Var(%) 31st Jan FY20 Cities 31 46 48% 47 Hotels 52 78 50% 79 Rooms 5,291 7,914 50% 7,979 Loyalty 889,080 1,123,366 26% 1,141,372 Members 5
Slide 18: Portfolio Breakup as on 31st Jan 2020 - Operational
Portfolio Breakup as on 31st Jan 2020 - Operational Operational Owned Leased Managed/Franchised Total Portfolio 31.01.2020 Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Aurika 1 139 0 0 0 0 1 139 Lemon Tree Premier 7 1,442 2 161 6 604 15 2,207 Lemon Tree Hotels 13 1,241 4 321 17 1,057 34 2,619
Slide 19: Portfolio Breakup as on 31st Jan 2020 - Pipeline
Portfolio Breakup as on 31st Jan 2020 - Pipeline In Pipeline Owned Leased Managed/Franchised Total 31.01.2020 Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Aurika 1 669 # 0 0 0 0 1 669 Lemon Tree Premier 0 0 0 0 6 457 6 457 Lemon Tree Hotels 1 79 0 0 18 1,348 19 1,427 Red Fox Hotels 0 0 0 0 1
Slide 20: Strategically positioned in key geographies
Strategically positioned in key geographies with Lemon Tree share of total mid- priced hotel sector Delhi NCR: FY17 – 14% Jaipur: FY17 – 11% FY21E – 16% FY21E – 10% Ahmedabad: FY17 – 11% FY21E – 9% Kolkata: FY17 – NA Mumbai: FY17 – NA FY21E – 8% FY21E – 19% Pune: FY17 – 5% FY21E – 14% Hyderabad: FY1
Slide 21: Chairman & Managing Director's Message
Chairman & Managing Director’s Message Commenting on the performance for Q3 FY20, Mr. Patanjali Keswani, Chairman & Managing Director – Lemon Tree Hotels Limited said, “I am pleased to share that we have delivered strong performance during the quarter despite subdued market sentiments and external c
Slide 22: Key Developments of Q3 FY20
Key Developments of Q3 FY20 Entered into the Upscale Acquired India’s 4rth hotel segment with the largest Mid-market launch of our first hotel hotel chain, Keys under the brand ‘Aurika’ Hotels, operating 17 in Udaipur hotels with ~1600 rooms in 14 Cities Opened our first hotel in Kolkata under the L
Slide 23: Q3 FY20 Performance Highlights – Operational Metrics (Consolidated)
Q3 FY20 Performance Highlights – Operational Metrics (Consolidated) Operational Inventory Owned/Leased rooms Managed rooms Total rooms Average Daily Rate (Rs.) 49.6% 7,914 5.4% 4.0% 45.4% 58.2% 4,712 4,644 5,192 5,291 4,470 4,465 3,570 2,722 1,721 Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 Same
Slide 24: Q3 Performance Highlights – Financial Metrics (Consolidated)
Q3 Performance Highlights – Financial Metrics (Consolidated) Revenue from Operation (Rs. Cr) EBITDA (Rs. Cr) 23.6% 493 45.5% 174 399 65.7% 120 39.2% 81 200 143 49 Q3 FY19 Q3 FY20 9M FY19 9M FY20 Q3 FY19 Q3 FY20 9M FY19 9M FY20 EBITDA Margin (%) Cash profit (PAT + Depreciation) 649 bps (Rs. Cr) 8.8%
Slide 25: Consolidated Profit & Loss Statement – Q3 FY20
Consolidated Profit & Loss Statement – Q3 FY20 Q3 FY20 Q3 FY20 YoY Change IndAS 116 YoY Change Rs. Cr Q3 FY19 Before IndAS 116 After IndAS 116 (%) Impact (%) Impact Impact Revenue from operations 143.4 199.6 39.2% 199.6 39.2% Total expenses 94.3 127.1 34.8% -8.7 118.4 25.5% EBITDA 49.0 72.5 47.9% 8.
Slide 26: Consolidated Profit & Loss Statement – 9M FY20
Consolidated Profit & Loss Statement – 9M FY20 9M FY20 9M FY20 YoY Change IndAS 116 YoY Change Rs. Cr 9M FY19 Before IndAS 116 After IndAS 116 (%) Impact (%) Impact Impact Revenue from operations 399.0 493.3 23.6% 493.3 23.6% Total expenses 279.1 343.2 22.9% -24.3 318.9 14.3% EBITDA 119.8 150.1 25.3
Slide 27: Discussion on Consolidated Financial & Operational Performance – Q3 FY20
Discussion on Consolidated Financial & Operational Performance – Q3 FY20 As of 31st January 2020, operational portfolio comprised of 79 hotels and 7,979 rooms : 4,214 owned, 978 leased and 2,787 managed Operational rooms; Pipeline includes of 748 owned/leased and 1,925 managed rooms Rooms & Prop
Slide 28: Consolidated Profit & Loss Statement Breakup – Q3 FY20
Consolidated Profit & Loss Statement Breakup – Q3 FY20 Keys Same Hotels New Hotels1 Total without Keys Hotels Total Rs. Cr Hotels2 YoY YoY YoY YoY Q3FY19 Q3FY20 Q3FY19 Q3FY20 Q3FY19 Q3FY20 Q3FY20 Q3FY19 Q3FY20 Change Change Change Change Inventory 3,278 3,278 0.0% 292 978 234.9% 3,570 4,256 19.2% 93
Slide 29: Operational Performance by Brands & Region – Q3FY20 vs. Q3FY19
Operational Performance by Brands & Region – Q3FY20 vs. Q3FY19 Hotel level EBITDAR/room (Rs. Parameters Occupancy Rate (%) Average Daily Rate (Rs.) Hotel level EBITDAR Margin Lacs) Change Change Change By Brand (#Rooms) Q3 FY19 Q3 FY20 (bps) Q3 FY19 Q3 FY20 (%) Q3 FY19 Q3 FY20 Change (%) Q3 FY19 Q3
Slide 30: Expansion Plans – Hotels under Development
Expansion Plans – Hotels under Development Expected Opening Under-development hotels Type Rooms Ownership (%) date Lemon Tree Mountain Resort, Shimla Owned 69 Apr-21 100.00% Lemon Tree Vembanad Lake Resort, Alleppey, Owned 10 Oct-21 100.00% Kerela1 Aurika, Intl. Airport, Mumbai2 Owned 669 Nov-21 57.
Slide 31: Expansion Plans – Pipeline of Management Contracts
Expansion Plans – Pipeline of Management Contracts (as of 31st January, 2020) Management Contracts Pipeline Rooms Expected Opening date Tenure (years) Lemon Tree Hotel, Thimpu 27 Mar-20 12 Management Rooms to be Operational in FY20 27 Lemon Tree Hotel, Baga, Goa 44 Apr-20 15 Lemon Tree Hotel, BKC, M
Slide 32: Annexures
kena ANNEXURES
Slide 33: Strong operating performance
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% 79% 78% 2,708 3,001 77% 77% 77% 461 843 573 171 274 317 481 75% 73% 74%74% 75% 1,920 283 283 283 283 2,444 2
Slide 34: 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 35: 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 36: 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 (%) Rooms demand per day ('000) Rooms supply per day ('000) Occupancy 200 85% Demand Demand 10.8% 15.1% Demand 14.1% Demand 11.6% Supply 14.9%
Slide 37: 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 % 9,000 71% 69% 68% 67% 8,000 67% 66% 65% 7,543 63% 7,000 63% 60% 59% 59% 59% 5,768 5,973 6,000 59% 58% 58% 57% 5,000 55% FY07 FY08 FY09 FY10 FY11 FY12 F
Slide 38: 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 39: Conference Call Details
Conference Call Details Lemon Tree Hotels Limited (LTH) Q3 FY20 Earnings Conference Call Time • 2:00 PM IST on Monday, February 17, 2020 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 40: 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 market sector, consisting of the upscale, upper