Lemon Tree Hotels Ltd. · NSE:LEMONTREE
Lemon Tree Hotels — Q4 FY21 Earnings Presentation
32 slides from Lemon Tree Hotels's earnings presentation, Jun 15, 2021
Slide 1: Lemon Tree Hotels Limited Q4 FY21 Earnings Presentation
Lemon Tree Hotels Limited Q4 FY21 Earnings Presentation 15th June, 2021
Slide 2: 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 3: Table of Contents
Table of Contents 1 Company Overview 2 Chairman & Managing Director’s Message 3 12M FY21 Operating Performance Trends 4 Q4 FY21 Financial Highlights & Results 5 12M FY21 Financial Results 6 Pipeline 7 Annexures 3
Slide 4: Lemon Tree – Snapshot as on 15th June 2021
Lemon Tree – Snapshot as on 15th June 2021 Current (17% of Branded By CY23 (20% of Branded Pipeline Mid Market Hotels in India*) Mid Market Hotels in India*) 8,309 2,109 10,418 rooms; rooms; rooms; 84 hotels 21 hotels 105 hotels Brand Current Pipeline By FY23 Aurika 139 Rooms; 1 Hotel 669 Rooms; 1 H
Slide 5: Lemon Tree – Portfolio
Lemon Tree – Portfolio Key Statistics Q4 FY20 Q4 FY21 YoY Var (%) Cities 48 52 8% Hotels 80 84 5% Rooms 8,006 8,309 4% Loyalty 1.16 mn 1.30 mn* Members 12% Notes: *Loyalty Members for Q4-FY21 is as of 31st January 2021 5
Slide 6: Chairman & Managing Director’s Message
Chairman & Managing Director’s Message Commenting on the performance for Q4 FY21, Mr. Patanjali Keswani, Chairman & Managing Director – Lemon Tree Hotels Limited said, “The quarter gone by, started on a steady note for us, with a sustained recovery in markets and sequential improvement in consumptio
Slide 7: FY21 Operating Performance Trends – Operational Inventory
FY21 Operating Performance Trends Increasing Operational Inventory Operational Pick-up 6,000 93.7% 94.8% 100.0% 92.1% 92.3% 91.8% 89.6% 89.3% 85.5% 86.9% 83.9% 90.0% 5,000 71.5% 80.0% % Operational Invetory Operational Invetory 70.0% 4,000 57.5% 60.0% 3,000 50.0% 40.0% 2,000 30.0% 20.0% 1,000 2,987
Slide 8: FY21 Operating Performance Trends – Occupancy-ADR Trend
FY21 Operating Performance Trends Occupancy-ADR Trend 70.0% Rising Occupancy Levels 3,600 3,400 60.0% 3,200 50.0% 3,000 2,854 Gross ADR (Rs) Occupancy (%) 2,796 40.0% 2,800 2,638 2,664 2,595 2,564 2582 2,539 30.0% 2,472 2490 2,600 2,396 2422 2,400 20.0% 2,200 10.0% 22.2% 38.6% 41.7% 34.6% 33.1% 38.1
Slide 9: FY21 Operating Performance Trends – Revenue vs OPEX Trend
FY21 Operating Performance Trends Revenue vs OPEX Trend 35.00 Constantly Improving Operating Efficiency 32.41 31.03 29.58 28.74 30.00 25.00 21.61 20.00 17.41 Rs Cr 15.80 15.91 15.76 16.17 14.02 19.06 15.00 17.65 17.71 10.94 16.23 13.86 10.00 12.55 11.31 11.19 11.73 10.76 10.43 10.37 5.00 - April May
Slide 10: Q4 FY21 Performance Highlights – Operational Metrics (Consolidated)
Q4 FY21 Performance Highlights – Operational Metrics (Consolidated) Inventory Average Daily Rate (Rs.) Owned/Leased rooms Managed rooms Total rooms -1.2% -44.9% 3.8% 8,309 4,530 8,006 YoY QoQ 0% 10.8% 5,192 5,192 2,814 3,117 2,498 2,528 2,498 End of Q4 FY20 Q4 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Q4 FY21 Q4
Slide 11: Q4 FY21 Performance Highlights – Financial Metrics (Consolidated)
Q4 FY21 Performance Highlights – Financial Metrics (Consolidated) Revenue from Operations (Rs. Cr) EBITDA (Rs. Cr) -46% 39% -53% 36% 176.1 YoY 64.4 QoQ YoY QoQ 95.1 95.1 30.4 30.4 68.4 22.3 Q4 FY20 Q4 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Q4 FY21 Q3 FY21 Q4 FY21 EBITDA Margin (%) Cash profit (Rs. Cr) -509 bp
Slide 12: Consolidated Profit & Loss Statement – Q4 FY21
Consolidated Profit & Loss Statement – Q4 FY21 Rs. Cr Q4 FY20 Q3 FY21 Q4 FY21 QoQ Change (%) YoY Change (%) Revenue from operations 176.1 68.4 95.1 39.1% -46.0% Other income 0.4 2.2 1.9 -15.4% 356.8% Total expenses 112.2 48.3 66.6 37.8% -40.7% EBITDA 64.4 22.3 30.4 36.3% -52.7% EBITDA margin (%) 36.
Slide 13: Consolidated Expenses – FY20 vs FY21
Consolidated Expenses – FY20 vs FY21 Cost Rationalization Q4 YoY -33% -47% YoY 50.0 42.9 YoY -30% 40.2 40.0 -53% YoY YoY 26.8 30.0 Rs. Cr 22.6 Q4 FY20 20.0 14.6 14.5 Q4 FY21 10.2 10.0 6.9 - Employee Benefit Expense Cost of F&B Consumed Power & Fuel Expenses Other Expenses Cost Rationalization 12M Yo
Slide 14: Consolidated Profit & Loss Statement Breakup – Q4 FY21
Consolidated Profit & Loss Statement Breakup – Q4 FY21 Total without Keys Hotels Keys Hotels Total Rs. Cr YoY Change YoY Change YoY Change Q4FY20 Q4FY21 Q4FY20 Q4FY21 Q4FY20 Q4FY21 (%) (%) (%) Inventory 4,256 4,256 0% 936 936 0% 5,192 5,192 0% ADR 4,856 2,745 -43% 2,751 1,209 -56% 4,530 2,498 -45% O
Slide 15: Operational Performance by Brands & Region – Q4 FY20 vs. Q4 FY21
Operational Performance by Brands & Region – Q4 FY20 vs. Q4 FY21 (On Full inventory basis) Parameters Occupancy Rate (%) Average Daily Rate (Rs.) Hotel level EBITDAR/room (Rs. Lacs) Hotel level EBITDAR Margin Change Change Change By Brand (#Rooms) Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 Chan
Slide 16: Discussion on Consolidated Financial & Operational Performance – Q4 FY21
Discussion on Consolidated Financial & Operational Performance – Q4 FY21 Revenue from operations stood at Rs. 95.1 Cr in Q4 FY21, down 46.0% as compared to Rs. 176.1 Cr in Q4 FY20. On a sequential basis, revenue from operations increased 39.1% from Rs 68.4 Cr in Q3 FY21 ADR decreased by 44.9% fr
Slide 17: Consolidated Profit & Loss Statement – FY21
Consolidated Profit & Loss Statement – FY21 Rs. Cr FY20 FY21 YoY Change (%) Revenue from operations 669.4 251.7 -62% Other income 5.8 13.3 129% Total Income 675.2 265.0 -61% Total expenses 426.0 190.5 -55% EBITDA 249.2 74.5 -70% EBITDA w/o Other Income 243.4 61.3 -75% EBITDA margin (%) 36.9% 28.1% (
Slide 18: Consolidated Balance Sheet Snapshot – FY21
Consolidated Balance Sheet Snapshot – FY21 Rs. Cr FY20 FY21 YoY Change (%) Shareholder's Funds 988.9 917.6 -7% Non-controlling interests 555.9 617.4 11% Total Shareholder’s equity 1,544.8 1,535.0 -1% Total Debt 1,577.5 1,685.0 6.8% Other Non-current liabilities 464.3 470.0 1% Other Current liabiliti
Slide 19: Expansion Plans – Hotels under Development
Expansion Plans – Hotels under Development Under-development hotels Type Rooms Expected Opening date Ownership (%) Lemon Tree Mountain Resort, Shimla Owned 69 TBD 100.00% Aurika, Intl. Airport, Mumbai# Owned 669 CY23 58.91% Total 738 Total estimated project cost2 is Rs. 10,060 Million Total capi
Slide 20: Expansion Plans – Pipeline of Management Contracts
Expansion Plans – Pipeline of Management Contracts (as on 15th June, 2021) Management Contracts Pipeline Rooms Expected Opening date Lemon Tree Premier, Coorg 63 Sept-21 Keys Prima, Dehradun 40 Aug-21 Red Fox Hotel, Neelkanth 80 July-21 Lemon Tree Hotel Kalina/BKC, Mumbai 70 Oct-21 Lemon Tree Hotel,
Slide 21: Annexures
leone ANNEXURES
Slide 22: Portfolio Breakup as on 15th June 2021 - Operational
Portfolio Breakup as on 15th June 2021 - Operational Owned (incl. on leased Operational Portfolio Leased Managed/ Franchised Total land) 15.06.2021 Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Aurika 1 139 0 0 0 0 1 139 Lemon Tree Premier 7 1442 2 161 9 911 18 2514 Lemon Tree Hotels 13 1241 4
Slide 23: Portfolio Breakup as on 15th June 2021 - Pipeline
Portfolio Breakup as on 15th June 2021 - Pipeline Owned (incl. on leased Pipeline Portfolio Leased Managed/ Franchised Total land) 15.06.2021 Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Aurika # 1 669 0 0 0 0 1 669 Lemon Tree Premier 0 0 0 0 2 113 2 113 Lemon Tree Hotels 1 69 0 0 15 1138 16
Slide 24: Strategically positioned in key geographies with Lemon Tree share of branded hotel sector
Strategically positioned in key geographies with Lemon Tree share of total branded hotel sector Jaipur: FY20 – 5.2% Kolkata: FY20 – 3.8% FY24E – 3.5% FY24E – 2.6% Ahmedabad:FY20 – 5.4% Hyderabad: FY20 – 9.5% FY24E – 3.3% FY24E – 7.5% Mumbai: FY20 – 3.2% Chennai: FY20 – 1.9% FY24E – 6.4% FY24E – 1.9%
Slide 25: Operating performance
Operating performance Rooms are being added Occupancy Owned Leased Hotels Managed Hotels FY16 FY17 FY18 FY19 FY20 FY21 8,309 8,006 17% CAGR 5,411 3 1 17 4,870 2 8 14 3,698 3,249 1 8 41 675 978 1 5 93 461 843 481 573 283 317 71% 72% 74% 53% 37% 36% 4 ,5 17 78% 77% 73% 74% 75% 75% 78% 77% 74% 79% 77%
Slide 26: Operating margins
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 profit Debt to Equity Ratio 1.02 1.
Slide 27: Consolidated Profit & Loss Statement – FY21
Consolidated Profit & Loss Statement – FY21 Rs. Cr FY19 FY20 FY21 Revenue from operations 549.5 669.4 251.7 Other income 9.9 5.8 13.3 Total Income 559.4 675.2 265.0 Total expenses 380.7 426.0 190.5 EBITDA 178.7 249.2 74.5 EBITDA w/o Other Income 168.8 243.4 61.3 EBITDA margin (%) 31.9% 36.9% 28.1% F
Slide 28: Consolidated Balance Sheet Snapshot – FY21
Consolidated Balance Sheet Snapshot – FY21 Rs. Cr FY19 FY20 FY21 Shareholder's Funds 875.0 988.9 917.6 Non-controlling interests 432.2 555.9 617.4 Total Shareholder’s equity 1,307.2 1,544.8 1,535.0 Total Debt 1,204.2 1,577.5 1,685.0 Other Non-current liabilities 38.0 464.3 470.0 Other Current liabil
Slide 29: Operational Performance by Ageing – FY21 vs. FY20
Operational Performance by Ageing – FY21 vs. FY20 Adult Hotels Toddler Hotels Infant Hotels Under-development Parameters Financial year (Stable - older than 3 (Stabilizing - between 1- (New - less than 1 year hotels years) 3 years old) old) FY20 24 6 11 Hotels 1 2 FY21 28 13 0 Operating Rooms FY20 2
Slide 30: 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 m ore 63-68% 60% or le ss Rooms Sold 12 10 8 A verage Daily Rate 13 10 7 Revenue 156 100 56 3:2:1 Expenses 60 50 40 EBITDA 96 50 16 Hotel RoCE 32% 17%
Slide 31: Conference Call Details
Conference Call Details Lemon Tree Hotels Limited (LTH) Q4 and FY21 Earnings Conference Call Time • 4:00 PM IST on Wednesday, June 16, 2021 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) • Hong K
Slide 32: 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