Lemon Tree Hotels Ltd. · NSE:LEMONTREE
Lemon Tree Hotels — Q4 FY19 Earnings Presentation
29 slides from Lemon Tree Hotels's earnings presentation, May 29, 2019
Slide 1: Lemon Tree Hotels Limited Q4 FY19 Earnings Presentation
Lemon Tree Hotels Limited Q4 FY19 Earnings Presentation May 29, 2019
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 Performance Highlights 4 Financial & Operational Metrics 5 Key Developments / Business Updates 6 Growth Outlook 7 Annexures 3
Slide 4: Lemon Tree – Snapshot as on 15th May, 2019
Lemon Tree – Snapshot as on 15th May, 2019 5,525 rooms; 56 hotels 1,697 2,555 1,273 rooms; rooms; rooms; 12 hotels 34 hotels 10 hotels 4
Slide 5: Lemon Tree – Portfolio
Lemon Tree – Portfolio Key Statistics 31st March FY18 Q3 FY19 Q4 FY19 15th May FY19 Cities 29 31 32 33 Hotels 47 52 54 56 Rooms 4802 5291 5411 5525 Loyalty 719,146 889,080 947,776 978,444 Members 5
Slide 6: Portfolio Breakup as on 31st March, 2019
Portfolio Breakup as on 31st March, 2019 Operational Portfolio Owned Leased Managed Total 31.03.2019 Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Lemon Tree Premier 5 997 2 161 5 539 12 1,697 Lemon Tree Hotels 13 1241 4 321 15 879 32 2,441 Red Fox Hotels 5 759 1 91 4 423 10 1,273 Total 23 299
Slide 7: Strategically positioned in key geographies with share of mid-priced hotel sector
Strategically positioned in key geographies with Lemon Tree share of total mid- priced hotel sector Geographical spread across India and presence in key markets to Jaipur: FY17 – 11% Delhi NCR: FY17 – 14% cater effectively to corporate FY21E – 16% FY21E – 10% clients and business travelers Hotel
Slide 8: Chairman & Managing Director’s Message
*Chairman & Managing Director’s Message Commenting on the performance for FY19, Mr. Patanjali Keswani, Chairman & Managing Director – Lemon Tree Hotels Limited said, “We have delivered a top-line growth of 13.7% YoY in FY19 driven by 7.3% YoY increase in ADR and addition of 292 owned/leased rooms du
Slide 9: Performance Highlights – Operational Metrics
Performance Highlights – Operational Metrics Operational Inventory Average Daily Rate (Rs.) Owned/Leased rooms Managed rooms Total rooms 4.0% 7.3% 5,411 4,405 4,802 4,235 4,180 3,278 3,570 3,896 1,524 1,841 FY18 FY19 FY18 FY19 FY18 FY19 Q4 FY18 Q4 FY19 FY18 FY19 End of Occupancy (%) RevPAR (Rs.) 48
Slide 10: Performance Highlights – Financial Metrics (Consolidated)
Performance Highlights – Financial Metrics (Consolidated) Total Income (Rs. million) EBITDA (Rs. million) 13.7% 24.1% 1,787 5,594 4,921 1,440 10.0% 13.4% 1,392 1,531 454 515 Q4 FY18 Q4 FY19 FY18 FY19 Q4 FY18 Q4 FY19 FY18 FY19 Cash profit (PAT + Depreciation, Rs. million) PAT (Rs. million) 1,105 288%
Slide 11: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) Rs. millions Q4 FY18 Q4 FY19 Change (%) FY18 FY19 Change (%) Revenue from operations 1,320 1,505 14.0% 4,843 5,495 13.5% Other income 72 26 -64.5% 78 99 27.2% Total income 1,392 1,531 10.0% 4,921 5,594 13.7% Cost of F&B consumed 115 134 16.9% 436 498 14.3% Empl
Slide 12: Balance Sheet Snapshot (Consolidated)
Balance Sheet Snapshot (Consolidated) Rs. million FY18 FY19 Shareholder's Funds 8,148 8,750 Non-controlling interests 4,286 4,322 Total Shareholder’s equity 12,435 13,072 Total Debt 10,110 12,042 Other Non-current liabilities 344 380 Other Current liabilities 1,693 2,224 Total Equity & Liabilities 2
Slide 13: Discussion on Consolidated Financial & Operational Performance – Q4 FY19
Discussion on Consolidated Financial & Operational Performance – Q4 FY19 As of 15th May 2019, operational portfolio comprised of 56 hotels and 5,525 rooms : 2,997 owned, 573 leased and 1,955 managed rooms; Pipeline includes of 1,240 owned/leased and 2,149 managed rooms. Operational Propose to ad
Slide 14: Discussion on Consolidated Financial & Operational Performance – FY19
Discussion on Consolidated Financial & Operational Performance – FY19 Total Revenue stood at Rs. 5,594 million in FY19, up 13.7% as compared to Rs. 4,921 million in FY18. Around 4.0% increase was on account of new inventory addition ADR increased by 7.3% from 3,896 in FY18 to 4,180 in Q4 FY19 Re
Slide 15: Operational Performance by Brands – FY19 vs. FY18
Operational Performance by Brands – FY19 vs. FY18 Q4 FY19 vs. Q4 FY18 Hotel level EBITDAR2/room Parameters Occupancy Rate (%) Average Daily Rate (Rs.) Hotel level EBITDAR2 Margin (Rs. million) Change Change Change By Brand Q4 FY19 Q4 FY18 (bps) Q4 FY19 Q4 FY18 (%) Q4 FY19 Q4 FY18 Change (%) Q4 FY19
Slide 16: Operational Performance by Region – FY19 vs. FY18
Operational Performance by Region – FY19 vs. FY18 Q4 FY19 vs. Q4 FY18 Hotel level EBITDAR2/room Parameters Occupancy Rate (%) Average Daily Rate (Rs.) Hotel level EBITDAR2 Margin (Rs. million) Change Change Change By Brand Q4 FY19 Q4 FY18 (bps) Q4 FY19 Q4 FY18 (%) Q4 FY19 Q4 FY18 Change (%) Q4 FY19
Slide 17: Operational Performance by Ageing – FY19 vs. FY18
Operational Performance by Ageing – FY19 vs. FY18 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) FY19 21 7 2 Hotels1 5 FY18 21 3 4 Operating Rooms FY19 2,727
Slide 18: Expansion Plans – Hotels under Development
Expansion Plans – Hotels under Development Expected Opening Under-development hotels Type Rooms Ownership (%) date Lemon Tree Premier, Andheri (East), Mumbai Owned 303 June-19 100.00% Lemon Tree Premier, Kolkata Owned 142 Oct-19 57.98% Lemon Tree Premier, Udaipur Owned 139 Oct-19 57.98% Lemon Tree M
Slide 19: Expansion Plans – Pipeline of Management Contracts
Expansion Plans – Pipeline of Management Contracts (as of May 15th , 2019) Management Contracts Pipeline Rooms Expected Opening date Tenure (years) Lemon Tree Premier, Rishikesh 66 Aug-19 12 Red Fox Hotel, Vijaywada 90 Sep-19 10 Lemon Tree Hotel, Dubai 114 Sep-19 10 Lemon Tree Hotel, Shirdi 59 Sep-1
Slide 20: Growth Strategies
Growth Strategies • Strong competitive position in mid-priced hotel sector to • Geographical diversification to reduce exposure to local, drive market share gains seasonal and cyclical fluctuations as well as provide greater choice to an expanding loyal (repeat) guest o Strong pipeline of owned, lea
Slide 21: Annexures
kena ANNEXURES
Slide 22: Strong operating performance
TBA 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% 77% 79% 78% 2,708 3,001 77% 77% 274 461 843 481 573 75% 74% 75% 1,920 171 283 283 317 73% 74% 283 283 2,
Slide 23: 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 24: 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 25: 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 Occupancy (%) Rooms demand per day ('000) Rooms supply per day ('000) 200 Demand 10.8% Demand 15.1% Demand 14.1% Demand 11.6% 85% Supply 14.9%
Slide 26: 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 (RHS) ADR (INR) Occupancy % 9,000 71% 69% 68% 8,000 67% 67% 65% 7,543 63% 7,000 63% 60% 59% 59% 59% 6,000 58% 58% 5,7455,759 59% 57% 5,000 55% FY07 FY08
Slide 27: 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 28: Conference Call Details
Conference Call Details Lemon Tree Hotels Limited (LTH) Q4 FY19 Earnings Conference Call Time • 2:00 PM IST on Friday, May 31, 2019 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) International To
Slide 29: 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-priced hotel sector, consisting of the upper mid