Lemon Tree Hotels Ltd. · NSE:LEMONTREE
Lemon Tree Hotels — Q3 FY22 Earnings Presentation
49 slides from Lemon Tree Hotels's earnings presentation, Feb 10, 2022
Slide 1: Outcome of the Board Meeting
February 10, 2022 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 Board Meeting Dear Sir We
Slide 2: Independent Auditor's Review Report (Consolidated)
Deloitte Chartered Accountants 7th Floor, Building 10, Tower B, Haskins & Sells LLP DLF Cyber City Complex, DLF City Phase II, Gurugram - 122 002, Haryana, india Phone: +91 124 679 2000 : Fax: +91 124 679 2012 << INDEPENDENT AUDITOR’S REVIEW REPORT ON REVIEW OF INTERIM CONSOLIDATED FINANCIAL RESULTS
Slide 3: Auditor's Review Report (continued)
Deloitte Haskins & Sells LLP 12. | Poplar Homestead Holdings Private Limited Wholly owned subsidiary company 13. Madder Stays Private Limited. Wholly owned subsidiary company 14. | Jessamine Stays Private Limited Wholly owned subsidiary company 15s. Hamstede Living Private Limited Wholly owned subsi
Slide 4: Auditor's Review Report (continued)
Deloitte Haskins & Sells LLP quarter and nine months ended December 31, 2021 respectively, as considered in the Statement. The consolidated unaudited financial results also includes the Group’s share of profit after tax of Rs. 36.66 lakhs and Rs.75.82 lakhs and Total comprehensive income of Rs. 36.3
Slide 5: Statement of Unaudited Consolidated Financial Results
Lemon Tree Hotels Limited Regd Office:- Asset No. 6, Acrocity Hospitality District, New Delhi-1 10037 Tel: 011-46050101 2 O11-460501 10; E-Mail :seetdeptt@lemontrechotels.com: Website: www. wontrechotels.com ‘CIN: L74899DL1992PLC949022 Statement of Unaudited Consolidated Financial Results for the Qu
Slide 6: Notes to Consolidated Financial Results
Notes: 1 ‘The Audit Committee has reviewed the abave results and the Board of Directors has approved the above consolidated financial r sults at thetr respect G9, 2022 and February 10, 2022, The statutory auditors have cared out a hmited review of the above standatone financs rest ts. 2. The above C
Slide 7: Independent Auditor's Review Report (Standalone)
ie Chartered Accountants Deloitte 7th Floor, Building 10, Tower B, Haskins & Sells LLP DLE Gy Phase 1, a DLF Cyber City Complex, Gurugram - 122 002, Haryana, India Phone: +91 124 679 2000 Fax: +91 124 679 2012 INDEPENDENT AUDITOR’S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE FINANCIAL RESULTS {TO
Slide 8: Auditor's Review Report (continued)
Deloitte Haskins & Sells LLP Based on the assessments, the management has concluded that the Company will be able to meet all of its obligations as well as recover the carrying amount of its assets as on December 31, 2021. Our Conclusion on the Statement is not modified in respect of this matter. 6.
Slide 9: Statement of Unaudited Standalone Financial Results
Lenton Tree Hotels Limited Regd Office:- Asset Na. 6, Acrocity Hospitality District, New Delli-t 10037 11-46050101; Fax.: 011-46050110; E. ectdeptt@emontreehotels.com: Website: wwwlemontrechvtels.cons CIN: L74899DL1992PLC049022 Statement of Unaudited Standalone Financial Results for the Quarter and
Slide 10: Notes to Standalone Financial Results
Notes: 1. The Audit Com jewed the above results and the Board of Directors has approved the above standalone financial results at their respective meetings held on February 09, 2022 and February 10, 2022. The stutulory auditors have carried out a limited seview of the above standalone financial resu
Slide 11: Lemon Tree Hotels Limited
Lemon Tree Hotels Limited Q3 FY22 Earnings Presentation 10th February, 2022
Slide 12: 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 13: 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 14: 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 15: Lemon Tree – Portfolio
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 16: 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 17: Operating Performance Trends – 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 18: Operating Performance Trends – 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 19: 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 20: 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 21: 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 22: 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 23: 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 24: 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 25: 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 26: Discussion on Consolidated Financial & Operational Performance
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 27: Consolidated P&L 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 28: 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 29: 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 30: 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 31: Annexures
Q3 FY22 Earnings Presentation ANNEXURES 21
Slide 32: Consolidated P&L 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 33: 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 34: 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 35: 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 36: 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 37: 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 38: 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 39: 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 40: 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 41: 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 42: 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 43: 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 44: 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 45: FY21 ESG Report – Vision FY26 Goals
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 46: 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 47: 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 48: 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 49: 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