Lemon Tree Hotels Ltd. · NSE:LEMONTREE
Lemon Tree Hotels — Q2 FY21 Earnings Presentation
32 slides from Lemon Tree Hotels's earnings presentation, Nov 6, 2020
Slide 1: Lemon Tree Hotels Limited Q2 FY21 Earnings Presentation
Lemon Tree Hotels Limited Q2 FY21 Earnings Presentation 6th November, 2020
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 H1 FY21 Operating Performance Trends 4 Q2 FY21 Financial Highlights & Results 5 H1 FY21 Financial Results 6 Pipeline 7 Annexures 3
Slide 4: Lemon Tree – Snapshot as on 31st October, 2020
Lemon Tree – Snapshot as on 31st October, 2020 Current (17% of Branded Pipeline By CY22 (20% of Branded Mid Market Hotels in India*) Mid Market Hotels in India*) 8,044 2,607 10,651 rooms; rooms; rooms; 81 hotels 27 hotels 108 hotels Brand Current Pipeline by FY22 Aurika 139 Rooms; 1 Hotel 669 Rooms;
Slide 5: Lemon Tree – Portfolio
Lemon Tree – Portfolio Key Statistics Q2 FY20 Q2 FY21 YoY Var (%) Cities 34 49 44% Hotels 57 81 42% Rooms 5,828 8,044 37% Loyalty 1.07 mn 1.20 mn 12% Members 5
Slide 6: Chairman & Managing Director’s Message
Chairman & Managing Director’s Message Commenting on the performance for Q2 FY21, Mr. Patanjali Keswani, Chairman & Managing Director – Lemon Tree Hotels Limited said, “The pandemic has had a severe impact on the travel, hospitality and tourism industry, with these sectors facing an unprecedented an
Slide 7: Increasing Operational Inventory
H1 FY21 Operating Performance Trends Increasing Operational Inventory Operational Pick-up 5,000 100.0% 89.6% 85.5% 86.9% 4,500 83.9% 90.0% 4,000 71.5% 80.0% % Operational Invetory Operational Invetory 3,500 70.0% 57.5% 3,000 60.0% 2,500 50.0% 4,439 4,513 4,650 4,356 2,000 40.0% 3,712 1,500 2,987 30.
Slide 8: Rising Occupancy Levels
H1 FY21 Operating Performance Trends Rising Occupancy Levels Occupancy-ADR Trend 45.0% 3,600 41.7% 40.5% 39.7% 40.0% 38.6% 38.1% 3,400 34.6% 33.1% 34.3% 33.3% 35.0% 3,200 30.7% 29.8% 30.0% 3,000 Gross ADR (Rs) Occupancy (%) 2,854 25.0% 22.2% 2,796 2,800 20.0% 2,595 2,564 2,638 2,600 2,539 15.0% 2,40
Slide 9: Constantly Improving Operating Efficiency
H1 FY21 Operating Performance Trends Constantly Improving Operating Efficiency Revenue vs OPEX Trend 18.00 15.80 15.91 15.76 16.17 16.00 14.02 14.00 12.00 10.94 11.75 11.34 11.22 10.00 10.76 Rs Cr 10.43 10.37 8.00 6.00 4.00 2.00 - April May June July August September Total Revenue Hotel Operating Ex
Slide 10: Q2 FY21 Performance Highlights – Operational Metrics
Q2 FY21 Performance Highlights – Operational Metrics (Consolidated) Operational Inventory Average Daily Rate (Rs.) Owned/Leased rooms Managed rooms Total rooms 38.0% 4,133 8,044 30.6% 53.9% 1% QoQ 5,828 -36% YoY 5,192 3,975 2,852 2,626 2,654 1,853 End of Q2 FY20 Q1 FY21 Q2 FY21 Q2 FY20 Q2 FY21 Q2 FY
Slide 11: Q2 FY21 Performance Highlights – Financial Metrics
Q2 FY21 Performance Highlights – Financial Metrics (Consolidated) Revenue from Operation (Rs. Cr) EBITDA (Rs. Cr) 49.4 152.8 -69% YoY 17% QoQ -71% YoY 92% QoQ 40.7 47.6 14.3 7.5 Q2 FY20 Q1 FY21 Q2 FY21 Q2 FY20 Q1 FY21 Q2 FY21 Cash profit EBITDA Margin (%) (Rs. Cr) 32.1% 16.2 26.7% 10.4 964 bps (541)
Slide 12: Consolidated Profit & Loss Statement – Q2 FY21
Consolidated Profit & Loss Statement – Q2 FY21 Rs. Cr Q2 FY20 Q1 FY21 Q2 FY21 QoQ Change (%) YoY Change (%) Revenue from operations 152.8 40.7 47.6 17.0% -68.8% Other income 0.9 3.1 6.0 92.9% 546.9% Total expenses 104.3 36.3 39.3 8.2% -62.3% EBITDA 49.4 7.5 14.3 91.6% -71.0% EBITDA margin (%) 32.1%
Slide 13: Consolidated Expenses – Q2 FY21 vs Q2 FY20
Consolidated Expenses – Q2 FY21 vs Q2 FY20 Cost Rationalization YoY 40.0 35.0 30.0 25.0 -61% Rs Cr 20.0 -60% 36.6 15.0 -53% 30.1 10.0 -76% -65% -61% 14.3 16.0 13.2 12.2 5.0 8.9 7.5 6.2 2.2 3.2 3.4 - Employee Cost of F&B Power & Fuel Repairs and Other Expenses Lease Rental Benefit Expense Consumed Ex
Slide 14: Consolidated Profit & Loss Statement Breakup – Q2 FY21
Consolidated Profit & Loss Statement Breakup – Q2 FY21 New Same Hotels Total without Keys Hotels Keys Hotels Total Hotels1 Rs. Cr YoY YoY YoY Q2FY20 Q2FY21 Q2FY21 Q2FY20 Q2FY21 Q2FY21 Q2FY20 Q2FY21 Change Change Change Inventory 3,975 3,975 0.0% 281 3,975 4,256 7.1% 936 3,975 5,192 30.6% ARR 4,133 2
Slide 15: Operational Performance by Brands & Region
Operational Performance by Brands & Region – Q2 FY20 vs. Q2 FY21 Hotel level EBITDAR/room (Rs. Parameters Occupancy Rate (%) Average Daily Rate (Rs.) Hotel level EBITDAR Margin Lacs) Change Change Change By Brand (#Rooms) Q2 FY20 Q2 FY21 (bps) Q2 FY20 Q2 FY21 (%) Q2 FY20 Q2 FY21 Change (%) Q2 FY20 Q
Slide 16: Discussion on Consolidated Financial & Operational Performance
Discussion on Consolidated Financial & Operational Performance – Q2 FY21 Revenue from operations stood at Rs. 47.6 Cr in Q2 FY21, down 68.8% as compared to Rs. 152.8 Cr in Q2 FY20. On a sequential basis, revenue from operations increased 17.0% from Rs 40.7 Cr in Q1 FY21 ADR decreased by 35.8% fr
Slide 17: Consolidated Profit & Loss Statement – H1 FY21
Consolidated Profit & Loss Statement – H1 FY21 Rs. Cr H1 FY20 H1 FY21 YoY Change (%) Revenue from operations 293.7 88.3 -69.9% Other income 2.2 9.1 316.8% Total expenses 200.5 75.6 -62.3% EBITDA 95.4 21.8 -77.2% EBITDA margin (%) 32.2% 22.4% (986) Finance costs 66.2 98.4 48.7% Depreciation & amortiz
Slide 18: Consolidated Balance Sheet Snapshot
Consolidated Balance Sheet Snapshot Rs. Cr Sep ‘19 Mar ‘20 Sep ‘20 Shareholder's Funds 824.7 823.0 744.0 Non-controlling interests 430.9 721.8 861.4 Total Shareholder’s equity 1,255.6 1,544.8 1,605.4 Gross Debt 1,334.9 1,577.5 1,661.7 Other Non-current liabilities 381.4 464.2 467.4 Other Current lia
Slide 19: 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 TBD 100.00% Lemon Tree Vembanad Lake Resort, Alleppey, Owned 10 TBD 100.00% Kerela1 Aurika, Intl. Airport, Mumbai2 Owned 669 End of CY22 57.9
Slide 20: Expansion Plans – Pipeline of Management Contracts
Expansion Plans – Pipeline of Management Contracts (as on 31st October, 2020) Management Contracts Pipeline Rooms Expected Opening date Lemon Tree Hotel, Jhansi 60 Nov-20 Lemon Tree Premier, Vijaywada 120 Jan-21 Lemon Tree Hotel, Aligarh 68 Jan-21 Lemon Tree Premier, Bhubaneshwar 76 Feb-21 Lemon Tre
Slide 21: Annexures
lente ANNEXURES
Slide 22: Portfolio Breakup as on 31st October 2020 - Operational
Portfolio Breakup as on 31st October 2020 - Operational Operational Owned Leased Managed/Franchised Total Portfolio 31.10.2020 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 7 713 16 2,316 Lemon Tree Hotels 13 1,241 4 321 19 1,128 36 2
Slide 23: Portfolio Breakup as on 31st October 2020 - Pipeline
Portfolio Breakup as on 31st October 2020 - Pipeline In Pipeline Owned Leased Managed/Franchised Total 31.10.2020 Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Aurika 1 669# 0 0 0 0 1 669 Lemon Tree Premier 0 0 0 0 5 349 5 349 Lemon Tree Hotels 1 79 0 0 18 1,390 19 1,469 Red Fox Hotels 0 0 0 0
Slide 24: Strategically positioned in key geographies
Strategically positioned in key geographies with Lemon Tree share of total branded hotel sector Jaipur: FY20 – 5.2% FY24E – 3.5% Delhi NCR: FY20 – 6.8% FY24E – 7.1% Ahmedabad:FY20 – 5.4% FY24E – 3.3% Kolkata: FY20 – 3.8% Mumbai: FY20 – 3.2% FY24E – 2.6% FY24E – 6.4% Pune: FY20 – 9.4% FY24E – 8.4% Hy
Slide 25: Strong operating performance
Strong operating performance Rooms are being added… …and occupancy levels increasing… Owned Leased Hotels Managed Hotels FY16 FY17 FY18 FY19 FY20 25% 8,006 2814 79% 4,870 5,411 78% 78% 77% 77% 77%78% 3,698 1841 675 3,249 1593 75% 75% 843 74%74% 461 481 573 73% 74% 283 317 4,517 71% 72% 2,505 2,538 2
Slide 26: 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 16% 36.2% 6,694 31.9% 27.9% 29.7% 29.3% 5,495 4,843 4,121 3,680 1,033 1,247 1,440 1,787 2,441 FY16 FY17 FY18 F
Slide 27: Consolidated Profit & Loss Statement – FY20
Consolidated Profit & Loss Statement – FY20 FY20 FY20 YoY Change IndAS 116 YoY Change Rs. Cr FY19 Before IndAS 116 After IndAS 116 (%) Impact (%) Impact Impact Revenue from operations 549.5 669.4 21.8% 669.4 21.8% Total expenses 380.7 464.3 21.9% -33.2 431.1 13.2% EBITDA 168.8 205.1 21.6% 33.2 238.3
Slide 28: Consolidated Balance Sheet Snapshot – FY20
Consolidated Balance Sheet Snapshot – FY20 Rs. Cr FY19 FY20 Shareholder's Funds 875.0 823.0 Non-controlling interests 432.2 721.8 Total Shareholder’s equity 1,307.2 1,544.8 Total Debt 1,204.2 1,577.5 Other Non-current liabilities 38.0 464.2 Other Current liabilities 222.4 176.3 Total Equity & Liabil
Slide 29: Operational Performance by Ageing – FY19 vs. FY20
Operational Performance by Ageing – FY19 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 FY19 21 7 2 Operating Rooms FY20 2,85
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 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 31: Conference Call Details
Conference Call Details Lemon Tree Hotels Limited (LTH) Q2 FY21 Earnings Conference Call Time • 3:00 PM IST on Monday, November 9th, 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) Internatio
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