In This Article:
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Revenue: INR284.8 crores, highest ever for Q2, 24% growth year-on-year.
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Net EBITDA: Grew 25% year-on-year, with a margin of 46.1%, increased by 53 bps year-on-year.
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Gross ARR: INR5,902, increased 12% year-on-year.
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Occupancy: 68.4%, decreased by 328 bps year-on-year.
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RevPAR: INR4,035, increased 7% year-on-year.
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Management Fees: Total of INR31.8 crores, increased 32% year-on-year.
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Debt: Decreased by INR90 crores to INR1,822.6 crores as of 30 September, '24.
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Cash Profit: INR69.8 crores, increased 43% year-on-year.
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New Contracts: 19 new management and franchise contracts, adding 1,373 rooms to the pipeline.
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Operational Hotels: 112 hotels with 10,318 rooms as of 30 September, '24.
Release Date: November 18, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Lemon Tree Hotels Ltd (BOM:541233) recorded its highest ever second quarter revenue at INR284.8 crores, marking a 24% year-on-year growth.
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Net EBITDA grew by 25% year-on-year, with a margin increase to 46.1%, up by 53 basis points.
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The company reduced its debt by INR90 crores, bringing it down to INR1,822.6 crores as of September 30, 2024.
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Management fees from third-party owned hotels increased by 32% year-on-year, reaching INR31.8 crores in Q2 FY25.
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The company signed 19 new management and franchise contracts, adding 1,373 new rooms to its pipeline, and operationalized five hotels, adding 193 rooms to its portfolio.
Negative Points
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Occupancy for the quarter decreased by 328 basis points year-on-year to 68.4%, partly due to renovation activities.
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The company is undergoing significant renovation expenses, which will continue into FY26, impacting short-term profitability.
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The Bangalore market underperformed due to a combination of room shutdowns and high dependency on IT hiring, which has seen a dip.
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The RevPAR for Keys Hotels remained flat year-on-year, indicating a need for further renovation and repositioning.
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Renovation activities have led to a temporary reduction in available inventory, affecting potential revenue generation.
Q & A Highlights
Q: What factors contributed to the decline in occupancy despite a 12% increase in ADR? A: The decline in occupancy was partly due to 9% of our inventory being shut for renovations, affecting about 530 rooms. Additionally, Aurika Mumbai, which is 15% of our inventory, had a lower occupancy rate of just over 50% at an ARR of INR9,000, which deflated the overall occupancy by about 3 percentage points. (Patanjali Keswani, Executive Chairman and Managing Director)