Lemon Tree Hotels hits new high since listing; stock soars 30% in 3 days

The stock rallied 7% to Rs 89.80, extending its past two days 23% surge on BSE, after the company said its arm signed three management contracts in the state of Uttarakhand

Lemon Tree Hotels rallied 7% to Rs 89.80, extending past two days 23% surge on BSE, after the company said its arm signed three management contracts in the state of Uttarakhand.

The stock is trading at its highest level since listing on April 9, 2018. It zoomed 60% against its issue price of Rs 56 per share.

“Carnation Hotels, the wholly owned subsidiary and management arm of Lemon Tree Hotels Limited has announced the signing of three individual management contracts for three new hotels in the State of Uttarakhand; one each in Rishikesh, Neelkanth and Mussoorie,” Lemon Tree Hotels said in a regulatory filing on Wednesday, April 18.

With these new signings, Lemon Tree Hotels, the largest hotel chain in the mid-priced hotel sector, it added.

The company currently owns and operates 48 hotels in 30 cities aggregating around 4900 rooms as on March 31, 2018. With the signing of this contract, Lemon Tree Hotels now has a development pipeline of 3282 rooms in 30 hotels across 24 new cities of India.

At 11:25 am; the stock trading 6% higher at Rs 88.50 on the BSE, against 0.27% rise in the S&P BSE Sensex. A combined 10.74 million shares changed hands on the counter on the BSE and NSE so far.