Lemon Tree Hotels gains on signing new hotel in Darjeeling

Lemon Tree Hotels rose 3.08% to Rs 63.65 after the company said it signed a new hotel in Darjeeling.

Lemon Tree Hotels on Monday announced its latest signing, a Lemon Tree Hotel in Darjeeling. The hotel shall be operated through its subsidiary and management arm, Carnation Hotels. The hotel project, owned by SGB Developers, is in the Greenfield stage and is expected to open in September 2022. Located on Hill Cart Road in Darjeeling, the hotel will feature 55 well-appointed rooms and suites, complemented by a multi-cuisine restaurant, a bar, meeting and conference spaces, and recreational facilities. This hotel will add to the portfolio of hotels in West Bengal, which include operating hotels in Kolkata and Siliguri.

Last week, Lemon Tree Hotels announced the international debut of the company, with the launch of the first Lemon Tree Hotel in Dubai. Further, the company also signed a license agreement for a 44-room hotel at Baga, Goa, its fifth hotel in the region.

On the technical front, the stock's RSI (relative strength index) stood at 60.57. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was currently trading above its 50-day moving average (DMA) placed at Rs 59.55, but is currently trading below its 200 DMA placed at Rs 65.35.

On a consolidated basis, the company reported a net loss of Rs 2.15 crore in Q2 September 2019 as against a net profit of Rs 5.67 crore in Q2 September 2018. Net sales jumped 18.7% to Rs 152.76 crore in Q2 September 2019 over Q2 September 2018.

Lemon Tree Hotels operates a chain of upscale business and leisure hotels. The firm designs, builds, owns and operates its hotels.

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