Lemon Tree Hotels rises on signing new property in Jamshedpur

Lemon Tree Hotels rose 1.44% to Rs 94.85 after the company signed a licence agreement for a 42-room hotel at Jamshedpur.

This hotel is expected to be operational by September 2023, and shall be managed by Carnation Hotels, a wholly-owned subsidiary and the management arm of Lemon Tree Hotels.

Lemon Tree said that this property will feature 42 well-appointed rooms, complemented by a multi-cuisine restaurant, bar, meeting room, fitness center and banquets along with other public areas.

Mahesh Aiyer, CEO of Carnation Hotels said, The signing of this hotel is in line with Lemon Tree Hotel's vision of strengthening our presence in key domestic markets. In keeping with our asset light growth strategy, we have consistently been growing in the management space and have already signed 4 hotels this month itself, and a total of 15 hotels this fiscal.

We aspire to diversify our existing portfolio, not just in metros and tier I cities, but across tier II, III and IV cities and leisure destinations as well, by signing and opening more hotels to enhance our offerings to our guests as well as owners and partners in tourism and hospitality.

Lemon Tree Hotels is India's largest hotel chain in the mid-priced sector, and the third largest overall, on the basis of controlling interest in owned and leased rooms, as of 30 June 2017, according to the Horwath Report. It operates in the upscale segment and in the mid-market sector, consisting of the upper-midscale, midscale and economy segments.

On a consolidated basis, Lemon Tree Hotels reported net profit of Rs 16.77 crore in Q2 FY23 as against net loss of Rs 20.82 crore in Q2 FY22. Net sales jumped 103% YoY to Rs 196.72 crore in Q2 FY23.

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