Lemon Tree Hotels gain 5% after posting Q3 results; check details here

Lemon Tree Hotels' revenue for the third quarter stood at Rs 355.2 crore as compared to Rs 290.2 crore a year ago implying an increase of 25 per cent year-on-year (Y-o-Y).

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Lemon Tree Hotels shares advanced 4.9 per cent on Wednesday, logging an intraday high at Rs 154.8 per share on BSE. The buying on the counter came after the company reported its Q3 numbers. 

 

Around 10:36 AM, Lemon Tree share price was up 4.04 per cent at Rs 153.4 per share on BSE. In comparison, the BSE Sensex was down 0.08 per cent at 78,523.99. The market capitalisation of the company stood at Rs 12,073.84 crore. The 52-week high of the stock was at Rs 162.25 per share and the 52-week low was at Rs 112.3 per share. 

 

The company released its Q3 results on Tuesday after market hours. Lemon Tree in the quarter ended December 31, 2024, reported a 82 per cent rise in consolidated net profit to Rs 79.9 crore as compared to Rs 43.8 crore a year ago. 

 

The company's revenue for the third quarter stood at Rs 355.2 crore as compared to Rs 290.2 crore a year ago implying an increase of 25 per cent year-on-year (Y-o-Y). 

Lemon Tree Hotels management commentary

Going forward, the management is confident in the company’s ability to sustain growth in the coming quarters by focusing on accelerated growth in management and franchised portfolio, with a proportionate increase in fee-based income and timely completion of renovation activities in the owned portfolio to further improve gross ARR and occupancy. 

 

The management noted added that the increased investment in renovation expenses will continue into FY26 until the entire portfolio of owned hotels has been fully renovated and refreshed. 

 

Post this, renovation expenses will be close to 1.8 per cent of revenue on an ongoing basis. With demand growth expected to outpace supply in the next few years and increasing discretionary spending on branded hotels in India, Lemon Tree's increased investment in renovation will allow us to position Lemon Tree as the preferred brand in the mid-market segment, as per management. 

 

In the past one year, Lemon Tree shares have gained 5.3 per cent against Sensex's rise of 9.5 per cent.