Lemon Tree shares rise after signing new property in Darjeeling

Shares of Lemon Tree Hotels rose over 3 per cent on Tuesday after it signed a new property in Darjeeling, which is set to be operational in this financial year. 

 

Lemon Tree Hotels’ stock rose as much as 3.15 per cent during the day to ₹138 per share, the biggest intraday gain since April 2 this year. The stock pared gains to trade 2.51 per cent higher at ₹137.15 apiece, compared to a 1.45 per cent advance in Nifty 50 as of 9:49 AM. 

 

Shares of the company snapped their two days of losing on Tuesday. They, however, have fallen 11 per cent this year, compared to a 4.9 per cent fall in the benchmark Nifty 50. Lemon Tree Hotels has a total market capitalisation of ₹10,770.59 crore.

 

The property -- Keys Prima by Lemon Tree Hotels -- will be managed by Carnation Hotels Private Limited, a wholly-owned subsidiary of Lemon Tree Hotels. Further, the property will feature 65 well-appointed rooms, a restaurant, a meeting room, recreation facilities and other public areas, according to a statement. "The hotel is also well-connected by road, offering easy access to both public and private transport." 

 

"We are excited to extend our footprint in West Bengal. This new property will enhance our strategic growth in the state, complementing our portfolio of two existing hotels and two upcoming properties," said Vilas Pawar, chief executive officer of managed and franchise business Lemon Tree Hotels. 

 

The Company is engaged in the business of developing, owning, acquiring, renovating, operating, managing and promoting hotels, motels, resorts and restaurants. The company has a portfolio of over 210 hotels, which includes over 110 operational hotels and more than 100 hotels set to open in India and internationally.  

 

Last month, the company signed a new property in Bokaro, Jharkhand, that will be operational in the financial year 2027. Before that, the firm announced the signing of license agreements for two new Keys Lite by Lemon Tree Hotels properties in Madhya Pradesh. 

 

Lemon Tree in the quarter ended December 31, 2024, reported an 82 per cent rise in consolidated net profit to ₹79.9 crore as compared to ₹43.8 crore a year ago. The company's revenue for the third quarter stood at ₹355.2 crore as compared to ₹290.2 crore a year ago, implying an increase of 25 per cent year-on-year (Y-o-Y).