Q2 2025 Lemon Tree Hotels Ltd Earnings Call Transcript
Key Points
- Lemon Tree Hotels Ltd (BOM:541233) recorded its highest ever second quarter revenue at INR284.8 crores, marking a 24% year-on-year growth.
- Net EBITDA grew by 25% year-on-year, with a margin increase to 46.1%, up by 53 basis points.
- The company reduced its debt by INR90 crores, bringing it down to INR1,822.6 crores as of September 30, 2024.
- Management fees from third-party owned hotels increased by 32% year-on-year, reaching INR31.8 crores in Q2 FY25.
- The company signed 19 new management and franchise contracts, adding 1,373 new rooms to its pipeline, and operationalized five hotels, adding 193 rooms to its portfolio.
- Occupancy for the quarter decreased by 328 basis points year-on-year to 68.4%, partly due to renovation activities.
- The company is undergoing significant renovation expenses, which will continue into FY26, impacting short-term profitability.
- The Bangalore market underperformed due to a combination of room shutdowns and high dependency on IT hiring, which has seen a dip.
- The RevPAR for Keys Hotels remained flat year-on-year, indicating a need for further renovation and repositioning.
- Renovation activities have led to a temporary reduction in available inventory, affecting potential revenue generation.
Ladies and gentlemen, good day, and welcome to Lemon Tree Hotels Limited earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Anoop Poojari from CDR India. Thank you, and over to you, Mr. Poojari.
Thank you. Good afternoon, everyone, and thank you for joining us on Lemon Tree Hotels Q2 and H1 FY25 earnings conference call. We have with us Mr. Patanjali Keswani, Chairman and Managing Director; and Mr. Kapil Sharma, Chief Financial Officer of the company.
We would like to begin the call with the opening remarks from the management, following which we'll have the forum open for an interactive question-and-answer session. Before we start, I would like to point out that some statements made in today's call may be forward-looking in nature and a disclaimer to this effect has been included in the results presentation shared with you earlier.
I would now like to request Mr. Keswani to make his opening
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