The shares of India’s largest hotel chain in the mid-priced hotel sector gained 4.3 percent after the company signed a licensing agreement for 150-room property in Telangana.
At 1:25 p.m., Lemon Tree Hotels Ltd shares were quoting at Rs 113.50, up 4.18 percent, on the National Stock Exchange.
According to the company’s exchange filing, Lemon Tree Hotels signed a licensing agreement for 150 room property in Yadagirigutta, Telangana under the Company’s brand “Keys Select by Lemon Tree Hotels”
The hotel will be operational by FY26 and will be managed and operated by Carnation Hotels Private Limited, a wholly-owned subsidiary and the management arm of Lemon Tree Hotels Limited.
Lemon Tree Hotels Ltd shares have gained 23 percent in the last six months and 18 percent in a year.
Based on the company’s margin ratios, the Company’s Gross Profit Margin has increased from 32.98 percent in FY22 to 51.55 percent in FY23, while the operating margin rose from 7.04 percent to 40.51 percent during the same period.
Looking at the financials, Revenue has increased by 15 percent yearly, rising from Rs 192 crore in Q1FY23 to Rs 222 crore in Q1FY24. Further, within the same period, Net profit has increased by 108 percent from Rs 13 crore to Rs 27 crore.
According to the recent shareholding pattern, the company promoters hold a 23.28 percent stake in the company, while Foreign Institutional Investors hold a 24.82 percent stake. And retail investors have a 38.41 percent stake in the company.
Lemon Tree Hotels Limited is one of India’s major hotel chains by controlling stake in owned and leased rooms, ranking sixth overall. consolidated inventory, and the largest in the mid-market hotel industry.
Written by Omkar Chitnis