With a market capitalization of Rs. 11,080 crores, the shares of the company started Wednesday’s trading session on a higher note at Rs. 138.75 compared to its previous close of Rs. 137.55.
During the trading session, the shares of Lemon Tree Hotels Ltd hit a high of Rs. 140.20, gaining around 2 percent and are currently trading at Rs. 138 apiece. The share has given more than 80 percent returns to its shareholders in one year.
Looking at the company’s financial statements, the revenue zoomed by 27 percent from Rs. 227 crores during the September quarter to Rs. 289 crores in the December quarter. In addition, the net profits magnified by around 70 percent from Rs. 26 crores to Rs. 44 crores during the same period.
Comparing these metrics on a YoY basis, the revenue increased by 24 percent from Rs. 234 crores during Q3FY24 to Rs. 289 crores in Q3FY24. On a contrasting note, the net profits decreased by 10 percent from Rs. 49 crores to Rs. 44 crores during the same timeframe.
Since the inception of the year, Lemon Tree Hotels has signed 4 franchise agreements and 5 license agreements. These agreements demonstrate Lemon Tree Hotels’ strategic approach to growth through licensing and franchise arrangements that allow the company to expand its presence across different regions while leveraging its established brand identity.
The use of these agreements enables the company to scale its operations efficiently and enter new markets with established branding and operational standards and this reflects a strategic business model aimed at expanding its footprint and offering quality hospitality services in diverse locations.
Here are the total 9 contracts or agreements signed by Lemon Tree Hotels in FY24 for the acquisition of new property across India:
● On January 08, 2024, the company signed a Franchise Agreement for an upcoming hotel in Meerut, Uttar Pradesh under the company’s brand- ‘Lemon Tree Hotel’. This opening will be in addition to their six existing and three upcoming hotels and resorts in the state.
The hotel will feature 75 well-appointed rooms, restaurants, a fitness centre, a swimming pool, a spa, outdoor and indoor banqueting facilities, conference rooms and other public areas and is expected to be operational in FY25.
● On January 22, 2024, the company signed a Franchise Agreement for upcoming hotel in Anjar, Gujrat under the company’s brand- ‘Keys Select’. The hotel will feature 61 well-appointed rooms, a restaurant, a fitness centre, a lounge, banqueting facilities, meeting rooms and other public areas and is expected to be operational in FY 27.
● On January 25, 2024, the Company signed a Franchise Agreement for upcoming hotel in Motihari, Bihar under the company’s brand ‘Lemon Tree Hotel’, and this hotel will feature 50 well-appointed rooms, a restaurant, a fitness centre, a lounge, a banquet hall, a meeting room, a swimming pool, a bar, a spa and other public areas and is expected to be operational in FY25.
● On February 12, 2024, the company signed a License Agreement for the upcoming hotel in Marpalle, Vikarabad District, Telangana under the company’s brand ‘– Lemon Tree Resort’. This hotel will be spread over 5 acres and have 50 rooms including 14 villas of which 5 would be water villas. Furthermore, it will have large lawns to cater to destination weddings and is expected to be operational in FY27.
● On February 13, 2024, the company signed a License Agreement for the upcoming hotel in Noida under the company’s brand ‘Lemon Tree Hotel’. Moreover, Lemon Tree Hotels is expanding its portfolio in Uttar Pradesh and this opening will be in addition to six existing and four upcoming properties in the state
This hotel will feature 40 well-appointed rooms, a restaurant, a bar, a banquet hall, meeting rooms, and other public areas and is expected to be operational in FY25.
● On February 26, 2024, the company signed a License Agreement for Lemon Tree Resort in Sankhwas Garh, Rajasthan and Keys Lite in Vijayawada. Both properties are expected to open in FY26 and shall be managed by Carnation Hotels Private Limited, a wholly-owned subsidiary and the management arm of Lemon Tree Hotels Limited.
● On February 29, 2024, the company announced the signing of a License Agreement for Keys Lite by Lemon Tree Hotels in Vadodara, Gujrat. The property is expected to open in FY25 and shall be managed by Carnation Hotels Private Limited, a wholly-owned subsidiary.
From this, Lemon Tree Hotels is expanding its portfolio in Gujarat and this opening will be in addition to six existing and six upcoming properties in the state which has several tourist attractions that showcase its historical and religious significance.
● On March 01, 2024, the company has signed a Franchise Agreement for upcoming hotel in Udaipur, Rajasthan under the company’s brand- ‘Keys Lite’. This will be the third property of Lemon Tree Hotels in the city besides one operational property and an upcoming property.
The hotel will feature 68 well-appointed rooms, a restaurant and other public areas and is expected to be operational in FY25.
● In addition to this on March 08, 2024, the company signed a License Agreement for the upcoming hotel in Coimbatore, Tamil Nadu under the company’s brand ‘Keys Lite by Lemon Tree Hotels’. This hotel will feature 40 well-appointed rooms, a restaurant and a meeting room and is expected to be operational in FY26 and will be operated by its wholly-owned subsidiary Carnation Hotels Private Limited.
Lemon Tree Hotels is the largest mid-priced and the third-largest overall hotel chain in India. It operates in the upscale segment and the mid-priced sector. The company has a portfolio of more than 150 hotels, which includes over 100 operational hotels and more than 50 hotels set to open in India and internationally.
Written By Vaibhav Patil
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