This S&P BSE 500 stock is India’s largest hospitality chain and has a market cap of Rs. 9,609 crore and rose over 1.6% within the first hour of markets open with volumes that are over 1x previous session’s and 0.5x monthly average volumes.
The stock gained after a new Franchise Agreement. The stock trades 5% away from its 52 week high and has a high FII holding of 26%.
In a filing dated 17th October 2023, Lemon Tree Hotels Ltd (‘Lemon Tree Hotels”) announced that the Company has signed a Franchise Agreement for an upcoming hotel in Vadodara, Gujarat under the Company’s brands –
‘Keys Select by Lemon Tree Hotels. The hotel will feature 45 well appointed rooms, a restaurant, a banquet hall, a meeting room, a fitness center, a lounge and other public areas and is expected to be operational in FY26.
The Vadodara airport is about 10 kms from the property while the Vadodara Junction Railway Station is just 4 kms away.
Speaking on the occasion, Mr. Kapil Sharma, Executive Vice President Chief Finance Officer, Lemon Tree Hotels commented, “We are pleased to expand our presence in Gujarat with our valued partner Gajananay Hospitality, a Partnership Firm.
This will be in addition to our 6 existing and 5 upcoming hotels and resorts in the state and we are planning to expand our footprint in Gujarat further.”
In another filing dated 16th October 2023, the company informed that the Company has signed a License Agreement for a 55 rooms property in Dehradun, Uttarakhand under the Company’s brand “Keys Prima by Lemon Tree Hotels”.
The hotel is expected to be operational by FY 2027. This hotel will feature 55 well appointed rooms, a restaurant, a bar, a banquet hall, meeting rooms and other public areas. Carnation Hotels Private Limited, a wholly owned subsidiary and the hotel management arm of the Company will be operating this hotel.
The Jolly Grant Airport, Dehradun is about 40 kms from the property while the Dehradun Railway Station is just 13 kms away.
Speaking on the occasion, Mr. Vikramjit Singh, President, Lemon Tree Hotels commented, “We are thrilled to announce the expansion of our portfolio in Dehradun, Uttarakhand with our valued partner M/s Doon Dwelling LLP.
This opening will be in addition to our eight existing and five upcoming hotels and resorts in the state and we are looking to expand our footprint in Uttarakhand further. Dehradun is not just a leisure destination but emerging as an important business destination.”
Lemon Tree Hotels is India’s largest hotel chain in the mid-priced hotel sector, and the third largest overall, on the basis of controlling interest in owned and leased rooms.
It operates in the upscale segment and in the mid-priced sector, consisting of the upper-midscale, midscale and economy segments. It delivers differentiated yet superior service offerings, with a value-for-money proposition.
The company’s revenue increased by 117.53 % from 402.24 crore in FY22 to 874.99 crore in FY23, accompanied by a decreasing loss of 137.36 crore to profit of 140.54 Cr.
Written by Sandeep R
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
