Synopsis:
Lemon Tree Hotels has signed two new properties in Maharashtra, expanding its presence in Navi Mumbai and Jalgaon. Backed by solid financial growth, reduced debt, and good returns, the company continues to scale rapidly
A leading name in India’s hospitality space is expanding its presence in Maharashtra, reinforcing its focus on high-growth, high-demand destinations. With two new hotel signings, the company continues to deepen its footprint in the state
The company in focus is Lemon Tree Hotels Ltd, currently having a market capitalization of Rs. 12,252 crore. The stock opened at Rs. 156.32, slightly lower than its previous close of Rs. 158.11, and touched an intraday high of Rs. 158.30.
What’s the news?
Lemon Tree Hotels has announced the signing of two new properties in Maharashtra: Lemon Tree Premier, Navi Mumbai and Lemon Tree Hotel, Jalgaon. These hotels will be managed by its wholly owned subsidiary, Carnation Hotels Pvt. Ltd.
The Lemon Tree Premier, Navi Mumbai property will feature 67 rooms, along with a restaurant, banquet, meeting room, swimming pool, and fitness centre. Located just 24 km from Mumbai’s Chhatrapati Shivaji Maharaj International Airport and 21 km from Panvel Railway Station, it promises convenient access for both business and leisure travellers.
The Lemon Tree Hotel, Jalgaon hotel will house 100 rooms, a restaurant, banquet, spa, meeting facilities, a swimming pool, and a fitness center. It is located close to both Jalgaon Airport (4.3 km) and Jalgaon Railway Station (5.4 km), offering strong connectivity via public and private transport.
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Quoting Kapil Sharma, Executive VP – Finance & CFO:
“We are pleased to strengthen our presence in Maharashtra with the signing of these two new properties. These additions reinforce our growing footprint in the state, where we currently operate 14 hotels and have seven more under development. It also reflects our continued commitment to strategic expansion across key markets.”
Financially, Lemon Tree Hotels has shown solid performance. The company has reported a Return on Equity (ROE) of 18.4 percent, Return on Capital Employed (ROCE) of 12.7 percent, and maintains a Debt to Equity ratio of 1.85. Sales have increased from Rs. 1,071 crore in March 2024 to Rs. 1,286 crore in March 2025, backed by a compounded sales growth of 47 percent over three years.
The company has also delivered a 207 percent CAGR in profit over the last five years. Borrowings have reduced from Rs. 2,336 crore to Rs. 2,148 crore, indicating prudent debt management. Net cash flow increased from Rs. 10 crore to Rs. 22 crore, further strengthening liquidity.
Net profit grew from Rs. 182 crore in March 2024 to Rs. 243 crore in March 2025, reflecting a year on year increase of 33.5 percent. The company’s earnings per share (EPS) currently stands at Rs. 2.48, while the operating profit margin (OPM) remains strong at 49 percent.
Lemon Tree Hotels continues to expand its national footprint with an impressive portfolio of 212 hotels, comprising over 17,116 rooms spread across 130+ unique destinations. This includes both operational properties and those in the pipeline. The company also recently signed a franchise agreement for a Keys Lite-branded hotel in Kharar, Punjab, reflecting its broader expansion strategy across India’s growing urban centres.
Founded in 2004, Lemon Tree Hotels Ltd has become one of India’s largest hotel chains. With a portfolio of over 200 hotels. It operates across segments from luxury to economy under seven brands such as Aurika, Lemon Tree Premier, Red Fox, and Keys. The group is known for providing differentiated, value-driven hospitality.
Written by – Manan Gangwar
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