Lemon Tree Hotels (LTHL) embarked on its journey in May 2004 with a modest 49-room establishment and has since evolved into a significant player in the hospitality sector, boasting a collection of over 190 hotels. This portfolio comprises more than 110 operational venues and upwards of 80 upcoming developments, both across India and internationally.
The latest addition to Lemon Tree Hotels is the Lemon Tree Resort in Mirik, West Bengal, which is slated to launch in FY 2028. The resort will be operated by Carnation Hotels Private Limited, a wholly-owned subsidiary of Lemon Tree Hotels Limited.
Set at an elevation of 1,768 meters, Mirik is a picturesque town celebrated for its verdant tea gardens, thick forests, and refreshingly cool climate, making it a popular destination throughout the year. At the heart of the town lies Sumendu Lake, where visitors can enjoy boating and picnicking, while the breathtaking Kanchenjunga mountain range presents spectacular views. Additional attractions, such as the Mirik Tea Garden, further enhance the town’s allure.
The resort will comprise 50 elegantly designed rooms, a restaurant, a bar, a meeting room, a banquet hall, a swimming pool, a fitness centre, and various other public facilities. It boasts excellent transport links, located roughly 55 km from Bagdogra Airport and 50 km from Siliguri Railway Station, with convenient access for both public and private transport.
Regarding the new development, Mr. Vilas Pawar, CEO—Managed & Franchise Business at Lemon Tree Hotels, expressed, “We are excited to announce our further expansion in West Bengal. This new facility will enhance our two established properties and one forthcoming property in the state, underscoring our commitment to providing outstanding hospitality and memorable experiences throughout the country.”
In the second quarter of FY25, Lemon Tree Hotels reported a net profit of ₹26.4 crore, with operational revenue increasing by 24% year-on-year to ₹284.4 crore. EBITDA rose by 25.6% to ₹130.8 crore, with an improvement in margins to 46%. The Gross Average Room Rate (ARR) climbed 12.2% year-on-year to ₹5,902, while occupancy reached 68.4%.
Cash profit increased by 42.5% compared to the previous year, reaching ₹69.8 crore, with management fees rising by 32% to ₹31.8 crore. Total expenses climbed to ₹153.6 crore, but the company managed to reduce its debt by ₹90 crore, underscoring improved financial performance and stability.
Lemon Tree Hotels Ltd. shares traded at ₹141.00 at 9:22 AM on the NSE.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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