Q2 2026 Lemon Tree Hotels Ltd Earnings Call Transcript
Key Points
- Lemon Tree Hotels Ltd (BOM:541233) recorded its highest ever Q2 revenue at 308 crores, an 8% increase compared to the previous year.
- The company completed significant renovations in key markets such as Delhi, Bangalore, and Hyderabad, which are expected to drive higher revenue.
- Lemon Tree Hotels Ltd (BOM:541233) improved its credit rating to A+ from A, reducing the cost of borrowings to 7.72% from 8.68% year-on-year.
- The company signed 15 new management and franchise contracts, adding 1,138 new rooms to its pipeline, indicating strong growth potential.
- Lemon Tree Hotels Ltd (BOM:541233) won a letter of award for a prime land in Nehru Place, New Delhi, for a large hotel project, providing a strategic advantage in a high-revenue location.
- Net EBITDA margin decreased by 306 basis points year-on-year, primarily due to increased investments in renovation and technology, and a one-time ex gratia payment to employees.
- The company faced muted demand in Q2 due to geopolitical tensions, floods, airplane accidents, and GST revisions.
- There were delays in the scheduled openings of management franchise hotels, impacting the pace of growth in management fees.
- Renovation expenses accounted for 8% of revenue this quarter, affecting short-term profitability.
- Occupancy in some markets like Gurgaon declined due to renovation-related room closures and muted demand from key corporate clients.
Ladies and gentlemen, good day and welcome to Lemon Tree Hotels Limited earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Anoop Poojari from CDR India. Thank you, and over to you, Mr. Poojari.
Thank you. Good afternoon, everyone, and thank you for joining us on Lemon Tree Hotels Q2 FY26 earnings conference call. We have with us Mr. Patanjali Keswani, Executive Chairman; Mr. Kapil Sharma, Executive Director and CFO; and Mr. Nikhil A. Indra Singh, Managing Director and CEO of the company.
We would like to begin the call with opening remarks from the management, following which we'll have the forum open for an interactive question and answer session. Before we start, I would like to point out that some statements made in today's call may be forward-looking in nature, and a disclaimer to this effect has been included in the earnings presentation that was shared with you earlier.
I would now
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