LEMONTREENSEQ3 FY25February 11, 2025

Lemon Tree Hotels Limited

5,770words
13turns
1analyst exchanges
0executives
Key numbers — 40 extracted
5%
eswani My question is on the ARR growth of other brands, particularly Lemon Tree, which has seen 5% growth in the third quarter. And particularly for hotels outside metro cities, we have seen only 1
1%
% growth in the third quarter. And particularly for hotels outside metro cities, we have seen only 1% growth. Is this evidence to check that metro cities or business cities are doing significantly bet
50%
Now if I look at India, it's very simple to me. I don't like to draw comparisons with China, but 50% of India plus minus depends on agriculture, which is only 1/7th of our GDP. So, really to me, Indi
70%
two parts. One is the 50% agricultural and the 50% population, which is non-agricultural of which 70% lives in urban areas in the 160- 170 cities of 0.5 million plus population. So, this is where consu
0.5 million
population, which is non-agricultural of which 70% lives in urban areas in the 160- 170 cities of 0.5 million plus population. So, this is where consumption resides in India in my opinion. Hotel consumption,
2%
consumption resides in India in my opinion. Hotel consumption, well the truth be told, forms about 2% of Indian households, about 6 million households consume branded hotel room. If the GDP of India
6 million
my opinion. Hotel consumption, well the truth be told, forms about 2% of Indian households, about 6 million households consume branded hotel room. If the GDP of India grows by 6%-7% in real terms for the ne
6%
an households, about 6 million households consume branded hotel room. If the GDP of India grows by 6%-7% in real terms for the next 6-7 years, what will happen is the number of households who consumes
7%
households, about 6 million households consume branded hotel room. If the GDP of India grows by 6%-7% in real terms for the next 6-7 years, what will happen is the number of households who consumes lu
rs,
s consume branded hotel room. If the GDP of India grows by 6%-7% in real terms for the next 6-7 years, what will happen is the number of households who consumes luxury items would grow from 1 million- 1
1 million
6-7 years, what will happen is the number of households who consumes luxury items would grow from 1 million- 1.5 million to 6 million - 7 million and the number of mid-market households who will Ab
1.5 million
what will happen is the number of households who consumes luxury items would grow from 1 million- 1.5 million to 6 million - 7 million and the number of mid-market households who will Abhay Khaitan
Guidance — 14 items
P. Kshirsagar
qa
“You said that you expect in H2 the real stabilization, H2 of FY26, real stabilization of Aurika, Mumbai.”
P. Kshirsagar
qa
“Now, would Aurika, Mumbai come in the mid-market segment or comparing with the Navi Mumbai airport and what rates do you expect to be in Navi Mumbai airport region?”
P. Kshirsagar
qa
“Okay, so there will be demand near that airport for airline related business.”
P. Kshirsagar
qa
“The impact of Navi Mumbai on the Aerocity side which is where our hotel is and multiple other hotels are will be there temporarily as a blip.”
P. Kshirsagar
qa
“And I have no doubt this year it will be a larger number.”
P. Kshirsagar
qa
“But we are on that assumption, we are going forward to basically try and control that mid-market space in India.”
P. Kshirsagar
qa
“So, what am I saying, I am saying that if I expect that our rate of growth or RevPAR will be in the mid-teens, the rate of growth of our cost structure will be in the mid-single digits.”
P. Kshirsagar
qa
“So, therefore your revenue would be 115 and your cost will be 55 because that's gone up 5 and that's gone up 15.”
P. Kshirsagar
qa
“Then your management fee income we expect will double in the next 2 years.”
P. Kshirsagar
qa
“If you just add these numbers, I think we will be 60%.”
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Risks & concerns — 1 flagged
The impact of Navi Mumbai on the Aerocity side which is where our hotel is and multiple other hotels are will be there temporarily as a blip.
— P. Kshirsagar
Q&A — 1 exchanges
Q
Congratulations on an excellent set of numbers. I just wanted to ask you a bookkeeping question. What is the gross debt on standalone and consolidated basis and the net debt on the same? Kapil Sharma So, consol is Rs. 1,760 crores as of 31st December.
P. Kshirsagar
That's gross? Kapil Sharma Yes, gross. I am talking about gross only. And standalone is Rs. 300 crores. And net debt, if you can give us a figure? Kapil Sharma Rs. 70 crores less in the consolidated. My second question is on Aurika, Mumbai. You said that you expect in H2 the real stabilization, H2 of FY26, real stabilization of Aurika, Mumbai. But there was a question asked on the Navi Mumbai airport. Now, would Aurika, Mumbai come in the mid-market segment or comparing with the Navi Mumbai airport and what rates do you expect to be in Navi Mumbai airport region? Patanjali Keswani We have noth
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Speaking time
P. Kshirsagar
12
Moderator
1
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