Lemon Tree Hotels Limited

11x

61 4,458 1,895 15,052 62,107 6,97,710 33,715 35,490 8,12,110 11,30,570 46,137 11,89,909 11x 24x 32x 26x Lemon Tree has pioneered correction of branded supply to move away from inverted py

24x

,458 1,895 15,052 62,107 6,97,710 33,715 35,490 8,12,110 11,30,570 46,137 11,89,909 11x 24x 32x 26x Lemon Tree has pioneered correction of branded supply to move away from inverted pyramid

32x

1,895 15,052 62,107 6,97,710 33,715 35,490 8,12,110 11,30,570 46,137 11,89,909 11x 24x 32x 26x Lemon Tree has pioneered correction of branded supply to move away from inverted pyramid Sou

26x

5 15,052 62,107 6,97,710 33,715 35,490 8,12,110 11,30,570 46,137 11,89,909 11x 24x 32x 26x Lemon Tree has pioneered correction of branded supply to move away from inverted pyramid Source:

0.9%

anding under Lemon Tree) ~15,00,000 (suitable for branding under Keys) 863 2,556 6,444 9,863 0.9% 7.2% 14.0% 5.6% Our Aim is to Consolidate i.e. Target the unbranded ~1.8 Million** rooms and br

7.2%

under Lemon Tree) ~15,00,000 (suitable for branding under Keys) 863 2,556 6,444 9,863 0.9% 7.2% 14.0% 5.6% Our Aim is to Consolidate i.e. Target the unbranded ~1.8 Million** rooms and bring th

14.0%

Lemon Tree) ~15,00,000 (suitable for branding under Keys) 863 2,556 6,444 9,863 0.9% 7.2% 14.0% 5.6% Our Aim is to Consolidate i.e. Target the unbranded ~1.8 Million** rooms and bring them into

5.6%

Tree) ~15,00,000 (suitable for branding under Keys) 863 2,556 6,444 9,863 0.9% 7.2% 14.0% 5.6% Our Aim is to Consolidate i.e. Target the unbranded ~1.8 Million** rooms and bring them into the b

1.8 Million

2,556 6,444 9,863 0.9% 7.2% 14.0% 5.6% Our Aim is to Consolidate i.e. Target the unbranded ~1.8 Million** rooms and bring them into the branded space Source : *Hotelivate - India Hotel Market Review 202

6%

supply will provide tailwinds Segment disruptor & Largest mid market hotel chain: Lemon Tree has ~6% of the total branded inventory and segment disruptor in mid market segment Highest EBITDA in the

51.9%

Process efficiencies have helped Lemon Tree maintain highest margin EBITDA margin in the industry (51.9% in FY23 and 49.1% in FY24) Presence across the value chain: Lemon Tree operates across the entire

49.1%

es have helped Lemon Tree maintain highest margin EBITDA margin in the industry (51.9% in FY23 and 49.1% in FY24) Presence across the value chain: Lemon Tree operates across the entire value chain of hot

“New cities drive business for other cities * Rooms Network = Operational rooms + Rooms in pipeline **Hotels = Operational hotels + Hotels in pipeline Lemon Tree 2.0: Strategic levers (2 on 5) Digital Transformation Build on Retail Bionic Pricing & Revenue Management 65% retail share target”

“Cr) 184.8 30% YoY 184.8 41% QoQ 141.9 131.2 Q3 FY25 Q3 FY24 Q3 FY25 Q2 FY25 Q3 FY25 Q3 FY24 Q3 FY25 Q2 FY25 EBITDA Margin (%) 51.9% 316 Bps YoY 51.9% 588 Bps QoQ 48.8% 46.1% Cash profit (Rs.”

“Cr) 114.9 69.8 54.7 117.4 77.1 49.0 50.3 82.5 72.1 44.4 38.1 Current quarter Total Management Fees | Q3 FY25 vs Q3 FY24 18.4 14.9 + 25.3 17.4 = 43.7 32.3 Management / Franchise fees from 3rd party hotels Management Fees from Fleur Hotels Total Management Fees Q3 FY25 Q3 FY24 Fees to Lemon Tree Hotels (Rs.”

“Cr) Q3 FY25 Q3 FY24 Management / Franchise Fees from 3rd party owned hotels Management Fees from Fleur Hotels Total Management Fees 18.4 25.3 43.7 14.9 17.4 32.3 % 24% 45% 35% Total Management Fees | 9M FY25 vs 9M FY24 44.3 35.7 60.3 + 44.5 = 104.5 80.2 Management / Franchise fees from 3rd party hotels Management Fees from Fleur Hotels Total Management Fees 9M FY25 9M FY24 Fees to Lemon Tree Hotels (Rs.”

“Lacs)** Q3 FY24 3.07 3.73 2.66 2.12 0.80 Change (%) 107% 17% 4% 17% 13% Q3 FY25 6.34 4.37 2.76 2.48 0.90 Hotel level EBITDAR Margin %** Q3 FY25 64% 60% 52% 60% 38% Q3 Change FY24 (bps) 757 57% 215 58% -137 53% 82 59% 3 38% Parameters RevPAR (Rs.) Occupancy Rate (%) Average Daily Rate (Rs.) Hotel level EBITDAR/room/qtr.”

“64.9 (3.0) Q3 FY25 vs Q3 FY24: Change in Consolidated P&L items to explain delta (Rs.”

“Cash Profit Incremental (for revenue) / Delta (for expenses) Cash Profit = PAT + Depreciation Consolidated P&L: 9M FY25 vs 9M FY24 909.0 (53.2) (161.4) (67.6) Total Rev.”

“RMC Payroll HLP 9M FY25 Consolidated P&L Waterfall – Revenue to Cash Profit (Rs.”

“163.4 (11.0) 9M FY25 vs 9M FY24: Change in Consolidated P&L items to explain delta (Rs.”

“Cash Profit Incremental (for revenue) / Delta (for expenses) Cash Profit = PAT + Depreciation Cost Structure: Q3 FY25 vs Q3 FY24 * Expenses as a percentage of total revenue Down 316 bps 51.2% 48.1% Down 99 bps 15.9% 16.8% Down 20 bps 5.5% 5.7% Down 82 bps 6.0% 6.9% Down 115 bps 20.6% 21.8% Payroll expenses* F&B/Raw Material expenses* Power & Fuel expenses* Other Expenses* Total Expenses* Q3 FY25 Q3 FY24 Lemon Tree Consolidated Profit & Loss Statement – Q3 FY25 Rs.”

Source

1

Pan-India hotel presence

1

High Awareness

1

Next Gen Sales

1

Rewards Program

1

Personalization

1

Best in Class

1

Large network of owned hotels

1

Capital Institute

1

Source

*Hotelivate - India Hotel Market Review 2022 and as of December 31 of that year **MinistryofTourism,Govt.ofIndia Roadmap for next 5 years Why Lemon Tree is poised to win in the next decade? Strong growth outlook: Key upcoming properties & asset light model will pave aggressive growth; Strong growth forecast for India with demand outpacing supply will provide tailwinds Segment disruptor & Largest mid market hotel chain: Lemon Tree has ~6% of the total branded inventory and segment disruptor in mid market segment Highest EBITDA in the industry: Process efficiencies have helped Lemon Tree maintain highest margin EBITDA margin in the industry (51.9% in FY23 and 49.1% in FY24) Presence across the value chain: Lemon Tree operates across the entire value chain of hotel industry: Build, Operate, Manage/Franchise Investing for the future (ESG & Digital Transformation): Digital transformation and ESG to be a key element of expansion in owned, managed and franchised portfolio Lemon Tree 2.0: Road

High Awareness

New cities drive business for other cities * Rooms Network = Operational rooms + Rooms in pipeline **Hotels = Operational hotels + Hotels in pipeline Lemon Tree 2.0: Strategic levers (2 on 5) Digital Transformation Build on Retail Bionic Pricing & Revenue Management 65% retail share target

Next Gen Sales

Data driven sales recommendations Dynamic & Market driven pricing Data Driven decision making across functions & processes Increased Referrals & better traction Scalable & flexible tech stack for faster integration Stronger MOAT and higher returns through retail Lemon Tree 2.0: Strategic levers (3 on 5) Nourish Loyalty Operate Lean

Personalization

Improved customer experience Smart operations: Real-time cost control towers Traffic assurance for new expanded network

Best in Class

Cost structure & manning ratio Lemon Tree 2.0: Strategic levers (4 on 5) Capital recycling of owned network

Large network of owned hotels

41 operational hotels with 5k+ rooms, 1 hotel with 69 rooms in pipeline ~40% of total capital employed, operationalized in just the last 3 years High ROCE & Cash flow: Owned hotels, once stabilized, show high returns due to ~8% annual increase in replacement cost(excl. land) Ability to monetize/unlock cash: Diluting ownership in the owned portfolio (while retaining majority shareholding) through public markets / strategic investors will help to monetize/unlock cash Lemon Tree 2.0: Strategic levers (5 on 5) Simplifying group structure Current group structure Lemon Tree Hotels Brand Owner + Asset Owner + Operator As of FY24#, owns (directly/through 100% subsidiaries) & operates 17 hotels, 1.7k+ rooms By/before CY28, propose to transfer all 100% owned assets to Fleur to recycle capital Management and Brand Fees Fleur Hotels Pvt Ltd 58.91% subsidiary Asset Owner As of FY24#, owns 24 hotels, 4.0k+ rooms, with APG as strategic partner (41.09% shareholding) Aurika, Mumbai SkyCity operationali