Lemon Tree Hotels Limited

rs 663,095

FY19 Cities Hotels 27 42 31 50 31 52 32 53 Rooms 4516 4999 5291 5342 Loyalty Members 663,095 835,732 889,080 908,726 5 Portfolio Breakup as on 31st January, 2019 # Of these owned 1,240 roo

rs,

ze pricing  Hotels at locations with high barrier-to-entry such as close to major business centers, airports etc.  International hotels- (Hotels/Rooms) Bhutan : 2 / 65 • • Kathmandu : 1/ 75 • Dubai

11%

onal hotels- (Hotels/Rooms) Bhutan : 2 / 65 • • Kathmandu : 1/ 75 • Dubai : 1/ 114 Jaipur: FY17 – 11% FY21E – 10% Ahmedabad: FY17 – 11% FY21E – 9% Mumbai: FY17 – NA FY21E – 17% Pune: FY17 – 5%

10%

(Hotels/Rooms) Bhutan : 2 / 65 • • Kathmandu : 1/ 75 • Dubai : 1/ 114 Jaipur: FY17 – 11% FY21E – 10% Ahmedabad: FY17 – 11% FY21E – 9% Mumbai: FY17 – NA FY21E – 17% Pune: FY17 – 5% FY21E – 9%

9%

Kathmandu : 1/ 75 • Dubai : 1/ 114 Jaipur: FY17 – 11% FY21E – 10% Ahmedabad: FY17 – 11% FY21E – 9% Mumbai: FY17 – NA FY21E – 17% Pune: FY17 – 5% FY21E – 9% Goa: FY17 – 4% FY21E – 4% Benga

17%

14 Jaipur: FY17 – 11% FY21E – 10% Ahmedabad: FY17 – 11% FY21E – 9% Mumbai: FY17 – NA FY21E – 17% Pune: FY17 – 5% FY21E – 9% Goa: FY17 – 4% FY21E – 4% Bengaluru: FY17 – 9% FY21E – 8% Sou

5%

11% FY21E – 10% Ahmedabad: FY17 – 11% FY21E – 9% Mumbai: FY17 – NA FY21E – 17% Pune: FY17 – 5% FY21E – 9% Goa: FY17 – 4% FY21E – 4% Bengaluru: FY17 – 9% FY21E – 8% Source : Horwath Repo

4%

FY17 – 11% FY21E – 9% Mumbai: FY17 – NA FY21E – 17% Pune: FY17 – 5% FY21E – 9% Goa: FY17 – 4% FY21E – 4% Bengaluru: FY17 – 9% FY21E – 8% Source : Horwath Report Note: For FY21E, share bas

8%

1E – 17% Pune: FY17 – 5% FY21E – 9% Goa: FY17 – 4% FY21E – 4% Bengaluru: FY17 – 9% FY21E – 8% Source : Horwath Report Note: For FY21E, share based on total rooms by end of FY21 and Horwath pr

14%

mid-priced sector supply in these markets Map updated as of 31st January , 2019 Delhi NCR: FY17 – 14% FY21E – 16% Kolkata: FY17 – NA FY21E – 8% Hyderabad: FY17 – 24% FY21E – 21% Chennai: FY17

16%

ctor supply in these markets Map updated as of 31st January , 2019 Delhi NCR: FY17 – 14% FY21E – 16% Kolkata: FY17 – NA FY21E – 8% Hyderabad: FY17 – 24% FY21E – 21% Chennai: FY17 – 5% FY21E –

24%

ary , 2019 Delhi NCR: FY17 – 14% FY21E – 16% Kolkata: FY17 – NA FY21E – 8% Hyderabad: FY17 – 24% FY21E – 21% Chennai: FY17 – 5% FY21E – 4% 7 Chairman & Managing Director’s Message Comment

“4) Full year numbers will be updated on annual basis.”

“Airport, Mumbai2 Total Type Owned Owned Owned Owned Owned Owned Expected Opening date Ownership (%) Apr-19 May-19 Oct-19 Oct-20 Dec-20 Mar-21 100.00% 57.98% 57.98% 100.00% 100.00% 57.98% Rooms 303 142 139 10 69 577 1,240  Total estimated project cost is Rs.”

“7,800 million will be deployed over the next 3 years in a phased manner, the majority of which will be through internal accruals Notes: 1) Expansion in existing hotel.”

“million) CAGR EBITDA & EBITDA margins 22% 3,680 4,121 4,843 2,217 2,904 FY14 FY15 FY16 FY17 FY18 EBITDA (Rs.”

“Full year numbers will be updated on annual basis.”

Note

1

Notes

1

Illustrative

1

Note

1) The results of this quarter and 9M are not indicative of full year’s performance due to seasonal nature of the business. 2) These performance results do not include LTP Pune and RFH Dehradun as these hotels were not operational for the full quarter 14 Operational Performance by Ageing – FY18 vs. FY17 Parameters Financial year Hotels Operating Rooms (year-end) Occupancy Rate (%) Average Daily Rate (Rs.) Hotel level EBITDAR2/room (Rs. million) Hotel level EBITDAR2 Margin (%) Hotel level ROCE*3 (%) FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17 Adult Hotels (Stable - older than 3 years) 21 Toddler Hotels (Stabilizing - between 1-3 years old) 3 Infant Hotels (New - less than 1 year old) 4 21 2,727 2,727 77.6% 77.5% 3,900 3,411 0.67 0.62 44% 43% 12% 11% 3 1281 1061 61.5% 51.6% 5,274 5,302 0.49 0.32 36% 32% 6% 6% - 422 - 66.0% - 3,422 - 0.15 - 15% - (1%) - Under-development hotels 7 1,525 Deep demand markets (high occupancies) 1.5x of Adult Hotels in that year* High

Notes

1) 22 rooms were added in Lemon Tree Wildlife resort, Bandhavgarh which were operational from November-2017 2) Hotel level EBITDAR measures hotel-level results before lease rentals, debt service, depreciation and corporate expenses of the owned/leased hotels, and is a key measure of company’s profitability 3) Hotel level RoCE is calculated as : (Hotel level EBITDAR - lease rentals)/Capital deployed for operational owned & leased hotels. 4) Full year numbers will be updated on annual basis. * Post stabilization. 15 Expansion Plans – Hotels under Development Under-development hotels Lemon Tree Premier, Andheri (East), Mumbai Lemon Tree Premier, Kolkata Lemon Tree Premier, Udaipur Lemon Tree Vembanad Lake Resort, Alleppey, Kerela1 Lemon Tree Mountain Resort, Shimla Lemon Tree Premier, Intl. Airport, Mumbai2 Total Type Owned Owned Owned Owned Owned Owned Expected Opening date Ownership (%) Apr-19 May-19 Oct-19 Oct-20 Dec-20 Mar-21 100.00% 57.98% 57.98% 100.00% 100.00% 57.98% Rooms 303 142

Illustrative

15 Room Hotel with Investment = 300 Cycle Occupancy Rooms Sold Average Daily Rate Revenue Expenses EBITDA Hotel RoCE Sustainable Debt:Equity Coverage Top (2) 70% or more 12 13 156 60 96 32% Full Debt Middle (3) 63-68% 10 10 100 50 50 17% 1:1 Bottom (2) 60% or less 8 7 56 40 16 5% No Debt Note: Hotel RoCE is calculated as Hotel level EBITDA/Capital deployed for operational hotels. Occupancy 70% 65% 60% 6:3:1 22 Indian hotel industry is at an inflection point Slowing supply and rising demand is expected to increase occupancy and ADR Occupancy (%) Rooms demand per day ('000) Rooms supply per day ('000) Demand  10.8% Supply  14.9% Demand  15.1% Supply  15.1% Demand  13.7% Supply  8.4% Demand  12.5% Supply  8.0% 73% 71% 68% 76% O c c u p a n c y 59% 59% 60% 58% 57% 58% 59% 65% 63% s 0 0 0 ‘ n i s m o o r f o . o N 200 150 100 69% 68% 50 0 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Source : Horwath Report 23 Increasing occupancy leading to increase in