Lemon Tree Hotels (LTHL) is one of the largest hotel chains in India and owns/leases/operates/franchises hotels across the upscale, upper-midscale, midscale, and economy segments. The group offers seven brands to meet guests' needs across all levels, viz. Aurika Hotels & Resorts, Lemon Tree Premier, Lemon Tree Hotels, Red Fox Hotels by Lemon Tree Hotels, Keys Prima by Lemon Tree Hotels, Keys Select by Lemon Tree Hotels, and Keys Lite by Lemon Tree Hotels.
Lemon Tree Hotels has cemented its status as India's largest branded mid-market hotel chain, operating 111 hotels with 10,269 rooms across 73 locations. The company has strategically positioned itself to capture the growing hospitality market in India through a comprehensive brand portfolio that caters to different customer segments and price points.
Lemon Tree's asset-light approach, with 44% of its portfolio managed or franchised, allows for rapid, cost-effective expansion. The company's aggressive expansion is underpinned by a robust pipeline of 101 hotels (6,847 rooms), with 99 hotels (6,591 rooms) to be managed or franchised. This strategic focus on an asset-light model significantly reduces capital requirements while enabling faster market penetration.
Strategic focus on Tier II and III cities, as well as high-value leisure destinations, ensures Lemon Tree captures emerging demand in under-served markets. The company has been aggressively expanding its footprint with recent property signings across multiple states including Gujarat, Maharashtra, Punjab, and Assam, demonstrating its commitment to geographical diversification.
Lemon Tree Hotel has a market cap of ₹10,974 Crore (as of the search date), with revenue of ₹1,286 Crore and profit of ₹243 Crore. Lemon Tree Hotels Ltd has a market capitalization of ₹10,989 Crore.
- Sales rose 20.07% to ₹1,286.08 Crore in the year ended March 2025, as against ₹1,071.12 Crore during the previous year ended March 2024.
- For the full year, net profit rose 32.39% to ₹196.58 Crore in the year ended March 2025, as against ₹148.49 Crore during the previous year ended March 2024.
- The company reported a 26.37% jump in consolidated net profit to ₹84.64 Crore, while revenue from operations rose 15.64% to ₹378.51 Crore in Q4 March 2025 over Q4 March 2024.
- Lemon Tree Hotels' consolidated net profit jumped 32.79% to ₹35.03 Crore on 23.96% increase in revenue from operations to ₹284.36 Crore in Q2 FY25 over Q2 FY24.
- EBITDA stood at ₹131.2 Crore in Q2 FY25, up 25.19% as compared with ₹104.8 Crore posted in corresponding quarter last year. EBITDA margin stood at 46.1% in Q2 FY25 as against 45.5% in Q2 FY24.
The company has demonstrated strong operational performance with improving key hospitality metrics. During the quarter, gross ARR (average revenue per room) increased 12.03% YoY to ₹5,902 Crore, while occupancy rate declined to 68.4% in Q2 FY25 as against 71.7% in Q2 FY24. Despite a slight decline in occupancy, RevPAR (revenue per available room) jumped 7% to ₹4,035 Crore in Q2 FY25 as compared with ₹3,770 Crore in Q2 FY24.
During the quarter, we signed 19 new management & franchise contracts which added 1,373 new rooms to our pipeline and operationalized 5 hotels which added 193 rooms to our portfolio. As of September 30, 2024, the inventory for the group stands at 112 operational hotels with 10,318 rooms, and a pipeline of 75 hotels with 5,220 rooms.
Lemon Tree is investing ₹120-150 Crore in FY26 for portfolio renovation, with a focus on upscaling through the Aurika brand. The company is also planning a demerger, with Fleur to become the asset-holding entity and Lemon Tree focusing on brand, technology, and management platforms—furthering its asset-light ambitions.
The relaunch of the Infinity 2 loyalty program and website upgrades are expected to boost retail demand, targeting a rise in retail bookings from 45% in FY25 to 66% by CY28.
India's hospitality sector is experiencing a pronounced demand-supply imbalance, creating a fertile environment for expansion. The country's burgeoning middle class, rising disposable incomes, and government-led infrastructure initiatives are catalyzing a surge in both domestic and foreign tourism. Notably, domestic tourist visits are projected to grow at a 13.4% CAGR from 2.8 billion in 2024 to 6.0 billion in 2030, while foreign tourist arrivals are expected to rise at a 7.1% CAGR.
Promoter holding in Lemon Tree Hotels Ltd has gone down to 22.49% as of March 2025 from 22.80% as of June 2024. 93.75% of analysts recommend a 'BUY' rating for Lemon Tree Hotels. Lemon Tree Hotels target price ₹173.12, a slight upside of 22.85% compared to current price of ₹141.52.
The strong financial performance, strategic expansion plans, and favorable market conditions position Lemon Tree Hotels as a compelling investment opportunity in India's growing hospitality sector. The company's asset-light model and focus on underserved markets provide a sustainable competitive advantage in capturing the anticipated growth in domestic and international tourism.
