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LEMONTREE - Lemon Tree Hotel

📊 NSE: LEMONTREE 🏢 Hotels 📅 Last Updated: 12/14/2025 9:15

📢 Recent Corporate Announcements

Lemon Tree Hotels Signs 76-Room Property in Gorakhpur, Uttar Pradesh

🟢 POSITIVE ⭐ 7/10

EXPANSION 📅 09 Mar 2026, 07:26 PM

Lemon Tree Hotels has signed a license agreement for a new 76-room hotel in Gorakhpur, Uttar Pradesh, which will be managed by its subsidiary, Carnation Hotels. This signing increases the company's footprint in Uttar Pradesh to 26 hotels, with 8 currently operational and 18 in the pipeline. The property is strategically located near Gorakhpur's airport and railway station, catering to the growing demand for branded hospitality in Eastern UP. This expansion reflects the company's ongoing strategy to penetrate high-potential regional and transit hubs across India.

New 76-room hotel signed in Gorakhpur, Uttar Pradesh, under a license agreement.
Total portfolio in Uttar Pradesh reaches 26 hotels, including 18 upcoming properties.
Property will be managed by Carnation Hotels Private Limited, a 100% subsidiary.
Strategic location 14 km from Gorakhpur Airport and 8.5 km from the Railway Station.

💡 This expansion reinforces Lemon Tree's asset-light growth model and its focus on Tier II/III cities. Investors should maintain a positive outlook as the company scales its managed portfolio.

Lemon Tree Hotels Signs 49-Room Property in Barog; 10th Hotel in Himachal Pradesh

🟢 POSITIVE ⭐ 6/10

EXPANSION 📅 05 Mar 2026, 09:13 PM

Lemon Tree Hotels has signed a license agreement for a new 49-room hotel in Barog, Himachal Pradesh, to be managed by its subsidiary Carnation Hotels. This marks the company's 10th property in the state, where it currently has 4 operational hotels and 6 under development. The property is strategically located near Chandigarh and Kalka to attract leisure travelers and corporate events. This expansion aligns with Lemon Tree's asset-light growth model and focus on high-potential leisure micro-markets.

Signed a license agreement for a 49-room hotel in Barog, Himachal Pradesh
Marks the 10th property in Himachal Pradesh, with 4 currently operational and 6 under development
Property to be managed by Carnation Hotels Private Limited, a wholly-owned subsidiary
Strategically located 64 km from Chandigarh Airport and 32 km from Kalka Railway Station
Lemon Tree's total pipeline now includes 130+ upcoming properties globally

💡 Investors should view this as a steady execution of the company's asset-light expansion strategy. Monitor the conversion of the development pipeline into operational rooms to drive future revenue growth.

Lemon Tree Hotels Signs New 55-Room Property in Akola, Maharashtra

🟢 POSITIVE ⭐ 6/10

EXPANSION 📅 27 Feb 2026, 07:01 PM

Lemon Tree Hotels has signed a license agreement for a new 55-room hotel in Akola, Maharashtra, under the 'Keys Prima' brand. The property will be managed by its wholly-owned subsidiary, Carnation Hotels Private Limited, following the company's asset-light growth strategy. This signing increases Lemon Tree's presence in Maharashtra to 28 hotels, consisting of 15 operational and 13 upcoming properties. The expansion targets Akola's growing status as a commercial and agricultural hub in the Vidarbha region.

New hotel signing in Akola, Maharashtra, featuring 55 well-appointed rooms and premium amenities.
Expands Maharashtra portfolio to a total of 28 hotels, with 13 currently in the pipeline.
Property to be managed by Carnation Hotels Private Limited, reinforcing an asset-light business model.
The hotel includes a restaurant, banquet hall, conference room, fitness center, swimming pool, and spa.
Lemon Tree's total portfolio now stands at 260+ properties, including 120+ operational hotels.

💡 Investors should note the company's continued focus on Tier II and III cities to capture regional business demand. The steady growth in the managed-property pipeline is a positive indicator for long-term margin improvement.

Lemon Tree Subsidiary Settles Property Tax Dispute via MCD SUNIYO Scheme

🟢 POSITIVE ⭐ 4/10

LEGAL 📅 20 Feb 2026, 09:44 PM

Lemon Tree Hotels' subsidiary, Hyacinth Hotels Private Limited, has successfully resolved a property tax assessment dispute with the Municipal Corporation of Delhi (MCD). The subsidiary opted for the SUNIYO Scheme, a tax settlement initiative, and deposited the required property tax amount. Consequently, the Hon’ble High Court of Delhi permitted the withdrawal of the pending appeal on February 18, 2026. This settlement brings closure to a litigation matter previously disclosed in September 2025, reducing legal uncertainty for the company.

Subsidiary Hyacinth Hotels Private Limited settles property tax litigation with MCD.
Company utilized the SUNIYO Scheme to deposit tax and resolve the assessment order.
Delhi High Court permitted the withdrawal of the appeal on February 18, 2026.
The resolution concludes legal proceedings that were ongoing since at least September 2025.

💡 Investors should view this as a positive administrative clearance that removes a legal contingency; no immediate portfolio changes are required based on this routine settlement.

Lemon Tree Hotels Releases Q3 FY26 Earnings Call Audio Recording

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 10 Feb 2026, 07:17 PM

Lemon Tree Hotels has officially released the audio recording of its Q3 FY26 earnings conference call held on February 10, 2026. The call focused on the company's unaudited financial results for the quarter and nine-month period ending December 31, 2025. This disclosure ensures transparency and provides all stakeholders access to management's detailed discussion on business performance. The recording is available on the company's investor relations website for public review.

Earnings call audio recording for Q3 FY26 is now available for public access via the company website.
The session addressed financial performance for the nine months ended December 31, 2025.
Filing complies with Regulation 30 of SEBI (LODR) Regulations, 2015.
The call was conducted on February 10, 2026, following the results announcement.

💡 Investors should listen to the recording to understand management's outlook on occupancy rates and RevPAR trends. This is a routine administrative update and does not require immediate action.

Lemon Tree Q3 FY26: Record Revenue of ₹407.8 Cr, Net Profit up 2% YoY to ₹81.8 Cr

🟢 POSITIVE ⭐ 8/10

EARNINGS 📅 06 Feb 2026, 11:17 PM

Lemon Tree Hotels reported its highest-ever quarterly revenue and EBITDA in Q3 FY26, with revenue growing 15% YoY to ₹407.8 Cr. While EBITDA margins contracted slightly by 133 bps to 50.6% due to renovation and GST impacts, the company saw an 11% YoY increase in Average Room Rate (ARR) to ₹7,487. Profit After Tax (PAT) grew by 2% to ₹81.8 Cr, impacted by a ₹31.3 Cr one-off exceptional item related to labor codes and taxes. The company continues its aggressive asset-light expansion, signing 17 new contracts and adding 1,855 rooms to its pipeline this quarter.

Record quarterly revenue of ₹407.8 Cr (up 15% YoY) and Net EBITDA of ₹206.4 Cr (up 12% YoY)
Average Room Rate (ARR) increased by 11% YoY to ₹7,487, driving a 9% growth in RevPAR to ₹5,494
Exceptional one-time expense of ₹31.3 Cr for labor code provisions and property taxes impacted PAT growth
Asset-light pipeline expanded significantly with 17 new management/franchise contracts adding 1,855 rooms
Total management fees grew to ₹48.2 Cr, with fees from third-party owned hotels increasing 24% YoY

💡 Investors should focus on the strong ARR growth and the strategic shift towards the high-margin Aurika brand. The temporary margin pressure from renovations and one-off costs is offset by record top-line performance and a robust expansion pipeline.

Lemon Tree Hotels Grants 99.16 Lakh Stock Appreciation Rights (SAR) Units to Employees

🟡 NEUTRAL ⭐ 4/10

MANAGEMENT 📅 06 Feb 2026, 10:39 PM

Lemon Tree Hotels has approved the grant of 99,16,000 Stock Appreciation Rights (SAR) units to eligible employees under its 2024 scheme. The SAR price is fixed at Rs. 129.37 per unit, reflecting the market price prior to the grant date. These units will vest after a minimum period of two years and can extend up to eight years, subject to performance milestones. The scheme is designed to align employee incentives with long-term shareholder value through the issuance of equity shares upon exercise.

Grant of 99,16,000 SAR Units to eligible employees under the LTHL SAR Scheme - 2024.
SAR Price set at Rs. 129.37 per unit based on the closing price prior to the grant date.
Vesting period starts after a minimum of 2 years and can extend up to 8 years from the scheme's effective date.
Vested units must be exercised within 1 year from the date of vesting.
Settlement will be made through the allotment of new equity shares based on the appreciation value at the time of exercise.

💡 This is a routine corporate action for employee retention and should be viewed as a long-term positive for organizational stability. Investors should note the potential for minor equity dilution in the future as these rights are exercised.

Lemon Tree Q3 Standalone Revenue Up 20% YoY; Net Profit Dips to ₹23.16 Cr on Exceptional Costs

🔵 WATCH ⭐ 8/10

EARNINGS 📅 06 Feb 2026, 10:13 PM

Lemon Tree Hotels reported a strong 19.6% YoY growth in standalone revenue to ₹124.62 crore for Q3 FY26, driven by seasonal demand. However, standalone Net Profit fell 18.7% YoY to ₹23.16 crore, primarily due to one-time exceptional charges totaling ₹18.78 crore. These charges include a ₹9.27 crore ex-gratia payment to employees and a ₹7.35 crore provision for the new Labour Code. The company also announced a major restructuring plan to separate its hotel ownership and management businesses into focused platforms.

Standalone Revenue from operations grew 19.6% YoY to ₹12,461.90 lakhs compared to ₹10,420.64 lakhs in Q3 FY25.
Standalone Net Profit stood at ₹2,315.76 lakhs, impacted by ₹1,877.53 lakhs in one-time exceptional items.
Exceptional costs include ₹926.91 lakhs for employee ex-gratia and ₹735.03 lakhs for new Labour Code compliance.
EBITDA (Profit before depreciation, finance cost, and tax) rose 16.2% YoY to ₹6,320.43 lakhs.
Board approved a Composite Scheme of Arrangement to segregate hotel ownership and management businesses into separate platforms.

💡 Investors should focus on the healthy 19.6% revenue growth and improved EBITDA, as the profit dip is primarily due to non-recurring exceptional items. The proposed restructuring to separate asset-heavy ownership from asset-light management could be a significant long-term value unlocker.

Lemon Tree Hotels Schedules Q3 & 9M FY26 Earnings Call for February 10, 2026

🟡 NEUTRAL ⭐ 4/10

EARNINGS 📅 05 Feb 2026, 06:23 PM

Lemon Tree Hotels (LTHL) has scheduled its earnings conference call for Q3 and 9M FY26 on February 10, 2026, at 4:00 PM IST. This follows the planned declaration of financial results on February 6, 2026. The company currently operates 130 hotels across 80+ cities and has an aggressive expansion strategy with a pipeline of 130 upcoming properties. The call will feature senior management discussing financial performance and future outlook followed by a Q&A session.

Earnings conference call set for February 10, 2026, at 4:00 PM IST.
Q3 and 9M FY26 financial results to be declared on February 6, 2026.
Company currently operates 130 hotels with a pipeline of 130 upcoming properties.
Portfolio includes 7 brands across upscale to economy segments in 80+ cities.

💡 Investors should monitor the financial results on February 6 for margin performance and use the February 10 call to seek clarity on the execution timeline of the 130-hotel pipeline.

Lemon Tree Hotels Appoints Vivek Jhawar as SVP - Business Development

🟡 NEUTRAL ⭐ 4/10

MANAGEMENT 📅 23 Jan 2026, 09:27 PM

Lemon Tree Hotels has appointed Mr. Vivek Jhawar as Senior Vice President – Business Development and Senior Management Personnel, effective January 23, 2026. Mr. Jhawar brings over 17 years of extensive experience in the retail and business development sectors, having worked with prominent organizations like Aditya Birla Fashion and Retail and Future Group. This strategic appointment is aimed at strengthening the company's expansion and growth initiatives. The hire aligns with the company's focus on scaling its portfolio through experienced leadership.

Appointment of Mr. Vivek Jhawar as SVP - Business Development effective January 23, 2026.
Mr. Jhawar possesses over 17 years of professional experience in retail and business development.
Previous leadership roles held at Aditya Birla Fashion and Retail, BIBA Apparels, and Future Group.
Educational background includes a PGDM from S.P. Jain Center of Management and B.Com (Hons) from University of Calcutta.

💡 No immediate action is required as this is a routine senior management appointment; however, investors should monitor if this leads to an accelerated pace of new hotel signings.

Lemon Tree to Demerge Asset-Light Business; Warburg Pincus to Invest ₹960 Cr in Fleur Hotels

🟢 POSITIVE ⭐ 9/10

M&A 📅 21 Jan 2026, 11:00 PM

Lemon Tree Hotels is implementing a Composite Scheme of Arrangement to separate its business into two distinct entities: an asset-light management company and an asset-heavy ownership platform (Fleur Hotels). Warburg Pincus has committed a primary capital infusion of ₹960 crores into Fleur Hotels to accelerate growth and acquisitions. Post-reorganization, Lemon Tree shareholders will effectively own approximately 74% of Fleur Hotels through a combination of direct and indirect holdings. The move aims to make Lemon Tree a debt-free, high-ROCE entity focused on management fees and digital services within 12-15 months.

Warburg Pincus to invest ₹960 crores in primary capital to fund Fleur Hotels' expansion.
Lemon Tree Hotels aims to become a debt-free, pure-play management company with high margins.
Fleur Hotels is currently in active discussions to acquire or develop over 2,500 additional rooms.
Existing shareholders will hold a 74% effective stake in Fleur (33% direct and 41% indirect via Lemon Tree).
The company currently operates 11,700 rooms with a total pipeline of approximately 10,000 rooms.

💡 Investors should maintain a positive outlook as the restructuring separates the high-growth management business from capital-intensive assets, likely leading to a valuation re-rating. Monitor the timeline of the demerger and the efficiency of capital deployment in the Fleur ownership platform.

Lemon Tree Hotels Signs 85-Room Premier Property in Omkareshwar, Madhya Pradesh

🟢 POSITIVE ⭐ 7/10

EXPANSION 📅 21 Jan 2026, 07:46 PM

Lemon Tree Hotels has signed a license agreement for a new 85-room 'Lemon Tree Premier' property in the pilgrimage destination of Omkareshwar, Madhya Pradesh. The hotel will be managed by its wholly-owned subsidiary, Carnation Hotels Private Limited, and is expected to feature a spa, swimming pool, and banquet facilities. This signing strengthens the company's presence in Madhya Pradesh, bringing its total portfolio in the state to 4 operational and 10 upcoming hotels. The move strategically targets the growing spiritual tourism segment in India.

New 85-room 'Lemon Tree Premier' property signed in the spiritual hub of Omkareshwar.
Property to be managed by Carnation Hotels Private Limited, a wholly-owned subsidiary.
Expands Madhya Pradesh portfolio to 4 operational and 10 upcoming properties.
Strategically located near one of the 12 Jyotirlingas to capture high-volume pilgrimage traffic.

💡 Investors should view this as a positive development in Lemon Tree's asset-light expansion strategy. The focus on spiritual tourism hubs like Omkareshwar is likely to provide steady occupancy rates and long-term revenue growth.

Lemon Tree Hotels Signs License Agreement for 48-Room Property in Chitrakoot, Uttar Pradesh

🟢 POSITIVE ⭐ 6/10

EXPANSION 📅 20 Jan 2026, 06:24 PM

Lemon Tree Hotels has signed a license agreement for a new 48-room property under the 'Keys Select' brand in Chitrakoot, Uttar Pradesh. The property will be managed by its wholly-owned subsidiary, Carnation Hotels Private Limited, targeting the religious and leisure tourism segment. This signing strengthens the company's presence in Uttar Pradesh, where it currently has 8 operational and 14 upcoming hotels. The hotel is strategically located 10 kms from Chitrakoot Airport and 5 kms from the railway station, enhancing its accessibility for travelers.

New 48-room 'Keys Select' property signed in the spiritually significant town of Chitrakoot.
Property to be managed by Carnation Hotels Private Limited, a wholly-owned subsidiary.
Expands Uttar Pradesh portfolio to 8 operational and 14 upcoming hotels.
Features include a restaurant, banquet hall, meeting room, fitness centre, and swimming pool.
Strategic location 10 kms from Chitrakoot Airport and 5 kms from Chitrakutdham Karwi Railway Station.

💡 Investors should note the company's continued focus on asset-light expansion through management and license agreements. The focus on religious tourism hubs like Chitrakoot aligns with current Indian travel trends and supports long-term revenue growth.

Lemon Tree Hotels Signs 120-Room Keys Select Property in Khurpatal, Uttarakhand

🟢 POSITIVE ⭐ 6/10

EXPANSION 📅 19 Jan 2026, 05:53 PM

Lemon Tree Hotels has signed a license agreement for a new 120-room property under the Keys Select brand in Khurpatal, Uttarakhand. The hotel will be managed by its wholly-owned subsidiary, Carnation Hotels Private Limited, and is expected to cater to leisure and spiritual travelers. This signing strengthens the company's footprint in Uttarakhand, where it currently has 9 operational and 10 upcoming hotels. The property features a restaurant, banquet hall, and recreational facilities including a spa and swimming pool.

New 120-room property signed under the Keys Select brand in Khurpatal, Uttarakhand.
Property to be managed by Carnation Hotels Private Limited, a wholly-owned subsidiary.
Expansion increases the company's Uttarakhand pipeline to 10 upcoming hotels alongside 9 operational ones.
Strategic location 36 kms from Kathgodam Railway Station and 70 kms from Pantnagar Airport.
The hotel will include a banquet hall, meeting room, spa, and fitness centre.

💡 Investors should note the company's continued focus on an asset-light managed-contract model which improves capital efficiency. This expansion into leisure destinations like Uttarakhand is likely to support long-term revenue growth and brand visibility.

Lemon Tree Hotels Issues Corrigendum for Typographical Error in Analyst Call Date

🟡 NEUTRAL ⭐ 1/10

ROUTINE 📅 16 Jan 2026, 08:43 PM

Lemon Tree Hotels Limited has issued a clarification regarding a clerical error in its previous regulatory filing dated January 15, 2026. The company noted that the date in the original announcement letter was inadvertently mentioned as January 15, 2025, instead of January 15, 2026. This correction specifically concerns the disclosure of the outcome of a conference call held with analysts and institutional investors. The company confirmed that all other contents of the original announcement remain unchanged and valid.

Correction of a typographical error in the date of a previous regulatory filing.
Original date mentioned as January 15, 2025, corrected to January 15, 2026.
The filing pertains to the outcome of a conference call with analysts and institutional investors.
No changes were made to the substantive content or financial details of the original announcement.

💡 No action is required from investors as this is a minor administrative correction. Investors should refer to the original January 15, 2026, filing for the actual details of the analyst conference call.

View All LEMONTREE Announcements on Live Market Tracking →

💰 Financial Performance

Revenue Growth by Segment

Owned hotels revenue grew 8% YoY to INR 293 Cr in Q2 FY26, representing 63% of total network revenue. Managed and franchised hotel network revenue grew 13% YoY to INR 174 Cr (37% of network). Management fees from third-party hotels rose 7% YoY to INR 14.3 Cr, while fees from Fleur Hotels increased 8% to INR 19.9 Cr.

Geographic Revenue Split

The company operates a pan-India portfolio across 73 cities. Significant revenue is concentrated in major metros including Delhi, Bangalore, and Hyderabad, where major renovations and rebranding (e.g., Red Fox Aerocity to Lemon Tree Hotel) are driving repricing and higher revenue capture.

Profitability Margins

Profit After Tax (PAT) margin improved to 18.9% in FY25 from 17.0% in FY24. For Q2 FY26, PAT stood at INR 41.9 Cr, up 20% YoY. Cash profit for Q2 FY26 was INR 76.3 Cr, a 9.2% YoY increase.

EBITDA Margin

Net EBITDA margin was 43.0% in Q2 FY26, down 306 bps YoY from 46.1% in Q2 FY25. This was primarily due to investments in renovation, technology, and one-time ex-gratia payments which together accounted for 8% of revenue. Margins are expected to expand as these costs reduce to 5% in FY27 and 2% by FY28.

Capital Expenditure

Planned maintenance and renovation capital expenditure is estimated at INR 60-70 Cr per annum over the next three fiscals (FY26-FY28).

Credit Rating & Borrowing

Credit rating improved from A to A+ (Positive outlook from ICRA/CRISIL). This upgrade reduced the average cost of borrowing by 96 bps YoY to 7.72% in Q2 FY26 compared to 8.68% in Q2 FY25.

⚙️ Operational Drivers

Raw Materials

Not applicable as a service provider; however, key operational costs include employee ex-gratia payments, technology investments, and renovation materials for hotel upgrades.

Capacity Expansion

Current operational capacity is 10,956 rooms across 121 hotels. The total pipeline includes 9,118 rooms, aiming for a total group inventory of 20,074 rooms across 242 hotels. A new 500-550 room Aurika hotel is planned for Nehru Place, New Delhi.

Raw Material Costs

Renovation, technology, and one-time employee payments accounted for 8% of Q2 FY26 revenue (approx. INR 24.5 Cr). Total expenses for Q2 FY26 were INR 175.6 Cr, up 14% YoY.

Manufacturing Efficiency

Occupancy stood at 69.8% in Q2 FY26 (up 139 bps YoY). Gross Average Room Rate (ARR) increased 6% YoY to INR 6,247, resulting in a RevPAR of INR 4,358 (up 8% YoY).

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Aggressive expansion of the management and franchise pipeline (currently 9,118 rooms). Rebranding lower-tier hotels to higher-tier brands (e.g., Red Fox to Lemon Tree Hotel) to drive RevPAR growth, as evidenced by a 47% RevPAR increase in a renovated Pune property. Focus on high-demand markets like New Delhi with the new Aurika project.

Products & Services

Hotel room stays, Food & Beverage (F&B) services, and hotel management/franchise services for third-party owners.

Brand Portfolio

Aurika Hotels & Resorts, Lemon Tree Premier, Lemon Tree Hotels, Red Fox by Lemon Tree Hotels, Keys Prima, Keys Select, and Keys Lite.

New Products/Services

Launch of Lemon Tree Suites, Gurugram (246 rooms) and the upcoming 500+ room Aurika in New Delhi.

Market Expansion

Expansion into northern India and major business hubs; signed 15 new contracts adding 1,138 rooms to the pipeline in Q2 FY26 alone.

Market Share & Ranking

Among the top three hotel chains in India by number of rooms.

Strategic Alliances

Management arm Carnation Hotels Private Limited manages properties for third-party asset owners; Fleur Hotels serves as a key internal management partner.

🌍 External Factors

Industry Trends

The industry is seeing a demand-supply mismatch in major metros favoring incumbents. Lemon Tree is positioning itself by upgrading existing assets to capture higher rates as supply growth remains minimal in prime locations.

Competitive Landscape

Competes with major domestic and international hotel chains in India; maintains competitive edge through a dominant mid-scale presence and rapid asset-light expansion.

Competitive Moat

Durable advantage through a diversified brand portfolio covering economy to upscale segments and a massive pan-India footprint (111+ hotels) which is difficult for new entrants to replicate quickly.

Macro Economic Sensitivity

Highly sensitive to domestic tourism trends and corporate travel demand; H1 FY26 demand was muted due to floods and geopolitical tensions.

Consumer Behavior

Shift toward branded mid-scale and upscale accommodation; company is responding by upgrading 'Keys' and 'Red Fox' properties to 'Lemon Tree' and 'Keys Prima' brands.

Geopolitical Risks

Geopolitical tensions cited as a headwind causing muted demand in the first half of FY26.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with hospitality standards and GST regulations; forward-looking risks include changes in tax laws and import duties.

Taxation Policy Impact

Tax expense for Q2 FY26 was INR 13.9 Cr, up 36% YoY. GST revisions in the hospitality sector were noted as a demand headwind in H1 FY26.

Legal Contingencies

Maintains 100% resolution rate for sexual harassment cases over the last four years; governance includes 67% independent directors.

⚠️ Risk Analysis

Key Uncertainties

Susceptibility to cyclicality in the hospitality industry and potential slower-than-expected ramp-up of new or renovated assets impacting short-term profitability.