Dolat Capital: Lemon Tree Hotels - Reward Likely To Outweigh Risk
Lemon Tree Premier Mumbai (image: Company website)

Dolat Capital: Lemon Tree Hotels - Reward Likely To Outweigh Risk

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

We initiate coverage on Lemon Tree Hotels Ltd. as a post-Covid-19 recovery play. The worst phase for the hotel industry is likely behind.

Revival may be gradual over 18-24 months to hit the historic 70-75% occupancies and Rs 4,000-plus average room rate for Lemon Tree Hotels.

But, operating performance to improve from hereon and cost rationalization benefits may be structural.

Low-inventory supply and consolidation are likely to be other benefits.

Lemon Tree Hotels is a leading hotel chain in mid-market segment (2.5 to 4-star) with healthy approximately 12% market share as of FY19.

Market share is set to expand to approximately 20% by FY23E.

Geographic diversification and improving mix of keys in demand dense higher average room rate markets to drive strong growth.

Click on the attachment to read the full report:

Dolat Capital Lemon Tree Hotel Initiating Coverage.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.