ICICI Securities: Lemon Tree Hotels Displays Resilience Amid Turbulence 
Guests sit in the lounge area a hotel. (Photographer: Krisztian Bocsi/Bloomberg)  

ICICI Securities: Lemon Tree Hotels Displays Resilience Amid Turbulence 

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

ICICI Securities Report

We believe Lemon Tree Hotels Ltd. is well poised to benefit from the expected recovery in the hotel business cycle from FY22E owing to its presence in the midscale and upper-midscale segments along with a higher share of domestic customers (85%).

The company’s cost-saving initiatives post-Covid-19 may drive a 500-700 basis points Ebitda margin improvement once demand normalises.

Liquidity concerns have been addressed with APG, its private equity partner, infusing Rs 1.75 billion in its subsidiary, Fleur, with an additional capital commitment of Rs 1.25 billion.

Click on the attachment to read the full report:

ICICI Securities Lemon Tree Hotel Initiating Coverage.pdf


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