Lemon Tree Hotels Q1 Review - Muted Performance, Upbeat Outlook: Dolat Capital

A Lemon Tree Premiere Hotel in Bengaluru. (Source: Company website).

Lemon Tree Hotels Q1 Review - Muted Performance, Upbeat Outlook: Dolat Capital

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.

Dolat Capital Report

Lemon Tree Hotels Ltd.'s Q1 FY22 was disappointing.

Average room rate decline and flat occupancies YoY were key disappointments. Healthy recovery from July 2021 pin hopes of revival.

Management remains upbeat with Q2 FY22 performance to be similar to Q4 FY21 (220% of Q1 FY22), Q3 FY22 to be 75-80% and Q4 FY22 to be similar to pre-Covid-19.

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

Lemon Tree Hotels with its superior positioning in ~Rs 4000-5000 average room rate bracket in mid-market segment, high dependency on domestic clients (~85-90%) and room revenues (~75%) is well-poised for recovery especially as corporate travel revives.

Click on the attachment to read the full report:

Dolat Capital Lemon Tree Q1FY22 Result Updat.pdf

DISCLAIMER

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 author entity 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.