Lemon Tree Hotels Q4 Review - Notable Recovery: Dolat Capital

Reception area of a Lemon Tree Hotel in Delhi. (Source: Company website)

Lemon Tree Hotels Q4 Review - Notable Recovery: Dolat Capital

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Dolat Capital Report

Lemon Tree Hotels Ltd. Q4 FY21 witnessed a healthy occupancy recovery from 46.5% to 59.3% QoQ on operational inventory.

Average room rate was flat QoQ.

Occupancy recoveries in H2 FY21 pin hopes of revival in hotel industry to be sooner than expected, a key positive.

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

But, the average room rate recovery is likely only by FY24; especially in backdrop of second wave of Covid-19.

The company with its superior positioning in ~Rs 4,000-4,500 average room rate bracket in mid-market segment, high-dependency on domestic clients (~85-90%) and room revenues (~75%) is well-poised for recovery.

Click on the attachment to read the full report:

Dolat Capital Lemon Tree Q4FY21 Result Update.pdf

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