Lemon Tree Hotels Expands Footprint with New Property in Mahoba, Uttar Pradesh

Lemon Tree Hotels Limited , one of India's leading mid-scale and premium hotel chains, has announced a significant expansion of its presence in Uttar Pradesh. The company has signed a new property agreement for 'Keys Select by Lemon Tree Hotels' in Mahoba, further strengthening its position in the state's hospitality sector.

Key Highlights of the New Property

Feature	Details
Location	Mahoba, Uttar Pradesh
Brand	Keys Select by Lemon Tree Hotels
Room Count	52 well-appointed rooms
Amenities	Restaurant, banquet hall, conference hall, swimming pool, fitness center
Management	Carnation Hotels Private Limited (wholly-owned subsidiary of Lemon Tree Hotels Limited)

Strategic Expansion in Uttar Pradesh

This new agreement marks an important step in Lemon Tree Hotels' growth strategy within Uttar Pradesh. The company's portfolio in the state now includes:

8 operational properties
13 upcoming properties
The newly signed Mahoba property

Mahoba: A Blend of History and Modernity

Mahoba, located in the Bundelkhand region of Uttar Pradesh, offers a unique mix of historical significance and modern development:

Home to 9th-century granite Sun Temple and rock-cut Jain Tirthankaras
Attractions include Kirat Sagar and Madan Sagar lakes
Rich in mythology and martial legacy, celebrated in ballads of warrior-brothers Alha and Udal
Serves as the district headquarters, catering to both business and leisure travelers

Connectivity

The new property boasts strategic connectivity:

Approximately 75 km from Khajuraho Airport
About 5 km from Mahoba Railway Junction
Well-connected by roadways for public and private transport

Management's Perspective

Vilas Pawar, CEO - Managed & Franchise Business, Lemon Tree Hotels, commented on the signing: "With this signing, we will expand our leisure and business portfolio in Uttar Pradesh, a state where we have eight operational and 13 upcoming properties in addition to this one. The state, with its booming commerce, distinct culture and testament to India's rich heritage, is the perfect destination for hospitality."

Company Overview

Lemon Tree Hotels Limited continues to solidify its position as a leading player in India's hospitality sector:

Operates 120+ hotels across 80+ cities in India and abroad
Pipeline of 120+ upcoming properties
Presence across various segments including upper upscale, upscale, upper midscale, midscale, leisure, wildlife, and spiritual
International presence in Dubai, Bhutan, and Nepal

This expansion in Mahoba aligns with Lemon Tree Hotels' vision of offering refreshing and comfortable stays across diverse destinations, catering to both business and leisure travelers seeking quality accommodations in emerging markets.

As the company continues its growth trajectory, this new property in Uttar Pradesh represents another step towards establishing a stronger foothold in key Indian markets, potentially contributing to increased market share and revenue growth in the coming years.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.86%	-3.80%	-3.16%	+12.30%	+28.55%	+411.50%

Lemon Tree Hotels Limited , a leading player in the Indian hospitality sector, has announced its financial results for the second quarter of fiscal year 2026, demonstrating resilience in a challenging market environment.

Key Financial Highlights

For the quarter ended September 30, 2025, Lemon Tree Hotels reported:

Total revenue of Rs. 308.00 crore, up 8% year-on-year from Rs. 284.80 crore in Q2 FY25
Net EBITDA of Rs. 132.40 crore, a marginal increase of 1% from Rs. 131.20 crore in the same quarter last year
Net profit after tax of Rs. 41.90 crore, showing a significant 20% growth compared to Rs. 35.00 crore in Q2 FY25
Cash profit stood at Rs. 76.30 crore, up 9% from Rs. 69.80 crore in the corresponding quarter of the previous fiscal year

Operational Performance

The company's operational metrics for Q2 FY26 showed mixed results:

Metric	Q2 FY26	Q2 FY25	Change
Gross Average Room Rate (ARR)	Rs. 6,247	Rs. 5,902	+6%
Occupancy rate	69.80%	68.40%	+139 bps
Revenue Per Available Room (RevPAR)	Rs. 4,358	Rs. 4,035	+8%

Segment Performance

The company's portfolio, spanning various brands and regions, showed diverse performance:

Aurika Hotels & Resorts segment reported the highest RevPAR growth of 32% year-on-year
Lemon Tree Premier saw a 6% increase in RevPAR
The midscale Lemon Tree Hotels brand experienced a slight decline of 4% in RevPAR

Balance Sheet and Debt Position

As of September 30, 2025:

The company's gross debt stood at Rs. 1,610.20 crore, down from Rs. 1,822.60 crore a year ago
The debt-to-equity ratio improved to 0.86x from 1.14x in the previous year
Average cost of borrowing decreased to 7.72% from 8.68% in Q2 FY25

Expansion Plans

Lemon Tree Hotels continues to focus on expansion:

The company signed 15 new management and franchise contracts in Q2, adding 1,138 rooms to its pipeline
Five new hotels were operationalized, contributing 272 rooms to the operational portfolio

Outlook

While the company did not provide specific forward-looking statements, the continued expansion and improvement in key financial metrics suggest a cautiously optimistic outlook for Lemon Tree Hotels. The hospitality sector's recovery and the company's strategic initiatives will likely play crucial roles in its future performance.

Investors and stakeholders should note that the hospitality industry remains subject to various external factors, including economic conditions, travel trends, and potential disruptions, which may impact future results.