Lemon Tree Hotels Reports 8% Revenue Growth in Q2 FY26, Maintains Steady Performance

2 min read     Updated on 13 Nov 2025, 10:01 AM
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Reviewed by
Jubin VergheseScanX News Team
Overview

Lemon Tree Hotels Limited announced its Q2 FY26 results, showing resilience in a challenging market. Total revenue increased by 8% to Rs. 308.00 crore, while net profit after tax grew significantly by 20% to Rs. 41.90 crore. The company's operational metrics improved, with occupancy rate rising to 69.80% and RevPAR increasing by 8% to Rs. 4,358. Lemon Tree Hotels continued its expansion, signing 15 new management and franchise contracts and operationalizing five new hotels. The company's debt position improved, with gross debt reducing to Rs. 1,610.20 crore and the debt-to-equity ratio improving to 0.86x.

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*this image is generated using AI for illustrative purposes only.

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.

Historical Stock Returns for Lemon Tree Hotels

1 Day5 Days1 Month6 Months1 Year5 Years
-4.55%-6.17%-5.97%+12.22%+31.86%+410.85%
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Lemon Tree Hotels Expands Footprint with New Premier Property in Thiruvananthapuram

1 min read     Updated on 07 Nov 2025, 07:26 PM
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Reviewed by
Riya DeyScanX News Team
Overview

Lemon Tree Hotels Limited has opened a new Lemon Tree Premier Hotel in Thiruvananthapuram, Kerala, marking its sixth property in the state. The hotel features 80 rooms and suites, multiple dining options, banquet facilities, and recreational amenities. Managed by Carnation Hotels Private Limited, this launch strengthens Lemon Tree's presence in southern India. The company now operates over 120 hotels across more than 80 cities in India and abroad, with 120+ properties in the pipeline.

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*this image is generated using AI for illustrative purposes only.

Lemon Tree Hotels Limited , one of India's fastest-growing mid-scale and premium hotel chains, has announced the launch of a new Lemon Tree Premier Hotel in Thiruvananthapuram, Kerala. This marks the company's sixth property in the state, further solidifying its presence in the region.

Key Highlights of the New Property

Feature Details
Location Thiruvananthapuram (Trivandrum), Kerala
Number of Rooms 80 rooms and suites
Amenities Restaurants, banqueting spaces, recreational areas
Management Carnation Hotels Private Limited (wholly-owned subsidiary)

Expanding Presence in Kerala

The new Lemon Tree Premier in Thiruvananthapuram represents a significant step in the company's expansion strategy across southern India. This launch brings Lemon Tree Hotels' total operational properties in Kerala to six, underlining the brand's commitment to growth in the region.

Property Highlights

The hotel is strategically located in the heart of Thiruvananthapuram, catering to both business and leisure travelers. It offers a range of facilities including:

  • Citrus Café (multi-cuisine restaurant)
  • Kebab Theater
  • Slounge
  • Pastry shop
  • Banquet and meeting facilities
  • Fitness center
  • Spa
  • Salon
  • Swimming pool

Management's Perspective

Mr. Vishvapreet Singh Cheema, President of Lemon Tree Hotels, expressed his enthusiasm about the new property, stating, "With the opening of Lemon Tree Premier, Thiruvananthapuram, we are pleased to further extend our footprint across Kerala. This hotel in a prime location is ideal for both the business and leisure traveller."

About Lemon Tree Hotels Limited

Lemon Tree Hotels Limited (LTHL) has established itself as a leading player in India's hospitality sector. The company operates across various segments, from value-conscious to premium travelers, through its seven distinct brands:

  1. Aurika Hotels & Resorts
  2. Lemon Tree Premier
  3. Lemon Tree Hotels
  4. Red Fox
  5. Keys Prima
  6. Keys Select
  7. Keys Lite

Currently, LTHL operates over 120 hotels across more than 80 cities in India and abroad, with a robust pipeline of 120+ upcoming properties. This expansion showcases the company's strong growth trajectory and its ability to cater to diverse market segments.

The launch of Lemon Tree Premier in Thiruvananthapuram not only strengthens the company's presence in Kerala but also demonstrates its commitment to providing high-quality hospitality services across India. As the hospitality sector continues to recover and grow post-pandemic, Lemon Tree Hotels' expansion strategy positions it well to capitalize on the increasing demand for quality accommodations in key Indian cities.

Historical Stock Returns for Lemon Tree Hotels

1 Day5 Days1 Month6 Months1 Year5 Years
-4.55%-6.17%-5.97%+12.22%+31.86%+410.85%
Lemon Tree Hotels
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