Lemon Tree Hotels Limited , one of India's leading hospitality chains, has announced robust financial results for the first quarter of the fiscal year, showcasing significant growth across key metrics.

Financial Highlights

The company reported a substantial increase in its revenue, which rose to ₹3.16 billion in Q1, up from ₹2.70 billion in the same period last year, marking a 17% year-over-year growth. This impressive top-line performance was accompanied by an even more striking bottom-line improvement, with the consolidated net profit surging 93% to ₹383.00 million, compared to ₹198.00 million in the corresponding quarter of the previous year.

Operational Efficiency

Lemon Tree Hotels demonstrated enhanced operational efficiency during the quarter. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased to ₹1.40 billion from ₹1.15 billion year-over-year. Notably, the EBITDA margin improved to 44.50% from 42.83%, indicating the company's ability to manage costs effectively while driving revenue growth.

Strategic Developments

In addition to the strong financial performance, Lemon Tree Hotels has announced several strategic moves aimed at strengthening its management structure and streamlining operations:

1. Leadership Transition: The company has approved the appointment of Mr. Neelendra Singh as the new Managing Director for a term of 5 years, effective October 1, 2025. Concurrently, Mr. Patanjali Govind Keswani, the current Managing Director, will transition to the role of Executive Director and Chairman for an 18-month term.

2. Executive Appointments: Mr. Kapil Sharma has been elevated to the position of Executive Director and Chief Financial Officer for a 5-year term, also effective from October 1, 2025.

3. Board Reappointment: The company has re-appointed Mr. Niten Malhan as an Independent Director for a second term of 5 years, starting November 6, 2025.

4. Corporate Restructuring: Lemon Tree Hotels has approved the sale of its 100% investment in Nettle Hotels Private Limited and Madder Stays Private Limited to Fleur Hotels Limited, a material subsidiary of the company. This move is expected to streamline the group's corporate structure.

5. Reorganization Committee: The Board has constituted a Reorganization Committee to evaluate various options, including the potential demerger or transfer of the company's Owned Hotel Business to its subsidiary, Fleur Hotels Limited.

Expansion and Conversion

In a separate announcement, Lemon Tree Hotels revealed that its franchised property in Motihari, Bihar, has been converted to a managed hotel. This 50-room property will now be managed by Carnation Hotels Private Limited, a wholly-owned subsidiary of Lemon Tree Hotels Limited. The hotel boasts various amenities including a restaurant, fitness center, banquet hall, swimming pool, and spa.

These strategic moves, coupled with the strong financial performance, underscore Lemon Tree Hotels' commitment to growth and operational excellence in the competitive hospitality sector. The company appears well-positioned to capitalize on the recovering travel and tourism industry in India.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions.

Lemon Tree Hotels Limited , a prominent player in the Indian hospitality sector, has announced a strategic shift in its operations for its Motihari, Bihar property. The company has converted its franchised hotel into a managed property, marking a significant change in its operational approach for this location.

Key Highlights of the Transition

• Franchise Agreement Terminated: The existing franchise agreement, which was initially executed on January 25, 2024, has been terminated by mutual consent of the parties involved.

• New Management Structure: Lemon Tree Hotels has entered into a new Hotel Operating Agreement & License Agreement for the Motihari property.

• Management Takeover: The hotel will now be managed by Carnation Hotels Private Limited, a wholly-owned subsidiary of Lemon Tree Hotels Limited.

Property Details

The Lemon Tree Hotel in Motihari, Bihar, boasts an impressive array of amenities:

Strategic Implications

This move from a franchised model to a managed property structure could potentially allow Lemon Tree Hotels to have more direct control over the hotel's operations, quality standards, and guest experience. It may also indicate the company's confidence in the property's performance and its desire to be more hands-on in its management.

Corporate Disclosure

The company made this announcement in compliance with regulatory requirements, informing both the National Stock Exchange of India Limited and BSE Limited of this operational change. The disclosure was signed by Pawan Kumar Kumawat, Company Secretary & Compliance Officer of Lemon Tree Hotels Limited.

This strategic shift in Motihari underscores Lemon Tree Hotels' dynamic approach to property management and its commitment to optimizing its operational portfolio across different markets in India.