Lemon Tree Hotels Ltd
Lemon Tree Hotels Q2 FY26 earnings call: Revenue & Margins
Q2 FY26 earnings call: what management guided on revenue, margins and order book.
The short version
Revenue growth to mirror increasing room renovations and technology investments, with renovated hotels achieving higher ARR (e.g., 30%-40% increase in some locations). Lemon Tree targets Rs.
From Lemon Tree Hotels Ltd's Q2 FY26 earnings-call transcript · updated 16 Oct 2026.
Revenue & Sales Performance
- Revenue growth to mirror increasing room renovations and technology investments, with renovated hotels achieving higher ARR (e.g., 30%-40% increase in some locations).
- Expectation to hit Rs. 1,000 crore EBITDA target next year (combined Lemon Tree and Fleur).
- Managed portfolio growth: operational rooms expected to rise at ~4,000 rooms now to 5,000 next year and 7,000 following year, aiming for a pipeline of 35,000-40,000 rooms in 2.5 years.
- RevPAR growth in major cities likely low to mid-single digits CAGR over 3-4 years, with potent repricing expected once hotel occupancy in the sector crosses 70%-72%.
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Profitability & Margins
See what Lemon Tree Hotels Ltd said on profitability & margins — free account, 30 seconds.
Capital Expenditure Plans
- Renovation Spend: A total renovation investment of around Rs. 450 crore is underway, with Rs. 300 crore already spent renovating 3,000 rooms and approximately Rs. 160 crore planned to renovate 1,600 more rooms. Majority of this spend is operational expenditure (OPEX).
- Maintenance Capex: Post-renovation, annual maintenance capex expected to stabilize at Rs. 20-25 crore per year for the next 5-6 years.
- Technology Investment: Significant investments in technology via a subsidiary, Totally Foxed Solutions, with a 30-member team developing in-house AI/ML and middleware solutions. Technology spend expected to stabilize at about 0.7% of revenue after current rollout (18 months projected).
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Top-ranked in Leisure Services
Ranked on what management guided this quarter
Rank buckets describe management commentary on revenue and margin. Not investment advice, and not a forecast of returns.
Fundraising & Capital Structure
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Order Book & Pipeline
- Current signing rate is around 4,000 rooms per year.
- Expected to sign about 5,000 rooms next year.
- Anticipated to sign about 7,000 rooms the following year.
- The pipeline, including operational and signed rooms, is targeted to be between 35,000 to 40,000 rooms in the next 2.5 years.
- Openings typically lag signings by about 3 years; new signings open approximately 3 years later.
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Lemon Tree Hotels Ltd — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest: revenue ₹406 Cr, net profit ₹82 Cr. Revenue and profit are scaled separately — hover a quarter for exact figures.
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What Lemon Tree Hotels Ltd's management said in earlier quarters
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Frequently Asked Questions
What were Lemon Tree Hotels Ltd Q2 FY26 results?
Revenue growth to mirror increasing room renovations and technology investments, with renovated hotels achieving higher ARR (e.g., 30%-40% increase in some locations). Lemon Tree targets Rs.
What is Lemon Tree Hotels Ltd share price analysis?
Lemon Tree Hotels Ltd currently shows a neutral. The stock trades at a P/E of 35.3 with a market cap of ₹9,023 Cr. Investors should review the full earnings analysis for detailed insights.
Is Lemon Tree Hotels Ltd planning capital expenditure?
Renovation Spend: A total renovation investment of around Rs.
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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.