Lemon Tree Hotels Ltd(LEMONTREE)

NSE: LEMONTREEBSE: 541233

₹ 110.2+1.33%refreshed 26 Oct, 03:58 pm ISTMarket cap: ₹ 8,731 crWebsite: www.lemontreehotels.comUpdated: 24 Oct 2026

About

Lemon Tree Hotels is India's largest mid-market hotel chain - spanning economy, midscale, upper-midscale and upscale segments - and the third-largest overall by number of rooms, with roughly 6% of total branded hotel inventory in India. In FY26 the group reported revenue of ₹1,444.5 Cr and operates six brands across an owned/leased and asset-light managed/franchised network. As of Q1 FY27 the combined operational and pipeline inventory stood at 23,381 rooms across 279 hotels in 170+ cities.^[1][2][3]

Brand portfolio

Six brands span four tiers as of FY26: Aurika Hotels & Resorts (upscale), Lemon Tree Premier and Keys Prima (upper-midscale), Lemon Tree Hotels (midscale), Keys Select by Lemon Tree Hotels, and Red Fox by Lemon Tree Hotels (economy).^[1]
Over 75% of the portfolio by hotel count is managed or franchised as of FY26, positioning Lemon Tree primarily as an asset-light brand and management platform.^[1]
Infinity Rewards loyalty programme had 23,71,923 members as of March 2026.^[1]

Room inventory - owned vs managed

Owned/leased portfolio comprised 41 operational hotels with 5,759 rooms as of FY26.^[1]
Total operational rooms across all models: 11,811 as of FY26, with geographic split - Delhi/NCR 1,843; Mumbai 1,441; Bengaluru 975; Hyderabad 663; Pune 619; Chennai 192; Rest of India 6,078.^[1]
Combined operational and pipeline inventory reached 23,381 rooms across 279 hotels in 170+ cities as of Q1 FY27, up from the CY2028 milestone of 22,581 rooms achieved in March 2026 - nearly two years ahead of schedule.^[3][1]
In Q1 FY27, 13 managed/franchised hotels (1,020 rooms) were signed vs 6 hotels (334 rooms) opened - signings running at over 3× the pace of openings.^[3]

Key operating metrics

Owned/leased hotels: RevPAR ₹4,814 (+6% YoY), ARR ₹6,361 (+2% YoY), occupancy 75.7% (+314 bps YoY) in Q1 FY27. ARR growth was compressed by a retail-channel pivot following reduced corporate/inbound demand.^[3]
Full-year FY26 RevPAR was ₹5,055, up 11% from ₹4,573 in FY25.^[1]
Keys by Lemon Tree Hotels portfolio (936 rooms, two-thirds renovation complete): RevPAR ₹2,885 (+19% YoY), occupancy 67% (+350 bps), ARR ₹4,311 (+13%) in Q1 FY27; EBITDA margin 45% (+351 bps).^[3]
Net EBITDA margin was 43.8% in Q1 FY27 (−99 bps YoY); adjusted margin excluding GST input credit loss and SAR provision was 46.9% (+309 bps YoY).^[3]
Total management fees (third-party + Fleur) were ₹45.4 Cr in Q1 FY27 (+21% YoY); third-party fees alone were ₹22.8 Cr (+42% YoY).^[3]
Network revenue (owned + managed/franchised) was ₹576 Cr in Q1 FY27, up 16% YoY.^[3]

Fleur Hotels subsidiary

Fleur Hotels is a hotel ownership/leasing entity with end-to-end in-house development capabilities; Warburg Pincus is a strategic investor committing ₹960 Cr of primary equity pre-listing.^[1][3]
On a post-demerger pro-forma basis, Fleur Q1 FY27 revenue was ₹311.4 Cr (+7% YoY); net EBITDA ex-GST ₹125.1 Cr (+10%); margin 40.2% (+112 bps); PAT ₹34.7 Cr (+23%).^[3]
Fleur is in active discussions to acquire ~2,500 rooms (operating assets, brownfield, greenfield and leases), targeting portfolio growth of 50%+ to ~8,900 rooms by FY30.^[3]

Debt and cost of capital

Gross debt was ₹1,475 Cr as of 30 June 2026, down 11% from ₹1,657.9 Cr a year earlier; net debt approximately ₹1,275 Cr after ~₹200 Cr cash.^[3]
Cost of debt declined to 7.48% in Q1 FY27, down 53 bps YoY, following a credit-rating upgrade to A+ in Q2 FY26.^[3][4]

Expansion pipeline and capex

Aurika Shimla (90 rooms, owned): finishing work and licenses in final stage; opening expected in FY27.^[3]
Aurika Shillong (165-room leased hotel): expected to open in H2 FY28.^[3]
Aurika Varanasi (47-room leased heritage hotel): targeted to open in FY29.^[3]
Aurika Nehru Place (~572 rooms, leased, 2.25 acres in New Delhi): final approvals pending from DDA; DDA letter of award validity extended one year; opening expected FY30 or later.^[3][4]
Lemon Tree acquired land in Mumbai for ₹120 Cr (September 2026) to develop a 172-key Lemon Tree Premier hotel - the group's 7th property in Mumbai.^[5]
Managed pipeline flywheel: ~5,000 rooms from signed managed contracts expected to open in FY29 alone, equal to ~45% of the current ~12,000-room managed inventory.^[3]

Recent developments

September 22, 2026: NSE raised no objection and BSE issued no adverse observations on the draft Composite Scheme of Arrangement for the Fleur Hotels demerger; observation letters valid for six months.^[6]
Fleur Hotels demerger scheme approved by the board on January 9, 2026; LTH shareholders to own 73.99% of Fleur post-demerger (32.96% directly + 41.03% via LTH); listing targeted for CY2027.^[7][3]
September 24, 2026: Lemon Tree Hotels signed a licence agreement for Lemon Tree Hotel, Patancheru, Telangana - 90 rooms; the group's 8th property in the state.^[8]
September 22, 2026: Keys Prima, Nashik opened with 48 rooms and suites - the brand's debut in the city; Lemon Tree now has 15 operational hotels in Maharashtra with 16 more in pipeline.^[9]
September 25, 2026: Lemon Tree Resort, Nashik (71 rooms and suites, Girnare near Gangapur Dam) opened - the group's second property in Nashik.^[10]
September 30, 2026: Keys Prima, Darjeeling opened with 65 rooms - the group's first property in the hill station and third in West Bengal.^[11]
November 23, 2026 (effective): Mr. Pawan Kumar Kumawat resigned as Company Secretary and Compliance Officer for personal reasons.^[12]

Strategic targets

Consolidated net EBITDA margin target: at least 50% in FY28; FY27 guided above 47% but below 50%.^[3]
Lemon Tree standalone (post-demerger, pure-play asset-light): EBITDA margin target of 75 - 80% over next 3 - 4 years as fee income scales.^[3]
Group total portfolio target of 30,000 - 40,000 rooms (operational + pipeline) within 3 - 4 years, with north of 20,000 - 25,000 rooms operational.^[7]
International expansion targeting UAE, Nepal, Thailand (Bangkok, Phuket) and Maldives on an asset-light managed/leased basis.^[3]

Market Cap

₹8,731 Cr

High / Low

₹171 / 100

Stock P/E

37.2

Price / Book

6.3

Book Value

₹18

EPS

₹2.9

No. of Shares

79.22 Cr

ROCE

14.0%

ROE

17.8%

OPM

38.6%

Debt / Equity

1.44

Sales

₹1,445 Cr

Net Profit

₹288 Cr

Promoter holding

22.3%

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