Lemon Tree's Earnings Bloom in FY25 - NOW It MUST TRIM The Debt

WhatsApp Channel Join Now

Telegram Group Join Now

Lemon Tree Hotels Ltd’s fY25 benefited from a full-year contribution of aurika, Mumbai Skycity, which opened in the Third Quarter of Fy24. FY25 Consolidated Revenue and Ebitda Each Rose About 20% Year-On-Year To 1,286 Crore and 634 Crore, respectively. Growth was aid by an 11% Increase in Revenue Per Awailable Room (Revpar) to 4,575 and an improvement in Occupance Rate to 71.7% from 69.9% in FY24.

In the Near Term, the stabilization of aurika and further successful ramp-up are vital for earnings growth, while renovation expenses FY25 Renovation Expenses Stood at 2.7% of Revenue, A 30 Basis Point Rise Over FY24. A Basis Point is one-handredth of a percentage point.

The company said this increase investment in renovation expenses will continue into fy26, followed by a smaller amnt in fy27, so that the entry portfolio of Owned Hotels is fully renovated and renovated. Post this, renovation expenses will drop close to about 1.5% of Revenue, Thus Eventually aiding ebitda margin. Ebitda Stands for Earnings Before Interest, Taxes, Depreciation, and Amortisation.

Focus on cutting debt

LED by the stabilization of aurika and an improvement in revpara amid the ongoing renovation exercise, pl capital establishments revered and Ebitda Cagr of 12% and 15%, Respectly, Over fY25-FY27. In addition, as no major Capex is lined up in the Near Term, Barring The Hotels in Shimla and Shillong, The Broking Firm Expects Debt Reduction to Gather Pace from FY26 OnWards, Translating into AFTO AFTO AFTO AFTO AFTO AFTO AFTO AFTO AFTO AFTO Cagr of 32% over the next two years.

Lemon Tree’s Debt Fell from Nearly 1,900 Crore at FY24-Ed To 1,700 Crore at FY25-Ed. The company expects debt to drop to negligible levels over the next few years. Here, The Listing of Subsidiya Fleur Hotels is expected to help; The management said it would come up with a definite plan by the next board meeting.

Lemon Tree’s Total Inventory at FY25-Ed WAS 212 Hotels and 17,116 Rooms Split Into 10,269 Rooms and 111 Hotels Being Operational and the rest in pipeline. Within Operational Rooms, About 5,800 Were Owned/Leased Rooms, and The Rest Were Managed/Franchised. It is confident of adding at least another 3,000 Rooms to its pipeline in fy26.

Meanwhile, fy26 has been well. Revenue Grew 21% on-Yaar in April, but modaged to 14% in May AMID Rising Fears of Covid-19 and Geopolitical Tensions. Lemon Tree’s Shares are up 8% so far in fy26, but down 9% in 2025. Investors Must Track Revpar Growth and Debt Trajectory to place their bets on the stock.

Source link