Lemon Tree Hotels Q1 FY27 Profit Surges 20% to Rs 46 Cr

Lemon Tree Hotels recorded a significant financial uptick in Q1 FY27, with consolidated net profit surging by 20.09% year-on-year to Rs 46.03 crore. This marks a notable increase from Rs 38.33 crore reported in the same period of the previous fiscal year.

Revenue from operations also saw a healthy increase, climbing 9.13% year-on-year to reach Rs 344.61 crore during the quarter. Profit before tax (PBT) advanced by 25.85% to Rs 79.11 crore, underscoring improved profitability.

Key Financial Highlights

Net EBITDA for Q1 FY27 grew 7% to Rs 151.9 crore, although the EBITDA margin slightly moderated to 43.8%. This reflects the company’s sustained earnings power amidst its operational expansion.

Operational Metrics Show Strength

Operational performance demonstrated positive trends, with the Average Room Rate (ARR) improving by 2% to Rs 6,361. Occupancy rates also rose by 314 basis points to 75.7%, up from 72.5% in Q1 FY26.

Revenue per available room (RevPAR) saw a 6% year-on-year increase, reaching Rs 4,814. These metrics highlight efficient asset utilization and strong demand across the company’s portfolio.

Strategic Expansion and Network Growth

Lemon Tree Hotels expanded its room inventory by 12% year-on-year, now totaling 11,946 rooms. Executive Chairman Patanjali Keswani noted the opening of 6 managed and franchised hotels with 334 rooms, alongside signing 13 new hotels adding 1,020 rooms during Q1 FY27.

Network revenue for the quarter grew 16% year-on-year to Rs 576 crore, with owned hotels contributing 56% of this total. Fees from management and franchise contracts for third-party properties surged by 42% year-on-year to Rs 22.8 crore, indicating robust growth in its asset-light model.

Further strategic developments include the board’s approval of a Joint Venture Agreement between its wholly-owned subsidiary Carnation Hotels and RJ Corp. This JV establishes Arum Hotels, a special purpose vehicle for the Aurika Shillong project, with Carnation Hotels holding a 51% equity stake.

The company continues progress on its Aurika, Shimla, and Aurika, Shillong projects, reinforcing its position as a major Indian hotel chain operating across diverse segments with seven distinct brands.