Lemon Tree Hotels FY26 Revenue at ₹1,452 Cr, PAT ₹288 Cr
Lemon Tree Hotels reported record FY26 revenue of ₹1,452.7 crore and PAT of ₹288.3 crore, up 13% and 19% YoY respectively. Q4 FY26 revenue was ₹419.5 crore, up 11% YoY. The company's debt reduced to ₹1,500 crore. A significant corporate restructuring involving Fleur Hotels and Warburg Pincus is underway.
The announcement includes full-year audited financial results, highlighting record performance and strategic restructuring. These are material events for investors and stakeholders, impacting the company's financial health, future strategy, and corporate structure.
The company reported record financial performance for FY26 with significant year-on-year growth in revenue, EBITDA, and PAT. Debt reduction and expansion of the hotel pipeline also contribute positively. The ongoing restructuring is presented as value-accretive.
Lemon Tree Hotels Limited announced its audited financial results for the fourth quarter and the full fiscal year 2026.
For the full year FY26, the company reported a total revenue of ₹1,452.7 crore, an increase of 13% year-on-year, with Net EBITDA at ₹699.3 crore, up 10%. Profit After Tax (PAT) grew by 19% to ₹288.3 crore, and Cash Profit increased by 16% to ₹443.1 crore. The Gross Average Room Rate (ARR) for the full year stood at ₹6,875, and occupancy was 73.5%, both representing historical highs for the company.
In the fourth quarter (Q4 FY26), total revenue was ₹419.5 crore, up 11% year-on-year. Net EBITDA for the quarter was ₹218.3 crore, a 7% increase. PAT for Q4 FY26 stood at ₹116.5 crore, up 8% year-on-year, with an occupancy rate of 78.5%.
The company's Net EBITDA margin for FY26 was 48.1%, compared to 49.4% in FY25. The Q4 FY26 margin was 52.0%, down 198 basis points from Q4 FY25. The management noted that margins were impacted by renovation expenditures, investments in technology, and GST changes. They anticipate these expense heads to reduce to approximately 3.7% of revenue by FY28.
Total borrowings have been reduced to ₹1,500 crore from ₹1,699 crore a year ago, with the cost of debt falling to 7.42%. The company's combined operational and signed pipeline inventory now stands at 22,581 rooms across 268 hotels.
In FY26, the company opened 20 managed and franchised hotels with 1,523 rooms and signed 55 managed and franchised hotels with 4,912 rooms. Fees from management and franchised contracts increased by 23% year-on-year to Rs. 73.9 crore, and fees from Fleur Hotels increased by 8% to Rs. 95.8 crore, bringing total management fees to Rs. 169.7 crore, a 14% increase year-on-year.
The company also discussed a 'Composite Scheme of Arrangement' involving Fleur Hotels and Warburg Pincus, aimed at restructuring the group to create two focused platforms: Lemon Tree Hotels as an asset-light operator and Fleur Hotels as an asset ownership and development platform. This restructuring is expected to enhance capital efficiency, strategic flexibility, and valuation transparency.
An investor call to discuss these results was scheduled for May 29, 2026, at 4:00 PM IST.
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