Lemon Tree Hotels Q1 FY27: Revenue up 9% to ₹346.8 Cr, PAT grows 19% to ₹57.3 Cr
Lemon Tree Hotels Q1 FY27 revenue increased 9% YoY to ₹346.8 crore. PAT grew 19% to ₹57.3 crore. Net EBITDA was ₹151.9 crore. Occupancy was 75.7% and ARR was ₹6,361. The company opened 6 new hotels and signed 13. Gross debt reduced by 11% to ₹1,475 crore.
The announcement details significant financial performance improvements, including revenue and profit growth, debt reduction, and strategic expansion, which are material to investors and stakeholders.
The company reported positive year-on-year growth in revenue, PAT, and EBITDA, along with a reduction in debt and expansion of its hotel network. This indicates a healthy financial performance and positive business outlook.
Lemon Tree Hotels Limited announced its financial results for the first quarter of FY27, reporting a 9% year-on-year increase in total revenue to ₹346.8 crore. Net EBITDA stood at ₹151.9 crore, up 7% from the previous year. Adjusted for GST impact and stock appreciation rights, Net EBITDA increased by 14% to ₹162.5 crore.
Profit After Tax (PAT) saw a significant jump of 19% to ₹57.3 crore, while cash profit grew by 17% to ₹96 crore. The company's gross Average Room Rate (ARR) was ₹6,361, up 2% year-on-year, with an occupancy rate of 75.7%, an improvement of 314 basis points. The net EBITDA margin for the quarter was 43.8%.
Gross debt reduced by 11% to ₹1,475 crore as of June 30, 2026, compared to ₹1,657.9 crore a year ago, with the cost of debt decreasing to 7.48%.
In terms of network expansion, Lemon Tree Hotels opened 6 managed and franchised hotels with 334 rooms in Q1 FY27. The company also signed agreements for 13 new managed and franchised hotels, comprising 1,020 rooms. The combined operational and pipeline inventory now stands at 23,381 rooms across 279 hotels in over 170 cities.
Network revenue for the quarter grew by 16% year-on-year to ₹576 crore. Fees income from third-party owned hotels increased by 42% to ₹22.8 crore, and fees from Fleur Hotels rose by 6% to ₹22.6 crore, bringing the total management fee from Lemon Tree to ₹45.4 crore, an increase of 21% year-on-year.
Fleur Hotels reported a RevPAR growth of 19% to ₹2,885, driven by a 350-basis point improvement in occupancy to 67% and a 13% increase in average room rate to ₹4,311. Pro forma financials for Lemon Tree showed a 22% revenue increase to ₹65.7 crore, while Fleur's pro forma revenue grew by 7% to ₹311.4 crore.
The management expressed confidence in future performance, expecting EBITDA margins to reach 50% in FY28, driven by increasing ARR, reduced renovation expenses, and potential easing of GST impacts.
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