- LTHL revenue rose 18 percent in Q2.
- Occupancy rose to 76.1 percent.
- Company signed 825 keys, opened 523.
Total revenue rose 18 percent to $38.68 million. Net EBITDA increased 22 percent to $17.25 million and the margin rose 157 basis points to 44.6 percent. Changes in GST and a provision for stock appreciation rights together affected results by 3.2 percent of revenue. Without these two costs, net EBITDA would have grown 31 percent to $18.46 million, with a margin of 47.7 percent.
Profit before tax and exceptional items rose 59 percent to $9.44 million. Profit after tax increased 90 percent to $8.49 million, while cash profit grew 28 percent to $10.34 million. RevPAR rose 18 percent to $54.62. ADR increased 8 percent to $71.80 and occupancy rose by 633 basis points to 76.1 percent.
“The simultaneous growth in room rates and occupancy reflects the strength of our brands and the effectiveness of our distribution network and loyalty program in bringing guests back,” said Neelendra Singh, LTHL managing director.
Brands, fees and pipeline
The company opened eight managed and franchised hotels with 523 keys during the quarter. It also signed agreements for 11 hotels with 825 keys, about 1.6 times the number of keys it opened. By Sept. 30 its total portfolio included 285 operating and planned hotels with 24,061 keys in more than 170 cities. Of these, 138 hotels with 12,131 keys in more than 80 cities were already open.
LTHL’s owned hotels recorded $35.83 million in revenue, up 15 percent. Their hotel EBITDAR margin increased 112 basis points to 53 percent. RevPAR grew at all five owned brands: Aurika by 17 percent, Lemon Tree Premier by 18 percent, Lemon Tree Hotels by 15 percent, Red Fox by 21 percent and Keys by 29 percent.
Aurika and Lemon Tree Premier together generated 63 percent of the owned hotels' EBITDAR from 58 percent of their revenue. Aurika recorded an EBITDAR margin of 59 percent, while the Keys portfolio reported 50 percent.
Fees from third-party hotels increased 30 percent to $1.99 million. Revenue from all owned, managed and franchised hotels rose 23 percent to $60.92 million. For the first half of the fiscal 2027, total revenue increased 14 percent to $75.56 million, while profit after tax grew 52 percent to $14.58 million. Management fees rose 20 percent to $9.15 million. This included $4.41 million from third-party hotels, up 36 percent and $4.75 million from Fleur Hotels, up 8 percent.
The company also plans to add more hotels to its portfolio. It bought land in Bandra East, Mumbai, next to BKC, for about $12.76 million. It plans to build the 172-key Lemon Tree Premier, Bandra, an upscale hotel that it will own. This will be its seventh hotel in Mumbai and its first in Bandra, with an opening planned for the fiscal year 2030.
Other planned openings include the 90-key owned Aurika Shimla in the fiscal 2027, the 165-key Aurika Shillong in the fiscal 2028 and the 47-key heritage Aurika Varanasi in the fiscal 2029.
Separately, Chalet Hotels Ltd. reported an 11 percent increase in core hospitality and annuity income to $54.10 million in the second quarter of fiscal 2027.
