Lemon Tree Hotels Q2 Results Review - Revival In Corporate Travel Turns Favorable: Nirmal Bang
The management stated that pick-up in international travel from H2 FY23 will aid its operating performance.
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Nirmal Bang Report
Lemon Tree Hotels Ltd.’s Q2 FY23 performance reflects clear sign of a recovery in occupancy and average room rate. Occupancy rose from 65.1% in Q1 FY23 to 66.2% in Q2 FY23 while ARR grew by 2% QoQ to Rs 4,917.
The management stated that green-shoots in corporate travel and meetings, incentives, conferences and exhibitions events resulted in improvement in revenue per available room by 4% QoQ to Rs 3,257.
Further, the management stated that pick-up in international travel from H2 FY23 will aid its operating performance given that 10% of its revenue was contributed by foreign travelers during the pre-Covid period.
Further, Keys, which was acquired by Lemon Tree in Q3 FY19, was not able to operate at its optimal capacity. The RevPar for the Keys portfolio decreased by 1% QoQ to Rs 1,771 in Q2 FY23. Keys is expected to see recovery as most of its portfolio properties are in cities where IT-led demand is picking up.
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