Shares of Lemon Tree Hotels gained 1.5 percent to Rs 135 apiece on August 30 after the hospitality company announced that it has signed a new property in Ujjain, Madhya Pradesh.
Over the past 3 months, the stock of this hospitality chain has surged 17 percent, as compared to 12 percent rise in the benchmark Nifty 50. Earlier, Lemon Tree Hotels stock had hit 52-week high of Rs 158 apiece on May 6, 2024.
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Lemon Tree Hotels said that the new property in Ujjain is expected to open in FY27 and shall be managed by Carnation Hotels Private, a wholly-owned subsidiary of Lemon Tree Hotel. The Lemon Tree Hotel in Ujjain will offer 72 elegantly designed rooms, along with a restaurant, bar, swimming pool, and various public areas.
It is conveniently located with Devi Ahilyabai Holkar International Airport in Indore about 50 kilometres away and Ujjain Railway Station just 4 kilometres from the hotel. The hotel is well-connected through both public and private road transport
Lemon Tree Hotels is among India's largest hotel chains, operating across various market segments from upscale to economy. The company owns, leases, operates, and franchises hotels, delivering distinct and high-quality service offerings with an attractive value proposition. Currently, the portfolio includes over 160 hotels, comprising over 100 operational hotels and more than 60 properties slated to open in India and globally.
In the recently concluded June quarter, the company's consolidated net profit dropped 15 percent year-on-year (YoY) to Rs 19 crore from Rs 23 crore in the year-ago period. However, revenue from operations jumped 19.52 percent YoY to Rs 268.02 crore in Q1FY25.
At the operational level, EBITDA grew by 8.05 percent YoY to Rs 115.4 crore in Q1FY25, whereas EBITDA margin reduced to 43 percent in Q1 FY25 as against 47.6 percent a year back.
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