Lemon Tree Hotels shares rise 4% on likely increase in occupancy, addition of rooms

Lemon Tree Hotels share price gained more than 4 percent intraday Tuesday as investors cheer company's future plans.

The hotel chain company, which is working with 75 percent capacity currently, expects it to continue for 1 more year, Kapil Sharma, CFO said in an interview to CNBC-TV18. "Occupancy levels are likely to touch 80 percent by FY20."

The company has been opening new hotels in deep-demand markets, he said, adding it is currently operating 5,000 rooms in 50 hotels and will be adding 3,200 rooms in next 3 years.

Lemon Tree Hotels' debt will peak at Rs 1,300 crore in FY19, from current Rs 1,000 crore, he said. "We will be paying debt earlier than the schedule due to high cash accruals."

The stock has been rallied more than 35 percent from its issue price of Rs 56 per share. It listed on April 10, 2018.

At 13:52 hours IST, the stock price was quoting at Rs 75, up Rs 2.15, or 2.95 percent on the BSE.