Buy Lemon Tree Hotels; target of Rs 115: Motilal Oswal

Motilal Oswal's research report on Lemon Tree Hotels

LEMONTRE posted a strong revenue growth of 2.1x YoY in 4QFY23 (up 43% from 4QFY20 levels), led by improvement in occupancy (up 6pp QoQ/12.6pp vs. 4QFY20). ARR remained stable sequentially (up 29% from 4QFY20 levels). RevPAR improved 11% QoQ to INR4,286. We maintain our FY24/FY25 EBITDA estimates and reiterate BUY on the stock.

Outlook

We maintain our FY24/FY25 EBITDA estimates and reiterate BUY on the stock with a TP of INR115 (valued at 16x FY25E EV/EBITDA).

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