Lemon Tree Hotels share price shed 3 percent in the early trade on February 13. The company announced signing a licence agreement for an upcoming hotel in Telangana under the company’s Lemon Tree Resort brand.
At 9.32 am, Lemon Tree Hotels was quoting at Rs 128.10, down Rs 3.85, or 2.92 percent, on the BSE.
The hotel in Marpalle in Vikarabad district will be managed by Carnation Hotels Private Limited, a wholly owned subsidiary and the management arm of Lemon Tree Hotels Limited.
The hotel will be spread over five acres and have 50 rooms, including 14 villas. The resort will have a restaurant, a bar, a banquet hall, meeting rooms, a swimming pool, a fitness center, and other public areas. It will have lawns to cater to destination weddings and is expected to be operational in FY27.
Lemon Tree Hotels is expanding its portfolio in Telangana and this opening will be in addition to four existing and one upcoming property in the state, the company said.
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The company's net profit fell 9.8 percent to Rs 43.79 crore year-on-year (YoY) in the December quarter because of the increase in renovation expenses.
The renovation expense for the portfolio increased Rs 5.5 crore YoY and Rs 4.8 crore quarter-on-quarter, which led to reduction in the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin by 2 percentage points.
The company reported total income of Rs 290.8 crore in Q3, up from Rs 230 crore in the quarter gone by. In Q3 FY23, the company had reported revenue of Rs 234 crore.
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