Lemon Tree Hotels Q1 FY27: Growth Holds, Margins Absorb GST and SAR Costs

Total revenue was INR 346.8 crore (up 9% YoY), net EBITDA was INR 151.9 crore (up 7% YoY), PAT was INR 57.3 crore (up 19% YoY), and cash profit was INR 96.0 crore (up 17% YoY).

Net EBITDA margin fell to 43.8% (down 99 bps YoY) mainly due to provision for stock appreciation rights and loss of GST input credit, which management said increased expenses by 3.1% of total revenue in Q1 FY27 versus zero last year.

For owned and leased hotels, gross ARR was INR 6,361 (up 2% YoY), occupancy was 75.7% (up 314 bps YoY), and RevPAR was INR 4,814 (up 6% YoY).

The company opened 6 managed and franchised hotels with 334 rooms and signed 13 hotels with 1,020 rooms in Q1 FY27. Total operational rooms were 11,946 across 135 hotels, with a pipeline of 11,435 rooms across 144 hotels.

Management and franchise fees from third party hotels were INR 22.8 crore (up 42% YoY). Management fees from Fleur Hotels were INR 22.6 crore (up 6% YoY). Total management fees were INR 45.4 crore (up 21% YoY).

Keys portfolio RevPAR increased 19% YoY to INR 2,885, driven by a 350 bps improvement in occupancy to 67% and 13% growth in average room rate to INR 4,311. Management said Keys renovation was two thirds complete as of 30 June 2026.

The scheme appointed date is 1 April 2026 and requires approvals from shareholders, creditors, exchanges, SEBI, NCLT and other regulators. Management indicated calendar year 2027 for completion and Fleur listing, but noted timelines depend on approvals.