Lemon Tree Hotels delivers best-ever Q2 with 18% Revenue Growth and 22% net EBITDA Growth

Lemon Tree Hotels has announced its unaudited results for the quarter and half-year ended 30 September 2026

The company posted its highest-ever Q2 room rates, revenue, EBITDA, PBT, PAT and cash profit. Growth came from owned hotels and from the managed and franchised portfolio.

Commenting on the results, Neelendra Singh, Managing Director, Lemon Tree Hotels, said, “Q2 has been a strong quarter for Lemon Tree Hotels, with our highest-ever Q2 revenue, EBITDA and profitability. Revenue grew by 18% and Net EBITDA grew 22%, with margins expanding by 157 basis points while absorbing the impact of GST changes and stock appreciation rights. Room rates grew by 8%, and occupancy climbed by more than six percentage points to 76.1%.”

He added, “The simultaneous growth in room rates and occupancy reflects the strength of our brands and the effectiveness of our distribution network and loyalty programme in bringing guests back. Together, these are the engines driving performance across our portfolio and also creating value for our owner partners. We signed 825 rooms and opened 523 rooms in Q2; while fees from third-party hotels grew 30%. As the New India Traveller seeks increasingly differentiated hospitality experiences, our pipeline is expanding in step with this demand, such as Aurika in Shimla, Shillong and Varanasi to Lemon Tree Premier in Bandra, Mumbai.”

Q2 FY27 Financial and Operations Performance

Lemon Tree Hotels delivered strong growth in revenue and profitability during the quarter, supported by improvement in room rates, occupancy and RevPAR.

• Total revenue grew 18% to ₹363.8 crore and net EBITDA grew 22% to ₹162.2 crore, with net EBITDA margin up 157 bps to 44.6%. Before the impact of GST changes and the provision for stock appreciation rights, which together came to 3.2% of revenue, net EBITDA grew 31% to ₹173.7 crore, a margin of 47.7%.
• PBT before exceptional items grew 59% to ₹88.8 crore. PAT grew 90% to ₹79.8 crore, and cash profit grew 28% to ₹97.2 crore.
• RevPAR grew 18% to ₹5,137 on an 8% rise in average room rate to ₹6,751 and a 633-bps gain in occupancy to 76.1%.
• Owned hotels grew revenue 15% to ₹337 crore, and their hotel EBITDAR margin% rose 112 bps to 53%.

H1 FY27 Performance

• Total revenue grew 14% to ₹710.6 crore, net EBITDA grew 14% to ₹314.0 crore, PAT grew 52% to ₹137.1 crore and cash profit grew 22% to ₹193.2 crore.
• Management fees grew 20% to ₹86.1 crore: ₹41.5 crore from third-party-owned hotels, up 36% and ₹44.7 crore from Fleur Hotels, up 8%.

Brand Portfolio Driving Value

• RevPAR grew across every brand in the owned portfolio: Aurika up 17%, Lemon Tree Premier up 18%, Lemon Tree Hotels up 15%, Red Fox up 21% and Keys up 29%.
• Aurika and Lemon Tree Premier together contributed 63% of owned-hotel EBITDAR on 58% of revenue. Aurika recorded a hotel EBITDAR margin of 59%.
• The Keys portfolio delivered a hotel EBITDAR margin of 50%.
• Fees from third-party-owned hotels grew 30% to ₹18.7 crore, and total network revenue across owned, managed and franchised hotels grew 23% to ₹573 crore.

Asset-Light Growth and Development Pipeline

• The company opened eight managed and franchised hotels with 523 rooms and signed 11 with 825 rooms, about 1.6 times the inventory it opened in the quarter.
• As of 30^th September 2026, the combined operational and pipeline portfolio stood at 285 hotels and 24,061 rooms across 170+ cities. Of these, 138 hotels with 12,131 rooms across 80+ cities are operational.
• The company acquired land in Bandra (East), Mumbai, next to BKC, for about ₹120 crore to develop Lemon Tree Premier, Bandra, an owned 172-room upscale hotel. It will be the group’s seventh hotel in Mumbai and its first in Bandra, with opening expected in FY30.
• Aurika, Shimla, an owned 90-room hotel, is expected to open in FY27, followed by Aurika, Shillong (165 rooms) in FY28 and Aurika, Varanasi (47 rooms, heritage) in FY29.

Balance Sheet

• Gross debt as of 30 September 2026 stood at ₹1,429.2 crore, down 11% from ₹1,610.2 crore a year earlier.
• Cost of debt fell 28 bps to 7.44%, and debt to equity improved to 0.64x from 0.86x.

ESG

• 100% of our 41 owned and leased hotels are green building certified, up from 34% in FY25.
• Renewable energy accounted for 39.4% of energy use in FY26, up from 17.0% in FY25, against a target of 50%.

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