homebusiness Newscompanies NewsLemon Tree average room revenue highest since listing and rates might get more expensive
Lemon Tree average room revenue highest since listing and rates might get more expensive
Speaking to CNBC-TV18 after the earnings report, Patanjali Keswani, Chairman and Managing Director of the hotel chain company said that rooms may get even more expensive going forward, adding that foreign tourism and large corporate travel are yet to pick up fully.
Lemon Tree Hotels posted a strong earnings performance for the June-ended quarter. The company managed to clock in a net profit for the first time in 9 quarters and the average room rate is at its highest ever level, up 20 percent even from the pre-COVID level.
In fact, the average room rate (ARR) is at Rs 4,822, the highest since its listing in April 2018. The occupancy is at 65.1 percent versus 46.1 percent quarter on quarter (QoQ) and versus 29.6 percent year on year (YoY).
Speaking to CNBC-TV18 after the earnings report, Patanjali Keswani, Chairman and Managing Director of the hotel chain company said that rooms may get even more expensive going forward, adding that foreign tourism and large corporate travel are yet to pick up fully.
“International travellers have still not started coming to India. Meetings, incentives, and conferences are still muted and many large corporates still are not at full demand levels. So my expectation is that you may find rooms even more expensive in a few months,” he said.
Talking about growth, Keswani said, the company’s target is to have 20,000 rooms in the next four years of which 75 percent will be managed.
“We are negotiating with about 100 hotels. I am not sure how many will materialize. So, our intent is very simple. We want to go to about 20,000 rooms in the next four years of which 75 percent will be managed,” he said.
According to him, the hotel sector is likely to see a sustained bull run soon, and demand will be the primary driver for it.
For the entire interview, watch the accompanying video
(Edited by : Abhishek Jha)
First Published: Aug 4, 2022 11:53 AM IST
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