Lemon Tree expects hotel rates to go up 20% this financial year
Hotel stocks have been buzzing with the festive season. Lemon Tree is just 10 percent away from its 52-week high. The company has been adding a slew of properties across the country in line with its target to get to 20,000 rooms in the next 4 years and has also seen room rates surge over 20 percent from the pre-COVID level.
Lemon Tree Hotels’ CMD Patanjali Keswani expects a 20 percent increase in rates in the second half of the financial year. Hotel stocks have been buzzing with the festive season starting and the stock is just 10 percent away from its 52-week high.
The company has been adding a slew of properties across the country in line with its target to get to 20,000 rooms in the next four years. The budget hotel chain has recently opened a 52-room property in Ahmedabad and also signed an agreement for 45-room hotel in Rajkot which should be operational in 2023.
Speaking to CNBC-TV18, Keswani said, “I expect that there will be a 20 percent increase in rates in Q3 and Q4 from the current rates in the branded hotel sector.”
The rate hikes have not impacted demand and there has been a steady increase in occupancies in recent times.
"My expectation is that in H2 (second half of FY23) our industry will continue on the trend line, which was an increase in demand situation and that is why I say there will be a boom time for the next three years,” Keswani said.
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.
For the entire interview, watch the accompanying video
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Lok Sabha elections 2024: BJP's bid for breakthrough in Kerala is an uphill battle, say experts
Apr 23, 2024 9:53 PM
2024 Lok Sabha Elections | PM's Rajasthan speech — has it anything to do with the post-poll mood of the first phase
Apr 23, 2024 3:45 PM
It's KGF 2024 and here's a look at the key characters in Karnataka
Apr 23, 2024 3:17 PM
JP Morgan: Nifty may test 25,000 if BJP wins in 2024 Lok Sabha elections
Apr 23, 2024 2:23 PM