Lemon Tree Hotels' boss Patanjali Keswani targets occupancy levels of 75% in Q2
The Lemon Tree Hotels boss pointed out that the real price hikes will be seen from the second half, which is October. Shares of Lemon Tree Hotels Ltd closed 0.78 percent lower at Rs 94.90 apiece on the NSE in trade today.
The period from April-June is seasonally the weakest quarter. The occupancy levels has crossed 70 percent in the June quarter (Q1FY24), and in the September quarter, the company hopes to do significantly better, accompanied with a price hike, said Patanjali Keswani, Chairman and Managing Director of Lemon Tree Hotels.
Speaking to CNBC-TV18 on Friday, the Lemon Tree Hotels boss pointed out that the real price hikes will be seen from the second half, which is October.
"We intend to average out at an occupancy of about 74 percent and take prices up by another 10-15 percent depending on market conditions in Q3 and perhaps another 5 percent in Q4. So, really overall about 20 percent by Q4 on a running basis," Keswani said.
Further, he said the company targets a minimum of Rs 1,000 crore in revenue from owned hotels at 70 percent margin. "Now, the question is where will we be and will we be well over 50 percent or will we be at around 50 percent that's something that's quite market led. But broadly, minimum, over Rs 1,000 crore of owned hotel revenue and over 50 percent of net EBITDA."
Keswani also said new hotel in FY25 should do revenue north of Rs 300 crore and EBITDA of more than Rs 250 crore. "New Hotel is opening actually just around Dussehra time and then flowing into the Diwali," he said.
The hospitality chain Tree reported a profit after tax (PAT) of Rs 27.5 crore in the June quarter of the financial year 2024, up 103 percent from Rs 13.6 crore in the year-ago period, driven by strong travel demand.
The company registered total revenue of Rs 224.6 crore for the quarter which increased 16.8 percent year-on-year (YoY).
Shares of Lemon Tree Hotels Ltd closed 0.78 percent lower at Rs 94.90 apiece on the NSE in trade today.
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