homeearnings NewsLemon Tree Hotels' occupancy 10% below pre COVID levels; to pick up from Q4, says CMD
Lemon Tree Hotels' occupancy 10% below pre-COVID levels; to pick up from Q4, says CMD
Lemon Trees Hotels’ occupancy, which was 51 percent in the last quarter should be north of 60 -65 percent in Q4, and could be more also, said CMD Patanjali Keswani.
The second-quarter numbers for Lemon Tree Hotels were good. Revenues for the quarter were up 103.6 percent year on year (YoY) at Rs 96.9 crore versus Rs 47.6 crore. EBITDA too was up 307.6 percent at Rs 33.87 crore versus 8.31 percent. Margins came in at 35 percent compared to 17.5 percent last year same quarter.
Patanjali Keswani, CMD, Lemon Tree Hotels said from a cash perspective, they would definitely be profitable from Q3 onwards.
He added, “In Q4 FY20, we had an average income excluding the COVID month of March of about Rs 2.4 crore per day. Today, we are a little over Rs 1 crore and in Q3 we would be maybe 20-30-40 percent better than that and in Q4 we would be probably close to Rs 1.8 crore a day, which means we will be at PBT breakeven. So, at Rs 1.8 crore today, we are at PBT breakeven and Rs 150 crore of cash,” he said.
Talking about the occupancies and revenge travel, he said they were present in 55 cities and have close to 20 percent of the mid-market. "So I guess we are close enough as a proxy."
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According to him, an interesting trend is playing out that is the retail segment, which was typically 40 percent of the demand is today at 60 percent and the corporate segment is underperforming.
However, the corporate segment in the last three months has been accelerating at about 10 percent per month. So if one were to put all this together, then Lemon Trees’ occupancy, which was 51 percent in the last quarter should be north of 60-65 percent in Q4, could be more also.
“I am seeing is very encouraging growth rates in retail, in the corporate segment, and even from a low base, it is accelerating pretty well. So when I look at Lemon Tree, I see occupancy is only about 10 percent below pre-COVID levels. It's the rate that has to catch up. And my estimate is that we will catch up by Q4 which is why I am very bullish from the start of the next calendar year,” he stated.
For the entire interview, watch the video
(Edited by : Priyanka Rathi)
First Published: Oct 25, 2021 4:14 PM IST
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