The Lemon Tree Hotels stock has been on the rise in the past month and has shot up close to 17 percent in the period. Since announcing its quarterly performance five days back, the stock has rallied close to 12 percent.
The hospitality company managed to clock in a net profit for the first time in nine quarters. The average room rate was at its highest ever level, up 20 percent even from the pre-COVID level.
Speaking to CNBC-TV18 after the earnings report, Patanjali Keswani, Chairman and Managing Director of the hotel chain company, said that rooms might 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, rooms might even more expensive in a few months,” he said.
Watch the interview:
Lemon Tree Hotels Interview Highlights:
Demand for hotel rooms will keep increasing
Demand is still at 80-85 percent versus pre-COVID levels
Going forward, rooms may get even more expensive
Foreign tourism and large corporate travel is yet to pick up fully
We may see 50-60 percent higher realisations
Promise at least 2x income at 50 percent EBITDA margin in FY23
Target 20,000 rooms in the next four years, with 75 percent being managed
(Edited by : Abhishek Jha)
First Published: Aug 8, 2022 12:22 PM IST
