Lemon Tree Hotel shares close 2% higher after company announces foray into Nepal

Lemon Tree Hotels shares closed over 2% higher on Wednesday following the company’s announcement about its foray into Nepal with the opening of Lemon Tree Premier in Kathmandu. With this entry into the country, Lemon Tree’s inventory has crossed 10,000 rooms, the company said in a release.

The property comes with 102 rooms and suites, a multi-cuisine coffee shop, an Asian restaurant, a recreation bar and a tea lounge, the company stated. The hotel has a separate convention centre which has banquet spaces and conference facilities, besides extensive outdoor event spaces, it added.

Patanjali Keswani, Chairman and Managing Director of Lemon Tree Hotels said this is the first among several properties that would be coming up in Nepal, as the company expands its footprint across the country. “We are also going to expand our footprint in Bhutan further this fiscal, with the opening of a resort in Thimphu,” he said.

Lemon Tree Hotels has a portfolio of over 160 hotels, which includes over 100 operational hotels and more than 60 hotels set to open in India and internationally.

The company saw its revenue from operations rise 23.61% on a year-over-year basis to ₹288.69 crore during the third quarter of fiscal year 2024. Net earnings before interest, tax, depreciation and amortisation (EBITDA) rose 12% y-o-y to ₹141.9 crore while EBITDA margin fell 547 basis points to 48.8% during the quarter. Net profit fell 9.88% to ₹43.79 crore.

The company recently signed a franchise agreement for its upcoming hotel in Ranchi, Jharkhand. This will be the third upcoming property of Lemon Tree Hotels in the state, it said. The company believes Jharkhand has huge potential for growth with several tourist attractions and industries.

Shares of the company have risen over 18% since the beginning of the year. The stock has gained over 82% in the last one year.