EBITDA stood at Rs 184.8 crore in Q3 FY25, up 30.23% as compared with Rs 141.9 crore posted in corresponding quarter last year. EBITDA margin stood at 51.9% in Q3 FY25 as against 48.8% in Q3 FY24.

During the quarter, gross ARR (average revenue per room) increased 7% YoY to Rs 6,763 crore during the quarter, while occupancy rate jumped to 74.2% in Q3 FY25 as against 65.9% in Q3 FY24.

RevPAR (revenue per available room) jumped 20.77% to Rs 5,018 crore in Q3 FY25, compared with Rs 4,155 crore in Q3 FY24.

Patanjali Keswani, chairman & managing director, Lemon Tree Hotels, said, “Fees from management and franchised contracts for third-party-owned hotels stood at Rs 18.4 crore in Q3 FY25, an increase of 24% YoY. Fees from Fleur Hotels stood at Rs 25.3 crore in Q3 FY25, an increase of 45% YoY. Total management fees for Lemon Tree stood at Rs 43.7 crore in Q3 FY25, an increase of 35% YoY.

On the business development front, this quarter, Lemon Tree received a Letter of Award from the Directorate of Tourism, Government of Meghalaya, for the redevelopment, operation, and maintenance of the existing Orchid Hotel, Shillong, under the Design, Build, Finance, Operate, and Transfer mode on a public-private partnership basis. This will be redeveloped as Aurika, Shillong, and is expected to become operational within the next three years.

This is the first public-private partnership undertaken by Lemon Tree Hotels. The project qualifies for capital subsidy and various incentives, including GST reimbursement, under the Meghalaya Industrial and Investment Promotion Policy 2024 and the Uttar Pradesh Transformative Industrialization Scheme 2024. On the asset-light side, we signed 13 new management and franchise contracts, adding 766 new rooms to our pipeline, and operationalized one hotel, adding 38 rooms to our portfolio. As of December 31, 2024, the inventory for the group stands at 112 operational hotels with 10,317 rooms and a pipeline of 88 hotels with 6,068 rooms.

Post this, renovation expenses will be close to 1.8% of revenue on an ongoing basis. With demand growth expected to outpace supply in the next few years and increasing discretionary spending on branded hotels in India, our increased investment in renovation will allow us to position Lemon Tree as the preferred brand in the mid-market segment.”

Lemon Tree Hotels its principal activities are to carry out the business of developing, owning, acquiring, operating, managing, renovating, and promoting hotels, motels, resorts, restaurants, etc. under the brand names Lemon Tree Hotel, Lemon Tree Premier, Red Fox Hotel, Aurika, Keys Select, Keys Prima, and Keys Lite.