Lemon Tree Hotels Limited has released the transcript of their conference call held on May 29, 2026, discussing the audited financial results for the quarter and year ended March 31, 2026. The call featured insights from Executive Chairman Patanjali Keswani, Managing Director Neelendra Singh, and others. For FY26, the company reported a total revenue of ₹1,452.7 crore, a 13% year-on-year increase, with Net EBITDA at ₹699.3 crore (up 10%), PAT at ₹288.3 crore (up 19%), and Cash Profit at ₹443.1 crore (up 16%). Gross ARR stood at ₹6,875 with an occupancy of 73.5%. Q4 FY26 saw revenue of ₹419.5 crore (up 11% YoY), Net EBITDA of ₹218.3 crore (up 7%), PAT of ₹116.5 crore (up 8%), and occupancy at 78.5%. Net EBITDA margins for FY26 were 48.1%, a contraction of 126 basis points YoY, with Q4 margins at 52%, down 198 basis points. This was attributed to significant investments in renovation, technology, and GST-related changes. The company has reduced total borrowings to ₹1,500 crore from ₹1,699 crore a year ago, with a lower cost of debt at 7.42%. The operational and signed pipeline now stands at 22,581 rooms across 268 hotels. In FY26, 20 managed and franchised hotels with 1,523 rooms were opened, and 55 hotels with 4,912 rooms were signed. Fees from management and franchised contracts increased by 23% to ₹73.9 crore, and fees from Fleur Hotels increased by 8% to ₹95.8 crore. Fleur Hotels, post-scheme, will be India's largest hotel platform by inventory with 5,600 rooms and 39 operational hotels. Updates were provided on the Aurika brand, including plans for Aurika, Nehru Place and Aurika Naldehra, Shimla, and a heritage Aurika Hotel at Varanasi. The demerger scheme aims to create two distinct entities: Lemon Tree Hotels as an asset-light management company and Fleur Hotels as a growth-oriented hotel ownership/leasing platform. Post-reorganization, Lemon Tree shareholders will effectively own close to 74% of Fleur Hotels. The call also addressed near-term demand trends, with a strategic focus on occupancy growth over price growth due to macro headwinds like geopolitical tensions and aviation disruptions. The company is managing its cost structure to improve EBITDA margins. Discussions also covered the demerger timeline, with approvals from SEBI and NCLT being key factors, and the pro forma financials for the Lemon Tree standalone entity, aiming for steady-state margins above 70%. Renovation status and timelines were also detailed, with approximately 85% of heavy renovation in 4,000 rooms completed.
