This hospitality stock surged nearly 3% after it signed a license agreement for a 48 room property. The new Hotel is an addition to two operational hotels and four upcoming properties in Himachal Pradesh. 

Share price of Lemon Tree opened at Rs. 109.45 per piece and gained almost 3% and reached its intra- day high of Rs. 111.70 apiece. The stock is currently trading 0.9% lower from its 52- week high of Rs. 112.80 levels. The stock has grown 35.37% and 289.59% in the last six months and three years.

According to an exchange filing, On 6 September 2023, the Hotel Chain company signed a license agreement for a 48 room property in Mashobra, Shimla, Himachal Pradesh. The hotel will be a part of the Lemon Tree Hotel Brand and expected to run its operations from Q1FY26.

The new hotel in Shimla will have access to 48 well-appointed rooms, a restaurant, a bar, a banquet hall, a swimming pool, meeting rooms and other public areas. One of its wholly owned subsidiaries, Carnation Hotels Private Limited will manage the hotel along with the hotel management arm.

As per its recent financials, the company has reported some of its figures in red this quarter. On a QoQ basis, revenue has reduced by 13.6% from Rs. 252.69 crore in Q4FY23 to Rs. 222.26 crore in Q1FY24. Its net profit which was Rs. 43.97 crore in Q4FY23 reduced by 46.6% to Rs. 23.46 crore in Q1FY24.

Lemon Tree Hotels is the the third-largest overall hotel chain in India. With a value for money promise, it offers distinctive yet superior service options. The hotel chain includes 84 hotels which are owned and operated. It is a mid scale business with superior service and value for money proposition.

Written by Bhumika Khandelwal

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