Lemon Tree Hotels share price: Lemon Tree Hotels Limited (LTHL, one of the largest hotel chains in India, that owns, leases, operates, and franchises hotels across the upscale, upper-midscale, midscale and economy segments) has reported its Q4 results. Despite its strong performance in financial results for the quarter and the financial year ended March 31, 2026, the brokerages remain divided. Let’s find out why and the latest target price.
Lemon Tree Hotels Share: Buy, Sell or Hold? Brokerages remain divided; check latest target prices
Nuvama on Lemon Tree Hotels
- Revenue, EBITDA and PAT grew despite geopolitical and aviation disruptions.
- Corporate travel demand weakened due to uncertainty and higher airfares.
- Retail and leisure travel demand remained strong, supporting occupancy levels.
- RevPAR growth was driven mainly by higher room rates and occupancy gains.
- Aurika remained weak, impacted by lower occupancy, seasonality and supply additions.
- Operating margins improved after adjusting for renovation and GST-related costs.
- Management fees grew 13 per cent YoY, supported by the expansion of managed hotels.
- Full-year occupancy reached a record 73.5 per cent, the highest in company history.
- Renovation spending impacted margins but is expected to normalise from FY27.
- Pipeline stands at 22,581 rooms across 268 hotels, providing growth visibility.
- Demerger will create an asset-light management business with a zero-debt focus.
The brokerage firm Nirmal Bang maintains a hold rating on Lemon Tree Hotels, with a target price of Rs 123. Here’s why:
Lemon Tree reported 7 per cent YoY RevPAR growth to Rs 5,855 in 4QFY26, driven by a 6 per cent YoY increase in ARR, while occupancy came to 78.5 per cent.
For FY26, the company delivered 12 per cent YoY revenue growth and 9 per cent YoY EBITDA growth despite multiple headwinds during the year.
EBITDA margins were impacted by a significant increase in renovation-related expenses, investments in technology initiatives, and the GST-related change.
The management indicated that these costs are expected to moderate going forward, which should support a corresponding improvement in EBITDA margins.
In response to geopolitical tensions in the Middle East, rising airfares, and a slowdown in corporate travel demand from mid-March, the management strategically prioritised occupancy growth over ARR growth.
The company adopted tactical pricing measures and shifted focus toward the retail segment to offset the decline in corporate room nights and maintain occupancy at a premium to the market.
While January remained stable and February witnessed strong demand with healthy pricing, business conditions weakened from mid-March, and the softness continued through April.
This strategy proved successful, resulting in record-high occupancy levels in May despite largely flat ARR growth.
The brokerage builds in a revenue/EBITDA CAGR of 13%/16% over FY26–FY28E and values the stock at 12x EV/EBITDA.
Lemon Tree Hotels Q4 results
Lemon Tree Hotels reported a strong Q4 performance, with revenue rising 29.5 per cent year-on-year to Rs 327 crore from Rs 253 crore, while EBITDA increased 23.9 per cent to Rs 260 crore from Rs 210 crore. The company’s profit after tax (PAT) surged 42.3 per cent to Rs 84 crore from Rs 59 crore, although EBITDA margin declined by 363 basis points to 79.5 per cent from 83.1 per cent in the corresponding quarter last year.
Lemon Tree Hotels share price today
At the time of writing this report (10:23 AM), the shares of Lemon Tree Hotels were trading 1.45 per cent lower at Rs 112.40, compared to the previous closing price of Rs 114.05.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
