Lemon Tree Hotels reports strong Q2, H1 FY26 performance

Lemon Tree Hotels Limited (LTHL) reported a Q2 FY26 total revenue of INR 308.0 Cr, an 8% increase year-over-year, and a net profit after tax (PAT) of INR 41.9 Cr, up 20% YoY. Net EBITDA grew by 1% to INR 132.4 Cr, with the net EBITDA margin at 43.0%. For H1 FY26, total revenue reached INR 625.4 Cr, a 13% increase YoY, and PAT surged by 63% to INR 90.0 Cr. The gross average room rate (ARR) for Q2 FY26 was INR 6,247, up 6% YoY, with occupancy at 69.8%, an increase of 139 basis points.

The company continued its strategic expansion, signing 15 new management and franchise contracts in Q2 FY26, adding 1,138 rooms to its pipeline. Five hotels with 272 rooms were operationalized during the quarter. The total network inventory now stands at 242 hotels and 20,074 rooms, with 121 hotels and 10,956 rooms operational and the remainder in the pipeline. Management and franchise fees for Q2 FY26 increased by 8% YoY to INR 34.3 Cr.

Lemon Tree Hotels improved its credit rating to "A+" from "A," reducing its cost of borrowings to 7.72% in Q2 FY26 compared to 8.68% in Q2 FY25. The company’s debt decreased by INR 212 Cr to INR 1,610 Cr as of September 30, 2025. Significant renovations were completed in H1 FY26, including rebranding the Red Fox Hotel at Aerocity, Delhi, to Lemon Tree Hotel, Aerocity, Delhi, to enhance revenue.