Lemon Tree Hotels witnessed a 4% surge in its stock during morning trade on October 3, following the announcement of a franchise agreement with Artisan Resorts to open a resort in Somnath, Gujarat. The resort will offer 52 well-appointed rooms, a restaurant, a boardroom, a fitness center, a recreation room, a swimming pool, an outdoor events venue, and other public areas. The hotel is anticipated to be operational in FY25, according to the company’s regulatory filing.
Mr. Vilas Pawar, Chief of the Franchise Business at Lemon Tree Hotels, expressed delight about the portfolio expansion in Gujarat in collaboration with Artisan Resorts. He emphasized that as the company diversifies its portfolio with properties nationwide, it is actively exploring opportunities in tier II, III, and IV cities. Pawar also mentioned that this addition would supplement the company’s six existing and three upcoming hotels and resorts in Gujarat, indicating a commitment to further expanding their footprint in the state.
As of 11:15 am on the NSE, Lemon Tree Hotels stock was trading at Rs 118.15 per share, marking an increase of Rs 4.40 or 3.87%.
Lemon Tree Hotels, a key player in the hospitality and hotel management sector, reported a YoY revenue increase of 15.62% to Rs 222 crores for the April-June quarter. The net profit for the quarter experienced an impressive YoY surge of 100%, reaching Rs 28 crores. Furthermore, the operating profit margins for the quarter showed a 100-basis-point improvement compared to the previous year, reaching 47%.
The company operates a chain of mid-priced, full-service hotels, offering accommodations, dining options, and event facilities.
