“We are going to list Flair. And we will do it sooner rather than later. When we do that, we will be debt free. At the overall group level, we have debt of around Rs 1850 crore, while Flair’s debt is around Rs 1500 crore. So, if we say we’re going to be debt-free, that means we’re going to raise that kind of capital,” he said.
“Fleur has around 4,000 rooms, and all Orica Hotels and Lemon Tree Premier properties in Delhi, Mumbai, Hyderabad and Kolkata come under Flare Hotels,” he added.
Lemon Tree opened India’s largest hotel last year – the 669-room Orica Mumbai SkyCity.
Commenting on the first quarter results, Keswani said earlier this week that despite temporary headwinds in the hotel sector due to the election process and extreme heat wave, Lemon Tree reported its highest ever revenue for the quarter at Rs 268.4 crore. Revenues grew over 19% compared to the first quarter of fiscal 2024, while EBITDA grew 8% year-on-year and translated into a net EBITDA margin of 43%, down 456 bps from the first quarter of fiscal 2024. .
He said the drop in EBITDA margin to 4.6% year-on-year was due, around 50%, to one-time increases in investment in renovations and ‘digital transformation’.
In the first quarter of FY 2025, Lemon Tree generated Rs. A total average room rate of 5,686 was recorded, an increase of 9% year-on-year. Occupancy for the quarter was 66.6%, down 360 bps year-on-year. This makes per available room Rs. 3,788 in revenue, an increase of 4% year-on-year.
As of June 30, 2024, the group’s inventory stands at 107 operational hotels with 10,125 rooms and an additional 4000 rooms in the pipeline.
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