
Lemon Tree Hotels stock trades at a discount, but is the juice worth the squeeze?
Subscribe to enjoy similar stories. India’s hospitality industry is seeing an unprecedented surge in demand, driven by economic growth, rising disposable incomes, and a resurgence in both business and leisure travel. At the forefront of this transformation is Lemon Tree Hotels Limited, a company that has not only carved out a significant niche in the mid-market segment but is now strategically positioning itself for premiumisation, asset-light expansion, and stronger financial performance.
Lemon Tree Hotels' stock has delivered a remarkable 90% return since its listing in April 2018. However, over the past year the stock has declined 8%, reflecting near-term challenges and sector-wide corrections. Also read | Trump’s tariff war: The intended and unintended consequences The company’s ability to balance cost-efficiency with quality service makes it an attractive player in the hospitality industry.
Can it sustain its momentum and emerge as a market leader? Let’s dive into the numbers, strategies, and market trends shaping its future. The Indian hospitality sector has rebounded strongly from the pandemic, with 10-12% year-on-year growth in average room rates (ARR) and a 15% year-on-year increase in revenue per available room (RevPAR) in early 2025. Lemon Tree Hotels has been a significant beneficiary of this growth, reporting record-breaking financials in Q3FY25.
The company’s revenue soared to ₹355.2 crore in the quarter, up 22.4% year-on-year, highlighting strong demand trends. Profit after tax saw an even sharper 82.4% year-on-year surge to ₹79.9 crore, reinforcing the company’s ability to scale profitability. Ebitda rose 30.2% year-on-year to ₹184.8 crore, with Ebitda margin expanding to 51.9% from 48.8% in the previous
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