TTT NEWS NETWORK
NEW DELHI | 6 NOVEMBER 2026
Lemon Tree Hotels Limited has delivered the most successful second-quarter performance in the company’s history for the period ending September 30, 2026. The mid-market to upscale hospitality major announced record-breaking numbers across all key operational metrics, including room rates, revenue, operating profit, and net profitability. The stellar performance was heavily driven by a simultaneous surge in average daily room rates and overall occupancy levels across its nationwide network.
The company reported a major financial surge, led by an 18% year-on-year revenue growth alongside a 22% increase in Net EBITDA. Demonstrating highly efficient operational leverage, the hotel chain’s profit after tax (PAT) skyrocketed by 90% to ₹79.8 crore, up from the corresponding period in the previous fiscal year. This bottom-line growth highlights the robust demand in India’s domestic travel sector, as well as the successful premiumisation strategy executed across the company’s multi-brand portfolio.
According to Managing Director Neelendra Singh, revenue grew by 18% and Net EBITDA increased by 22%. Margins also expanded by 157 basis points, successfully absorbing the financial impacts of GST revisions and stock appreciation rights. This strong momentum was driven by an 8% increase in room rates alongside a six-percentage-point surge in occupancy, which reached 76.1%. Mr. Singh attributed this simultaneous growth to robust brand equity, an effective distribution network, and a successful loyalty programme.
The quarter also marked significant operational expansion. The company signed 825 new rooms, opened 523 rooms, and recorded a 30% growth in fees from third-party hotels. To cater to the evolving demands of the “New India Traveller” seeking differentiated experiences, Lemon Tree is actively expanding its pipeline. Key upcoming projects include Aurika properties in Shimla, Shillong, and Varanasi, as well as a Lemon Tree Premier in Bandra, Mumbai
A primary driver of this growth was the company’s revenue per available room (RevPAR), which advanced an impressive 18% to reach ₹5,137. This was achieved through a strategic combination of an 8% increase in average daily room rates and a significant occupancy boost of more than six percentage points, pushing the chain’s total occupancy to 76.1%. Operational margins successfully expanded by 157 basis points during the quarter. This margin expansion was particularly notable as it was achieved while fully absorbing the financial impacts of recent statutory Goods and Services Tax (GST) modifications and expenses related to employee stock appreciation rights.
The operational momentum spanned both Lemon Tree’s asset-heavy owned properties and its asset-light managed and franchised portfolio. Proving the scalability of its brand licensing model, management revealed that fee income generated from third-party hotels climbed by 30% during the quarter. This asset-light segment continues to emerge as a high-margin growth engine for the group, allowing rapid geographical footprint expansion with minimal capital expenditure.
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