The hotel-chain company reported a consolidated net loss of Rs 53.54 crore in Q2 September 2020, higher than net loss of Rs 3.01 crore in Q2 September 2019.
On a consolidated basis, net sales slumped 68.8% to Rs 47.60 crore in Q2 September 2020 as against Rs 152.76 crore in Q2 September 2019. Pre-tax loss stood at Rs 59.70 crore in Q2 September 2020 as against a pre-tax loss of Rs 2.95 crore in Q2 September 2019.
EBITDA slumped 71% to Rs 14.30 crore in Q2 September 2020 over Rs 49.40 crore in Q2 September 2019. EBITDA margin was at 26.7% in Q2 FY21 as compared to 32.1% in Q2 FY20.
The number of hotels jumped 42% to 81 in Q2 FY21 as against 57 in Q2 FY20. Revenue per Available Room (RevPAR) tumbled 72% to Rs 859 in Q2 September 2020 from Rs 3,090 in Q2 September 2019.
Commenting on the Q2 FY21 performance, Patanjali Keswani, the chairman & managing director (MD) of Lemon Tree Hotels, said: "The pandemic has had a severe impact on the travel, hospitality and tourism industry, with these sectors facing an unprecedented and never-seen-before level of disruption, both in the domestic and global markets. However, as lockdown restrictions across domestic markets eased along with the gradual reopening of state borders, we saw initial demand revival coming in particularly from the retail segment. Addressing this uptick, we rejigged our offers and packages for staycations, day-use, work-from-hotels amongst others, which saw a healthy response. This enabled us to witness a recovery on a sequential basis and our operating performance improved significantly over the previous quarter. Our operating inventory increased from 71.5% of our total inventory in Q1 FY21 to 86.8% in Q2 FY21. Our occupancy on full inventory improved from 28.9% in Q1 FY21 to 32.4% in Q2 FY21. Our occupancy across operating hotels stood at 37.3% in Q2 FY21. Consequently, revenues from operations increased 17% from Rs 40.7 cr in Q1 FY21 to Rs 47.6 cr in Q2 FY21."
"From an operating standpoint, we have continued to explore measures that focus on tightening fixed costs, enhancing efficiencies and improving business processes further to the measures which we implemented in Q1 FY21. This has positively impacted our profitability performance, with our EBITDA growing by 92% to Rs 14.3 cr in Q2 FY21 from Rs 7.5 cr in Q1 FY21. Our EBITDA margin expanded by 964 bps to 26.7% in Q2 FY21 from 17.1% in Q1 FY21."
"Looking ahead, although the overall demand is far from pre-crisis levels, we are hopeful that the momentum which we gained in Q2 will increase in the months ahead. As the hospitality industry prepares for this new-normal environment, the safety of our guests and employees remains of utmost important to us. With the launch of our unique 'Rest Assured' initiative, we are ensuring the best safety and hygiene protocols across all of our properties. On the whole, while the industry will take some more time to recover, we remain confident of our business model and we are sure to bounce back strongly in the normal business environment," he added.
Shares of Lemon Tree Hotels rose 0.36% to Rs 27.70 on BSE.
Lemon Tree Hotels (LTH) is the largest mid-priced hotel sector chain, and the third largest overall, on the basis of controlling interest in owned and leased rooms, as of 30 June 2017, according to the Horwath Report.
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