During the quarter, gross ARR (average revenue per room) increased 9.67% YoY to Rs 6,236 during the quarter, while the occupancy rate jumped to 72.5% in Q1 FY26 as against 66.6% in Q1 FY25.

RevPAR (revenue per available room) jumped 19.4% to Rs 4,523 in Q1 FY26, compared with Rs 3,788 in Q1 FY25, due to higher occupancy and ARR.

Patanjali Keswani, chairman & managing director, Lemon Tree Hotels, said, “In Q1, despite the headwinds faced by the industry due to the geopolitical tensions and covid scare, Lemon Tree recorded its highest-ever Q1 revenue. At Rs 317.4 crore, our revenue grew by 18% compared to Q1 last year. Net EBITDA grew 23% Y-o-Y to Rs 142.1 crore, translating into a Net EBITDA Margin of 44.8%, which increased by 178 bps Y-o-Y. Q1 FY26 recorded a gross ARR of Rs 6,236, which increased by 10% Y-o-Y. The occupancy for the quarter stood at 72.5%, an increase of 591 bps Y-o-Y. This translated into a RevPAR of Rs 4,523, marking a 19% year-on-year increase.

The company's profit after tax stood at Rs 48.1 crore in Q1 FY26, an increase of 139% Y-o-Y. Cash profit for the company stood at Rs 82.3 crore in Q1 FY26, an increase of 51% Y-o-Y. The debt for the company stood at Rs 1,658 crore in Q1 FY26, a decrease of Rs 206 crore over the year vis-à-vis Rs 1,864 crore in Q1 FY25. As of 30th June 2025, the company cost of borrowing stood at 8.01% as compared to 8.80% as of 30th June 2024.

We continue making significant investments in renovations, business development, technology, and renewable energy. These expenses are incremental in nature over and above the normal expenses and are necessary to prepare for LT 2.0 as highlighted in our 5-Year Plan. During the quarter approximately 350 rooms were under renovation, and we shall continue to spend on renovation in FY27, and by then the entire portfolio of owned hotels shall be fully renovated and refreshed.

On the asset-light side, in Q1 FY26 we signed 14 new management and franchise contracts, adding 1,273 new rooms to our pipeline, and operationalized 5 hotels, adding 392 rooms to our operational portfolio. As of 30th June 2025, the total inventory for the group stands at 18,431 rooms in 226 hotels, of which 10,661 rooms in 116 hotels are operational and the rest are in the pipeline.”

Meanwhile, the company announced the appointment of Neelendra Singh as additional director and managing director for a term of five years, effective 1 October 2025, and Kapil Sharma as executive director and chief financial officer for a term of five years, effective 1 October 2025.

Furthermore, the board approved the sale of the company’s entire equity stake in Nettle Hotels and Madder Stays to Fleur Hotels, a material subsidiary of the company. Upon completion of the transfer, Nettle Hotels and Madder Stays will become wholly owned subsidiaries of Fleur Hotels and indirect subsidiaries of the company.

Lemon Tree Hotels (LTHL) is the largest mid-priced and the third-largest overall hotel chain in India. It operates in the upscale segment and in the mid-priced sector, consisting of the upper-midscale, midscale, and economy segments. It delivers differentiated yet superior service offerings, with a value-for-money proposition.