20,000 rooms target achievable by March 2026
Originally targeted for 2028, the company now expects to reach 20,000 rooms (including pipeline) within 6 months, with potential to scale to 30,000-40,000 rooms in the longer term.
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Lemon Tree Hotels · forward-looking guidance across the available source record.
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What management said would happen.
expansion
Renovation expenses to normalize from H1 FY27
Current catch-up renovation spending of ~100 crore (6% of revenue) will drop to 20-30 crore annually (2-2.25% of revenue) post H1 FY27 when the entire owned portfolio is renovated.
Keys portfolio EBITDA target of 60-80 crore at 50% margin
Post full renovation, Keys hotels (930 rooms) expected to achieve 120-160 crore revenue with 50% EBITDA margins, up from current ~24 crore in Q1 (annualized). Keys Whitefield already achieving 4,500+ ARR post-renovation.
50% renewable energy target in owned portfolio
Power and fuel costs reduced from 8.7% of revenue to 6.9% in Q1. Targeting 50% renewable energy (up from 40%) over next 12-18 months through continued solar investments.
FY27 Room Opening Target: 2,000 Keys
Management maintains confidence in opening 2,000 rooms in FY27, supported by existing pipeline and owner relationships built over 30-month average lead time.
FY29 Fee Income Acceleration: 5,000 New Managed Rooms
FY29 will see ~5,000 new managed rooms open (45% of current 12,000 managed inventory), representing the batch signed in FY25 when 5,000 rooms were signed—driving compounding fee income acceleration.
EBITDA Margin Recovery to 50%+ in FY28
FY27 margin improvement trajectory expected; FY28 should reach 50% consolidated EBITDA margin as renovation expenses drop ~1% of revenue (from 2.3% in Q1) and GST impact moderates with higher ARR mix.
Keys Portfolio Revenue Target: 60 Crore
When renovation completes and full performance stabilizes (occupancy near Lemon Tree average, ARR improving), Keys should generate 60 crore revenue with 50% EBITDA margin.
15% Revenue Growth Target for FY27
Management expressed high confidence in achieving at least 15% revenue growth from the existing portfolio in FY27, with additional upside possible from new signings.
Expense Ratio to Shrink to 3.5% by FY28
Combined renovation, technology and GST expenses currently at 6.4% of revenue are expected to decline to approximately 3.5% by FY28, driving EBITDA margin expansion.
GST Impact to Moderate to 2% in FY27
GST impact on revenue expected at 2% for full year FY27 (down from ~1.8% in Q3 FY26) and further to 1.7% in FY28 as more customers pay above ₹7,500 threshold.
Ora Shillong Opening Mid-2027
The Ora Shillong property, a ~200 crore investment with 70% debt financing at subsidized rates, is expected to commence operations in H2 calendar 2027.