Lemon Tree Hotels (LEMONTRE IN) Hold: Key takeaways from Lemon Tree’s analyst day

Research evidence excerpt

Lemon Tree Hotels (LEMONTRE IN) Hold: Key takeaways from Lemon Tree’s analyst day

18 June 2026

Lemon Tree Hotels EquitiesHotels Restaurants & Leisure

(LEMONTRE IN)

Hold: Key takeaways from Lemon Tree’s analyst day India

◆ Key focus of the analyst day was the planned demerger of MAINTAIN HOLD

Lemon Tree and Fleur and the new structure of the group

TARGET PRICE (INR) PREVIOUS TARGET (INR)

◆ While the purpose is to simplify the corporate structure after

127.00 127.00 APG left the JV, deal appears neutral with some execution risk

◆ Retain INR127 TP; concerns about potentially expensive SHARE PRICE (INR) UPSIDE/DOWNSIDE

growth at Fleur, LT’s dependency on Fleur, and execution risk 109.99 +15.5%

(as of 16 Jun 2026)

Analyst day – demerger in focus: We attended Lemon Tree’s analyst day on 15 Jun. MARKET DATA

Market cap (INRm) 87,095 Free float 63%

Discussion was focused on the demerger announced between Lemon Tree (LT) and its Market cap (USDm) 921 BBG LEMONTRE

subsidiary, Fleur. Management said the purpose of the demerger is to simplify the 3m ADTV (USDm) 7 RIC LEMO.NS

business structure, while addressing the legacy APG JV structure. Post this demerger, LT FINANCIALS AND RATIOS (INR)

will be a pure hotel operator, while Fleur will be the hotel owner, with planned growth Year to 03/2026a 03/2027e 03/2028e 03/2029e

HSBC EPS 3.34 3.89 5.01 6.27focused in key metro and leisure cities. While we appreciate the logic, we remain cautious HSBC EPS (prev) 3.34 3.89 5.01 6.27

about: (1) execution risk, (2) potential risk of expensive growth at Fleur and (3) LT’s high Change (%) 0.0 0.0 0.0 0.0

Consensus EPS 3.27 4.08 5.19 5.94

dependency on Fleur since 60% of its proforma revenue comes from Fleur. PE (x) 33.0 28.3 21.9 17.5

Dividend yield (%) 0.0 0.0 0.0 0.0