Lemon Tree Hotels Ltd has started to reap some benefits from the growing demand for premium hotels, but its aggressive renovation plan is hurting its profitability.
The ongoing premiumization in the mid-market hotels space boosted Lemon Tree’s consolidated average room rate (ARR) by 12% year-on-year to ₹5,902 in the July-September quarter (Q2FY25), aiding revenue per available room—or RevPAR, a key measure of a hotel’s performance.
Meaningful ARR contribution came from Aurika Mumbai Skycity, the newest premium property in Lemon Tree’s portfolio. Aurika Mumbai, India’s largest hotel by room count (699 rooms), began operations in the…
