Lemon Tree Hotel Faces Setback as Revenue Growth Slows

Sunday, August 25, 2024 Despite a sluggish Q1, major hospitality firms like Lemon Tree and IHCL remain optimistic about future growth. Over the last month, stock values for Indian Hotels Co., Lemon Tree Hotels Ltd.

, Chalet Hotels Ltd., and EIH Ltd. have experienced downturns following their announcement of subdued first quarter financials.

Revenue growth was recorded at 6-20%, a decline from the previous year’s 16-26%. Additionally, the quarter, typically robust for wedding-related bookings, saw fewer weddings this year, adversely affecting the MICE (Meetings, Incentives, Conferences, and Exhibitions) sector. This, along with the timing of elections, contributed to the muted growth in the hospitality sector.

Hotel Stocks Return in Last 1 Month and 6 Months Company 1 Month Return (%) 6 Months Return (%) IHCL 2.8 7.8 Lemon Tree Hotels -6.

8 -6.7 Chalet Hotels -1.3 -7.

9 EIH Ltd -6.3 -6.9.