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New brand will provide value for money proposition in the upscale segment, says Lemon Tree

Updated : May 30, 2019 02:20 PM IST

Lemon Tree reported a muted fourth quarter but boosted profits due to deferred tax of Rs 31.4 crore. To discuss the numbers in details and the business outlook, CNBC-TV18 spoke with Lemon Tree CFO Kapil Sharma.

Talking about the company’s plans to enter the upscale hotel segment, he said the idea behind ORIKA brand is to give a value for money proposition in the upscale segment. “We are trying to cover another spectrum of mid-price hotel sector and not getting into the luxury segment,” he said.

The first hotel to launch under the new brand will be in Udaipur. We will share details about this particular brand closer to the launch date, he said.

It would be an affordable luxury product but with good value for money, he specified.

With regards to the 'keys' acquisition, he said they haven’t yet concluded the transaction and are in advanced stage of due diligence.

The occupancy rate for Lemon Tree is in high trajectory. In Q4 it stood at 78 percent, he said. “This was the first full quarter of operation for the new hotel Lemon Tree Premier Pune,” he added.

Currently, they operate 5,500 rooms, out of which 3,600 rooms are owned and leased and 1,900 rooms are managed. They have plans of further adding 3,300 rooms, out of which 1,300 rooms will be owned and leased while the remaining will be managed, said Sharma.
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