Table of Contents
Lemon Tree Hotels has sustained strong revenue performance over the past 12 quarters, driven by rate optimisation, portfolio expansion, and steady occupancy improvement. While Q2 is typically a softer quarter for the hospitality sector, FY26 Q2 marks the company’s highest Q2 revenue to date, even as YoY growth begins to normalise post the exceptionally strong recovery years of FY24–FY25.
- Best-ever Q2 revenue at ₹308 Cr, despite sector seasonality, reflects a stronger underlying demand base compared to prior years.
- YoY growth moderates sharply to 8.1%, down from 18.3% in Q1 FY26 and >20–30% during FY24–FY25, indicating cyclical normalisation.
- Revenue has grown 60%+ over eight quarters (Q1 FY23 to Q2 FY26), driven largely by rate hikes and network expansion.
- FY25 peak revenue (₹379 Cr in Q4) remains unmatched, but Q2 momentum shows the business is now operating on a higher revenue floor.
- Growth ahead will be shaped more by new inventory, RevPAR uplift, and operating leverage, not demand recovery tailwinds.
What It Means
Lemon Tree’s revenue base has clearly stepped up, with Q2 FY26 posting record seasonal performance - signalling stronger structural demand, improved pricing discipline, and a more mature hotel portfolio. However, YoY growth deceleration to 8.1% highlights a transition from post-pandemic hyper-growth to a more stable, capacity-driven cycle, where incremental gains must now come from portfolio additions, mix improvement, and yield management rather than demand rebound.
