Is LEMON TREE HOTELS Worth To Hold In 2022?

Welcome to yet another blog by myowow. Today we will analyse Lemon Tree Hotels. LEMON TREE HOTELS is a publicly traded company, with shares that trade on the New York Stock Exchange (symbol: LTHO). If you’re considering buying or selling, take a look at this article for more information on LEMON TREE HOTELS.

LEMON TREE HOTELS’s Business Model

1. LEMON TREE HOTELS’s Business Model:

LEMON TREE HOTELS’s business model is based on providing high quality accommodation at affordable prices. The company operates a chain of hotels across India and also has a presence in the United Arab Emirates (UAE).

2. LEMON TREE HOTELS’s Financial Performance:

LEMON TREE HOTELS has been growing rapidly in recent years. The company’s revenue increased from Rs. 1,206 crore in FY2017 to Rs. 2,004 crore in FY2019. Its net profit also grew from Rs. 106 crore to Rs. 241 crore during the same period.

3. LEMON TREE HOTELS’s Stock Performance:

LEMON TREE HOTELS’s stock has performed well in recent years. The stock was trading at around Rs. 60 in early 2017 and hit a high of Rs. 350 in August 2019. However, the stock has fallen back to around Rs. 250 levels currently.

Overall, LEMON TREE HOTELS is a good long-term investment option given its strong financial performance and growth prospects.

Target Market

The Lemon Tree Hotels company primarily targets business travelers and families on vacation. The company has a wide range of hotels located in popular tourist destinations across India. This makes it a convenient option for travelers who want to stay in a comfortable and affordable hotel.

The company also offers a loyalty program for regular customers. This program gives guests discounts on future stays, as well as other benefits such as early check-in and late check-out. This makes Lemon Tree Hotels an attractive option for travelers who often stay in multiple hotels during their trips.

SWOT Analysis

1. Strengths:

– The company has a very strong brand name and reputation in the hospitality industry.

– They have a very efficient management team that has successfully executed their growth strategy.

– The company has a very diversified portfolio of hotels which gives them a good hedge against market risk.

2. Weaknesses:

– The company is highly leveraged with a large debt burden.

– They have been losing market share to some of their competitors in recent years.

– The company has been facing some headwinds in terms of declining occupancy rates and average daily room rates.

3. Opportunities:

– There is a growing demand for hotel rooms in India, and Lemon Tree Hotels is well positioned to take advantage of this trend.

– The company has been investing heavily in new technology and marketing initiatives, which should help to drive growth going forward.

– They have also been expanding their hotel portfolio through acquisitions and new construction, which gives them a wider range of products to offer customers.

4. Threats:

– Rising interest rates could increase the cost of borrowing for the company and put pressure on their bottom line

Conclusion

In conclusion, I believe that LEMON TREE HOTELS is a great stock to hold in 2022. The company has strong fundamentals and a solid growth strategy in place. Additionally, the hotel industry is expected to rebound strongly in the next few years as travel restrictions are lifted and people begin to feel more comfortable travelling again. Therefore, I believe that LEMON TREE HOTELS is a great stock to buy and hold for the long term.