India’s hotel rates are significantly lower than global standards and even cheaper than they were 18 years ago when adjusted for inflation, said Patanjali G Keswani, Chairman and Managing Director of Lemon Tree Hotels.
He expects hotel rates in India to double in the next three years due to rising costs and growing demand for branded hotel stays. Despite a potentially weak holiday season for resort hotels due to heat waves, Keswani remains optimistic about urban and business-focused properties.
Lemon Tree Hotels is set to see its management fees reach ₹350 crore in the next couple of years. Aurika Mumbai has already crossed 80% occupancy with EBITDA margins of 65%, and high single-digit growth in ARR is expected in Q4FY25.
“We expect a very good Q4 this year,” Keswani said, citing a structural shift toward mid-market hotels.
Lemon Tree Hotels’ market capitalization stands at approximately INR 10,814.16 crore, with its shares down nearly 1% in the past year.
SOURCE: CNBC TV 18
