Profit before tax during the quarter stood at Rs 55.83 crore, registering a growth of 23.35% from Rs 45.26 crore reported in Q2 FY25. EBITDA stood at Rs 125 crore in Q2 FY26, flat on a year-on-year basis. The EBITDA margin declined to 44.1% in Q2 FY26 from 47.4% in Q2 FY25.

During the quarter, gross ARR (average revenue per room) increased 6% YoY to Rs 6,607 during the quarter, while the occupancy rate jumped to 71.7% in Q2 FY26 as against 70.7% in Q2 FY25.

RevPAR (revenue per available room) jumped 7% to Rs 4,735 in Q2 FY26, compared with Rs 4,417 in Q2 FY25.

Patanjali Keswani, chairman & managing director, Lemon Tree Hotels, said, “The company reported its highest-ever Q2 revenue at Rs 308 crore, up 8% YoY. Net EBITDA rose 1% YoY to Rs 132.4 crore, with margins at 43%, down 306 bps due to higher renovation, technology, and one-time employee costs. The company completed major upgrades in Delhi, Bangalore, Hyderabad, and the Keys portfolio, rebranding several hotels to higher categories, leading to improved performance. ARR grew 6% YoY to Rs 6,247, occupancy rose to 69.8%, and RevPAR increased 8% to Rs 4,358.

PAT grew 20% YoY to Rs 41.9 crore, while cash profit rose 9.2% to Rs 76.3 crore. Debt was reduced to Rs 1,610 crore, and the credit rating improved to A+ from A, lowering borrowing costs. The company added 15 new management and franchise contracts (1,138 rooms) and opened 5 hotels (272 rooms). Total inventory stood at 242 hotels and 20,074 rooms. Lemon Tree remains optimistic about H2 FY26 with expectations of improved occupancy and ARR as renovation and technology investments yield results.”

Lemon Tree Hotels (LTHL) is the largest mid-priced and the third-largest overall hotel chain in India. It operates in the upscale segment and in the mid-priced sector, consisting of the upper-midscale, midscale, and economy segments. It delivers differentiated yet superior service offerings, with a value-for-money proposition.