Sour Times: Lemon Tree Hotel Hit by Revenue Slowdown

Following the release of their muted first-quarter financial results, the stock values of Indian Hotels Co., Lemon Tree Hotels Ltd., Chalet Hotels Ltd., and EIH Ltd. have declined throughout the past month.

By Priyal Dutta 26 Aug 2024 in Hotel

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This year's lower number of weddings during the quarter had a negative impact on the MICE industry.

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Despite a dismal first quarter, major hospitality corporations like IHCL and Lemon Tree are optimistic about future growth. Over the past month, the stock values of Indian Hotels Company, Lemon Tree Hotels Ltd., Chalet Hotels Ltd., and EIH Ltd. have decreased following the publishing of their subdued first-quarter financial results. This year's sales growth was only 6-20% compared to the previous year's 16–26% rise.

An additional factor in the restrained expansion of the hospitality industry was the date of the elections

In addition, this year's quarter saw fewer weddings than usual, which is usually a good sign for wedding-related reservations. The MICE (Meetings, Incentives, Conferences, and Exhibitions) sector suffered. This, along with the election period, contributed to the hotel industry's muted growth.

Hotel Stocks Return in the Last 1 Month and 6 Months:

Company	1 Month Return (%)	6 Months Return (%)
IHCL	2.8	7.8
Lemon Tree Hotels	-6.8	-6.7
Chalet Hotels	-1.3	-7.9
EIH Ltd	-6.3	-6.9

#IHCL #hotel #Lemon tree