Lemon Tree Hotels Shares Gain After Signing Two New Properties

Shares of Lemon Tree Hotels Ltd. hit an all-time high on Tuesday after it signed two new properties in Kasauli and Bhubaneswar.

The hotel in Bhubaneswar, under the brand of Lemon Tree Hotel, is expected to be operational by Q4 FY25 and will be managed by its unit, Carnation Hotels Pvt. While, the hotel in Kasauli will be operated under the brand name Lemon Tree Mountain Resort and is expected to be operational by Q3 FY26.

Lemon Tree Hotel, Bhubaneswar, Odisha, will feature 60 rooms, a restaurant, meeting rooms, a banquet hall, a swimming pool, a fitness center, and other public areas.

Whereas, the Lemon Tree Mountain Resort, Kasauli, Himachal Pradesh, will feature 50 rooms and cottages, banquet halls, recreation room, two restaurants, a swimming pool, a spa, fitness center, a library and other public areas.

“We are pleased to partner with M/S Birendra Hotels & Banquets Pvt. Ltd. for our signing in Bhubaneswar and with Atithivan Hospitality Pvt. Ltd. for our signing in Kasauli. The two additions under two diverse models aligns with our asset-light policy. These would expand our offerings in different parts of the country to cater to a variety of travellers in different destinations," said Vikramjit Singh, president of Lemon Tree Hotels.

Shares of Lemon Tree Hotels advanced 3.14%, before paring gains to trade 1.66% higher at 11:21 a.m., compared to 0.12% rise in the NSE Nifty 50.

The stock price hit a record high of Rs 108.5 per share. The stock has risen 25% on a year-to-date basis. The total traded volume stood at 3.4 times its 30-day average. The relative strength index was at 78, implying that the stock may be overbought.

Of the 17 analysts tracking the company, 15 maintain a 'buy' rating and two suggest a 'sell' on the stock, according to Bloomberg data. The average 12-month consensus price target implies a potential upside of 7.7%.