Lemon Tree Hotels Ltd. · NSE:LEMONTREE
Lemon Tree Hotels — Carnation Hotels — Investor Presentation (April 2016)
40 slides from Lemon Tree Hotels's investor presentation, April 2016
Slide 1: Carnation Hotels
Slide 2: Quote from Patu Keswani
“We are great at managing our own hotels, but we are even better at managing hotels owned by others.” -Patu Keswani, Chairman and MD Lemon Tree Hotels
Slide 3: Our Story
Our Story • Carnation Hotels is the strategic management arm of Lemon Tree Hotels • A hotel management company that lends an established brand philosophy to the owners in delivering end to end solutions, starting from design conceptualization to viably managing the operations of the hotel • Veteran
Slide 4: The Guiding Angels
The Guiding Angels PATU KESWANI RATTAN KESWANI IIT Delhi, IIM Kolkata and Former President – Trident Hotels (Oberoi Group) Tata Administrative Services and EVP – Oberoi Hotels Mumbai Former COO and Senior VP - Taj Hotels GM for several marquee ‘The Oberoi’ Hotels in India, Sri Lanka and the Middle E
Slide 5: What Makes Us Unique?
What Makes Us Unique? • Lemon Tree Hotels is the third largest hotel company in the mid-market space by owned hotels • We are not just managers! We are owners as well. We have gone through the grind, calculated the numbers, believed in our projects, taken the risks and come out victorious. We have b
Slide 6: Be Indian. Buy Indian.
“Be Indian. Buy Indian.” - Mahatma Gandhi
Slide 7: We Are Indian & We Are Proud Of It
We Are Indian & We Are Proud Of It. • We are a home grown brand and the first truly Indian hospitality company to grow this fast • We are present across the nation covering 16 cities and looking out for more • We understand the pulse of the consumer – whether he is the upscale, polished business tra
Slide 8: Coming together is a beginning (Henry Ford)
“Coming together is a beginning; keeping together is progress; working together is success.” - Henry Ford
Slide 9: We Make Perfect Partners
We Make Perfect Partners • Lemon Tree Hotels is the 3rd largest hotel chain in India (by owned rooms) with 27 hotels across 16 cities, With a room key breakup of 2726 owned rooms and 323 managed rooms. ~75% of the Lemon Tree Hotels have won the TripAdvisor Certificate of Excellence in 2015 • Patu Ke
Slide 10: Strategically Poised To Deliver Value To Hotel Owners
Strategically Poised To Deliver Value To Hotel Owners GREAT BRAND STRONG SALES GROWING STRONG COST ROBUST ONLINE PRESENCE IN INDIA RELATIONSHIP LOYALTY PROGRAM AND ROCE FOCUS PRESENCE Large base of loyal Over 4500 + accounts The fastest earning Lowest energy cost/ A single platform Indian customers
Slide 11: Key Competitive Advantage
Key Competitive Advantage ABOVE THE LINE LOW OPERATING COST AND OCCUPANCY REVPAR HIGHER THEREFORE LOWER PREMIUM PREMIUM GOP PRICE = VALUE FOR MONEY BELOW THE LINE • Lower Capex/Room, Faster Build Out • Low Leverage • Lower Interest Cost • Low Risk (yet high growth) • Faster Stabilization of Hotels –
Slide 12: Operating Across The Entire Value Chain
Operating Across The Entire Value Chain FROM GROUND TO GUEST, WE UNDERSTAND THE NEEDS OF A HOTEL OWNER DEVELOPMENT SALES & OWNERSHIP OPERATIONS LAND OF HOTELS MARKETING CUSTOMER OF HOTELS OF HOTELS OF HOTELS DEVELOPMENT OWNERSHIP MANAGEMENT BRAND Best-in-class; In-house Asset Owner Brand Owner & Man
Slide 13: Three Brands. For All Segments
Three Brands. For All Segments Upscale business & leisure hotels Midscale business & leisure Economy hotels offering at strategic locations with vibrant hotels offering a refreshingly unbeatable value-for-money décor different experience Offers hi-speed WiFi, cyber kiosk, Offers modern business serv
Slide 14: Marquee Blue Chip Investors
Marquee Blue Chip Investors STRONG INVESTOR BASE Year Invested Year Invested Year Invested JULY 2006 APRIL 2008 FEB 2012 Details Details Details Expand Growth Capital Fleur Hotels JV to develop Pan India Presence a portfolio of mid-market hotels in India
Slide 15: If you can dream it, you can do it
“If you can dream it, you can do it.” - Walt Disney
Slide 16: Vision 2020
Vision 2020 20,000 Owned Rooms +& 20,000 Managed Rooms 40, 000 Employees
Slide 17: Growth Story Of Carnation Hotels
Growth Story Of Carnation Hotels Operating Hotels: • Lemon Tree Premier, Jaipur – 1st April 2013 • Lemon Tree Premier, Ahmedabad – 15th June 2013 • Lemon Tree Hotel, Dehradun – 28th April 2014 • Lemon Tree, Hotel Chennai – 7th July 2014 • Lemon Tree Hotel, Vadodara – 16th July 2015 Under Development
Slide 18: Growth Story Of Lemon Tree Hotels
Growth Story Of Lemon Tree Hotels 2015 MANAGED: Vadodara Hyderabad 2014 MANAGED: Dehradun & Chennai New Delhi (2) & Bangalore 2013 MANAGED: Jaipur & Ahmedabad Carnation Hotels promoted | APG Investment | Chandigarh 2012 Lemon Tree Premier Brand launched | Hyderabad (2) & Bangalore 2011 Gurgaon & Eas
Slide 19: Pan India Scale & Network
Pan India Scale & Network Currently: 27 Hotels, 3049 Rooms in 16 Cities Under Development: 11 Hotels and ~1500 Rooms MANAGED MANAGED MANAGED MANAGED MANAGED
Slide 20: The Fastest Growing Hotel Company In India
The Fastest Growing Hotel Company In India THE LEMON TREE HOTEL COMPANY: OWNED ROOM INVENTORY YEAR END 6000 6000 4845 5000 5000 4245 759 4000 43% 759 171 4000 Number of Rooms 3429 • 43% Compounded 3110 171 3045 2801 759 Annual Growth 3000 3000 605 605 2247 Rate from 2004-05 171 605 1647 171 171 to 2
Slide 21: Third Largest Owner Of Hotel Rooms In India
Third Largest Owner Of Hotel Rooms In India 14000 12897 6406 12000 10000 8481 8000 5142 6000 4000 3049 2793 323 2114 2000 661 595 6491 3339 2726 2132 1519 0 Taj Hotels ITC Hotels Lemon Tree Oberoi Hotels & The Leela Hotels Hotels Resorts Owned Inventory Managed Inventory
Slide 22: We Own ~2% Of Branded Hotel Rooms In India
We Own ~ 2% Of Branded Hotel Rooms In India STRONG PRESENCE IN THE EMERGING UPSCALE SEGMENT IN INDIA HOTEL ECONOMY/ CATEGORY LUXURY UPSCALE MIDSCALE BUDGET CLASSIFIED UNCLASSIFIED TOTAL % OF TOTAL 49% 17% 30% 6% NO. OF ROOMS 35815 13515 23108 4824 77262 67738 145000 LTH ROOMS (Jan 2015) 986 1458 605
Slide 23: Success comes when people act together
“Success comes when people act together; failure tends to happen alone” - Deepak Chopra
Slide 24: Professional & Highly Experienced Management Team
Professional & Highly Experienced Management Team KEY MANAGEMENT PERSONNEL SUMANT JAIDKA, CHIEF OPERATING OFFICER KAPIL SHARMA, CHIEF FINANCIAL OFFICER Graduate from the Salzburger School of Hotel Chartered Accountant with close to over two decades Management, Austria. Over 20 years of experience, o
Slide 25: Professional And Highly Experienced Management Team
Professional And Highly Experienced Management Team KEY MANAGEMENT PERSONNEL JKC: JAGDISH KUMAR CHAWLA GEETA JETLEY–ASSISTANT VICE PRESIDENT, OPERATIONS EXECUTIVE VICE PRESIDENT - PROJECTS & ENGINEERING SERVICES An alumna of the Oberoi School of Hotel Management Jagdish is an engineer from Pusa Poly
Slide 26: Talent wins games, but teamwork wins championships
“Talent wins games, but teamwork and intelligence wins championships.” - Michael Jordon
Slide 27: Alliances & Partners
Alliances & Partners Sales Tracking Report Global distribution system Central Reservations Centre
Slide 28: An Efficient Marketing Team Providing 360 Degree Brand Solutions
An Efficient Marketing Team Providing 360 Degree Brand Solutions • A strategic approach to the BRAND COMMUNICATION & MEDIA PLANNING that includes Brand Campaigns, Communication Strategy, Media Purchase/Planning Strategy and Customer Relationship Management for the group • An aggressive marketing tea
Slide 29: ss After a long day NC
. ss After a long day NC z _ . unwind with a heavenly view India’s fastest growing chain of hotels now in Dehradun.
Slide 30: The Sustainability Initiative
The Sustainability Initiative
Slide 31: The success of any place is directly proportional to employee happiness
“The success of any place is directly proportional to the happiness of its employees.” - Lemon Tree Hotels
Slide 32: Revenue Growth: Driven By Employee Satisfaction
Revenue Growth: Driven By Employee Satisfaction Lemon Tree Employee Satisfaction Survey: Overall Scores 86% Lemon Tree Hotels ranked in the top 100, in the 2014 study of large companies (>1000 employees) in the 100 79% Best Companies to Work For by the Great Place to Work Institute & the 76% Economi
Slide 33: Don't worry when you are not recognized
“Don’t worry when you are not recognized, but strive to be worthy of recognition.” - Abraham Lincoln
Slide 34: Awards & Accolades
AWARDS & ACCOLADES Hotel Investment Ranked five years AHCA 2015, The NCPEDP – Shell National Tourism Award Best Employer – 2nd Best Company in Conference Asia Pacific: consecutively in the Top Singapore Ministry of Helen Keller Award, 2014 – Red Fox- Best National Award 2011 | India for Unique Susta
Slide 35: Revenue Growth: Driven By High Repeat Guest %
Revenue Growth: Driven By High Repeat Guest % Repeat users on count of rooms which have completed one or more years of operations (excluding resorts) 3500 40 35 33 35 3000 32 31 31 29 30 2500 Number of Rooms 22 25 2000 Repeat % 20 18 20 1500 3000 2700 15 1000 10 1393 500 5 857 682 49 94 94 273 0 0 2
Slide 36: Aggressive Multi-Channel Sales Distribution
Aggressive Multi – Channel Sales Distribution Multi City Sales Presence with over 130 Sales Personnel Dedicated call centre and reservations managed by Praxis – the award winning Oberoi Hotels call centre Highly rewarding loyalty program for regular guests with 200,000 active members Strong coverage
Slide 37: Reward Programme
Reward Programme • One rewards program encompassing • Special bookers loyalty program to drive all Brands across all hotels loyalty from corporate partners • Dedicated in-house strategy team • Dedicated in-house strategy team • Technology partner with global experience • Technology partner with glob
Slide 38: Lemon Tree Hotels Business Model Is Still Out-performing
Lemon Tree Hotels Business Model Is Still Out-performing Lemon Tree Hotels: ROCE Comparison vs. Listed Hotel Companies in India Lemon Tree Hotels: ROCE Comparison vs. Listed Hotel Companies in India 70 60 50 40 ROCE % Lemon Tree Hotels Taj Hotels 30 Oberoi Hotels The Leela Hotels 20 10 0 2008-09 200
Slide 39: The Brand Website
The Brand Website • Single platform featuring all owned and managed properties hence presenting a wide array of options to the consumers • User friendly design for maximum conversions • 5000+ hits on the website on a daily basis (as per current figures) • Compatible with different platforms like mob
Slide 40: Carnation Hotels
© ~ . CARNATION HOTELS . ci.
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