Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Capital Markets

Lemon Tree Hotels Ltd / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/26159" target="_blank" data-smartkarma-citation="entities:26159:1">Lemon Tree Hotels Ltd (778410Z IN)</a> plans to raise US$160m in its IPO via a sell down of share by its financial investors, led by Warburg Pincus.We had covered the deal in our earlier write-up, <a href="https://www.smartkarma.com/insights/lemon-tree-hotels-pre-ipo-review-moving-up-the-value-chain-within-its-segment" target="_blank">Lemon Tree Hotels Pre-IPO Review - Moving up the Value Chain Within Its Segment</a>. In this insight, we will run the deal through our IPO framework, comments on updates since the last filing and compare the company's operations with some of its listed peers.

Lemon Tree Hotels Ltd (778410Z IN) plans to raise US$160m in its IPO via a sell down of share by its financial investors, led by Warburg Pincus.We had covered the deal in our earlier write-up, Lemon Tree Hotels Pre-IPO Review - Moving up the Value Chain Within Its Segment. In this insight, we will run the deal through our IPO framework, comments on updates since the last filing and compare the company's operations with some of its listed peers.

Lemon Tree Hotels IPO - A Lot to like but Valuation Isn't on the List

<a href="https://www.smartkarma.com/entities/26159" target="_blank" data-smartkarma-citation="entities:26159:1">Lemon Tree Hotels Ltd (778410Z IN)</a> (LTH) plans to raise up to US$180m in its IPO through a sale of 24.9% of the company's secondary shares. LTH is one of the largest players in the mid-priced hotel segment in India and has been one of the fastest growing as well, though it's still not been able to generate profits. The company has a robust pipeline which should aid future growth, however, it does seem to imply a shift towards upper-midscale and more managed rooms which seems to be a slight change in strategy. Then there is also the issue of related party transactions and lack of primary issuance despite rising leverage.

Lemon Tree Hotels Ltd (778410Z IN) (LTH) plans to raise up to US$180m in its IPO through a sale of 24.9% of the company's secondary shares. LTH is one of the largest players in the mid-priced hotel segment in India and has been one of the fastest growing as well, though it's still not been able to generate profits. The company has a robust pipeline which should aid future growth, however, it does seem to imply a shift towards upper-midscale and more managed rooms which seems to be a slight change in strategy. Then there is also the issue of related party transactions and lack of primary issuance despite rising leverage.

Lemon Tree Hotels Pre-IPO Review - Moving up the Value Chain Within Its Segment

India

Thomas Cook (India) Ltd. operates as an authorized dealer in foreign exchange and as a travel agent. The Company also offers packaged tours, cargo services and travel related insurance. Thomas Cook (India) has offices and foreign exchange counters at various international airports in major cities in India.

Mahindra Holidays & Resorts India Ltd. provides leisure hospitality. The Company offers family holidays with a range of services through vacation memberships. Mahindra Holidays gives its members the choice to stay at resorts with furnished accommodations, such as apartments and cottages, and resort amenities, such as restaurants, kids clubs, and other activities.

Westlife Development Limited is an operating-cum-investment company that puts up and operates quick service restaurants. The Company, through its subsidiary, operates fast food franchise restaurants across western and southern India.

India Tourism Development Corp Ltd (known as ITDC) develops tourism infrastructure and promotes India  as a tourist destination. ITDC provides tourism services including accommodation, catering, travel-related services, event management, publicity, hotel consultancy, duty free shops, in-house travel agency, entertainment and shopping.

Delta Corp Limited a diversified business group having a presence in the entertainment and gaming, real estate business in India and Kenya. The Company's business includes offshore casinos, and real estate consulting & development.

Wonderla Holidays Limited owns and operates two amusement parks in Kochi and Bangalore, India.

Adlabs Entertainment, Ltd. operates a theme park. The Company manages a theme park with rides, shopping, dining, accommodation, and other entertainment services. Adlabs Entertainment serves customers near Mumbai, India.

Oriental Hotels Limited owns and operates hotels and resorts.

EIH Associated Hotels Ltd. owns and operates hotels and tourist complexes in India.

Taj GVK Hotels and Resorts Ltd. owns and operates hotels in the southern Indian city of Hyderabad. The Company is a member of the Taj Group of Hotels.

RESORTTRUST, INC. plans, develops, markets, and operates timeshare resort hotels under the "XIV" and "SUN MEMBERS" brand name.  The Company's resort facilities are located in the suburb of major Japanese cities.  Resorttrust operates golf courses.

ICHIBANYA CO., LTD. operates a chain of restaurants specialized in curry dishes nationwide.  The Company operates both franchise and directly managed restaurants.  The Company also sells its curry by mail order.

Monarch Casino & Resort, Inc., through its wholly owned subsidiary, owns and operates the tropically-themed Atlantis Casino Resort in Reno, Nevada.  The resort features a casino, a hotel and motor lounge, restaurants, bars, a nightclub, a swimming pool and health club, a gift shop, a family entertainment center, banquet and meeting space, and surface parking spaces.

The Hongkong and Shanghai Hotels, Limited, through its subsidiaries, operates and manages hotels, food, beverage outlets, and clubs. The Company also invests in properties.

Hotel Properties Limited, through its subsidiaries, operates and manages hotels. The Company also operates restaurants and retails and distributes food and fashion merchandise.  In addition, Hotel Properties trades shares, develops and invests in properties, hotels, and resorts.

ROUND ONE Corporation operates bowling alleys and video game arcades.  The Company operates primarily in the Osaka area.

Corporate Travel Management Ltd. offers corporate travel management services. The Company operates on a fee for service model and provides business travel advice and services; bookings; ticketing, and ancillary services; and offers travel data diagnostics and recommendations.

Papa John's International, Inc. operates and franchises pizza delivery and carry-out restaurants under the Papa John's trademark.  The Company operates restaurants in the United States and international markets.

create restaurants holdings inc. operates direct-run Western, Chinese, and Japanese restaurants.  The Company also operates fast food restaurants.

create restaurants holdings inc. (3387 JP)

COLOWIDE CO., LTD. manages, as a holding company, its group companies that operate Japanese style pub restaurant chain named Kantaro and Italian restaurant chain named Itameshiya La Pausa primarily in Tokyo.  The Company also operates KARAOKE business.

Lemon Tree Hotels Limited owns and operates a chain of hotels and resorts. The Company offers room accommodations, resorts, transportation, swimming pools, on-site restaurants, meeting rooms, fitness gym, and spa facilities. Lemon Tree Hotels serves customers in India.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Lemon Tree Hotels Ltd (LEMONTRE IN)

Lemon Tree Hotels IPO - A Lot to like but Valuation Isn't on the List

Lemon Tree Hotels Ltd (778410Z IN) plans to raise US$160m in its IPO via a sell down of share by its financial investors, led by Warburg Pincus.We...

Sumeet Singh

Lemon Tree Hotels Pre-IPO Review - Moving up the Value Chain Within Its Segment

Lemon Tree Hotels Ltd (778410Z IN) (LTH) plans to raise up to US$180m in its IPO through a sale of 24.9% of the company's secondary shares. LTH is...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)