New-Delhi based Lemon Tree Hotels on Tuesday said the company is aiming for 1,600 rooms by 2019, after it reported net profit in the quarter ended June 2018.

In an interview to CNBC-TV18, Kapil Sharma, chief financial officer, said the company is confident of being able to maintain the occupancy premium going forward.

Sharma said, "For first quarter, occupancy grew by 250 basis points and was around 77 percent year-on-year, despite it being an offseason quarter."

"Currently, Lemon Tree Hotels operates 5,000 rooms in 50 hotels and have a pipeline of 3,300 rooms. Out of this pipeline, 1,600 rooms are owned or leased and the company plans to open 870 owned or leased rooms in next one year. On the managed rooms pipeline of 1,700 rooms, Lemon Tree Hotels would open 700 in the next one year," Sharma added.

On the margins front, Sharma said that managed hotels contributed about four percent of total income and eight percent to earnings before interest, taxes, depreciation, and amortisation (EBITDA), while 92 percent comes from owned or leased rooms.

Sharma said Lemon Tree Hotels is confident of maintaining EBITDA growth of 30 percent going forward. EBITDA usually picks up in Q1, Q3 and Q4 and contribution is usually around 19 percent.

First Published:Aug 14, 2018 12:58 PM IST