Lemon Tree Hotels Limited is India’s largest mid-priced hotel chain and the third-largest overall hospitality player, operating over 225 hotels across 50+ cities under brands like Lemon Tree, Keys, and Red Fox. As of January 2026, the company is delivering steady growth—7.63% sales growth and 3.67% profit growth—with a healthy ROCE of 12.55% and zero dividend payout. While not yet a high-return compounder (ROE: 8.33%), it benefits from India’s booming domestic tourism, corporate travel recovery, and asset-light franchise expansion. This article provides a data-driven outlook on the Lemon Tree Hotels share price target 2026–2030.
Lemon Tree Hotels: Company Overview
- Incorporated: 2002
- Managing Director: Mr. Patu Keswani
- NSE Symbol: LEMONTREE
- Core Business:
- Mid-priced & upscale hotels (70%)
- Franchise & management contracts (30%)
- Market Position: #1 in mid-priced segment; operates 18,400+ rooms across India, Nepal, Bhutan, and Dubai
Lemon Tree leverages a capital-efficient, franchise-led model—reducing balance sheet risk while scaling rapidly. Recent openings in tier-2/3 cities and international markets signal strong execution.
Lemon Tree Hotels: Key Financial Snapshot
| Metric | Value |
|---|---|
| Current Share Price | ₹124.00 |
| Market Capitalization | ₹9,827.82 Cr |
| No. of Shares Outstanding | 79.22 Cr |
| P/E Ratio (TTM) | 91.44 |
| P/B Ratio | 7.56 |
| EPS (TTM) | ₹1.36 |
| Book Value (TTM) | ₹16.42 |
| ROE | 8.33% |
| ROCE | 12.55% |
| Dividend Yield | 0.00% |
| Face Value | ₹10 |
| Cash | ₹12.83 Cr |
| Debt | ₹228.03 Cr |
| Promoter Holding | 22.28% |
| Sales Growth (YoY) | 7.63% |
| Profit Growth (YoY) | 3.67% |
Note: The high P/E (91x) reflects market optimism on post-pandemic travel recovery and asset-light scalability—not current earnings power.
Lemon Tree Hotels Share Price Target Forecast (2026–2030)
| Year | Target Price Range (₹) |
|---|---|
| 2026 | ₹136 – ₹152 |
| 2027 | ₹148 – ₹168 |
| 2028 | ₹160 – ₹186 |
| 2029 | ₹172 – ₹208 |
| 2030 | ₹184 – ₹232 |
Lemon Tree Hotels Share Price Target 2026
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2026 | ₹136 | ₹152 |
Lemon Tree reported 3.67% YoY profit growth and 7.63% sales growth in FY2025, driven by occupancy recovery (75%+) and new franchise additions. Trading at P/E of 91x and P/B of 7.6x, the stock is richly valued—but justified by sector tailwinds. The 2026 target assumes continued room expansion and stable RevPAR (Revenue per Available Room).
Lemon Tree Hotels Share Price Target 2027
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2027 | ₹148 | ₹168 |
If the company sustains 10–12% earnings growth and expands to 250+ hotels by 2027, EPS could reach ₹1.50–₹1.60. Assuming a P/E contraction to 85–90x, the 2027 target range is justified.
Lemon Tree Hotels Share Price Target 2028
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2028 | ₹160 | ₹186 |
By 2028, benefits from international forays (Nepal, Bhutan, UAE) and premium brand monetization should reflect in margins. A P/E of 85–90x on projected EPS of ₹1.70–₹1.85 supports the ₹160–₹186 band.
Lemon Tree Hotels Share Price Target 2029
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2029 | ₹172 | ₹208 |
Long-term tailwinds include India’s rising middle-class travel, MICE (Meetings, Incentives, Conferences, Exhibitions) demand, and government tourism push. If competition doesn’t erode pricing, EPS could reach ₹1.90–₹2.10 by FY29. At a P/E of 85–95x, the 2029 target is ₹172–₹208.
Lemon Tree Hotels Share Price Target 2030
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2030 | ₹184 | ₹232 |
Over a five-year horizon, Lemon Tree remains a high-growth, high-valuation hospitality play. A terminal P/E of 90–100x on FY30 EPS (~₹2.00–₹2.30) justifies the ₹184–₹232 range.
Lemon Tree Hotels: Shareholding Pattern
| Category | Holding (%) |
|---|---|
| Public & Retail | 36.76% |
| Domestic Institutional Investors (DII) | 19.46% |
| Foreign Institutional Investors (FII) | 21.50% |
| Promoters | 22.28% |
Low promoter holding (22.28%) is a concern, but strong institutional interest (41%) reflects confidence in management.
Lemon Tree Hotels: Strengths vs Risks
Strengths:
- Asset-light, franchise-led scalability
- Strong brand recall in the mid-priced segment
- Exposure to India’s domestic tourism boom
- Zero dividend allows reinvestment in growth
Risks:
- High P/E leaves little room for execution misses
- ROE (8.33%) lags behind peers like EIH (Oberoi)
- Vulnerable to economic slowdowns or travel disruptions
- No dividend limits income appeal
Investment Suitability
| Factor | Assessment |
|---|---|
| Risk Profile | High |
| Higher than the market average | 5+ years |
| Volatility | Higher than market average |
| Dividend/Income Potential | None (0% yield) |
| Best For | Aggressive investors betting on India’s travel and hospitality revival |
Final Verdict
Lemon Tree Hotels is a pure-play bet on India’s hospitality rebound. While not cheap, its scalable model and leadership in the mid-priced segment offer compelling upside.
Our Lemon Tree Hotels share price target 2026–2030 (₹136 to ₹232) reflects cautious optimism—rooted in travel trends but tempered by valuation risk. Upside is substantial if occupancy and RevPAR hold; downside is limited by franchise economics.
Disclaimer: Price targets are estimates based on publicly available data and sector analysis. They are not investment advice. Consult a SEBI-registered advisor before making decisions.
Sources
- Screener.in – Lemon Tree Hotels Consolidated Page (FY2025 + TTM)
- Finology Ticker – LEMONTREE Financials & Analysis
- Company Investor Presentation (Q3 FY26, Jan 2026)
- Ministry of Tourism – India Domestic Travel Report 2025
