Lemon Tree share price: Lemon Tree Hotels shares clocked a 52-week high at Rs 130.9 apiece on Tuesday, January 2. The upward movement in the stock came after Motilal Oswal gave an upside target of Rs 150 apiece. 

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At around 11:26 a.m., shares of Lemon Tree Hotels were up 10.36 per cent or Rs 12.30 at Rs 131 apiece. The market capitalisation of the company stood at Rs 10,378.43 crore. 

Motilal Oswal is bullish on the stock for the following reasons:

1. Expanding wings in the luxury segment

As per the report, the hospitality company has established a niche for itself in the growing midmarket hospitality segment and is now expanding its wings by improving its presence in the top segment, which is beneficial.

2. To emerge as larger player 

The report further said that the company is set to benefit significantly from the sectoral tailwinds and emerge as a larger and stronger player. 

3. Aurika Sky City Mumbai's growth

The brokerage believes that Aurika Sky City Mumbai, which is positioned as an upper-upscale hotel, will be a key beneficiary of the trickling down of demand from the luxury segment. According to the report, the hotel is expected to contribute 21 per cent/23 per cent of consolidated revenue/EBITDA by FY26.

4. Strong pipeline of managed rooms

Lemon Tree Hotels has a strong pipeline of 3,354 managed rooms, which is 91 per cent of operational managed rooms and is expected to become operational by FY27, taking the share of managed rooms to 55 per cent.

Lemon Tree Hotels share price: Past performance

Shares of Lemon Tree Hotels have risen over 56 per cent in a year against Nifty 50's rise of nearly 19 per cent. 

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