Shares of Lemon Tree Hotels, a hospitality chain, climbed as much as 4 per cent in Friday's trading session. The stock rose a day after the company signed a licence agreement for a 50-room property in Visakhapatnam, Andhra Pradesh.

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At around 10:05 a.m., shares of Lemon Tree Hotels traded 3.51 per cent or Rs 3.75, higher at Rs 110.7 apiece. The market capitalisation of the company stood at Rs 8,770.17 crore. 

"We would like to inform you that the company has signed a licence agreement for a 50-room property in Visakhapatnam, Andhra Pradesh, under the company’s brand “Red Fox Hotels”. The hotel is expected to be operational by FY 2026," the filing read.

The hotel, as per the filing, will feature 50 well-appointed rooms, one restaurant, a fitness centre, a conference room, and other public areas.

It will be operated by Carnation Hotels Private Limited, a wholly-owned subsidiary of Lemon Tree Hotels.

Lemon Tree Hotels will announce its July to September quarter results on November 9.

Lemon Tree Q1 

Hospitality chain Lemon Tree reported a profit after tax (PAT) of Rs 27.5 crore in the June quarter of the financial year 2024, up 103 per cent from Rs 13.6 crore in the year-ago period, driven by strong travel demand.

The company registered total revenue of Rs 224.6 crore for the quarter, which increased 16.8 per cent year-on-year (YoY).

Lemon Tree Hotel share price: Past performance

Since January, the stock has gained over 31 per cent as compared to the headline index's rise of over 4 per cent. 

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