Lemon Tree Hotels’ board cleared Warburg Pincus affiliate Coastal Cedar Investment BV’s acquisition of 41.09% stake in subsidiary Fleur Hotels from APG Strategic Real Estate Pool NV, alongside Rs 960 crore investment in tranches. The deal, disclosed in a regulatory filing Saturday, triggers a strategic split positioning Lemon Tree as an asset-light management platform and Fleur as the group’s hotel ownership arm.
Fleur Hotels will list separately on NSE and BSE within 12-15 months via a composite NCLT-approved scheme, subject to regulatory nods. Lemon Tree’s 12 hotels—including a Shimla project under construction and Shillong investment—transfer to Fleur, expanding its portfolio from 3,993 keys across 24 hotels to 5,813 keys in 41 properties. Two Lemon Tree subsidiaries merge into the parent; four others into Fleur.
Founder Patanjali Govind Keswani, transitioning to Fleur’s Executive Chairman before a non-executive Lemon Tree role, stated the reorganization creates “simplified, transparent, growth-oriented” structures enhancing shareholder value. Post-split, Lemon Tree retains leased hotels in Indore and Aurangabad, managing Fleur’s 1,820 keys plus its existing portfolio.
Warburg Pincus MD Anish Saraf praised Lemon Tree’s mid-market leadership, citing strong brands and fundamentals. The move aligns with hospitality sector trends separating asset ownership from operations for optimized growth and capital access.
