More Stories

Informist, Saturday, Jan. 10, 2026

--Warburg Pincus to buy 41% stake in Lemon Tree arm Fleur Hotels 

--Warburg Pincus to buy 41% stake in Lemon Tree arm from APG Strategic 

--Warburg Pincus to invest up to INR 9.60 bln in Lemon Tree arm Fleur Hotels 

MUMBAI – Lemon Tree Hotels Ltd. late Friday said its board has approved the execution of a share purchase agreement for Coastal Cedar Investment B.V., an affiliate of Warburg Pincus, to acquire the entire 41.09% stake in Fleur Hotels Ltd. held by APG Strategic Real Estate Pool N.V. The shareholders' agreement executed entails a primary investment of up to INR 9.60 billion, which will be done in tranches to support the future growth of Fleur, Lemon Tree Hotels said in an exchange filing.

This is a renewed partnership between Warburg Pincus and Lemon Tree Hotels, with the former having made an investment in the latter back in 2006, the company said. 

The board of Lemon Tree and Fleur Hotels approved the creation of two differentiated and complementary platforms--Lemon Tree Hotels and Fleur Hotels. Lemon Tree will be a pure-play asset-light hotel management and brand platform and Fleur Hotels, which is currently a subsidiary of the former, will be a large-scale growth-oriented hotel ownership platform with development capabilities and an attractive pipeline, the company said. "This scheme is intended to create a simplified, transparent, and growth-oriented structure for both companies, which we believe will enhance long-term value for our shareholders," said Patanjali Govind Keswani, founder and executive chairman of Lemon Tree and Fleur Hotels. Keswani will serve as the Executive Chairman of Fleur Hotels and transition to a Non-Executive role at Lemon Tree.

Lemon Tree will merge two of its wholly-owned subsidiaries, Carnation Hotels and Hamstede Living, with itself. Four wholly-owned subsidiaries of the company--Oriole Dr. Fresh, Sukhsagar Complexes, Manakin Resorts, and Canary Hotels--will be merged with Fleur against an issuance of shares by Fleur Hotels to Lemon Tree, the filing said. The appointed date for the creation of the two platforms is Apr. 1.

Fleur Hotels will be demerged with 12 of Lemon Tree's hotels--of which 11 are operational and one is under construction in Shimla--along with investments made in a hotel under construction made by a wholly-owned subsidiary of Lemon Tree, the company said. From the record date, Lemon Tree will directly own a 41.03% stake in Fleur.

Shareholders of Lemon Tree will own a 32.96% stake in Fleur, with Warburg Pincus holding the remaining 26.01% stake, according to the filing. The entire process is expected to be completed within 12–15 months, after which shares of Fleur Hotels will be listed as a separate entity on the Indian stock exchanges. 

Following the transaction, Fleur Hotel's portfolio will expand to 5,813 keys across 41 hotels from 3,993 keys across 24 operating hotels, the company said. Lemon Tree Hotels will continue to operate its leased hotels in Indore and Aurangabad, which are approaching the end of their lease terms, the company said.

Lemon Tree will manage 1,820 keys across 17 hotels transferred to Fleur along with its existing portfolio of Fleur's 3,993 keys across 24 hotels. Lemon Tree will focus on its asset-light strategy. The company will continue to manage and franchise an existing portfolio of its third-party hotels that consists of 6,011 keys across 89 operational hotels and 9,414 keys across 127 hotels under various stages of development in India and internationally, the company said.   

For the quarter ended September, the company reported a consolidated net profit of INR 346.02 million on a revenue of INR 3.06 billion. Friday, shares of the company ended 0.7% lower at INR 149.83 on the National Stock Exchange.  End

Reported by Akshat Saksena

Edited by Akul Nishant Akhoury

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.