Lemon Tree: Restructuring gains

EYES CAGR OF 11% IN REVENUE, 13% IN EBITDA, 26% IN PAT OVER FY25-28

- MOTILAL OSWAL

LEMON TREE HOTELS operates an asset-light hotel management model alongside hotel ownership and development, with a portfolio comprising owned, managed and franchised properties.On a standalone basis, the company owns 17 hotels with 1,765 rooms and has two properties under development.

It manages or franchises 89 hotels with 6,011 rooms and has a pipeline of 127 additional hotels. Lemon Tree also holds a 58.91% stake in Fleur Hotels, which operates 24 hotels with 3,993 rooms.

Private equity firm Warburg Pincus will acquire APG’s stake in Fleur Hotels ahead of Lemon Tree Hotels’ proposed corporate reorganisation, alongside a primary equity infusion of up to =960 crore to fund future growth.