Lemon Tree Hotels material subsidiary Fleur Hotels Limited has secured a one-year extension on the Letter of Award (LOA) from the Delhi Development Authority (DDA) for its flagship Aurika, Nehru Place project. The validity of the award, originally set to expire on August 14, 2026, now extends to August 14, 2027, providing additional time for compliance and development activities. This extension is critical for maintaining momentum on the 5-star hotel development located on a prime 2.256-acre land parcel in New Delhi.

The extension was formalized through a mutual agreement between Fleur Hotels and the DDA, accepted by the subsidiary on July 23, 2026. Lemon Tree Hotels disclosed the development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, citing SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The filing confirms that all significant terms and conditions of the original LOA, issued on August 14, 2025, remain unchanged.

Project Details and Scope

The LOA pertains to the license rights for the development and operation of a 5-star hotel at Nehru Place, New Delhi. The project involves undertaking all activities incidental to the development on the licensed land parcel admeasuring 2.256 acres. The extension ensures that Fleur Hotels retains these rights subject to necessary compliances on the part of the DDA as per the LOA and Tender Document.

Strategic Implications

The extension alleviates immediate pressure on the development timeline while allowing the company to address regulatory compliances without losing the awarded rights. The project represents a significant expansion opportunity for Lemon Tree Hotels in the capital market, leveraging a prime location in South Delhi. The absence of any related-party transactions or promoter interest in the awarding entity underscores the competitive nature of the acquisition.

What the Numbers Show

The core value of this disclosure lies in the preservation of asset rights rather than immediate financial impact. By extending the LOA validity by exactly one year, Lemon Tree Hotels avoids the potential cost and time delay of re-bidding for the 2.256-acre site. The unchanged terms indicate that no financial penalties or revised commercial considerations were triggered by the extension request, suggesting a cooperative regulatory environment with the DDA for this specific project phase.

Lemon Tree Hotels has terminated the Hotel Operating Agreement (HOA) for Lemon Tree Hotel, Erode due to a material breach of terms by the property owner, Hotel Le Jardin. The company issued a termination letter on July 16, 2026, with the termination set to become effective upon the expiration of five business days from the date of the letter. This follows a separate termination of the HOA for Lemon Tree Hotel, Hubli on July 10, 2026, due to a material breach by M/s. HRK Hospitality. The company confirmed that neither termination has a material financial impact on its operations.

Agreements Terminated

The termination of the HOA for the Erode property, originally dated September 08, 2022, between Hotel Le Jardin and operator M/s. Carnation Hotels Private Limited, consequently led to the termination of the related License Agreement. This License Agreement was executed amongst Lemon Tree Hotels, the owner, and the operator. The hotel was operated under the brand name "Lemon Tree Hotel, Erode" and comprises 65 rooms.

Similarly, the termination of the HOA for the Hubli property, originally dated August 22, 2022, between M/s. HRK Hospitality and M/s. Carnation Hotels Private Limited, resulted in the termination of its associated License Agreement. The following table summarises the agreements that have been terminated:

Regulatory Impact

Lemon Tree Hotels disclosed these events in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that all necessary regulatory disclosures have been completed regarding the termination of the agreements for both the Erode and Hubli properties.