Lemon Tree Hotels Limited has signed a license agreement for a new midscale property under the Keys Select by Lemon Tree Hotels brand, located in Panthpiplai, Ujjain, Madhya Pradesh. The signing expands the group's total portfolio in Madhya Pradesh to 15 properties, comprising three operational hotels and 12 upcoming properties. The property will be managed by Carnation Hotels Private Limited, a wholly-owned subsidiary of Lemon Tree Hotels Limited. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, to the National Stock Exchange of India Limited and BSE Limited on July 28, 2026.

Property Overview

The upcoming hotel is a full-service midscale property designed to serve travelers seeking convenient access between Indore and Ujjain. The facility will feature 51 well-appointed rooms along with a comprehensive suite of amenities. Key details of the property are outlined below:

Strategic Location and Connectivity

The property is situated directly on the Indore-Ujjain Road, leveraging the economic strength of Indore — the state's commercial capital — and the appeal of Ujjain as a prominent spiritual destination. The location offers efficient road connectivity to major regional transport hubs. Devi Ahilyabai Holkar Airport in Indore is approximately 41 km from the property, while Ujjain Junction Railway Station is 18.5 km away. The expansion targets demand from both Indore's commercial sector and Ujjain's spiritual tourism market.

Management Commentary

Vishvapreet Singh Cheema, President of Lemon Tree Hotels Ltd., highlighted the investment potential in Ujjain's infrastructure and tourism sectors. He noted that the proximity to Indore, a major commercial and industrial center, further strengthens the location's potential. Cheema stated that Keys Select is well-suited to this market, offering dependable and contemporary stays at the right value. He also pointed to Simhastha 2028 as a factor elevating Ujjain's profile, citing strong potential for the hotel and the market in the years ahead due to continued infrastructure development.

Portfolio Expansion Strategy

The signing marks Lemon Tree Hotels' continued penetration into tier-II and tier-III cities, specifically targeting high-traffic corridors between major urban centers and pilgrimage sites. By expanding its Madhya Pradesh portfolio to 15 properties, the company is diversifying its revenue streams beyond metro hubs. The focus on the Keys Select brand reflects a strategy to capture value-conscious business and leisure travelers in emerging markets with high connectivity but limited premium hospitality supply.

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.