Lemon Tree Hotels Limited , one of India's leading hospitality companies, has announced a significant expansion of its presence in Maharashtra. The company has signed a License Agreement for a new Keys Select by Lemon Tree Hotels property in Mhasrul, Nashik, further solidifying its position in the state's growing hospitality market.

Property Details

The new hotel, to be managed by Carnation Hotels Private Limited, a wholly-owned subsidiary of Lemon Tree Hotels Limited, will feature:

• 50 well-appointed rooms
• A restaurant
• Banquet facilities

Strategic Location

The property is strategically located in a developing industrial belt, with several advantages:

• Approximately 16 km from Nashik International Airport
• About 15 km from Nashik Railway Station
• Proximity to major conglomerates, including Reliance and Godrej
• Situated on the Saputara-Nashik Road, offering excellent connectivity to Gujarat

Expanding Presence in Maharashtra

Mr. Vilas Pawar, CEO of Managed & Franchise Business at Lemon Tree Hotels, commented on the new signing: "We are delighted to reinforce our presence in Maharashtra. This signing aligns with our broader strategy for sustained growth across key markets."

The addition of this property significantly enhances Lemon Tree Hotels' footprint in Maharashtra:

• Currently operates 14 hotels in the state
• Nine more properties in the pipeline

Lemon Tree Hotels: A Growing Hospitality Giant

Lemon Tree Hotels Limited has established itself as a major player in the Indian hospitality sector:

• Operates over 110 hotels across more than 75 cities in India and abroad
• Serves over 1.5 million guests annually
• Offers seven distinct brands catering to various market segments:
  • Aurika Hotels & Resorts
  • Lemon Tree Premier
  • Lemon Tree Hotels
  • Red Fox
  • Keys Prima
  • Keys Select
  • Keys Lite

The company's expansion strategy includes a robust pipeline of over 110 upcoming properties, indicating strong growth potential in the hospitality sector.

This latest addition in Nashik reinforces Lemon Tree Hotels' commitment to expanding its presence in key markets and catering to the diverse needs of travelers across various segments of the hospitality industry.

Lemon Tree Hotels , a prominent player in the Indian hospitality sector, saw its shares reach a new pinnacle, driven by a significant development award and positive market sentiment. The stock's performance and the company's expansion plans have caught the attention of investors and analysts alike.

Stock Performance Highlights

Lemon Tree Hotels' stock achieved a fresh record high of Rs 174.90, marking a notable milestone in its trading history. This surge represents the second consecutive session of gains, extending a three-session rally with an impressive 11.79% increase. The stock's momentum is evident in its longer-term performance as well, with a 24.96% gain over the past 12 months and a 9.15% increase year-to-date.

New Delhi Hotel Development Award

The catalyst for the recent stock surge was a strategic announcement from the company. Fleur Hotels, a subsidiary of Lemon Tree Hotels, received a letter of award from the Delhi Development Authority (DDA) to develop and operate a five-star hotel in Nehru Place, New Delhi. The project details include:

• Location: A 2.256-acre land parcel in Nehru Place, New Delhi
• Hotel Name: Aurika Nehru Place
• Significance: Marks Lemon Tree's debut in the upper upscale brand segment in the National Capital Region
• Award Date: The 12-month letter of award was issued on August 14

While the development costs were not disclosed, this project represents a significant expansion for Lemon Tree Hotels into a premium segment of the hospitality market in a prime location.

Market Reaction and Analyst Sentiment

The market's response to this development has been overwhelmingly positive:

• Trading Volume: Reached 11 times its 30-day average, indicating strong investor interest
• Analyst Ratings: Out of 23 analysts covering the company:
  • 21 maintain buy ratings
  • 1 recommends hold
  • 1 suggests sell
• Consensus Price Targets: Indicate a 5.2% upside potential

Industry Outlook

The optimism surrounding Lemon Tree Hotels is not limited to company-specific developments. Recent GST reforms have bolstered investor confidence in the hospitality sector. There are expectations of increased discretionary spending on hotels and resorts among urban populations, which could further benefit companies like Lemon Tree Hotels.

Conclusion

Lemon Tree Hotels' stock performance and its strategic expansion in New Delhi underscore the company's growth trajectory and the positive outlook for the Indian hospitality sector. As the company ventures into the upper upscale segment with its Aurika brand in the National Capital Region, investors and industry observers will be keenly watching the execution and impact of this new development on Lemon Tree's future performance.