Lemon Tree Hotels Shifts Gears: Motihari Property Transitions from Franchise to Managed Model
Lemon Tree Hotels Limited has converted its franchised hotel in Motihari, Bihar into a managed property. The company terminated the existing franchise agreement and entered into a new Hotel Operating Agreement & License Agreement. The 50-room hotel, featuring amenities like a restaurant, fitness center, and swimming pool, will now be managed by Carnation Hotels Private Limited, a wholly-owned subsidiary of Lemon Tree Hotels Limited. This transition allows for more direct control over operations and guest experience.

*this image is generated using AI for illustrative purposes only.
Lemon Tree Hotels Limited , a prominent player in the Indian hospitality sector, has announced a strategic shift in its operations for its Motihari, Bihar property. The company has converted its franchised hotel into a managed property, marking a significant change in its operational approach for this location.
Key Highlights of the Transition
Franchise Agreement Terminated: The existing franchise agreement, which was initially executed on January 25, 2024, has been terminated by mutual consent of the parties involved.
New Management Structure: Lemon Tree Hotels has entered into a new Hotel Operating Agreement & License Agreement for the Motihari property.
Management Takeover: The hotel will now be managed by Carnation Hotels Private Limited, a wholly-owned subsidiary of Lemon Tree Hotels Limited.
Property Details
The Lemon Tree Hotel in Motihari, Bihar, boasts an impressive array of amenities:
Amenities |
---|
50 rooms |
Restaurant |
Fitness center |
Lounge |
Banquet hall |
Meeting room |
Swimming pool |
Bar |
Spa |
Public areas |
Strategic Implications
This move from a franchised model to a managed property structure could potentially allow Lemon Tree Hotels to have more direct control over the hotel's operations, quality standards, and guest experience. It may also indicate the company's confidence in the property's performance and its desire to be more hands-on in its management.
Corporate Disclosure
The company made this announcement in compliance with regulatory requirements, informing both the National Stock Exchange of India Limited and BSE Limited of this operational change. The disclosure was signed by Pawan Kumar Kumawat, Company Secretary & Compliance Officer of Lemon Tree Hotels Limited.
This strategic shift in Motihari underscores Lemon Tree Hotels' dynamic approach to property management and its commitment to optimizing its operational portfolio across different markets in India.
Historical Stock Returns for Lemon Tree Hotels
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-0.54% | -2.44% | -2.37% | +5.00% | +13.52% | +488.54% |