Lemon Tree Hotels , one of India's leading hospitality chains, has announced a significant expansion of its upper upscale brand, Aurika, into the heart of New Delhi. The company's material subsidiary, Fleur Hotels Limited, has secured a Letter of Award from the Delhi Development Authority (DDA) for developing and operating a 5-star hotel on a prime 2.256-acre land parcel in Nehru Place.

Aurika's Grand Entry into Delhi NCR

The new property, to be branded as 'Aurika, Nehru Place,' will mark the debut of Lemon Tree's upper upscale brand in the National Capital Region. With plans for over 500 rooms, it is set to become one of Delhi's largest hotels, featuring elegant accommodations, signature dining experiences, expansive banqueting facilities, and top-tier leisure amenities.

Strategic Expansion and Market Position

Patanjali Keswani, Chairman & Managing Director of Lemon Tree Hotels, emphasized the strategic importance of this development: "Delhi has always been a strategic focus for us. Aurika's entry will deliver a luxury experience that's about living, not just staying – a landmark in style, comfort, and service for the region."

This move builds on Lemon Tree's already robust presence across the NCR, further solidifying its position as a key player in one of India's most dynamic hospitality markets.

Project Timeline and Details

The Letter of Award, valid for 12 months from its issuance on August 14, 2025, sets the stage for the company to begin construction shortly. This development aligns with Lemon Tree Hotels' commitment to expanding in India's most vibrant markets, offering experiences that inspire and service that delights.

Lemon Tree's Growing Portfolio

Lemon Tree Hotels currently operates over 110 hotels across more than 75 cities in India and abroad, serving over 1.5 million guests annually. With this new addition, the company continues to strengthen its diverse brand portfolio, which includes:

• Aurika Hotels & Resorts
• Lemon Tree Premier
• Lemon Tree Hotels
• Red Fox
• Keys Prima
• Keys Select
• Keys Lite

Future Outlook and Corporate Restructuring

During a recent earnings call, Keswani hinted at ambitious plans for the company's future:

• Considering a potential demerger of its asset-heavy business, Fleur Hotels
• Possible separate listing for Fleur Hotels
• Creating an asset-light model for Lemon Tree Hotels, focusing on management, branding, and technology
• Fleur Hotels to operate as an independent asset company

Keswani stated, "If we list Fleur, we will be debt-free," indicating the potential financial benefits of this restructuring. He also mentioned plans for Fleur to expand significantly, potentially reaching 10,000 to 15,000 rooms in the future.

Management Changes and Growth Strategy

To support these ambitious plans, Lemon Tree has announced key management changes:

• Neelendra Sharma will become CEO of Lemon Tree Hotels from October 1st
• Patanjali Keswani will transition to an executive director role for 18 months
• Saurabh Shatdal appointed as CEO of Fleur Hotels Limited

These changes are part of a broader strategy to position both Lemon Tree and Fleur for accelerated growth. Keswani expressed confidence in surpassing their previous target of 20,000 rooms within their 5-year plan, hinting at the possibility of reaching 30,000 to 40,000 rooms in the long term.

As Lemon Tree Hotels continues to evolve and expand, the Aurika, Nehru Place project represents a significant step in the company's journey to cement its position as a leading player in India's hospitality sector. With a clear focus on strategic growth, brand diversification, and potential corporate restructuring, Lemon Tree Hotels appears poised for an exciting phase of development in the coming years.

Lemon Tree Hotels , a leading mid-market hotel chain in India, has reported its highest-ever Q1 revenue of Rs 317.40 crore, marking an 18% year-over-year growth. The company's strong performance comes amid plans for significant restructuring and expansion.

Financial Highlights

• Net EBITDA increased by 23% to Rs 142.00 crore, with margins expanding to 44.8%.
• Gross Average Room Rate (ARR) rose by 10% to Rs 6,236.
• Occupancy improved by 591 basis points to 72.5%.
• Revenue Per Available Room (RevPAR) grew by 19% to Rs 4,523.
• Profit after tax surged by 139% to Rs 48.10 crore.

Debt Reduction and Cost Management

Lemon Tree Hotels has made significant strides in improving its financial position:

• Reduced debt by Rs 206.00 crore to Rs 1,658.00 crore.
• Lowered borrowing costs to 8.01%.
• Decreased power and fuel costs from 8.7% to 6.9% of revenue, despite a 6.9% increase in occupancy.

Strategic Restructuring

The company announced plans for a potential demerger scheme to transfer assets from Lemon Tree to its subsidiary, Fleur Hotels. This restructuring aims to:

• Make Lemon Tree an asset-light entity focused on management and branding.
• Position Fleur Hotels as the asset-heavy entity.
• List Fleur Hotels by the end of the next calendar year.

Expansion and Renovation

Lemon Tree Hotels continues to focus on growth and property improvement:

• Signed 14 new management contracts, adding 1,273 rooms to the pipeline.
• Operationalized 5 hotels with 400 rooms.
• Total inventory now stands at 226 hotels with 18,430 rooms.
• Investing heavily in renovations, with approximately 350 rooms currently under renovation.

Management Changes

The company announced key leadership changes:

• Neelendra will take over as CEO from October 1st.
• Founder Patanjali Keswani will transition to Executive Chairman.

Future Outlook

Patanjali Keswani, CMD of Lemon Tree Hotels, expressed confidence in the company's future, stating, "We are positioning both companies for very, very accelerated growth." He indicated that the company would exceed its previous target of 20,000 rooms in its 5-year plan, potentially reaching 30,000 to 40,000 rooms.

The company is also focusing on expanding its loyalty program, which currently has 2.1 million members, with plans to reach 3 million in the next year.

As Lemon Tree Hotels continues its transformation and expansion, investors and industry observers will be watching closely to see how these strategic moves shape the company's future in India's growing hospitality sector.