Lemon Tree Hotels Limited has announced the signing of a new property in Madhya Pradesh, expanding its footprint in the spiritually significant destination of Omkareshwar. The announcement was made on January 21, 2026, through a regulatory filing under SEBI's disclosure requirements.

Property Details and Location

The new property, Lemon Tree Premier, Omkareshwar, will be strategically located in the sacred town situated on an island in the Narmada River. Omkareshwar holds immense religious significance as it houses one of the 12 Jyotirlingas of Lord Shiva, making it a major pilgrimage destination that attracts devotees seeking divine blessings and spiritual experiences.

Comprehensive Amenities and Facilities

The hotel will offer a complete range of amenities designed to cater to both business and leisure travelers. The property will feature modern recreational facilities alongside essential business infrastructure to serve the diverse needs of guests visiting this pilgrimage destination.

Key amenities include:

• Restaurant for dining experiences
• Banquet hall for events and gatherings
• Meeting room for business requirements
• Fitness center for wellness activities
• Swimming pool for recreation
• Spa facilities for relaxation and rejuvenation

Strategic Expansion in Madhya Pradesh

The property will be managed by Carnation Hotels Private Limited, a wholly-owned subsidiary of Lemon Tree Hotels Limited. This signing represents a strategic move to strengthen the company's presence in Madhya Pradesh, where it currently operates four hotels with 10 upcoming properties in the pipeline.

According to Mr. Vilas Pawar, CEO - Managed & Franchise Business, Lemon Tree Hotels, the expansion aligns with the company's strategy to serve pilgrims and travelers seeking spiritual experiences. The location offers excellent connectivity through both public and private transport, enhancing accessibility for visitors to this ancient heritage destination.

Company Portfolio and Market Position

Lemon Tree Hotels Limited operates as one of India's leading hospitality companies with seven distinct brands including Aurika Hotels & Resorts, Lemon Tree Premier, Lemon Tree Hotels, Red Fox, Keys Prima, Keys Select, and Keys Lite. The group currently operates 120+ hotels across 80+ cities in India and internationally, with a growing pipeline of 130+ upcoming properties spanning metro hubs and tier II & III cities, along with international presence in Dubai, Bhutan, and Nepal.

Lemon Tree Hotels has gained attention from analysts following a positive brokerage recommendation that highlights significant upside potential amid favorable sector dynamics and strategic restructuring plans.

Brokerage Recommendation and Target Price

ICICI Direct has issued a 'Buy' recommendation for Lemon Tree Hotels with a target price of ₹185.00. This target represents a potential upside of approximately 38% from the stock's closing price of ₹134.30, reflecting analyst confidence in the company's growth prospects and improving sector outlook.

Strategic Restructuring Initiative

The company has announced a comprehensive restructuring plan involving Lemon Tree Hotels Limited and Fleur Hotels, designed to unlock shareholder value through the creation of two focused entities. Under this arrangement, existing shareholders will receive 20 Fleur shares for every 311 LTHL shares, while Warburg Pincus will acquire a 41.09% stake in Fleur. The new entity is expected to list within 15 months of the restructuring completion.

Post-restructuring projections indicate that LTHL will transform into a debt-free, asset-light platform with ambitious expansion plans:

Financial Performance

Lemon Tree Hotels demonstrated steady growth in Q2FY26, showcasing resilience in a challenging operating environment. The company's financial metrics reflect consistent performance across key indicators.

Sector Fundamentals and Growth Pipeline

India's hotel and resort sector continues to benefit from robust domestic tourism and rising demand patterns. In FY2025, the sector achieved significant milestones with room inventory reaching approximately 2.03 lakh units, compared to 1.88 lakh in the previous period. Occupancy rates approached 71% while Average Daily Rates (ADR) climbed to ₹8,000.00, contributing to sector revenue expansion of roughly ₹906 billion.

The company maintains a strong expansion pipeline with over 9,400 rooms planned from third-party owners, alongside substantial owned inventory development. New Aurika properties in Shimla, Shillong, and New Delhi are expected to add operational scale, while active discussions for 2,500+ additional rooms strengthen long-term expansion visibility across the company's brand portfolio.

Market Positioning and Geographic Presence

Lemon Tree Hotels has established a comprehensive pan-India footprint across major business hubs and high-growth air corridors. The portfolio concentrates in key metropolitan areas including Delhi, Bengaluru, Mumbai, and Hyderabad, positioning the company to benefit from rising air traffic and office space absorption trends in these markets.