Lemon Tree Hotels Proclaims Strategic Reorganization and Funding from Warburg Pincus in Fleur Hotels to Free up Long-Term Shareholder Value

• The reorganization will score two focused, excessive-growth, and colossal-scale platforms
• Warburg Pincus will accomplish APG’s entire 41.09% stake in Fleur and decide to speculate as much as ₹960 crore of predominant capital to toughen the growth of Fleur

Lemon Tree Hotels Restricted (“Lemon Tree”) and Fleur Hotels Restricted (“Fleur”) this day announced that their respectiveBoards of Administrators dangle authorised a Composite Plan of Draw (the “Plan”) designed to simplify the community structure, enhance strategic focus, and release prolonged-time interval payment for shareholders. The Plan is field to frequent regulatory and shareholder approvals.

The proposed reorganization will score two clearly differentiated and complementary platforms:

• Lemon Tree Hotels Restricted,as a pure-play, asset-light hotel administration and designate platform; and
• Fleur Hotels Restricted, a most modern subsidiary of Lemon Tree, as a colossal-scale growth-oriented hotel ownership platform with trend capabilities and an nice looking pipeline.

The Board of Administrators extra authorised:

• Execution of a Share Aquire Agreement enabling Coastal Cedar Funding B.V., an affiliate of Warburg Pincus, to carry out the total 41.09% equity stake held by APG Strategic True Estate Pool N.V. (“APG”) in Fleur; and
• Execution of a Shareholders’ Agreement providing for a predominant funding by Warburg Pincus of as much as INR 960 crore to be infused in tranches, to toughen the future growth of Fleur.

This funding marks a renewed partnership between Warburg Pincus and Lemon Tree, following Warburg Pincus’ earlier funding within the company in 2006, which supported Lemon Tree’s preliminary growth to develop correct into a prominent hotel designate and platform in India.

The Plan, to be utilized through a NCLT-authorised job, will reorganise the community’s asset ownership and working structure. The hotel resources currently owned by Lemon Tree will be transferred to Fleur, which is in a position to relieve as the community’s abnormal asset ownership and trend company. Fleur will lead the community’s all future hotel acquisitions and trend, whereas Lemon Tree will transition to a actually asset-light model, excited by rising its hotel administration, franchising and digital trade. The Plan will moreover result in a itemizing of Fleur’s shares on NSE and BSE. Mr. Patanjali Govind Keswani, Founding father of Lemon Tree Hotels, will relieve as the Govt Chairman of Fleur Hotels and might maybe maybe tranquil eventually transition to a Non-Govt characteristic at Lemon Tree.

This reorganization and funding advance at a time when India’s hospitality sector is coming into a interval of sustained growth, pushed by rising disposable income and discretionary spending, mighty growth in domestic inter-city air / rail / avenue shuttle, a rebound in world tourism, and the Authorities of India’s continued specialise in tourism and funding in aviation / excessive-tempo railways / four-lane highways infrastructure. Increasing company shuttle and India’s emergence as a number one Meetings, Incentives, Conferences and Exhibitions (MICE) breeze location extra toughen prolonged-time interval question fundamentals.

This plot is supposed to score a simplified, clear, and growth-oriented structure for every companies, which we assume will enhance prolonged-time interval payment for our shareholders. We are moreover fully elated to renew our partnership with Warburg Pincus, with whom we share a prolonged historical past of constructing the foundations of Lemon Tree. This collaboration marks a defining 2d as we enter the next share of expansion for Fleur. With the Indian hospitality industry at a extremely indispensable inflection level, we ogle ahead to leveraging Warburg Pincus’ global network and deep staunch estate and hospitality skills to scale responsibly, advance digital-led capabilities and embed sustainability as a core pillar of Lemon Tree’s and Fleur’s prolonged-time interval growth go.  Mr. Patanjali Govind Keswani, Founder and Govt Chairman of Lemon Tree and Fleur Hotels

We are fully elated to all every other time partner with Patu and the Fleur management crew to toughen the next chapter of growth for the platform. Lemon Tree has played a pioneering characteristic in shaping India’s mid-market hospitality segment, constructing a colossal scale, excessive-quality portfolio with mighty brands and working capabilities. With recommended industry fundamentals and a clear strategic roadmap, we ogle ahead to supporting the crew as they continue to scale the trade. Anish Saraf, Managing Director, Warburg Pincus

As we continue our prolonged-standing association with Lemon Tree, we are moreover proud to dangle supported Fleur Hotels for bigger than a decade to become one amongst India’s main and socially inclusive hospitality platforms. This transaction in Fleur is the culmination of APG’s prolonged-time interval formula to investing and affords our clients with a full-cycle return from one amongst the quickest rising economies within the realm. We thank Patu and the Fleur crew for their exertions and dedication to attain this milestone as the company enters its next share of growth. Dominic Doran, Senior Director, True Estate, Asia-Pacific, APG Asset Administration

Particulars of the Composite Plan of Draw

Key Highlights

• Appointed date: 1 April 2026
• Lemon Tree will merge two of its wholly owned subsidiaries (Carnation Hotels and Hamstede Dwelling) with itself.
• Four wholly owned subsidiaries of Lemon Tree (Oriole Dr. Unusual, Sukhsagar Complexes, Manakin Accommodations and Canary Hotels) will be merged with Fleur against the issuance of shares by Fleur to Lemon Tree.
• 12 hotels (11 operational hotels and one under-constructing hotel at Shimla) of Lemon Tree on the side of the advance capabilities (collectively, the “Demerged Mission”), on the side of the funding in a single under constructing hotel in Shillong through a 100% subsidiary of Lemon Tree, will be demerged with Fleur.
• Upon the Plan becoming efficient, the shareholders of Lemon Tree (as on the file date) will dangle 32.96% of Fleur, Lemon Tree will straight dangle 41.03% with the stability 26.01% to be owned by Warburg Pincus (shareholding figures exclude any dilution from predominant funding by Warburg Pincus in Fleur).

Following receipt of all relevant approvals, the Plan
will become efficient, and Fleur will be listed as a separate entity on Indian stock exchanges. The total job to itemizing of Fleur is anticipated to be done interior 12 to 15 months.

Rationale of the Composite Plan of Draw

• Complementary, Colossal-Scale and Excessive-Progress Platforms: The proposed reorganization creates two focused and complementary platforms—an asset-light trade with hotel administration, designate & loyalty, distribution and digital capabilities and a hotel ownership and trend platform—each positioned for growth. Fleur will combine sleek working resources with a clearly defined trend and acquisition pipeline, whereas Lemon Tree will continue to scale its administration and franchise portfolio domestically and internationally.
• Strengthened Balance Sheet:

  The proposedraising of predominant capital from Warburg Pincus will toughen Fleur’s stability sheet and release threat mitigated growth alternatives through trend and acquisition of hotel resources.

Put up the Proposed Transaction

Fleur will become one amongst the wonderful householders of hospitality resources in India. Its owned portfolio will lengthen drastically, rising from 3,993 keys and 24 working hotels to five,813 keys throughout 41 hotels. Fleur will continue to scale its owned portfolio through future trend and acquisitions.

Lemon Tree will continue to operate its sleek leased hotels in Indore and Aurangabad, which might maybe maybe be drawing attain the quit of their respective rent phrases. Moreover to, Lemon Tree will take care of an extra 1,820 keys and 17 hotels transferred to Fleur alongside its sleek portfolio of three,993 keys and 24 hotels of Fleur operated by Lemon Tree. Lemon Tree will live excited by its asset-light approach, persevering with to administer and franchise its sleek portfolio of third-celebration owned hotels, with 6,011 keys throughout 89 operational hotels and 9,414 keys throughout 127 hotels under varied stages of trend in India and internationally, which is anticipated to continue to develop over time.

Morgan Stanley acted as the abnormal monetary advisor for the proposed transaction.

About Lemon Tree Hotels Restricted

Lemon Tree Hotels Restricted (LTHL) is one amongst India’s main hospitality companies, catering to a giant risk of purchasers – from payment-conscious travellers to top class trade and leisure seekers. With seven clear brands – Aurika Hotels & Accommodations, Lemon Tree Premier, Lemon Tree Hotels, Crimson Fox, Keys Prima, Keys Select, and Keys Lite – the community affords experiences throughout upper upscale, upscale, upper midscale, midscale, leisure, flora and fauna, and spiritual segments. LTHL operates 120+ hotels throughout 80+ cities in India and in a single more country, with a rising pipeline of 120+ upcoming properties. From metro hubs admire Delhi-NCR, Mumbai, Bengaluru, and Hyderabad to tier II & III cities much like Jaipur, Udaipur, Kochi, and Indore – and with an world presence in Dubai, Bhutan, and Nepal – Lemon Tree Hotels delivers mighty comfort, fixed quality, and a warm, refreshing skills. Since opening its first 49-room hotel in 2004, the community has grown to 250+ properties (operational and upcoming), becoming a depended on name in hospitality for every trade and leisure travellers. For more diminutive print, discuss over with www.lemontreehotels.com