The positive sentiment comes on the back of the company’s latest expansion plans. The mid-priced range hotels chain announced the signing of Lemon Tree Hotel, Garudeshwar, Gujarat, further expanding its presence in the State. With this addition, the Company will have 32 properties in Gujarat (11 operational and 21 upcoming), reflecting its focus on building scale across tourism and pilgrimage-driven markets. Gujarat continues to see strong tourism growth, supported by landmark attractions such as the Statue of Unity and increasing interest in spiritual and cultural travel.
FY26 turned out to be a record year of portfolio expansion, driven by 56 new signings and 20 hotel openings. This momentum reinforces the company’s transition toward a disciplined, asset-light growth model.
With an active operational portfolio now exceeding 130 hotels and 11,000 keys across over 80 destinations, the company is leveraging its capital-efficient strategy to scale rapidly while maintaining operational consistency and strong partner alignment.
With a strong and visible pipeline, a diversified brand portfolio, and a proven asset-light model, the company remains well-positioned to deliver consistent, long-term growth in an evolving hospitality landscape, Lemon Tree Hotels said.
In January, the company announced a strategic restructuring alongside a fresh investment from global private equity firm Warburg Pincus. The deal includes a commitment of Rs 960 crore from Warburg Pincus, routed through Coastal Cedar Investments B.V., into Lemon Tree’s subsidiary, Fleur Hotels.
As part of a composite scheme approved by the board, Lemon Tree will split its operations into two separate platforms. Lemon Tree Hotels Ltd will function as an asset-light hotel management and branding entity, while Fleur Hotels Ltd will house the asset-heavy development and ownership business.Also read: FIIs pull out another $2 billion from bank stocks. Are financials most hated now?
The restructuring is aimed at unlocking long-term shareholder value by sharpening strategic focus and simplifying the corporate structure. A key element of this plan is the demerger of 12 hotels, including 11 operational properties and one under construction in Shimla, along with the transfer of ownership and development assets from Lemon Tree to Fleur.
Additionally, some subsidiaries will be merged into Lemon Tree, while others will be consolidated under Fleur in exchange for share allotments.
In today’s session, trading activity was strong, with 8.57 crore shares exchanged, amounting to a turnover of Rs 1,064 crore.
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Despite the sharp surge, the stock is still down 27% over the past six months and has fallen over 20% so far this year.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)