Lemon Tree Hotels announced its board has approved a composite scheme of arrangement to reorganise the group’s structure and allow a capital investment into its subsidiary, Fleur Hotels.
The decision was taken at the board meeting held on January 9, 2026, and has been disclosed to the stock exchanges. The scheme will be implemented through a National Company Law Tribunal process and will require regulatory and shareholder approvals.
Under the approved plan, Coastal Cedar Investments BV, an affiliate of Warburg Pincus, will acquire APG Strategic Real Estate Pool NV’s entire 41.09% holding in Fleur Hotels.
Along with the stake acquisition, Warburg Pincus will make a primary equity investment of up to ₹960 crore in Fleur Hotels. The investment will be made in stages, depending on funding requirements.
After completion of the transaction, Warburg Pincus will hold a minority stake in Fleur, alongside Lemon Tree and public shareholders. Warburg Pincus had earlier invested in Lemon Tree Hotels in 2006 and exited its holding in 2019.
The scheme proposes the creation of two separately listed companies with distinct functions. Lemon Tree Hotels Limited will operate as an asset-light entity, focusing on hotel management, branding, franchising, loyalty programmes, distribution and digital services.
Fleur Hotels Limited will hold the group’s owned hotel assets and will handle all future hotel ownership and development activity. All hotel assets currently owned by Lemon Tree will be transferred to Fleur once the scheme becomes effective.
As part of the reorganisation, Lemon Tree will merge its wholly owned subsidiaries, Carnation Hotels and Hamstede Living with the parent company. Four other wholly owned subsidiaries, Oriole Dr Fresh, Sukhsagar Complexes, Manakin Resorts and Canary Hotels, will be merged into Fleur Hotels, with Fleur issuing shares in exchange.
The scheme also provides for the transfer of 12 hotels from Lemon Tree to Fleur. These include 11 operational hotels and one under-construction hotel in Shimla. The investment in an under-construction hotel in Shillong, held through a Lemon Tree subsidiary, will also be transferred.
After completion, Fleur Hotels’ owned portfolio is expected to increase from 3,993 keys across 24 hotels to 5,813 keys across 41 hotels. Lemon Tree will continue to manage 1,820 keys across 17 hotels transferred to Fleur.
Fleur Hotels is proposed to be listed on the NSE and BSE. The company expects the listing process to be completed within 12 to 15 months, subject to approvals.
As of January 12, 2026, 10:17 am, Lemon Tree Hotels Ltd share price was trading at ₹151.87, a 1.36% increase from the previous closing price.
Read More: Lemon Tree Hotels Share Price Surges on Signing 2 New Properties in Andhra Pradesh and Chhattisgarh!
The proposed scheme separates hotel ownership and management within the Lemon Tree group and enables a fresh equity infusion into Fleur Hotels. The transaction remains subject to regulatory, tribunal and shareholder approvals.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jan 12, 2026, 12:01 PM IST
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