Lemon Tree to become debt-free, Fleur Hotels to list after Warburg Pincus deal

• Lemon Tree Hotels approved a business reorganisation and a fresh investment by Warburg Pincus in its subsidiary, Fleur Hotels.
• Warburg Pincus will acquire APG's 41.09% stake in Fleur and invest up to ₹960 crore as primary capital for future growth.
• Fleur Hotels, which holds about 80% of Lemon Tree's current debt of ₹1,600 crore, will be listed as a separate company.
• Post-reorganisation, Lemon Tree Hotels will become debt-free, generating cash from management fees and third-party operations.
• Fleur plans to add 700-800 rooms in Nehru Place, Shillong, and Shimla, and is in discussions to acquire 2,500 more rooms.

Why It Matters: Lemon Tree Hotels will become debt-free and Fleur Hotels will list separately after a significant Warburg Pincus investment.