Prabhudas Lilladher Recommends 'BUY' for Lemon Tree Hotels; Target Rs 185

• Prabhudas Lilladher upgrades Lemon Tree Hotels to "BUY" from "HOLD" with a target price of Rs 185.
• The upgrade is based on a strategic business reorganization aiming to unlock shareholder value.
• 1,563 operating rooms will transfer from Lemon Tree to Fleur, making Lemon Tree an asset-light entity and Fleur a hotel ownership platform.
• Lemon Tree will manage 39 Fleur hotels (5,556 rooms), 89 third-party hotels (6,011 rooms), and a future pipeline of 127 hotels (9,414 rooms).
• The asset-light fee income business is expected to command a higher multiple due to its capital efficiency and high-margin potential.

Why It Matters: Prabhudas Lilladher recommends buying Lemon Tree Hotels, citing strategic restructuring and asset-light growth potential.