Lemon Tree Hotels Secures ₹960 Crore Investment, Plans Subsidiary Demerger

• Lemon Tree Hotels approved a business reorganization and a ₹960 crore investment by Warburg Pincus in its subsidiary, Fleur Hotels.
• Warburg Pincus will acquire APG's 41.09% stake in Fleur Hotels, with the subsidiary set to be listed separately on the Indian stock market within 12-15 months.
• Post-restructuring, Lemon Tree Hotels will become an asset-light hotel management platform, while Fleur Hotels will handle hotel ownership and development.
• Existing Lemon Tree hotel assets will transfer to Fleur, which will expand its portfolio to 41 hotels with 5813 rooms, including 12 new hotels.
• Lemon Tree Hotels' shares closed at ₹149.70, down 0.73%, with analysts giving a 'buy' rating and a target price up to ₹210.

Why It Matters: Lemon Tree Hotels is restructuring with a major investment and subsidiary listing to boost growth and efficiency.