Lemon Tree Hotels arm gets Warburg Pincus backing in ₹960 crore deal, stock up 4%Lemon Tree Hotels arm gets Warburg Pincus backing in ₹960 crore deal, stock up 4%

Introduction

Leading hotel and hospitality group announces strategic reorganization, creating asset-light management and growth-oriented ownership platforms, with private equity investment to support expansion and streamline operations for long-term growth.

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Share price movement of Lemon Tree Hotels

On January 12, 2026, Lemon Tree Hotels Ltd opened at ₹155.05, up 3.57% from its previous close of ₹149.70. The stock reached a high of ₹155.90 (4.14%) and a low of ₹151.10. By 11:27 AM, it traded at ₹153.85, a 2.77% increase, with a market cap of ₹7,624.44 crore.

Lemon Tree Hotels Approves Strategic Reorganization

Lemon Tree Hotels Limited approved a Composite Scheme of Arrangement to reorganize its group structure and simplify ownership of assets and subsidiaries.

The Board approved the sale of APG’s entire 41.09% stake in Fleur Hotels to Coastal Cedar Investments B.V., an affiliate of Warburg Pincus. The investment will support Fleur’s growth with ₹960 crore capital.

Post-reorganization, Lemon Tree will operate as an asset-light hotel management and brand platform. Fleur Hotels will focus on large-scale ownership, development, and acquisition of hotel assets across India.

The Scheme involves merging several subsidiaries. Lemon Tree will merge Carnation Hotels and Hamstede Living. Four subsidiaries will be merged with Fleur against share issuance by Fleur to Lemon Tree.

Upon effectiveness, Lemon Tree shareholders will hold 32.96% in Fleur. Lemon Tree directly owns 41.03%, while Warburg Pincus will own 26.01%. Fleur’s listing on NSE and BSE is expected within 12–15 months.

Stock performance of Lemon Tree Hotels for Period of 1 week, 6 months, and 1 year

Lemon Tree Hotels Ltd delivered a 0.5% loss over the past week and a 2.6% decline in the past 6 months. The stock gained 6.75% over the past year.

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Shareholding pattern of Lemon Tree Hotels

Particulars	Sep 2025	Jun 2025	Mar 2025
Promoter	22.30%	22.30%	22.30%
FII	21.50%	21.30%	20.90%
DII	19.70%	20.00%	19.70%
Public	36.50%	36.40%	37.00%
Others	0.10%	0%	0.10%

About Lemon Tree Hotels

Lemon Tree Hotels Ltd (NSE: LEMONTREE) is India’s third-largest hotel chain, operating mid-priced and upscale segments, offering value-for-money stays with differentiated service and superior guest experiences.

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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.

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