Lemon Tree & Warburg Pincus Ink ₹960 Crore Growth Deal

Lemon Tree Hotels has announced that its board has approved an investment by Warburg Pincus in Fleur Hotels, a subsidiary of the company, through the acquisition of a 41.09 per cent stake.

The transaction involves an investment of ₹960 crore, to be infused in tranches by Coastal Cedar Investment, an affiliate of Warburg Pincus, into Fleur Hotels to support its growth and expansion. The acquisition will be executed through a share purchase agreement.

The strategic reorganisation is aimed at creating two distinct, high-growth platforms—Lemon Tree Hotels as an asset-light hotel management company, and Fleur Hotels as a large-scale hotel ownership and development platform.

Commenting on the development, Patanjali Govind Keswani, Founder of Lemon Tree Hotels, said, “This scheme will create a simplified, transparent and growth-oriented structure for both companies.” The proposed changes are subject to regulatory and shareholder approvals.

News by Rahul Yelligetti.