CORPORATE
Lemon Tree to spin off into hotel management company, arm Fleur to own assets
- IBJ Bureau
- Jan 11, 2026
Lemon Tree Hotels has announced a reorganisation, leading to bifurcation of its businesses under two different entities.
After the reorganisation, Lemon Tree Hotels will be a pure-play, asset-light hotel management and brand platform, and Fleur Hotels, a subsidiary of the company, will own and develop the hotels.
US-based PE firm Warburg Pincus will acquire Dutch pension fund manager APG’s entire 41.09 per cent stake in Fleur Hotels and invest up to Rs 960 crore of primary capital to support the growth of Fleur Hotels, Lemon Tree has said.
This investment marks a renewed partnership between Warburg Pincus and Lemon Tree. Warburg Pincus’ had earlier invested in the company in 2006, which supported Lemon Tree’s initial growth to become a prominent hotel brand and platform.
The scheme, to be implemented through an NCLT-approved process, will reorganise the group’s asset ownership and operating structure. The hotel assets currently owned by Lemon Tree will be transferred to Fleur, which will serve as the group’s exclusive asset ownership and development company, the company has added.
Fleur will lead the group’s future hotel acquisitions and development, while Lemon Tree will transition to a fully asset-light model, focused on growing its hotel management, franchising and digital businesses. The scheme will also result in a listing of Fleur’s shares on NSE and BSE.
Patanjali Govind Keswani, the founder of Lemon Tree Hotels, will serve as the executive chairman of Fleur Hotels and will eventually transition to a non-executive role at Lemon Tree, the company has said. “This scheme is intended to create a simplified, transparent, and growth-oriented structure for both companies, which we believe will enhance long-term value for our shareholders,” Mr Keswani has said.
Report By
View Reporter News