Lemon Tree Hotels shares climbed to ₹152.8 by 9:50 am, hitting an intraday high of ₹155.99. Up 11.6% over the past year, the stock is buzzing among investors, valuing the hotel chain just under ₹12,100 crore, a mix of steady growth and market curiosity!
What’s Happening At Lemon Tree Hotels?
Lemon Tree Hotels is in the middle of a huge change, and investors are paying attention! The company’s restructuring plan will segregate the group into two main platforms, providing laser-like focus and clarity. Specifically, Lemon Tree Hotels will operate as an asset-light hotel management and branding firm, streamlining operations across its entire portfolio. On the other side, Fleur Hotels will emerge as the asset-heavy ownership and development platform, acquiring physical hotel properties and contributing to the company’s future growth.
As if that wasn’t enough, global private equity giant Warburg Pincus has announced its entry into the deal by purchasing APG’s entire 41.09% stake in Fleur Hotels. Moreover, Warburg has pledged to infuse ₹960 crore into the company in several tranches, providing the required capital for expansion and strengthening the balance sheet. This is likely to be a value-unlocking move, reducing leverage and offering investors a clearer view of both entities’ growth potential. Lemon Tree is positioning itself for a new chapter of focused and sustainable growth.
Shareholding Post-Restructuring
- Lemon Tree Hotels shareholders: 32.96% of Fleur Hotels
- Lemon Tree Hotels: 41.03%
- Warburg Pincus: 26.01%
Fleur Hotels will own 41 hotels (5,813 keys), while Lemon Tree will manage 89 hotels (6,011 keys) under an asset-light model.
Brokerage Ratings and Market Sentiment
- Nuvama: ‘Buy’ with target ₹178; cites strategic PE entry, composite reorganisation, stronger long-term profile
- Investec: ‘Buy’ with target ₹187; expects Fleur demerger to unlock value and a zero-debt, high-growth platform
Lemon Tree Restructuring: Fleur Listing Soon, Dividend Policy on the Horizon
The transformation of Lemon Tree is still ongoing! Fleur Hotels, within the next 12–15 months, will emerge as a separate public company through an IPO, while Lemon Tree will disclose its dividend policy after the restructuring is complete. Investors are likely to stay very alert, as significant changes, new clarity, and possibly even more rewards are on the horizon!
(With Inputs)]
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