Lemon Tree Hotels likely to list its subsidiary Fleur Hotels in 2026

Patanjali Keswani, chairman and managing director, Lemon Tree Hotels, also said in the Q3FY25 earnings call that the company would be debt-free in three years

Lemon Tree Hotels may list its subsidiary Fleur Hotels next year in an effort to become a debt-free company.

 

According to a source, Fleur Hotels’ listing would be completed sometime next year.

 

Lemon Tree has a consolidated debt of ₹1,760 crore as of December 2024, with its standalone debt being ₹300 crore,  Kapil Sharma, chief financial officer (CFO), told analysts at the company’s earnings' call during Q3 of FY25.

 

Patanjali Keswani, chairman and managing director, Lemon Tree Hotels, said during the earnings' call that the company would be debt free in three years.

 

“I can say with certainty that it will happen in the next 1.5-2 years. If that happens, automatically we go debt free,” said Keswani. 

 

He had also stated that Lemon Tree will continue to be a significant shareholder of Fleur Hotels.

 

“We think it will have a really solid listing because we think its earnings before interest, taxes, depreciation, and amortisation (Ebitda) will be $100 million when it lists,” Keswani stated in the earnings' call.

 

Additionally, Lemon Tree Hotels — with 112 operational hotels as of Q3FY25 — currently has no immediate plans to add any new brand to its hotel company. It has 88 hotels in its pipeline.

 

“Lemon Tree is already running seven brands (Aurika Hotels and Resorts, Lemon Tree Premier, Lemon Tree Hotels, Red Fox by Lemon Tree Hotels, Keys Prima by Lemon Tree Hotels, Keys Select by Lemon Tree Hotels, and Keys Lite by Lemon Tree Hotels), and all segments are between a three-star and an upper, upscale segment,” the source added.

 

Corporate travellers generate most of the demand for the hotel, with 75 per cent of the company’s revenue coming from this travel segment. Leisure travellers contribute about 25-30 per cent of the revenue, the source further said.

 

Lemon Tree has a vast presence in India with 40 per cent of the company’s portfolio in Tier-II and Tier-III cities. The company expanded internationally with hotels opening in Dubai in December 2019, Bhutan in February 2020 and Nepal in April 2024.

 

The company currently has two operating hotels in Nepal and is slated to add another four. It also has two operating hotels in Bhutan and is in the process of adding another two. It is open to scouting more opportunities internationally.