Lemon Tree Hotels rallies 7% on heavy volumes, nears 52-wk high; here's why

Lemon Tree Hotels stock gains 7% in Monday's trade: Fleur Hotels, subsidiary of the company, was declared a successful bidder in an e-auction for allotment of land at Nehru Place, New Delhi.

Lemon Tree Hotels share price today

 

Shares of Lemon Tree Hotels rallied 7 per cent to ₹155 on the BSE in Monday’s intra-day trade amid heavy volumes after the company’s subsidiary Fleur Hotels was declared a successful bidder vide Letter of Award in an e-auction conducted by Delhi Development Authority (DDA) with respect to allotment of land at Nehru Place, New Delhi. 

 

The stock was trading close to its 52-week high of ₹162.25 touched on January 2, 2025. At 02:37 PM; Lemon Tree Hotels was quoting 5.5 per cent higher at ₹153.20, as compared to 0.97 per cent rise in the BSE Sensex. The average trading volumes at the counter jumped over three-fold. A combined 6.18 million shares representing 0.78 per cent of total equity of the company changed hands on the NSE and BSE.

 

 

What's driving Lemon Tree Hotels today?

 

On August 14, 2025, Lemon Tree Hotels in an exchange filing announced that its material subsidiary Fleur Hotels Limited has been declared as the successful bidder in e-auction conducted by Delhi Development Authority (DDA) in respect of prime land parcel admeasuring 2.2 acres in the heart of National Capital located at Nehru Place for development and operations of a 5 Star Hotel.

 

It is set to be a 500+ Key hotel and will be in close proximity to Delhi’s top tourist spots and is also situated close to the centre of New Delhi city. The hotel is set to be designed on the lines of “Aurika SkyCity-Mumbai” with elegant rooms, dining and expansive banquet areas. The said Hotel shall be developed as “Aurika, Nehru Place”, which will mark the debut of Lemon Tree Hotels upper upscale brand in the National Capital Region (NCR), the company said. 

Brokerages view on Lemon Tree Hotels

 

Aurika is a premium brand of Lemon Tree Hotels which commands superior ARR and positions itself in the upper upscale segment and reports highest EBITDA margins in the portfolio, Currently, the company has Aurika SkyCity which is a 650-room hotel located in Mumbai while it has 2 Aurika hotels (Shimla and Shillong) in the pipeline. Shimla is in an advanced stage while Shillong is expected to come up in 2-3 years, ICICI Securities said.

 

With the addition of Aurika, Nehru Place, Lemon Tree Hotel’s expansion in the upper upscale segment increases its potential to further expand its revenue and margin profile by improving the premium mix of the portfolio in the long run, the brokerage firm said in a note.

 

According to IDBI Capital, the management anticipates continued growth in demand, driven by the addition of approximately 1,800 planes in India and improving connectivity through Vande Bharat trains, growing airports, and ambitious highway construction. Lemon Tree Hotels aims to complete renovations for the entire portfolio of owned hotels by FY27, with about 65-70 per cent of 4,300 rooms already completed in the last two and a half years. The company is confident of achieving accelerated growth across its entire portfolio, including owned, leased, managed, and franchised properties, the brokerage firm said. It maintains BUY rating on the stock with a revised target price of ₹177, assigning 17x EV/EBITDA to FY27E.

 

About Lemon Tree Hotels

 

Lemon Tree Hotels is one of India’s leading hospitality companies, catering to a wide range of customers – from value-conscious travellers to premium business and leisure seekers. With seven distinct brands – Aurika Hotels & Resorts, Lemon Tree Premier, Lemon Tree Hotels, Red Fox, Keys Prima, Keys Select, and Keys Lite – the group offers experiences across upper upscale, upscale, upper midscale, midscale, leisure, wildlife, and spiritual segments.