Lemon Tree Hotels Ltd has unveiled a sweeping group reorganisation that will see global private equity major Warburg Pincus acquire a significant stake in its hotel ownership arm, Fleur Hotels. According to an exchange filing, Warburg Pincus will acquire APG Strategic Real Estate Pool’s entire 41.09% stake in Fleur Hotels and will also invest up to Rs 960 crore of primary capital in tranches to fund the platform’s future expansion.
Fleur will be listed as a separate entity on the National Stock Exchange of India and the BSE within 12–15 months. This is Warburg’s move aimed at unlocking long-term shareholder value amid a buoyant hospitality cycle.
The boards of Lemon Tree Hotels and Fleur Hotels have approved a composite scheme of arrangement that will split the group into two focused platforms.
Lemon Tree will operate as a pure-play, asset-light hotel management and franchising business, while Fleur will emerge as the asset-heavy hotel ownership and development arm, housing all owned hotel assets and leading acquisitions and greenfield developments.
Under the scheme, which is slated to become effective from April 1, 2026, Lemon Tree will transfer its owned hotel assets to Fleur but will continue to manage and franchise these properties.
Post-reorganisation, Lemon Tree shareholders will directly own 32.96% of Fleur, Lemon Tree will hold 41.03%, and Warburg Pincus will own 26.01%, excluding any dilution from the proposed primary capital infusion.
Founder Patanjali Govind Keswani will serve as executive chairman of Fleur Hotels and will eventually transition to a non-executive role at Lemon Tree Hotels.
Upon completion, Fleur Hotels will operate 5,813 keys across 41 hotels, while Lemon Tree will manage 6,011 keys across 89 operational hotels, with a robust pipeline of 9,414 keys across 127 hotels in India and overseas. Lemon Tree will also continue operating its leased hotels in Indore and Aurangabad, which are nearing the end of their lease tenures.
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