Private equity firm Warburg Pincus-backed Lemon Tree Hotels Ltd, India’s leading hotel chain in the mid-to-economy category by number of rooms, is diversifying into the upscale segment with the launch of a new brand this year.
India’s leading hotel chain the mid-to-economy segment, Lemon Tree, will now be diversifying into the upscale segment. The first upscale hotel of Lemon Tree is planned to open up in Udaipur , Rajasthan.
The company is currently working on the new brand’s artwork and logo. He, however, declined to divulge the name of the brand, or the price points of the new hotel chain.
The new hotel chain from Lemon Tree will compete with brands such as Indian Hotel Co. Ltd’s Vivanta and Oberoi group’s Trident, said one person aware of the development, requesting anonymity.
Keswani said the expansion of the new hotel chain will mostly be an asset-light model. This includes signing management contracts with existing hotel owners instead of owning the properties.
At present, Lemon Tree owns around 60% of its existing hotel properties, while the rest is managed by the company.
The past year has seen Lemon Tree in an expansion mode. The hospitality firm recently announced its entry into the rental housing segment. It has also signed a pact to acquire Keys Hotels from Berggruen Hotels Pvt. Ltd for an undisclosed amount.
