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The hospitality chain Lemon Tree Hotel Company today outlined its plans to significantly expand its portfolio of hotels across the country both fully owned and properties managed for others.
The company is planning to expand its portfolio from 3000 rooms to 8000 rooms by 2017-18. Of this, about 5,000 rooms, that is an addition of about 2,000 rooms, would be fully owned and the rest, 3000 rooms would be through its managed services business, Sumant Jaidka, Chief Operating Officer, Lemon Tree Hotels, told Business Line.
With the addition of a new property in the IT hub of Hyderabad, the Lemon Tree Hotels’ group, currently the third largest Indian hotel chain by asset ownership in the country, has spread its wings to 26 locations across 15 cities in India.
“We are delighted at scoring a hat-trick in Hyderabad and bringing the midscale Lemon Tree Hotel brand to the city. Hyderabad continues to attract business and leisure travellers throughout the year and this new venture in Gachibowli only underlines the potential of this market,” he said.
Referring to the expansion plans, he said, “The company has sewn up capex plans of Rs 600 crore within one year. This would enable the chain to add about 1200 rooms to its portfolio.”
IPO plans
Lemon Tree Hotels is planning to tap the capital market to fuel its expansion plans and also provide an opportunity for some of its investors to have an exit option and to reward its staff, who are also its shareholders. Though the timing is yet to be finalised, it may happen next year depending upon market conditions, he said.
With the company starting a separate business division to handle management of third party properties, he said, “We expect this division to add about 3,000 rooms by 2017-18.”
The 190-room property located in the Financial District is surrounded by the campuses of Microsoft, Wipro, Infosys, Indian School of Business, ICICI Bank and Q-city, which houses a number of IT companies including TCS, and Amazon.
Hyderabad becomes the only city after Delhi to experience all three Lemon Tree Hotel brands in its fold. Founded by Petu Keshwani in 2002, it operates three brands Lemon Tree Premier, Lemon Tree and Red Fox economy category hotels.
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