Lemon Tree Hotel on big expansion drive, to invest Rs. 600 cr, mulls IPO.

The hospitality chain Lemon Tree Hotel Company recently 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.'


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