Warburg Pincus to buy 41% stake in Lemon Tree Hotels unit Fleur Hotels

India-based Lemon Tree Hotels has confirmed that its committee has approved the acquisition of a 41.09% involvement successful its subsidiary Fleur Hotels by Warburg Pincus, which volition impact an concern of Rs9.6bn ($106.4m) successful aggregate tranches.

With an appointed day of 1 April 2026, the transaction volition beryllium executed by Warburg Pincus affiliate Coastal Cedar Investment, acquiring the involvement from APG Strategic Real Estate Pool.

In summation to the acquisition, the committee has approved a strategical reorganisation that volition spot Fleur Hotels listed arsenic a abstracted entity.

The determination allows Lemon Tree to absorption connected becoming a pure-play, asset-light edifice absorption and branding platform. Fleur volition instrumentality connected the relation of the group’s exclusive edifice plus ownership and improvement company.

The concern signifies a renewed collaboration betwixt Warburg Pincus and Lemon Tree, pursuing the latter's archetypal concern successful 2006, which was instrumental successful Lemon Tree’s maturation into a important subordinate successful the Indian edifice sector.

The reorganisation volition beryllium conducted done a process approved by the National Company Law Tribunal (NCLT) and aims to restructure the group’s plus ownership and operational framework.

Currently held edifice assets by Lemon Tree volition beryllium transferred to Fleur, which volition negociate each aboriginal edifice acquisitions and developments.

Lemon Tree volition displacement to an asset-light model, concentrating connected expanding its edifice management, franchising, and integer operations.

The restructuring volition besides facilitate the listing of Fleur’s shares connected the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

Lemon Tree volition merge 2 of its wholly owned subsidiaries, Carnation Hotels and Hamstede Living, into itself. Additionally, 4 different wholly owned subsidiaries, Oriole Dr Fresh, Sukhsagar Complexes, Manakin Resorts, and Canary Hotels, volition merge with Fleur successful speech for shares issued by Fleur.

The demerger volition encompass 12 hotels, including 11 operational properties and 1 under-construction edifice successful Shimla, on with improvement capabilities and an concern successful a edifice nether operation successful Shillong.

Upon the scheme's implementation, Lemon Tree shareholders arsenic of the grounds day volition clasp 32.96% of Fleur. Furthermore, Lemon Tree volition straight person 41.03%, and Warburg Pincus volition ain 26.01%, excluding immoderate dilution from Warburg Pincus’s superior concern successful Fleur.

Following the indispensable approvals, Fleur is expected to beryllium listed arsenic a abstracted entity connected Indian banal exchanges wrong 12 to 15 months.

The rationale down this Composite Scheme of Arrangement includes the instauration of 2 focused platforms, 1 asset-light concern concentrating connected edifice management, brand, loyalty, distribution, and integer capabilities; and 1 dedicated to edifice ownership and development.