India-based Lemon Tree Accommodations has confirmed that its board has authorised the acquisition of a 41.09% stake in its subsidiary Fleur Accommodations by Warburg Pincus, which is able to contain an funding of Rs9.6bn ($106.4m) in a number of tranches.
With an appointed date of 1 April 2026, the transaction will probably be executed by Warburg Pincus affiliate Coastal Cedar Funding, buying the stake from APG Strategic Actual Property Pool.
Along with the acquisition, the board has authorised a strategic reorganisation that may see Fleur Accommodations listed as a separate entity.
The transfer permits Lemon Tree to deal with changing into a pure-play, asset-light resort administration and branding platform. Fleur will tackle the function of the group’s unique resort asset possession and growth firm.
The funding signifies a renewed collaboration between Warburg Pincus and Lemon Tree, following the latter’s preliminary funding in 2006, which was instrumental in Lemon Tree’s development into a major participant within the Indian resort sector.
The reorganisation will probably be carried out via a course of authorised by the Nationwide Firm Regulation Tribunal (NCLT) and goals to restructure the group’s asset possession and operational framework.
At the moment held resort property by Lemon Tree will probably be transferred to Fleur, which is able to handle all future resort acquisitions and developments.
Lemon Tree will shift to an asset-light mannequin, concentrating on increasing its resort administration, franchising, and digital operations.
The restructuring may also facilitate the itemizing of Fleur’s shares on the Nationwide Inventory Trade (NSE) and the Bombay Inventory Trade (BSE).
Lemon Tree will merge two of its wholly owned subsidiaries, Carnation Accommodations and Hamstede Residing, into itself. Moreover, 4 different wholly owned subsidiaries, Oriole Dr Recent, Sukhsagar Complexes, Manakin Resorts, and Canary Accommodations, will merge with Fleur in trade for shares issued by Fleur.
The demerger will embody 12 lodges, together with 11 operational properties and one under-construction resort in Shimla, together with growth capabilities and an funding in a resort underneath building in Shillong.
Upon the scheme’s implementation, Lemon Tree shareholders as of the document date will maintain 32.96% of Fleur. Moreover, Lemon Tree will straight possess 41.03%, and Warburg Pincus will personal 26.01%, excluding any dilution from Warburg Pincus’s main funding in Fleur.
Following the required approvals, Fleur is predicted to be listed as a separate entity on Indian inventory exchanges inside 12 to fifteen months.
The rationale behind this Composite Scheme of Association consists of the creation of two targeted platforms, one asset-light enterprise concentrating on resort administration, model, loyalty, distribution, and digital capabilities; and one devoted to resort possession and growth.
