Lemon Tree Hotels has opened its third property in Nepal, the 80-room Lemon Tree Premier, Biratnagar, on April 30, 2026. This expansion strengthens the company's presence in South Asia and aims to tap into Nepal's growing tourism and business sectors.
This new upscale hotel marks the company's third property in Nepal. It features 80 well-appointed rooms and suites, designed to meet the demand from business and leisure travelers in the region.
The expansion into Biratnagar, a key industrial and commercial hub, fits Lemon Tree's strategy of entering promising neighboring markets. This move enhances the company's brand presence in a region experiencing growing tourism and business activity.
Lemon Tree Hotels, a major Indian hospitality chain, is actively expanding internationally, especially in South Asia and the Middle East, focusing on markets with substantial Indian outbound travel. This growth is primarily fueled by an asset-light model, utilizing management and franchise agreements to expand quickly with lower capital investment. Nepal is a key market, with earlier openings including Lemon Tree Premier in Budhanilkantha, Kathmandu (April 2024) and a signed agreement for Lemon Tree Resort, Lumbini (April 2023). The company plans significant portfolio growth, targeting over 20,000 rooms by 2028 through a robust pipeline of future properties.
This development expands Lemon Tree's Nepal presence to three hotels, consolidating its position. It also bolsters the company's brand visibility across South Asia and reinforces its asset-light strategy focused on management and franchise agreements. The hotel is positioned to serve both local business communities and international travelers in Biratnagar.
No specific risks or potential challenges were mentioned in the company's announcement regarding this opening.
Lemon Tree Hotels faces competition in Nepal from other Indian and international hotel brands. Fortune Hotels, part of ITC's group, has also entered the Nepali market, alongside global giants such as Hilton, Marriott, and IHG, which are all expanding their presence in the country.
Lemon Tree Hotels' global portfolio includes approximately 260 hotels with over 21,100 rooms, either operating or under development, according to recent pipeline reports (FY25-FY28E projections). As of Q2 FY2025, the company had 10,318 operational rooms across 112 hotels, with an additional pipeline of 5,220 rooms in 75 hotels.
