Lemon Tree Hotels Expands Portfolio in Raipur and Jalandhar

This latest expansion by Lemon Tree Hotels involves agreements for two new properties: a 78-room Lemon Tree Premier in Raipur, Chhattisgarh, and a 60-room Lemon Tree Hotel in Jalandhar, Punjab. These additions, managed by the company's subsidiary Carnation Hotels, will collectively add 138 rooms and reinforce the brand's presence in growing Indian markets.

Strategic Significance

This expansion marks a continued move by Lemon Tree Hotels into key growth markets in Central and North India. It supports the company's strategy to attract both business and leisure travelers in these developing urban centers. The addition of these properties, operated by its subsidiary, aligns with the company's operational expansion plans and enhances its national footprint.

Growth Strategy

Lemon Tree Hotels is focused on an asset-light growth strategy, favoring management contracts over outright property ownership. For the financial year 2025-26, the company reported a record 56 new hotel signings and 20 openings. By March 31, 2026, its total portfolio is set to reach 269 hotels, comprising 131 operational properties and a pipeline of 138 more.

This expansion effort targets high-growth urban markets, tier II and III cities, and emerging leisure destinations to capture evolving travel demand across India.

Risks to Watch

Lemon Tree Hotels and its subsidiaries have faced regulatory scrutiny, including multiple notices and tax demands. Notably, subsidiary Fleur Hotels has received a significant CGST demand of approximately ₹8.50 crore for tax liabilities and penalties. Other subsidiaries have been penalized for compliance violations, ESI contribution delays, and excise law breaches. The company states these issues do not materially impact its financial operations and it is pursuing legal remedies, but these regulatory matters require ongoing attention.

Competitive Landscape

Lemon Tree Hotels competes with major hospitality groups such as Indian Hotels Company Ltd., EIH Ltd. (The Oberoi Group), and Chalet Hotels Ltd. In the mid-priced segment, Ginger Hotels is a key competitor. While Indian Hotels leads in revenue, Lemon Tree's aggressive asset-light expansion strategy aims to quickly increase its presence across various city segments.

Key Figures

As of March 31, 2026, Lemon Tree Hotels' total portfolio is projected to comprise 269 hotels, including 131 operational properties and 138 hotels in the pipeline.

In FY 2025-26, the company signed 56 new hotels and opened 20 hotels.

What to Track Next

Investors will be watching the construction and eventual opening of the new hotels in Raipur and Jalandhar. Performance indicators such as occupancy rates and Average Daily Rate (ADR) for these properties once operational will be key. Further announcements regarding new property signings or openings are also anticipated, as is progress on the ongoing regulatory notices and legal disputes involving subsidiaries.