What is Warburg Pincus' investment in Fleur Hotels?

Warburg Pincus is acquiring a 41.09% stake in Fleur Hotels and investing Rs 960 crore to support its growth.

How will Lemon Tree Hotels restructure its business?

Lemon Tree Hotels will split into two platforms: an asset-light management company (Lemon Tree) and a hotel ownership company (Fleur).

When will Fleur Hotels be listed on the stock exchange?

The listing of Fleur's shares on NSE and BSE is expected to be completed within 12 to 15 months.

Home / Business and Economy / Warburg Pincus Fuels Lemon Tree's Split for Growth

Warburg Pincus Fuels Lemon Tree's Split for Growth

10 Jan

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Summary

Warburg Pincus to acquire 41.09% stake in Fleur Hotels.
Investment of Rs 960 crore to support Fleur's future growth.
Lemon Tree will become an asset-light hotel management platform.

Warburg Pincus Fuels Lemon Tree's Split for Growth

Lemon Tree Hotels' board has approved a significant restructuring involving Warburg Pincus. Coastal Cedar Investment BV, an affiliate of Warburg Pincus, will acquire a 41.09% stake in Lemon Tree's subsidiary, Fleur Hotels, from APG Strategic Real Estate Pool NV. Additionally, Warburg Pincus committed to an investment of up to Rs 960 crore in tranches for Fleur's future growth.

This strategic reorganization aims to create two focused platforms: Lemon Tree Hotels Limited will operate as a pure-play, asset-light hotel management and brand platform, while Fleur Hotels Limited will become a large-scale hotel ownership platform with development capabilities. The hotel assets currently owned by Lemon Tree will be transferred to Fleur, positioning it as the group's exclusive asset ownership and development company.

The composite scheme of arrangement, subject to regulatory and shareholder approvals, is expected to be completed within 12 to 15 months. This initiative marks a renewed partnership between Warburg Pincus and Lemon Tree, following Warburg's earlier investment in 2006 that supported the company's initial expansion.