Key Transaction Details

Lemon Tree Hotels Limited, through its wholly owned subsidiary Carnation Hotels Private Limited, has signed a Memorandum of Understanding (MOU) with Omaxe Limited to operate approximately 4,000 hotel keys across multiple key destinations in India. This represents the company's largest single operating arrangement to date.

Location Details

The proposed hospitality sites will be located in:

  • Transit hubs
  • Pilgrimage destinations
  • Commercial districts

Specific locations include: Lucknow, Vrindavan, Amausi, Amritsar, Ghaziabad, Greater Noida, Kaushambi, and Faridabad.

Strategic Impact

This arrangement increases Lemon Tree Hotels' development pipeline to nearly 16,000 keys in total. The partnership focuses on Tier-2 and Tier-3 cities as part of the company's India growth strategy.

Management Commentary

Mr. Neelendra Singh, Managing Director, Lemon Tree Hotels Limited stated: "Tier-2 and Tier-3 cities have long been central to our India growth strategy, and this operating arrangement lets us scale it faster. Omaxe brings nearly four decades of real estate development experience across these markets, while Lemon Tree brings over two decades of hospitality expertise and guest trust. This alliance combines developer scale with operating strength, and two trusted Indian brands with a proven record of execution, to build the next phase of growth."

Mr. Mohit Goel, Managing Director, Omaxe Ltd. stated: "India's hospitality opportunity is expanding beyond established metropolitan markets, with Tier 2 and Tier 3 cities emerging as important destinations for business, leisure and pilgrimage travel. Temple towns, growing commercial centres and transit hubs, each have distinct accommodation needs, creating an opportunity to develop hospitality assets that are aligned with the demand drivers of their respective markets."

Business Model Implications

The arrangement accelerates Lemon Tree Hotels' asset-light growth strategy, enabling the company to expand its managed portfolio across diverse markets and asset formats. Omaxe's sale-led development model enables expansion with disciplined capital deployment approach.

Company Background

Lemon Tree Hotels Limited operates 130+ hotels across 80+ cities in India and abroad (Bhutan and Nepal), with a pipeline of 140+ upcoming properties. The company offers seven distinct brands across various segments: Aurika Hotels & Resorts, Lemon Tree Premier, Lemon Tree Hotels, Red Fox, Keys Prima, Keys Select, and Keys Lite.