Lemon Tree Hotels Buys Mumbai Land Chain to Expand Offerings

Lemon Tree Hotels has completed the purchase of a 989.30 square metre land parcel in Bandra East, Mumbai, for Rs 120 crore to develop a Lemon Tree Premier hotel. The property is planned to have about 172 rooms and suites.

The land is located along the Western Express Highway, next to Bandra Kurla Complex, or BKC. The Mumbai property will be the group's seventh hotel in the city and will target business travellers, MICE demand, leisure guests and social events.

Separately, Lemon Tree Hotels has signed a licence agreement for a 90 room hotel in Patancheru, Telangana. The property will be managed by Carnation Hotels Private Ltd, a wholly owned subsidiary of Lemon Tree Hotels.

Lemon Tree Hotels Mumbai land acquisition

The Mumbai land acquisition was completed by Fleur Hotels Ltd, a material subsidiary of Lemon Tree Hotels, through the registration of the Deed of Conveyance and related documents on September 24.

The total consideration is Rs 120 crore, excluding stamp duty and registration charges. The sellers include Asara Co Operative Housing Society Ltd, Nine Dimensions Housing LLP and others. Lemon Tree Hotels said there is no shareholding between the parties and that the transaction is not a related party transaction.

The proposed hotel will operate under the Lemon Tree Premier brand. It will include all day dining, a fitness centre and a swimming pool, along with about 172 rooms and suites.

Particulars	Details
Location	Bandra East, Mumbai
Land area	989.30 square metres
Acquisition cost	Rs 120 crore
Planned hotel	Lemon Tree Premier
Planned rooms and suites	About 172
Location advantage	Western Express Highway, adjoining BKC
Mumbai portfolio	Seven hotels after the development

The site gives Lemon Tree Hotels a presence between two major commercial and social areas of Mumbai. The company said the Bandra project is part of its plan to build greater hotel density within specific markets.

The Mumbai expansion follows other hotel additions by the group. Its recent Bodhgaya hotel expansion reflects the company's wider addition of properties across different locations, although the two developments involve different markets.

What Lemon Tree Hotels said about Mumbai

Neelendra Singh, Managing Director of Lemon Tree Hotels, said the company sees Mumbai as a collection of distinct high value micro markets. He said the move to seven properties in Mumbai, including its first development in Bandra, supports the company's plan to build a stronger presence within individual markets.

Singh said the Bandra hotel will connect business activity around BKC with the wider Bandra area. The planned property is also intended to expand Lemon Tree Hotels' premium hotel presence in Mumbai.

The company has not provided a completion date for the proposed Bandra hotel in the supplied information.

Lemon Tree Hotels signs 90 room hotel in Telangana

Lemon Tree Hotels has also signed a licence agreement for Lemon Tree Hotel, Patancheru in Telangana. The hotel will have 90 rooms and will include a restaurant, banquet hall, meeting and conference room, swimming pool, fitness centre and other recreational facilities.

Patancheru is described by the company as an industrial and manufacturing hub. The location is about 55 km from Rajiv Gandhi International Airport, Hyderabad, while Ramachandrapuram Railway Station is about 5.5 km away.

The Patancheru signing will take Lemon Tree Hotels' Telangana presence to eight properties, comprising four operational hotels and four upcoming properties.

Telangana portfolio	Number
Operational properties	4
Upcoming properties	4
Total properties	8
Patancheru hotel rooms	90
Distance from Hyderabad airport	About 55 km
Distance from Ramachandrapuram station	About 5.5 km

Vishvapreet Singh Cheema, President of Lemon Tree Hotels, said Telangana remains an important market for the company because of industrial activity, corporate expansion and tourism. He said Patancheru has a business catchment that the company expects to support steady demand.

Why the two hotel additions matter

The two announcements expand Lemon Tree Hotels' presence in two different types of markets. The Mumbai project adds a premium hotel development in a major commercial area, while the Patancheru signing adds a hotel in an industrial and manufacturing location.

The Mumbai property will increase the company's hotel count in the city to seven. The Telangana signing will take its presence in that state to eight properties.

The two projects also have different operating structures. The Mumbai development follows a land purchase by Fleur Hotels, while the Patancheru property is being added through a licence agreement and will be managed by Carnation Hotels.

The company has also been adding properties in other parts of India. Its Telangana expansion can be viewed alongside recent Telangana infrastructure developments, although the two announcements relate to different sectors.

Share price movement

Lemon Tree Hotels shares ended at Rs 106.80 on the BSE on September 24, down Rs 1.05, or 0.97%, from the previous close.

The share price movement came on the same day the company disclosed the Mumbai land acquisition and Telangana hotel signing. The supplied information does not provide details on the reasons behind the day's share price movement.

Stock detail	September 24
BSE closing price	Rs 106.80
Change	Down Rs 1.05
Percentage change	Down 0.97%

What investors should watch

Investors will be able to track how Lemon Tree Hotels adds rooms across Mumbai and Telangana as these projects move forward. For the Bandra property, the development timeline and eventual opening will be relevant because the hotel is still proposed.

The Patancheru property will add 90 rooms to the group's Telangana portfolio. Future updates on the licence arrangement, construction or opening timeline will provide more information on when the additional rooms can become operational.

The company's hotel count in both markets is also worth tracking. Mumbai will have seven properties after the Bandra development, while Telangana will have eight properties following the Patancheru signing.

About Lemon Tree Hotels

Lemon Tree Hotels is a hospitality company with properties across Indian markets. The company operates hotels under its brands and is expanding its presence through owned developments, licence arrangements and other hotel projects.

The latest announcements add a planned Lemon Tree Premier property in Bandra East and a 90 room Lemon Tree Hotel in Patancheru to its development pipeline.

Frequently asked questions

How much did Lemon Tree Hotels pay for the Mumbai land?

Lemon Tree Hotels paid Rs 120 crore for a 989.30 square metre land parcel in Bandra East, Mumbai. The amount excludes stamp duty and registration charges.

How many rooms will the new Mumbai hotel have?

The proposed Lemon Tree Premier hotel in Bandra, Mumbai, will have about 172 rooms and suites. The property will also include all day dining, a fitness centre and a swimming pool.

Where is Lemon Tree Hotels' new Telangana hotel located?

Lemon Tree Hotels' new Telangana hotel is located in Patancheru, an industrial and manufacturing hub. The property is about 55 km from Rajiv Gandhi International Airport, Hyderabad, and about 5.5 km from Ramachandrapuram Railway Station.

How many hotels will Lemon Tree Hotels have in Telangana?

Lemon Tree Hotels will have eight properties in Telangana after the Patancheru signing. The portfolio will include four operational properties and four upcoming properties.

What was Lemon Tree Hotels' share price on September 24?

Lemon Tree Hotels shares closed at Rs 106.80 on the BSE on September 24. The stock fell Rs 1.05, or 0.97%, during the session.

Is the Mumbai land deal a related party transaction?

No, Lemon Tree Hotels said the Mumbai land transaction is not a related party transaction. The company also said there is no shareholding between the sellers and the parties involved in the transaction.