Overview
- Boards of Lemon Tree and Fleur cleared a composite scheme to split the group into a management/franchise company and an asset-heavy ownership and development platform.
- Warburg Pincus affiliate Coastal Cedar signed an agreement to acquire APG’s 41.09% stake in Fleur and committed up to Rs 960 crore of primary capital in tranches.
- The scheme is slated to take effect on April 1, 2026, and Fleur’s shares are planned to list on the NSE and BSE within 12–15 months, subject to regulatory and shareholder approvals.
- Post-reorganisation ownership of Fleur is expected to be 32.96% by Lemon Tree shareholders, 41.03% by Lemon Tree, and 26.01% by Warburg Pincus before dilution from the new capital.
- The plan includes merging Carnation Hotels and Hamstede Living into Lemon Tree and demerging 12 hotels plus development assets into Fleur, with the post-completion footprint projected at 5,813 owned keys at Fleur and 6,011 managed keys at Lemon Tree alongside a 9,414-key pipeline.