Lemon Tree Hotels’ board has approved a comprehensive corporate restructuring plan involving mergers, demergers, and a potential capital infusion. Key steps include the merger of subsidiary companies and the demerger of the asset-heavy hotel properties into a separate entity (Fleur Hotels Limited). APG’s stake in Fleur Hotels is set to be acquired by Coastal Cedar Investments B.V. This restructuring aims to sharpen operational focus and unlock value. A potential ₹960 crore capital infusion is also under consideration.
Corporate Restructuring Approved
The Board of Directors of Lemon Tree Hotels Limited (LTHL) has approved a significant restructuring plan. This involves a series of amalgamations and a demerger designed to streamline operations and enhance shareholder value. The decision was made during a board meeting held on January 9, 2026.
Mergers & Demerger Details
The plan includes the amalgamation of Carnation Hotels Private Limited and Hamstede Living Private Limited into Lemon Tree Hotels. Additionally, Transferor Company 3, Transferor Company 4, Transferor Company 5 and Transferor Company 6 will merge into Fleur Hotels Limited. The asset-heavy hotel properties and development capabilities will be demerged into Fleur Hotels Limited. The proposed structure is designed to separate the asset-light hotel management business from the asset-heavy ownership side. Shareholders of Lemon Tree Hotels will receive shares in Fleur Hotels Limited as part of this demerger process, on the basis of 20 shares of Fleur for every 311 shares of Lemon Tree Hotels Limited.
Shareholding & Investment Changes
As part of the restructuring, APG Strategic Real Estate Pool N.V.’s (APG) stake in Fleur Hotels Limited will be acquired by Coastal Cedar Investments B.V. The board has also approved a Shareholder’s Agreement to manage the operations of Fleur Hotels. Further, subject to certain performance requirements, there is a potential capital infusion up to INR 9,60,00,00,000 into the Transferee Company by Investor.
Rationale and Outlook
The restructuring aims to improve operational focus, provide greater flexibility in capital deployment, and create clearer alignment of business objectives. Lemon Tree Hotels will focus on the asset-light hotel management and brand, while Fleur Hotels will manage the hotel properties. The company believes this will unlock long-term value for shareholders.
Source: BSE
