Lemon Tree Hotels Limited has announced the termination of its License Agreement and Hotel Operating Agreement (HOA) for the Lemon Tree Hotel in Erode, Tamil Nadu. The termination, effective after five business days from July 16, 2026, stems from a material breach of contract terms by the owner and operator. The company stated that this termination will not have a material financial impact.
Key Agreement Terminations Announced
Lemon Tree Hotels Limited has officially terminated its License Agreement, originally dated September 08, 2022, and its addendum. This action is a direct consequence of the termination of the Hotel Operating Agreement (HOA) and its addendum, also dated September 08, 2022. These agreements were in place for the Lemon Tree Hotel located in Erode, Tamil Nadu, which comprises 65 rooms.
Reasons for Termination
The company issued a termination letter to the Owner on July 16, 2026. The basis for this termination is cited as a material breach of the terms stipulated within the HOA. The termination is set to become effective upon the expiration of five (5) business days following the date of the termination letter.
Financial Impact Assessment
Lemon Tree Hotels Limited has clarified that the aforementioned termination of these agreements is not expected to have any material financial impact on the Company. Stakeholders are requested to note this development for their records.
Source: BSE
