Lemon Tree Hotels Chain Readies For an IPO

Lemon Tree is largely backed by Warburg Pincus and also counts Dutch pension fund APG as an investor. As the offer comprises only an OFS without any fresh issuance of equity shares, Lemon Tree will not receive any proceeds from the offer.

"The public listing will enhance our visibility and brand image and provide liquidity to our shareholders," said Patanjali Keswani, Chairman & Managing Director, Lemon Tree Hotels.

Lemon Tree, currently the leader in terms of controlling interest in owned and leased rooms has operations spread across the value chain and range from acquiring land to owning, leasing, developing, managing and marketing hotels.

The company has 45 rpt 45 hotels with 4,700 rpt 4,700 rooms in 28 rpt 28 cities. It has a portfolio of 19 owned-hotels, three owned-hotels are located on leased or licensed land, five leased hotels and 18 rpt 18 managed hotels, a company statement said.

Founded in 2002 by Patanjali Keswani, the company has hotels under three brands - Lemon Tree Premier, which is an upscale brand; Lemon Tree Resorts, a leisure segment brand; Lemon Tree Hotels, a midscale brand and the economy brand Red Fox Hotels.