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Lemon Tree Hotels, led by Chairman and MD Patanjali Keswani, is planning a large-scale growth in India and overseas. With ambitious plans to open 30 new facilities this year, totaling over 2,000 rooms, the hospitality giant is optimistic about rising demand from middle-class consumers. Keswani revealed that this year's expansion plans include the opening of a Lemon Tree resort in Bhutan and the launching of 3 to 4 hotels and resorts in Nepal. This follows the successful launch of 14 hotels last year, including India's largest hotel, the Aurika Mumbai Skycity, with 669 rooms.
The company's strategic expansion targets significant tier-1, -2, and -3 areas, including Jaipur, Gurugram, Jamshedpur, Meerut, Jabalpur, and Thiruvananthapuram. Lemon Tree also plans to expand into popular leisure, pilgrimage, and wellness locations such as Goa, Udaipur, Kumbhalgarh, Somnath, Dehradun, and Kanha. The brand is also preparing to extend its Aurika Hotels & Resorts portfolio with the addition of two additional resorts. The 110-key Aurika Kasauli is planned to open before the end of the year, while the 132-key Aurika Rishikesh will open early next year.
Keswani predicts a consolidation trend in the hospitality sector, pushed by larger Indian chains that focus on lesser inventory hotels. He highlighted the economic constraints that transnational chains face in supporting such rapid expansion. Lemon Tree's fiscal year growth is expected to be driven mostly by conversions. Keswani expressed confidence in hitting the 10,000-room milestone, with the company owning roughly 60% of them. With the opening of India's largest hotel in Mumbai, Lemon Tree's operating-owned inventory has reached about 6,000 rooms, while the managed inventory has around 4,500 rooms, for a total of approximately 10,500 rooms.
Lemon Tree Hotels' most recent financial report showed operational income of INR 289 crore for the quarter ending December 31. The firm also posted a profit of INR 44 crore in the third quarter of the fiscal year. Looking ahead, Keswani expects to negotiate agreements for an additional 3,000 to 4,000 rooms. He emphasized the importance of conversions in this expansion strategy, which may include standalone hotels or other branded locations joining Lemon Tree's portfolio.
The expansion efforts demonstrate the chain’s dedication to serve the changing demands of travelers in a variety of areas. With a strong focus on both domestic and foreign markets, the company aspires to provide a wide range of options while maintaining profitability. Lemon Tree's strategy, along with its strong financial performance, places it as a significant participant in the rapidly changing hospitality sector, positioned for further expansion and success.
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