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Fleur Hotels, a subsidiary of Lemon Tree Hotels (58.9% stake), has completed the acquisition of a 989.3 sq. m. (10,638 sq. ft.) land parcel in Bandra

ICICIdirect Research 25 Sep 2026 DISCLAIMER

News: Fleur Hotels, a subsidiary of Lemon Tree Hotels (58.9% stake), has completed the acquisition of a 989.3 sq. m. (10,638 sq. ft.) land parcel in Bandra (East), Mumbai, adjoining Bandra Kurla Complex, for Rs.120cr. The company plans to develop an approximately 172-key Lemon Tree Premier, making it the group’s 7th hotel in Mumbai. Separately, Lemon Tree has also signed a 90-key Lemon Tree Hotel in Patancheru, Telangana, which will be managed by its wholly-owned subsidiary Carnation Hotels. This will be the group’s 8th property in Telangana, with four operational and four upcoming properties.

View: This acquisition is part of management’s expansion plan for Fleur Hotels and is incremental to the ongoing hotel developments at Shillong, Nehru Place, Delhi and Varanasi. The acquisition implies a land cost of ~Rs.1.21 lakh/sq. m. or Rs.11,280/sq. ft. The proposed hotel is strategically located in the BKC micro-market, with an existing Lemon Tree Hotel, Kalina BKC in the vicinity. The surrounding premium hotel landscape includes Sofitel Mumbai BKC, Trident Bandra Kurla and Grand Hyatt Mumbai, which operate at higher ARR levels, while Lemon Tree has an established presence in the mid-premium branded segment. Given Mumbai’s ability to absorb hotel supply quickly and the strong business, MICE and social demand in BKC, we see the 172-key Lemon Tree Premier as a strategically attractive addition that should further strengthen Lemon Tree’s cluster presence in Mumbai.

Impact: Neutral

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