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Lemon Tree Hotels (LTHL) has announced the de-flagging of the Lemon Tree Hotel

ICICIdirect Research 15 Jul 2026 DISCLAIMER

News: Lemon Tree Hotels (LTHL) has announced the de-flagging of the Lemon Tree Hotel, Dubai (112 keys managed hotel) as well as the mutual termination of the Hotel Operating and License Agreement for Lemon Tree Wildlife Resorts, Kanha. The company stated that the termination of the Kanha agreement will have no significant financial impact. Further, it has signed a 70 keys Lemon Tree Hotel in Jorhat, Assam. With this addition, the company now has 7 properties in Assam (1 operational and 6 pipeline hotels). The property will be managed by Carnation Hotels Private Limited, a wholly owned subsidiary of Lemon Tree Hotels. Lemon Tree Hotels had over 11,250 operational rooms and ~11,000 rooms in pipeline.

View: We believe the termination of contracts is due to LTHL trying to exit non-profitable ventures/management contracts ahead of its demerger process. Fluer Hotels will de-merge from Lemon Tree hotels as per scheme of arrangement. Lemon Tree Hotels will be asset light and will have management contracts while Fleur Hotels will be owner and developer of hotel properties. De-merger is expected to be completed over the next 12-15 months.

Impact: Neutral

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