"Lemon Tree Hotels secures ₹960 crore from Warburg Pincus as the private equity firm ramps up its investment in the brand’s subsidiary."

Private equity firm Warburg Pincus will invest up to ₹960 crore in Fleur Hotels, a subsidiary of Lemon Tree Hotels, as part of a strategic reorganisation exercise, the companies said recently.

The transaction will also mark the exit of Dutch pension fund APG, with Warburg Pincus acquiring its entire 41.09 per cent stake in Fleur Hotels for an undisclosed amount.

The reorganisation scheme, which will be implemented through a National Company Law Tribunal (NCLT)-approved process, will restructure the hotel chain’s asset ownership and operating model. Under the plan, hotel assets currently owned by Lemon Tree Hotels will be transferred to Fleur Hotels, which will become the group’s exclusive asset ownership and development company.

Fleur Hotels will spearhead all future hotel acquisitions and development, while Lemon Tree Hotels will transition to a fully asset-light model, focusing on expanding its hotel management, franchising and digital businesses.

The scheme will also lead to the listing of Fleur Hotels’ shares on the NSE and BSE. Fleur Hotels is expected to be listed within 12–15 months, the companies said.