Lemon Tree eyeing global suite
Lemon Tree, the upscale mid-market hotel, has invested about Rs 500 crore in the domestic market and around Rs 200 crore in New York in the last two months
By Lijee Philip, ET Bureau |
MUMBAI: Lemon Tree, the upscale mid-market hotel, has invested about Rs 500 crore in the domestic market and around Rs 200 crore in New York in the last two months. While most of the domestic expansions are through greenfield projects, the chain has also acquired existing hotel properties to step up its presence across the country.
In Gurgaon, the chain is investing close to Rs 250 crore in a 3.5-acre plot to build a Lemon Tree of 150 rooms, 200-room Red Fox (its budget brand) and a commercial complex to be completed by 2010. In Shimla, it has acquired a 6-acre plot to build a 72-room Lemon Tree at Rs 38-42 crore.
A 100-room Lemon Tree is also being constructed in Chandigarh at Rs 45-50 crore. In Ranchi, a 60-room Lemon Tree and a 100-room Red Fox is being built at Rs 47 crore. In Kerala, it has acquired a 27-room alleppey-based Grand Nirvana for Rs 22 crore. It plans to add another 50 rooms at Rs 13 lakh. In Bangalore, it acquired a hotel from a real estate developer for Rs 50 crore, and it plans to invest another Rs 55 crore for 180 rooms.
Its global foray will be done though Forrest Hotels, where Lemon Tree will hold 51% and 49% will be held by a group of NRIs. The chain plans to focus only in New York and is looking at other possible acquisitions in this market.
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���Initially, we will co-brand this 200-room New York property in 7th Avenue with a big hotel brand,��� said Lemon Tree chairman and managing director Patu Keswani. The expansions and acquisitions are being funded through equity and internal accruals.Recently, the Delhi-based hotel decided to hive off five hotels into a separate company. It operates five hotels and is in the process of opening four hotels in the next few months.
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