Lemon Tree to build hotel in A'bad

AHMEDABAD: Delhi-based Lemon Tree Hotel Company, which manages a chain of hotels in the country, is setting up a 90-room hotel in a posh locality in Ahmedabad. The company is planning to invest over Rs 30 crore for the project.

Construction of this hotel in Navrangpura, a posh locality in the central business district, has already commenced. “We hope to start operations in May ’08,” Rahul Pandit, vice-president, operations, of Lemon Tree told ET.

Private equity firm, Warburg Pincus recently said it would invest Rs 210 crore in the hotel company. The chain will use the funds to expand in the Rs 3,000-5,000 per room-night category.

It will also invest Rs 70 crore in rolling out a new chain of limited service, budget hotel called Red Fox Hotels where tariffs would be in the range of Rs 800-2,000 per room night,” Pandit said.

“The Ahmedabad project will be a centrally air-conditioned, 90-plus room hotel. The hotel’s product-service mix will be that of an upscale full service business hotel,” he said.