Lemon Tree Hotels Limited announced that its Board of Directors, during a meeting held on January 9, 2026, approved a Composite Scheme of Arrangement. This scheme involves the creation of two distinct platforms: Lemon Tree, an asset-light company focusing on hotel management, brand, distribution, and digital services, and Fleur Hotels, a growth-oriented hotel ownership and leasing platform with development capabilities.

As part of the arrangement, four wholly owned subsidiaries of Lemon Tree will be merged with Fleur Hotels, and 11 operational hotels plus one under-construction hotel, along with development capabilities, will be demerged into Fleur Hotels. Upon completion, Lemon Tree shareholders will indirectly own 73.99% of Fleur Hotels, with Lemon Tree holding 41.03% and Warburg Pincus acquiring APG's 41.09% stake in Fleur Hotels.

Fleur Hotels will receive a primary investment of up to ₹960 crore from Warburg Pincus in tranches. This strategic partnership aims to accelerate Fleur Hotels' growth. The entire process, including the separate listing of Fleur Hotels, is expected to be completed within 12 to 15 months, subject to regulatory and shareholder approvals.

Lemon Tree Hotels Limited will continue to scale its management and franchise portfolio, aiming for a high-growth, high-RoCE, and zero-debt profile with a distinct visibility of fee income. Fleur Hotels will focus on asset ownership and development, supported by its partnership with Warburg Pincus.