Lemon Tree Hotels Limited announced that its Board of Directors has approved a Composite Scheme of Arrangement designed to create two distinct platforms: Lemon Tree Hotels Limited as a pure-play, asset-light hotel management and brand platform, and Fleur Hotels Limited as a large-scale, growth-oriented hotel ownership platform.

As part of this reorganization, Warburg Pincus, through its affiliate Coastal Cedar Investments B.V., will acquire APG Strategic Real Estate Pool N.V.'s entire 41.09% stake in Fleur Hotels. Additionally, Warburg Pincus will invest up to ₹960 crore of primary capital in Fleur Hotels to support its future growth. This marks a renewed partnership between Warburg Pincus and Lemon Tree.

The Scheme, to be implemented through an NCLT-approved process, will see hotel assets currently owned by Lemon Tree transferred to Fleur, which will become the group's exclusive asset ownership and development company. Fleur will lead future hotel acquisitions and development, while Lemon Tree will focus on its asset-light model, managing and franchising hotels. The Scheme also includes the eventual listing of Fleur's shares on NSE and BSE. Mr. Patanjali Govind Keswani will serve as Executive Chairman of Fleur Hotels and transition to a Non-Executive role at Lemon Tree.

The appointed date for the Scheme is April 1, 2026. The process to list Fleur is expected to be completed within 12 to 15 months. Following the transaction, Fleur's owned portfolio will expand significantly to 5,813 keys across 41 hotels. Morgan Stanley acted as the exclusive financial advisor for the transaction.