Lemon Tree Hotels Limited (LTHL), India’s leading mid-market hospitality chain, has just signed a new property in Darjeeling, West Bengal. The 65-room hotel under the Keys Prima brand is the latest addition in a string of signings that reflect the company’s bullish stance on asset-light expansion across India.
📍 A Fresh Address in Darjeeling
The new hotel, set to open in FY 2026, will be managed by Lemon Tree’s wholly owned subsidiary, Carnation Hotels Private Limited. It will feature 65 rooms, a restaurant, a meeting room, and public spaces for leisure and corporate travelers. Located close to the Darjeeling railway station and with road access to Bagdogra Airport, it’s positioned for high visibility and accessibility.
🏨 Lemon Tree’s Pipeline: What’s Been Signed Recently?
🕒 In the Last 3 Months:
- Estimated 3 to 4 hotel signings, including:
- Keys Prima, Darjeeling (65 rooms)
- Likely signings in Tier 2/3 cities based on Lemon Tree’s expansion pattern.
📅 In the Last 1 Year:
- Lemon Tree’s portfolio has grown from ~180 to over 210 hotels (including pipeline properties).
- That means the company signed at least 30 new properties in the past year, most under management or franchise agreements.
- The company continues to focus on high-demand micro-markets across India, especially in leisure and religious circuits.
💼 Revenue and Profit Impact: Crunching the Numbers
Lemon Tree’s strategy revolves around managed/franchised hotels, which means it doesn’t own the real estate but earns a management fee (typically 8–12% of total revenue) from each hotel.
📈 For the Darjeeling Property:
- Expected Annual Revenue (hotel level): ₹6–7.5 crore
- Estimated Fee Income for Lemon Tree: ₹50–90 lakhs/year
- Revenue starts from FY 2027 (after the hotel opens in FY26)
🏨 Impact from All Acquisitions in Last 12 Months:
- 30 new properties × average 60–80 rooms
- Estimated aggregate annual revenue (hotel level): ₹450–550 crore
- Lemon Tree’s potential fee income: ₹35–50 crore annually once all hotels are operational
- These properties are expected to go live in staggered timelines over FY26–FY28
This marks a significant boost to recurring income with minimal capital investment, improving both margins and return on capital employed (ROCE).
🔍 Strategic Outlook
Lemon Tree’s multi-brand portfolio includes:
- Aurika Hotels & Resorts (Luxury)
- Lemon Tree Premier (Upper Midscale)
- Red Fox Hotels (Economy)
- Keys Prima, Select & Lite (Midscale to Budget)
By leveraging its asset-light model, Lemon Tree continues to deepen its presence across India and abroad (Dubai, Bhutan, Nepal), reduce risk, and strengthen profitability.
💬 Final Word
The Darjeeling hotel is more than just a scenic location; it’s a testament to Lemon Tree’s disciplined, data-driven expansion. With 30+ new hotels added to its pipeline in a year and a clear path to increased fee-based revenue, Lemon Tree Hotels is not just growing — it’s growing smart.
📢Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please do your own research before making any financial decisions
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