Lemon Tree Hotels shares gain 2% on Omaxe's pact for 4,000 hotel keys

The proposed hospitality sites will span transit hubs, pilgrimage destinations and commercial districts across Lucknow, Vrindavan, Amausi, Amritsar, Ghaziabad, Greater Noida, Kaushambi and Faridabad. The agreement is aimed at expanding Lemon Tree Hotels' presence across different markets and property formats through an asset-light growth strategy.

Lemon Tree Hotels shares touched a high of Rs 115.25, up around 2% from their previous close of Rs 112.60. The stock opened at Rs 113.35 and touched a low of Rs 111.60 during the session.

What did Lemon Tree Hotels say about the Omaxe agreement?

Commenting on the agreement, Neelendra Singh, managing director of Lemon Tree Hotels Ltd, said, "Tier-2 and Tier-3 cities have long been central to our India growth strategy, and this operating arrangement lets us scale it faster, from transit hubs in Lucknow to temple towns like Vrindavan."

Singh said Omaxe brings nearly four decades of real estate development experience across these markets, while Lemon Tree contributes more than two decades of hospitality expertise. The company said the arrangement would accelerate its asset-light growth strategy and help expand its managed portfolio across diverse markets and asset formats.

Which cities will the proposed hotels cover?

The proposed sites will include Lucknow, Vrindavan, Amausi, Amritsar, Ghaziabad, Greater Noida, Kaushambi and Faridabad. The locations cover a mix of transit hubs, pilgrimage destinations and commercial districts, according to the company's press release.

Omaxe managing director Mohit Goel said demand for hospitality was expanding beyond established metropolitan markets, with Tier-2 and Tier-3 cities emerging as destinations for business, leisure and pilgrimage travel. He said the arrangement would combine Lemon Tree's operating expertise with Omaxe's real estate development capabilities.