By Admin 
Lemon Tree Hotels share: Shares of hotel chain operator Lemon Tree Hotels are going to be in focus on Monday as it has decided to change its group structure. Under this, the Board of Directors of Lemon Tree Hotels and its subsidiary Fleur Hotels Limited on Saturday approved the restructuring of the organization. After this restructuring, two separate and complementary platforms will be created – Lemon Tree Hotels Limited and Fleur Hotels Limited.
Apart from this, global private equity firm Warburg Pincus will also get an opportunity to invest. Let us tell you that American investment firm Warburg Pincus is going to invest about Rs 960 crore in Lemon Tree’s existing subsidiary Fleur Hotels.
What is Lemon Tree’s plan?
Shares of Lemon Tree Hotels closed at Rs 149.7 per share with a decline of 0.73 per cent on BSE on Friday, January 10. The market capitalization of the company is Rs 7,418.78 crore. According to the share purchase agreement signed on Saturday, Coastal Cedar Investments BV, a subsidiary of Warburg Pincus, will acquire the entire 41.09 percent equity stake held by APG Strategic Real Estate Pool NV in Fleur.
To complete the agreement, Warburg will invest Rs 960 crore in tranches. After this transaction, Lemon Tree Hotels’ subsidiary Fleur Hotels will be listed as a separate company on the Indian stock market, which may take 12-15 months.
Responsibility of two different platforms
Under the proposed plan, Lemon Tree Hotels will focus on managing and branding hotels through an asset-light model, while Fleur Hotels will own and develop the bulk of the properties. Fleur is planned as the group’s hotel ownership platform with development capabilities and a strong pipeline and its equity shares are proposed to be listed on NSE and BSE.
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