Lemon Tree Sharpens Franchise Strategy as Fleur Plans $1 Billion Hotel Expansion
Lemon Tree is preparing to separate hotel ownership from management and franchising. Fleur Hotels plans to deploy about $1 billion over four to five years, according to Mint’s October 4 report.
Ownership and franchise operations to separate
Lemon Tree Hotels is progressing with a separation of its hotel ownership and development business through Fleur Hotels. In an interview reported by Mint on 4 October 2026, executive chairman Patanjali G. Keswani said Fleur is expected to complete a separate listing by the end of 2027.
The proposed structure gives Fleur responsibility for owning and developing hotels, while Lemon Tree focuses on hotel management, franchising, branding and digital services.
Fleur outlines its investment programme
Fleur plans to deploy about $1 billion over four to five years on land purchases, new developments and hotel acquisitions. Its existing portfolio exceeds 5,500 rooms, with plans to add approximately 3,500 rooms and take the total above 9,000.
Mint reported projects in Shimla, Shillong, Delhi’s Nehru Place and Mumbai’s Bandra East. The Mumbai project follows a ₹120 crore land acquisition for a planned 170-room hotel; its estimated total development cost is ₹350 crore.
Franchise network remains part of expansion
Lemon Tree intends to extend its network through management contracts and franchising, including opportunities to bring unbranded hotels into a branded system without acquiring their assets. Owners would retain their properties while the group provides brand access, distribution and operating standards.
The investment and listing figures are forward-looking plans, not completed developments or an offer of specific franchise territories.
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