India-based Lemon Tree Hotels has approved the acquisition of a 41.09% stake in subsidiary Fleur Hotels by Warburg Pincus for Rs9.6bn ($106.4m). The transaction is set for 1 April 2026, with Fleur listed as a separate entity to focus on asset ownership. Lemon Tree will shift to an asset-light model.

The reorganisation will involve merging subsidiaries and transferring hotel assets to Fleur. Lemon Tree will concentrate on hotel management, franchising, and digital operations. Fleur’s shares will be listed on NSE and BSE, expanding both companies’ operations and capabilities domestically and internationally.

Lemon Tree shareholders will hold 32.96% of Fleur post-implementation, with Warburg Pincus owning 26.01%. Fleur is expected to list separately on Indian stock exchanges within 12-15 months. The restructuring aims to create two focused platforms—one for hotel management and one for ownership and development.

Post-transaction, Fleur will become one of the largest owners of hospitality assets in India, with an increased portfolio of 5,813 keys across 41 hotels. Lemon Tree will manage existing leased hotels and focus on an asset-light strategy. Both companies will continue to grow through development and acquisitions.

Warburg Pincus will partner with Lemon Tree to support its growth in the Indian hospitality sector. The transaction marks a significant milestone for both companies, leveraging their strengths and industry expertise. Morgan Stanley served as the exclusive financial adviser on the deal.

Read more at Yahoo Finance: Warburg Pincus to buy 41% stake in Lemon Tree Hotels unit Fleur Hotels