Saturday, August 10, 2024 Lemon Tree Hotels plans to list Fleur Hotels to become debt-free within six years, targeting financial stability while addressing significant debt. Lemon Tree Hotels, a leading player in India’s mid-priced hospitality sector, is setting its sights on listing its subsidiary, Fleur Hotels, as part of its strategic plan to become debt-free within the next six years. The move aligns with the company’s long-term vision of financial stability and growth, with a significant portion of its debt currently concentrated in Fleur Hotels.
As of March 2024, Lemon Tree’s consolidated debt amounted to Rs 2,336 crore. During a recent conference call with investors, Lemon Tree’s management revealed that approximately 90 percent of the company’s total debt is tied to Fleur Hotels. This financial burden has prompted the company to take decisive action, including exploring listing opportunities for the subsidiary.
By doing so, Lemon Tree aims to alleviate its debt load and strengthen its financial position in the competitive hospitality industry. In addition to its focus on debt reduction, Lemon Tree has been actively investing in several key areas to enhance its overall business operations. The company has prioritized renovations across its properties, initiated a digital transformation program, expanded its business development and sales teams, and implemented an annual payroll increase.
These investments, while necessary for long-term growth, have impacted t.