Lemon Tree gains after buying CCPS worth over Rs 48 crore

Lemon Tree Hotels Limited shares were up 1 percent to Rs 92 at about 9:20 am on July 28.

The company has acquired 9.67 lakh compulsorily convertible preference shares (CCPS) in Fleur Hotels for Rs 48.84 crore from APG Strategic Real Estate Pool N V, the hospitality major said in an exchange filing on July 27.

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Post the acquisition, Lemon Tree Hotels holds a 59-percent stake in Fleur Hotels, and the rest is held by APG Strategic Real Estate Pool N V. The CCPS will be converted into equity shares on or before July 31, 2023.

The company recently signed a new property in Zirakpur, Punjab. The property is expected to be operational by Q2 of FY 2027 and shall be managed by Carnation Hotels Private Limited, a wholly-owned subsidiary and the management arm of Lemon Tree Hotels Limited.

Second acquisition

“The property will feature 80 well-appointed rooms, banquets, a conference room, a restaurant, a fitness centre and other public areas,” Lemon Tree said in a press release statement on July 26.

This is the second agreement the company has signed in July. The company signed a licence agreement for a 48-room property in Udaipur, Rajasthan, under the company’s brand ‘Keys Select by Lemon Tree Hotels’.

The hotel is expected to be operational by the fourth quarter of FY2024. This hotel will feature 48 well-appointed rooms, banquet facilities, a restaurant, a bar, meeting rooms, a banquet hall, a fitness centre and other public areas.

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