- LTHL is adding two properties in Nepal and Jammu & Kashmir.
- Both will be managed by its subsidiary, Carnation Hotels.
- Revenue rose 15 percent year-on-year to $43.6 million.
INDIA’S LEMON TREE Hotels Ltd is expanding with two new properties in Nepal and Jammu & Kashmir. The company signed a hotel in Simara, its seventh in Nepal, and Keys Prima by Lemon Tree Hotels, Srinagar, bringing its Jammu & Kashmir portfolio to four operational hotels and two under development.
The 98-key Nepal property near Simara Airport has a swimming pool, spa and fitness centre, while the Srinagar hotel near Srinagar International Airport offers a banquet hall, conference room, swimming pool and fitness center. Both will be managed by Carnation Hotels Pvt. Ltd., a wholly owned subsidiary of LTHL.
The New Delhi-based company is led by Managing Director and CEO Neelendra Singh.
“We believe Nepal is a structurally attractive market, where demand is expanding beyond traditional destinations into a wider network of gateway and transit-led cities,” Singh said. “Our focus has been to build depth in such markets, where we see both demand visibility and long-term growth potential. The signing in Simara is a natural extension of this approach, allowing us to strengthen our presence in the country while continuing to scale our regional portfolio.”
LTHL operates seven brands—Aurika Hotels & Resorts, Lemon Tree Premier, Lemon Tree Hotels, Red Fox, Keys Prima, Keys Select and Keys Lite—covering upper upscale, upscale, upper midscale, midscale, leisure, wildlife and spiritual segments, according to its website.
Singh added that Jammu & Kashmir is evolving into a growing leisure market, driven by rising domestic tourism and improved infrastructure.
“In destinations like Srinagar, we are seeing a shift in traveller expectations, as guests increasingly seek experience-led stays with the reliability of a trusted brand,” he said. “The introduction of Keys Prima to this market is a direct response to that demand. By expanding a state-wide footprint, we are not just adding rooms; we are building a network that offers consistency and quality across India’s most iconic travel circuits.”
LTHL reported a consolidated net profit of approximately $6.77 million in the third quarter of financial year 2026, up slightly from about $6.76 million in the same quarter of the previous financial year, according to Business Standard. Revenue from operations rose 14.3 percent year-on-year to around $44.0 million in the quarter ended Dec. 31.
In January, it announced plans to shift all hotel ownership to its subsidiary Fleur and become a fully asset-light operator, creating two publicly traded entities within 12 to 15 months, according to The Economic Times. Warburg Pincus is investing up to $104 million in Fleur, creating two platforms: Lemon Tree as a management company and Fleur as a hotel ownership entity. The reorganization aims to simplify the group structure and unlock long-term shareholder value.
LTHL opened its first 49-room hotel in May 2004 and received backing from Warburg Pincus, supported by Nomura, when the firm invested in 2006. Today, it has more than 160 hotels, including over 100 operational properties and 60 under development in India and abroad, with five located outside India—two in Nepal, two in Bhutan and one in the UAE.
A recent Hotelogix report found that India’s mid-scale hotel market could see large brands controlling up to 80 percent of rooms by 2030, with around 30 percent of mid-scale brands expected to expand internationally.
