The proposed reorganization separates ownership from management.
- Lemon Tree (LTHL), to become a pure-play asset-light company focused on hotel management, brand & loyalty, distribution and digital services; and
- Fleur Hotels (FHL), a hotel ownership / leasing platform
To achieve the separation, all hotel properties of the group will be transferred to FHL, currently a subsidiary of LTHL.
Pre and post reorgansation business and shareholding structure.
Warburg Pincus through it’s stake acquisition in FHL would be joining back the group once again. It had originally supported LTHL in 2006.
- Warbug is now acquiring 41.09% of APG’s stake into FHL; and
- will also be infusing Rs 960 cr in fresh tranches to support FHL’s growth plans