About Lemon Tree Hotels Limited

Lemon Tree Hotels Limited (“Lemon Tree”) is India’s largest hotel chain in the mid-priced hotel sector, and the 3 rd largest overall, on the basis of controlling interest in owned and leased rooms, as of June 30, 2017, according to the Horwath Report. Lemon Tree is the 9 th largest hotel chain in India in terms of owned, leased and managed rooms, as of June 30, 2017, according to the Horwath Report. The company operates in the mid-priced hotel sector, consisting of the upper-midscale, midscale and economy hotel segments. They seek to cater to Indian middle class guests and deliver differentiated yet superior service offerings, with a value-for-money proposition. Lemon Tree opened their first hotel with 49 rooms in May 2004. Lemon Tree operated 4,697 rooms in 45 hotels (including managed hotels) across 28 cities in India as of January 31, 2018.  Lemon Tree Hotels Limited has created three brands in order to address these three hotel segments:

1. 'Lemon Tree Premier' which is targeted primarily at the upper-midscale hotel segment catering to business and leisure guests who seek to use hotels at strategic locations and are willing to pay for premium service and hotel properties;

2. 'Lemon Tree Hotels' which is targeted primarily at the midscale hotel segment catering to business and leisure guests and offers a comfortable, cost-effective and convenient experience; and

3. 'Red Fox by Lemon Tree Hotels' which is targeted primarily at the economy hotel segment.

As of July 31, 2017, the company have a portfolio of 19 owned hotels, three owned hotels located on leased or licensed land, five leased hotels and 13 managed hotels. It also has project design, management and development capabilities through its Subsidiary, Grey Fox Project Management Company Private Limited ("Grey Fox").

Lemon Tree employed 3,070 personnel as of July 31, 2017 across its owned and leased or licensed properties

Objects of the IPO Issue:

1. Achieve the benefits of listing the Equity Shares on the Stock Exchanges 

2. Sale of up to 195,797,000 Equity Shares by the Selling Shareholders.

Lemon Tree Hotels Limited IPO Issue Details

Company Promoters:

The Promoters of the Lemon Tree Hotels Limited are Mr. Patanjali Govind Keswani and SMSPL. The Promoters hold, in the aggregate, 184,784,311 Equity Shares which constitutes 23.49% of the Company's pre-Offer paid-up Equity Share capital.

SMSPL was incorporated on November 5, 2004 and is primarily engaged in the business of designing, managing, supervising and executing hotel projects. Mr. Patanjali Govind Keswani is the natural person in control of SMSPL.

Strengths of Lemon Tree Hotels Limited

1. Leading mid-priced hotel chain with a differentiated business model

2. Strategically positioned in key geographical areas

3. Present across the value chain

4. Focus on brand excellence, providing a value-for money proposition and strengthening employee culture

5. Experienced promoter and management team

Company Financials:

Summary of financial Information (Restated Standalone)