Lemon Tree Hotels Limited, a leading hospitality chain in India, has announced its plan to open a new hotel in Bhuj, Gujarat. On December 13, the company signed an agreement for this property, which will be managed by its fully-owned subsidiary, Carnation Hotels Private Limited. This expansion marks another step in Lemon Tree’s growth strategy, aiming to strengthen its footprint in key locations across India.
Key Highlights of the New Bhuj Hotel
The upcoming Lemon Tree Hotel in Bhuj is set to begin operations in FY2026. This property will feature:
- 74 well-appointed rooms
- A restaurant
- Meeting and banquet spaces
- A swimming pool and fitness center
- Public areas designed to provide comfort and convenience
The hotel will cater to both leisure and business travelers, leveraging Bhuj’s rich cultural and historical significance. Conveniently located just 9 kilometers from Bhuj Airport and 4 kilometers from Bhuj Railway Station, the property is expected to attract significant footfall.
Why Bhuj?
Bhuj, the administrative capital of Gujarat’s Kutch district, is renowned for its cultural heritage and craftsmanship. Popular attractions such as the Aina Mahal and the nearby Bhujodi village, famous for its handwoven textiles, make Bhuj a favored destination for tourists and art enthusiasts.
Statement from Lemon Tree Hotels
Vilas Pawar, CEO of Managed & Franchised Business, expressed optimism about this expansion:
“We are delighted to strengthen our portfolio in Gujarat, a state known for its art, craft, and entrepreneurial spirit. With this new addition, Lemon Tree Hotels aims to become the preferred brand across multiple regions. This hotel will add to our existing seven operational and 12 upcoming properties in the state.”
Lemon Tree Hotels: Financial Performance
The company has demonstrated robust financial growth in recent quarters:
- Net Profit: ₹35 crore in Q2 FY2024, up by 32.6% YoY from ₹26.4 crore in Q2 FY2023.
- Revenue Growth: Revenue increased by 24% to ₹284.4 crore, compared to ₹229.4 crore in the same period last year.
- EBITDA Growth: EBITDA grew by 25.6% to ₹130.8 crore in Q2 FY2024, up from ₹104 crore in the previous year.
With a market capitalization of ₹11,704 crore, Lemon Tree Hotels’ stock closed at ₹147.85 on December 15, reflecting a 0.85% gain. The stock has seen a 52-week high of ₹158.05 and a low of ₹112.05, highlighting its steady performance in the hospitality sector.
Lemon Tree’s Growth Strategy
Lemon Tree Hotels continues to focus on expanding its presence in emerging and established destinations. With a robust pipeline of upcoming properties, the company aims to cater to a wider audience while enhancing its operational efficiency and brand reputation.
The Bhuj project aligns with the company’s long-term vision of creating a diversified portfolio that appeals to domestic and international travelers alike.
Conclusion
The new Bhuj property underscores Lemon Tree Hotels’ commitment to tapping into India’s growing hospitality market. As the company strengthens its position in Gujarat, it aims to capture opportunities in high-potential regions while delivering quality experiences to its guests.
With strong financials, a strategic expansion plan, and a growing portfolio, Lemon Tree Hotels continues to position itself as a leading player in India’s hospitality industry.
