In terms of future projects, the company is also looking at providing co-living spaces for young urban professionals, Lemon Tree Hotels Chairman Patanjali Keswani said.
The JV partners will initially invest Rs 1,500 crore in equity over a period of time followed by an additional infusion of Rs 1,500 crore in equity at the option of the partners, it added.
Carnation Hotels Private Limited, the hotel management arm of the company will be operating and marketing this hotel, Lemon Tree said.
Sakshi Batra does a 3 point analysis of the hotels sector and identifies the stocks that could outperform peers in the upcoming quarter.
The brokerage house believes that occupancies are set to improve, while average room rate is set to improve significantly in the next two to three years.
The stock has been rallied more than 35 percent from its issue price of Rs 56 per share. It listed on April 10, 2018.
We have high conviction on Indian Hotels and it remains our top pick. From the midcap space, we like Royal Orchid.
The founder of Lemon Tree Hotels talks about life before and after listing the company on the BSE, the upcoming boom in hospitality industry and how he wants to leave his legacy
President of Lemon Tree Hotels, Vikramjit Singh saidthey have earmarked a total of Rs 1,700 crore for adding1,500 rooms,which are currentlyunder constructionand expected to be completed by financial year 2021and spent half of the total budget.
"At current market price, after this rally, we believe it is fairly valued and would wait for Q4FY18 result and management commentary to take a call in this company," says Akash Jain, Vice-president, Equity Research at Ajcon Global Services.
The hotels will each be in Rishikesh, Neelkanth and Mussoorie, a release issued here said.
"Joint Venture with APG is value-accretive as fee income gives Lemon Tree higher revenues/profit share. We have a buy rating with target of Rs 70," says Sumit Bilgaiyan, Founder of Equity99.
The company in consultation with merchant bankers has fixed final issue price at Rs 56 per share.
The IPO to raise Rs 1,038.68 crore received bids for 5,72,16,945 shares against the total issue size of 12,98,35,580 shares, data available with the NSE showed.
The IPO to raise Rs 1,038.68 crore received bids for 3,26,06,395 shares against the total issue size of 12,98,35,580 shares, the NSE data showed.
It has allotted 5,56,43,820 shares to 18 anchor investors at a price of Rs 56 per scrip, garnering Rs 311.61 crore, the company said in a statement.
The hotel chain company is aimed to raise Rs 1,001.6-1,038.7 crore through the issue at a price band of Rs 54-56 per share.
These investors subscribed shares at higher end of price band of Rs 54-56 per share.
The entire issue by Lemon Tree Hotels consists of offer for sale by Maplewood Investment, RJ Corp, Ravi Kant Jaipuria and Sons (HUF), Whispering Resorts, Swift Builders, Five Star Hospitality Investment Limited, Palms International Investments Limited, Satish Chander Kohli and Raj Pal Gandhi.
Built at a cost of Rs 35 crore, the hotel has 61 rooms and suites and offers facilities including 24X7 multi-cuisine coffee shop, a recreation bar, a gymnasium and an outdoor swimming pool, R Vijayakumar, director, Lakshna Consultants and Hoteliers, which manages the property, told reporters here.
Together, these companies are estimated to raise more than Rs 6,000 crore, according to merchant banking sources.
Mid-priced hotel chain Lemon Tree Hotels today announced the opening of two properties, Lemon Tree Premier Patna Bihar and Lemon Tree Hotel Alwar in Rajasthan.
The public offer comprises sale of up to 195,797,000 equity shares by the existing shareholders, including Maplewood, Whispering Resorts, Palms International and RJ Corp, according to the draft red herring prospetus (DRHP).
Lemon Tree is backed by Warburg Pincus and the IPO will provide the company an opportunity to encash its investments. The private equity giant holds 20-25% stake in the company. Lemon Tree and Warburg didn’t respond to Moneycontrol’s queries. The IPO may comprise stake sale by promoters as well as issue of fresh shares.
As a President, Vikramjit Singh will be responsible for sales, marketing and business development for the company, Lemon Tree Hotel Company said in a statement.