The stake purchase will be carried out by Coastal Cedar Investment BV, an affiliate of Warburg Pincus, which will acquire the holding from APG Strategic Real Estate Pool NV
The Warburg Pincus deal in Lemon Tree might trigger an open offer, the channel reported.
Massive room additions and high capex may test the premiumisation thesis as margins and real returns may come under pressure
According to Hotelivate’s Trends and Opportunity Report, demand is expected to grow at a CAGR of 9.7 percent through FY28, whereas supply will grow at a slower pace.
The hotel sector is likely to see an uptick in business during the third quarter, which is also a seasonally strong one, helped by 'healthy traction' in MICE (meetings, incentives, conferences, and exhibitions) activities, said the MOSL note.
Lemon Tree Hotels stock in focus after announcing a new license agreement for its upcoming Mira Road, Mumbai property, expected to open in FY26.
The company reported total income of Rs 290.8 crore in Q3, up from Rs 230 crore in the quarter gone by.
Currently, Lemon Tree Hotels has a portfolio of more than 150 hotels, including over 100 hotel operational hotels and more than 50 hotels set to open in India and internationally.
Motilal Oswal is bullish on Lemon Tree recommended buy rating on the stock with a target price of Rs 150 in its research report dated January 02, 2024.