Lemon Tree acquires two properties

Dinkar Farwaha - Mumbai

Upscale hotel chain Lemon Tree has acquired two 100-room properties. The group, according to a source, will be taking over these properties on lease on October 15 this year and will renovate them so that they are included under the umbrella of the Lemon Tree brand. The same source also revealed that these two properties are located in fast growing tier-II cities.

The company would be making a cash down payment of Rs 45 crore to take over these properties on lease and also the renovation expenses. It would also be paying the annual lease for a fixed number of years, which would be an additional cost.

In addition to these two confirmed acquisitions, the company is also in talks for taking over two non performing assets (NPAs) of the Tourism Finance Corporation of India (TFCI).

These developments signify the Krizm Hotel's strategy of growing inorganically, too, to further its Lemon Tree brand of hotels.