Operating in the mid-priced hotel sector, comprising of the upper-midscale, midscale and economy hotel segments, homegrown hotel company Lemon Tree Hotels, in a bid to cater to Indian middle-class guests travelling overseas, has signed up hotels in destinations like Kathmandu – Nepal, Thimphu – Bhutan, Dubai and is also exploring other geographies where Indians predominantly travel to, said Vikramjit Singh, president, Lemon Tree Hotels Limited.
Singh added, “We plan to expand by focusing on growth through acquisition of leased hotels and management contracts. Our expansion strategy is to continue growing in both tier-I and tier-II cities important for commerce as well as tier-III cities, which attract significant business and leisure travellers.” The company also intends to add more leisure and resort properties to its portfolio. As their business strategy, the Lemon Tree Hotels branded properties are located in close proximity to airports, railway stations, key commercial hubs/institutions and micro-markets to address demand and optimise pricing, he added.
“The demand conditions have improved and has increased to 12 per cent while the supply rate has decelerated and only increasing at 7 per cent. This has led to an upward trend in RevPAR led by aggressive ADR increases along with high occupancy levels,” said Singh about the current demand and supply scenario of hotels in India.
The hotel company currently operates over 5400 rooms in 54 hotels across 32 cities. “By FY 2021, we will be operating 87 hotels with 8,793 rooms, across 58 cities,” informed Singh about the company’s expansion plans.
Lemon Tree Hotels are located across India in metro regions, including the NCR, Bengaluru, Hyderabad, and Chennai, as well markets such as Pune, Ahmedabad, Chandigarh, Jaipur, Indore, and Aurangabad.