Private equity firm Warburg Pincus will acquire Dutch asset manager APG’s entire 41.09% stake in Fleur Hotels, the asset-owning arm of India’s Lemon Tree Hotels, as part of a wider restructuring of the group.
Warburg Pincus will also invest up to INR 9.6 billion ($106 million) of fresh equity into Fleur in stages to fund future growth.
The transaction is part of a broader plan that will split Lemon Tree into two separate businesses: one that owns hotel real estate, which will be Fleur, and another that runs hotels, brands, and customer-facing operations – that’s Lemon Tree Hotels.
A Two-Company Structure
Under the plan, Fleur Hotels will become the group’s hotel owner and developer. Lemon Tree Hotels will shift to a fully “asset-light” model, focusing on hotel management, branding, franchising, and digital distribution.
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