Synopsis: Lemon Tree Hotels Limited has signed an agreement for a new 85-room hotel in Janakpur, Nepal, expanding its international portfolio and strengthening its presence in South Asia’s fast-growing spiritual tourism market while continuing its asset-light expansion strategy.
Lemon Tree Hotels Limited has once again attracted investor attention after announcing another international expansion that further strengthens its growing hospitality footprint outside India. The company has signed a new hotel property in Janakpur, Nepal, marking another strategic move as it continues expanding across high-potential tourism destinations through an asset-light growth model.
In a regulatory filing dated June 22, 2026, the company announced the signing of Lemon Tree Hotel, Janakpur, an upcoming 85-room property in Nepal that will be managed by its wholly owned subsidiary, Carnation Hotels Private Limited. The hotel will offer premium hospitality amenities including restaurants, banquet facilities, conference rooms, a swimming pool, spa, fitness centre, and bar lounge, bringing organized branded accommodation to a destination that continues seeing strong tourism demand.
The expansion is strategically important because Janakpur is one of Nepal’s most significant religious tourism centers and attracts millions of visitors every year due to its connection with Goddess Sita and the Ramayana. For Lemon Tree, entering such a high-footfall pilgrimage destination creates access to stable year-round demand while positioning the brand in an underpenetrated hospitality market where organized hotel supply remains relatively limited.
The new property also supports Lemon Tree’s broader asset-light expansion strategy, which allows the company to scale rapidly without deploying large amounts of capital. By operating hotels under management and licensing agreements rather than directly owning every property, the company can expand faster, improve capital efficiency, and increase profitability over the long term. With this addition, Lemon Tree’s Nepal portfolio now expands to eight properties while its total international presence rises to eleven properties across Nepal, Bhutan, and Dubai.
The company’s expansion strategy continues to support strong long-term business growth. As more properties are added across domestic and international markets, Lemon Tree benefits from higher brand visibility, stronger revenue diversification, and increasing contribution from management fee-based income streams, reducing dependence on capital-heavy ownership models while improving return on invested capital.
Financial performance has also remained strong for the hospitality chain. As of FY26, the company operates 131 hotels with over 11,800 rooms across more than 80 cities, while adding 20 new hotels during the year and signing 55 additional properties for future expansion. The company reported FY26 revenue of Rs. 1,444 crore, while net profit stood at Rs. 288 crore, reflecting continued operational momentum as India’s travel and hospitality sector remains on a strong growth trajectory.
With a market capitalization of around Rs. 9,470 crore and the stock trading near Rs. 120, Lemon Tree continues positioning itself as one of India’s fastest-growing hospitality players. As spiritual tourism and cross-border travel continue expanding across South Asia, the company’s latest Nepal expansion further strengthens its long-term growth outlook and keeps the stock on investors’ radar.
Company Overview
Lemon Tree Hotels Limited is one of India’s leading hospitality companies and among the country’s largest mid-market hotel chains. The company operates across multiple brands including Aurika Hotels, Lemon Tree Premier, Lemon Tree Hotels, Red Fox Hotels, and Keys Hotels, serving luxury, mid-scale, and economy travelers. With a rapidly expanding domestic and international presence, the company continues focusing on scalable growth through an asset-light and management-driven business model.
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