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Business Insider Stack: All you need to know about the future plans of Lemon Tree Hotels

Apr 2, 2019, 08:32 IST
Lemon Tree Hotels is India's largest chain of budget hotels, valued at a little less than a billion dollars, in an industry that is yet to fully recover from the lethal blow of the global financial crisis of 2008.
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However, the company's chairman and managing director, Patanjali Keswani, is confident that a turnaround is just around the corner, and is invested accordingly.

“By 2025, I will be in 143 cities in India. It is a specific number. Right now, I am in 31, with Keys I will hit 44. With all the other hotels I am putting, I will be in 66 cities. I need to do a little more than double in the next six years,” Keswani told Business Insider, adding that the company would have about 10,000 rooms commissioned by the end of March 2020 and “it will time nicely with the turning of the cycle.”


Here are the five big takeaways from the exclusive chat with Keswani.

Hotel room rates in India will double in 3-4 years

The demand for hotel rooms in India are outpacing supply after over a decade, a fact acknowledged by analysts. Which would mean more price hikes until new supply catches up, and that may take at least 4-5 years to come in.

Here’s how Lemon Tree plans to unlock value

“In the next three to five years, I will sell every hotel I own and then, either own a part stake in it or I will sell it and lease it back for a very long period with assured returns,” Keswani told Business Insider.

Loyalty programme may be the ace up his sleeve

Here’s how Lemon Tree Hotels plans to get a boost in valuation and open doors to partnerships with airlines and retailers

Technology, the trump card

Lemon Tree Hotels is working a program that will hunt for struggling properties in key markets. There are two more reasons why Keswani is looking to hire a chief technology officer.

Deals in the offing

Lemon Tree Hotels is in talks to bag three international deals to manage hotels in some of the world’s most popular destinations. These deals could be closed as early as six months.

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