Lemon Tree Hotels Limited has announced a significant strategic reorganization, approved by its Board of Directors, which includes a substantial investment from global private equity firm Warburg Pincus in its subsidiary, Fleur Hotels Limited. As part of this composite scheme of arrangement, Warburg Pincus, through its affiliate Coastal Cedar Investment B.V., will acquire the entire 41.09% equity stake held by APG Strategic Real Estate Pool N.V. in Fleur Hotels. Additionally, Warburg Pincus has committed to infuse up to ₹960 crore (approximately $106.2 million) as primary capital in tranches to support Fleur's future growth and expansion initiatives. The restructuring aims to create two clearly differentiated and complementary platforms. Lemon Tree Hotels will transition into a pure-play, asset-light hotel management and brand platform, focusing on growing its management, franchising, and digital business domestically and internationally. Concurrently, Fleur Hotels will emerge as a large-scale, growth-oriented hotel ownership and development platform, housing existing hotel assets and leading future acquisitions and developments. Under the scheme, hotel assets currently owned by Lemon Tree, including 12 properties and development capabilities, will be transferred to Fleur. This strategic move is expected to expand Fleur's owned portfolio significantly, increasing from 3,993 keys across 24 hotels to 5,813 keys across 41 hotels, positioning it as one of India's largest hospitality asset owners. The reorganization will also pave the way for Fleur Hotels to be listed as a separate entity on Indian stock exchanges (NSE and BSE) within 12 to 15 months, subject to customary regulatory and shareholder approvals. Patanjali Govind Keswani, Founder of Lemon Tree Hotels, will serve as the Executive Chairman of Fleur Hotels, eventually transitioning to a Non-Executive role at Lemon Tree. This investment signifies a renewed partnership between Warburg Pincus and Lemon Tree, building on their previous collaboration in 2006 that aided Lemon Tree's initial growth in the Indian hospitality sector.