India’s leading hotel chain the mid-to-economy segment, Lemon Tree, will now be diversifying into the upscale segment. The first upscale hotel of Lemon Tree is planned to open up in Udaipur.
Backed by private equity firm Warburg Pincus, Lemon Tree has so far forayed only in the economy category rooms. It now plans to enter the upscale market with a soft launch in Udaipur this September.
Rattan Keswani, Deputy Managing Director, Lemon Tree Hotels said that the company is currently workin on the new brand’s artwork and logo. Keswani however did not divulge details on the new brand’s name or the price point of the hotel.
The upscale hotel of Lemon Tree is likely to compete against likes of Oberio Group’s Trident hotel and Indian Hotel Co Ltd’s Vivanta brand hotels.
Lemon Tree is the third largest hotel chain in India after Indian Hotels and ITC Ltd with 4,900 rooms across 28 cities.
The new hotel chain will be an asset light model and will include signing management contract with existing hotel owners instead of owning the property.