Lemon Tree shares rise in early trade as the company acquired 9.67 lakh compulsorily convertible preference shares (CCPS) in Fleur Hotels for Rs 48.84 crore from APG Strategic Real Estate Pool N V, the hospitality major mentioned in an exchange filing.

At 11.26 am, Lemon Tree Hotels Limited shares were trading up 1% to Rs 91 on July 28.

Post-acquisition, Lemon Tree Hotels holds a 59% stake in Fleur Hotels, and the rest is apprehended by APG Strategic Real Estate Pool N V. The CCPS will be transformed into equity shares on or before July 31, 2023.

The company contracted a new property in Zirakpur, Punjab, which is anticipated to be operational by Q2FY 2027 and managed by Carnation Hotels Private Limited, a wholly-owned subsidiary and the management arm of Lemon Tree Hotels.

Lemon Tree said the property will feature 80 well-appointed rooms, banquets, a restaurant, a conference room, a fitness centre, and other public areas.

This is the second agreement signed in July. The company signed a licence contract for a 48-room property in Udaipur, Rajasthan, under the brand ‘Keys Select by Lemon Tree Hotels.

The hotel is expected to be operational by Q4FY2024. This hotel will feature 48 well-appointed rooms, a restaurant, a bar, banquet facilities,  meeting rooms, a banquet hall, a fitness centre, and other public areas.