Shares of Lemon Tree Hotels Limited were trading flat on 14 October despite signing a franchise agreement for a 52-room Keys Select by Lemon Tree Hotels property in Bareilly, Uttar Pradesh. 

The latest addition will take the company’s portfolio in the state to 26 properties, including eight operational hotels and 18 upcoming properties, strengthening its presence in regional business and travel markets.

The upcoming property will feature 52 rooms along with a multi-cuisine restaurant, a banquet and conference hall, a fitness centre and common areas for guests. The hotel is designed to serve corporate travellers, people visiting the city for business, and guests attending local social events.

Bareilly is an industrial and manufacturing centre and an important transport hub for the Rohilkhand region. Its highway connectivity attracts business executives, transit travellers and visitors attending events, creating demand for organised accommodation options.

The hotel will be located around 4.9 km from Bareilly Airport, an approximately 11-minute drive, and about 12 km from Bareilly Junction railway station. These transport links could make the property convenient for visitors arriving by air, rail and road.

Lemon Tree Hotels is using an asset-light approach to expand its network across Uttar Pradesh. Under this model, the company can grow its brand presence through franchise agreements without necessarily owning the underlying hotel property.

Kapil Sharma, Executive Director and Chief Financial Officer of Lemon Tree Hotels, said the Bareilly signing reflects the company’s strategy of entering regional markets with sustained demand from business and transit travellers. He added that the asset-light model allows the company to expand in a capital-efficient manner.

The agreement adds to Lemon Tree Hotels’ pipeline of upcoming properties in Uttar Pradesh, where it is targeting opportunities across cities beyond major metropolitan centres.

The signing highlights Lemon Tree Hotels’ continued expansion into regional markets and its focus on growing through franchise-led partnerships. A larger hotel network can help the company increase brand reach and generate franchise-related income over time.

However, the financial contribution from the Bareilly property will depend on its opening timeline, occupancy levels and operating performance. 

At 12:13 pm, the shares of Lemon Tree Hotels were trading 0.12% lower at Rs 111.73 on NSE.

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