The Competition Commission of India (CCI) has approved Coastal Cedar Investments’ acquisition of certain equity shares in Lemon Tree Hotels’ Fleur Hotels.
CCI also cleared an internal reorganisation of the Lemon Tree Hotels group through a mix of amalgamations and demergers.
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Netherlands-based Coastal Cedar is an investment holding company wholly owned and managed by the Warburg Pincus Group.
Lemon Tree Hotels owns and leases hotels directly and via its subsidiaries.
Under the restructuring, Lemon Tree will merge two wholly owned subsidiaries, Carnation Hotels and Hamstede Living, reported NDTV Profit.
Four other wholly owned subsidiaries, namely Oriole Dr Fresh Hotels, Sukhsagar Complexes, Manakin Resorts and Canary Hotels, will be combined with Fleur Hotels, with Fleur issuing shares to Lemon Tree as consideration.
Lemon Tree disclosed in January 2026 that Coastal Cedar would acquire APG Strategic Real Estate Pool’s 41.09% stake in Fleur Hotels and invest up to Rs9.6bn ($103m) in tranches, subject to approvals.
The company said at the time that the reorganisation and investment were intended to create two focused platforms: Lemon Tree as an asset-light hotel management and brand business, and Fleur Hotels as a hotel ownership platform.
Following implementation, Lemon Tree expects Fleur Hotels’ owned portfolio to increase from 3,993 keys across 24 operating hotels to 5,813 keys across 41 hotels.
The scheme also envisages listing Fleur Hotels’ shares on the NSE and BSE.
Lemon Tree founder Patanjali Govind Keswani will serve as executive chairman of Fleur Hotels and later move to a non-executive role at Lemon Tree.
Warburg Pincus previously invested in Lemon Tree in 2006.
