Lemon Tree's Keswani to transition from the double role to the top in succession planning

Lemon Tree Hotels Ltd. chairman and managing director Patanjali G. Keswani becomes executive chairman of both LTH and his subsidiary Fleur Hotels as part of a leadership change of October 1. Lemon Tree said in a statement on Friday that the management change is part of its long -term follow -up plan aimed at strengthening leadership. The company has announced the appointment of Neelendra Singh, managing director of Adidas India, as the managing director of Lemon Tree Hotels. Saurabh Shatdal, managing director at Real Estate Consultancy Cushman & Wakefield, will take over as managing director and CEO of Fleur Hotels, which is expected to be listed on the public markets by the end of next year. CFO Kapil Sharma will join the Lemon board board as executive director while continuing with his role as the head of the hotel operator. Lemon Tree Hotels, founded by Keswani, opened its first hotel in 2004 and has a portfolio of more than 230 hotels. It also has 110 hotels in the pipeline in India and internationally. The hotel group, which owns hotels, rented, operated and owned franchises in segments, has seven brands, including Aurika hotels and resorts, Lemon Tree Prime Minister, Lemon Tree Hotels, Fleur Hotels, Red Fox Hotels and the Keys brand. Keswani spoke to Mint in May, saying that Lemon Tree Hotels expects strong turnover growth in this financial year, powered by a setback in business trips, higher room rates and hotel expansion. By December 2026, Lemon Tree prioritized the public market list of Fleur hotelle to be debt-free, he said, adding that the marking of the subsidiary is expected to earn more than £ 700 in the annual earnings before interest, tax, depreciation and amortization. The company also intends to capture the undergoing market of properties in the 40-room in smaller cities. It is part of a broader strategy to utilize India’s growing brand accommodation demand, which is expected to rise from 200,000 rooms to 300,000 by 2029-30. Despite a brief decline in demand during the first quarter of April-June due to the Pahalgam terror attack and a revival of Covid, Keswani said he expected the growth in mid-teen revenue for FY26 to be supported by rising domestic travel and growing footprint. A seasons Boost Prashant Biyani, Vice President for Institutional Stock Research at Elara Capital, said the management changes at Lemon Tree bring a greater clarity to the hotel business outside Keswani. “If you have separate managing directors for each entity, it will help ensure healthy growth for both,” he said, adding that investors would like to see a clear growth strategy for Fleur Hotels before the market list within 12-15 months. Despite the softer demand for the hotel sector in the first quarter, Biyani expects the occupation to grow 1-1.5 percentage points compared to a year earlier in the ongoing second quarter. Hotels are expected to charge an average of 10-12% more for rooms, which is expected to increase total revenue per available hotel room by 12-14% in FY26, according to Elara Capital. In the June quarter, Lemon Tree’s revenue from operations rose to £ 315.77 from £ 268.01 in the same quarter quarter. The net profit rose to £ 48.10 crore a year ago from £ 20.11. Travel to northern cities such as Chandigarh, Amritsar, Srinagar and Jodhpur were influenced by rising border tension in early May, while the aircraft accident caused widespread flight cancellations in June in June. This has led to lower hotel bookings in cities such as Goa, Jaipur, Mumbai, Delhi and Bengaluru that are very dependent on air connection. Despite these setbacks, in the second quarter, Elara remains optimistic about the prospects of the hotel industry due to seasonal demand, long weekends, corporate opportunities in Mumbai and Kerala’s Onam festival. Among the listed hotel players, Lemon Tree Hotels will be a tactical stock for the second quarter, Biyani said. Lemon Tree Hotels ends Friday’s trading at NSE 0.76% lower at £ 142.99 per share, while the Nifty 50 dropped 0.95%.