Shares of Lemon Tree Hotels Ltd slipped 0.86% to ₹110.00 on the BSE after announcing a 63‑room Keys Lite property in Bhilwara, Rajasthan. The price fell ₹0.95 from the previous close of ₹110.95, reflecting investor caution toward the hospitality sector’s slim margins.
The addition brings the group’s hotel count in Rajasthan to 14 operational properties and 10 upcoming projects, extending its footprint to 24 hotels in the state. The Bhilwara site, 1.5 km from the railway station, will feature a restaurant, banquet hall, meeting rooms and a fitness centre, targeting both business and leisure travellers.
Lemon Tree’s global portfolio now totals over 130 hotels in 80+ cities, with a pipeline exceeding 140 upcoming properties. The company’s strategy focuses on secondary markets with industrial activity, citing the city’s textile industry as a key driver for demand.
Vishvapreet Singh Cheema, President of Lemon Tree Hotels, said the expansion “reinforces our focused approach to expanding across India’s key industrial hubs and emerging secondary markets.” His remarks came amid a broader push to capture market share from budget‑and‑mid‑scale competitors.
Analysts note that the hospitality sector remains under pressure from rising operating costs and shifting consumer preferences. While Lemon Tree’s growth in Bhilwara indicates confidence, the lack of immediate revenue impact from the new property keeps the stock on a cautious trajectory.
The firm has no guidance for the upcoming quarter, but its pipeline of 140+ properties suggests a steady build‑out plan. Investors will watch Q3 earnings for signs of margin improvement and the impact of the new assets on occupancy rates.