New Delhi, (IANS) Lemon Tree Hotels, a chain of budget hotels, Monday announced its expansion into Aurangabad in Maharashtra and Indore in Madhya Pradesh, in an effort to increase its presence in smaller cities.
The transaction value of the properties amounts to about Rs.400 billion, inclusive of deposit and renovation costs, and exclusive of revenue share over the term of the lease, a company statement said.
“The addition of these two hotels to the company is value additive from two perspectives. It immediately extends the distribution of Lemon Tree Hotels into two key emerging cities and will also enable the company to test the validity of its business model via inorganic growth,” said Patu Keswani, chairman and managing director, Lemon Tree Hotels.
Currently, nine of its hotel projects are under development across the country, aggregating over 1,400 rooms. On completion of all these projects in 2010, the company will have a strong presence across 12 major Indian cities.