Rapid Expansion: Hotel Stock That Signed 46 New Hotels in 9 Months to Keep an Eye On

Synopsis: Lemon Tree Hotels Limited signed 46 new hotels with over 4,200 rooms in nine months of FY26, expanding across multiple states and cities. The steady pipeline growth signals strong expansion and positive long-term prospects for the company.

This small-cap Hospitality Stock, engaged in owning, operating, managing, and franchising upscale, midscale, and economy hotels under brands like Aurika, Lemon Tree Premier, Lemon Tree Hotels, and Red Fox across India and select international locations, is in focus after signing 46 new hotels with over 4,200 rooms in 9 months, signaling strong growth ahead.

With a market capitalization of Rs. 9,225.71 crore, the shares of Lemon Tree Hotels Limited were currently trading at Rs. 116.45 per equity share, rising nearly 1.97 percent from its previous day’s close price of Rs. 114.20. 

Lemon Tree Hotels Limited was founded in 2002 and is headquartered in New Delhi. The company is a leading Indian hospitality company that owns, operates, manages, and franchises upscale, upper midscale, midscale, and economy hotels across brands like Aurika, Lemon Tree Premier, Lemon Tree Hotels, and Red Fox Hotels. 

FY26 Hotel Expansion Summary:

Hotels Signed in Q3 FY26

In Q3 FY26, Lemon Tree Hotels Limited signed 17 hotels with a total of 1,855 rooms under managed and franchised contracts. Major signings include Guwahati (350 rooms), Ayodhya (300 rooms), and Tirupati (228 rooms). Other key additions include Jaipur (124 rooms), Surat Airport (110 rooms), and Bapatla (90 rooms), showing strong expansion.

State-wise, Uttar Pradesh led with 352 rooms in Ayodhya and Mahoba. Gujarat added 234 rooms in Gandhi Dham, Bhavnagar, and Surat Airport. Andhra Pradesh contributed 318 rooms in Tirupati and Bapatla, while Uttarakhand added 112 rooms in Haridwar.

Other additions include Maharashtra with 78 rooms in Mahabaleshwar, Assam with 350 rooms in Guwahati, Rajasthan with 124 rooms in Jaipur, Madhya Pradesh with 50 rooms in Bhopal, Punjab with 85 rooms in Kurali–Kharar and Kartarpur, Chhattisgarh with 72 rooms in Bhilai, and Nepal with 80 rooms in Bandipur.

Hotels Signed in Q2 FY26

In Q2 FY26, Lemon Tree Hotels Limited signed 15 hotels with a total of 1,138 rooms under managed and franchised contracts. Major signings include Varanasi (153 rooms), Jalgaon (100 rooms), Mohkampur–Dehradun (98 rooms), and Pushkar (96 rooms). Other additions include Surat (85 rooms), Rudrapur (84 rooms), and Dalhousie (75 rooms), showing continued expansion.

State-wise, Maharashtra led with 332 rooms in Navi Mumbai, Jalgaon, Nashik, Pench, and Malshej Ghat. Rajasthan added 205 rooms in Pushkar and Ajmer, while Uttarakhand contributed 182 rooms in Rudrapur and Dehradun.

Other additions include Uttar Pradesh with 153 rooms in Varanasi, Gujarat with 85 rooms in Surat, Himachal Pradesh with 75 rooms in Dalhousie, Bihar with 56 rooms in Gaya, and Madhya Pradesh with 50 rooms in Rewa.

Hotels Signed in Q1 FY26

In Q1 FY26, Lemon Tree Hotels Limited signed 14 hotels with a total of 1,273 rooms under managed and franchised contracts. Major signings include Lemon Tree Suites, Greater Noida (336 rooms) and Nashik (135 rooms), and Lemon Tree Hotel, Vrindavan (120 rooms). Other key projects include Lemon Tree Premier, Surat (108 rooms), Somnath (70 rooms), and Mhow (72 rooms), showing steady expansion.

State-wise, Uttar Pradesh led with 456 rooms in Greater Noida and Vrindavan. Maharashtra added 135 rooms in Nashik, while Gujarat added 178 rooms in Surat and Somnath. Madhya Pradesh contributed 132 rooms in Limbodagari and Mhow.

Other additions include Rajasthan with 83 rooms in Mori Bera and Jaipur, West Bengal with 128 rooms in Siliguri and Darjeeling, Punjab with 91 rooms in Kharar and Ambala, and Arunachal Pradesh with 70 rooms in Itanagar.

Hotels opened in Q3 FY26:

In Q3 FY26, the company opened 9 hotels with a total of 816 rooms under managed and franchised contracts. Major openings include Gurugram (246 rooms), Tirupati (111 rooms), and Dehradun (98 rooms). Other additions include Thiruvananthapuram (80 rooms), Morbi (69 rooms), and Navi Mumbai (67 rooms), showing strong expansion.

State-wise, Delhi NCR added 246 rooms in Gurugram, while Andhra Pradesh contributed 111 rooms in Tirupati, and Uttarakhand added 98 rooms in Dehradun. Other additions include Kerala with 80 rooms in Thiruvananthapuram, Gujarat with 69 rooms in Morbi, Maharashtra with 67 rooms in Navi Mumbai, Rajasthan with 50 rooms in Jaipur, Bihar with 50 rooms in Motihari, and Jharkhand with 45 rooms in Ranchi.

Hotel Portfolio:

As of 31 December 2025, the company had a strong hotel portfolio with 130 operational hotels and 11,772 rooms across India and nearby markets. In addition, the company has a pipeline of 129 hotels with 10,170 rooms, taking the total portfolio to 259 hotels with 21,942 rooms. This balanced mix of operational and upcoming hotels supports steady long-term growth and wider market presence.

The company operates across multiple brands. Lemon Tree Hotels forms the largest share with 73 operational hotels and 5,206 rooms, along with a pipeline of 69 hotels with 5,481 rooms. Lemon Tree Premier has 23 operational hotels with 2,967 rooms and a pipeline of 11 hotels with 1,136 rooms, strengthening the upscale segment. Keys by Lemon Tree Hotels has 23 operational hotels with 1,788 rooms and 41 pipeline hotels with 2,198 rooms.

The premium segment includes Aurika Hotels & Resorts with 2 operational hotels and 808 rooms and a pipeline of 7 hotels with 1,305 rooms. Red Fox by Lemon Tree Hotels has 9 operational hotels with 1,003 rooms and 1 pipeline hotel with 50 rooms, supporting growth in the economy segment.

Recent Quarter Results:

Coming into financial highlights, Lemon Tree Hotels Limited’s revenue has increased from Rs. 355 crore in Q3 FY25 to Rs. 406 crore in Q3 FY26, which has grown by 14.37 percent. The net profit has also grown by 2.50 percent from Rs. 80 crore in Q3 FY25 to Rs. 82 crore in Q3 FY26.

In terms of return ratios, the company’s ROCE and ROE stand at 13 percent and 18.4 percent, respectively. Lemon Tree Hotels Limited has an earnings per share (EPS) of Rs. 2.78, and its debt-to-equity ratio is 1.67x.

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