Up-scale business hotel chain The Lemon Tree Hotel Company (LTHC) is toying with the idea of pursuing the inorganic route to expand its leisure business portfolio.
PUNE: Up-scale business hotel chain The Lemon Tree Hotel Company (LTHC) is toying with the idea of pursuing the inorganic route to expand its leisure business portfolio. Early this year, the New Delhi-based hotel chain forayed into the leisure market with the launch of its first beach resort in Goa, christened Lemon Tree Amarante Beach Resort.
Patu Keswani, chairman and managing director of Lemon Tree Hotels told DNA Money: “We are looking at inorganic growth, particularly in the leisure category. In fact, two properties have been identified for possible acquisition and we are going ahead with the bidding process for the same.”
The two properties being short listed by Keswani are among the four non-performing assets (NPAs) that the Tourism Finance Corporation of India (TFCI) is looking at clearing up. According to Keswani, TFCI has already approached Lemon Tree Hotel for a possible take over for all the four properties. Keswani, however, chose two of the four properties for his resort projects.
“We have already given the letter of intent and will be going ahead with the bidding process soon,” asserted Keswani. The two locations being identified by Keswani for his leisure projects include Ooty and Manali.
For its overall inorganic growth plan, LTHC has set aside around Rs 40 crore, which will be used to make acquisitions on a case to case basis.
This apart, Keswani is also looking at setting up another leisure project at Mashobra in Shimla. This will be a greenfield property spread across a 7 acre plot. Details of the project are still to be worked out.
According to Keswani entering the leisure market with a beach resort was not part of the plan.
“The said property was up for sale and at a very reasonable price so we acquired it. While we are familiar with business and economy segments, this beach resort project is helping us get an insight into the leisure market that also offers a huge potential,” said Keswani.
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