Lemon Tree Hotels adds new 124-room property near Pacific Mall Jaipur to strengthen Rajasthan footprint

Lemon Tree Hotels Limited (NSE: LEMONTREE), one of India’s fastest-growing midscale and premium hospitality groups, has announced the signing of a new property in Jaipur, Rajasthan. The upcoming hotel, branded as “Lemon Tree Hotel, Pacific Mall, Jaipur,” marks the group’s latest addition to its growing portfolio in the state. The property will be managed by Carnation Hotels Private Limited, a wholly-owned subsidiary of Lemon Tree Hotels Limited, and is expected to cater to the rising inflow of business and leisure travelers seeking quality stays in the capital city.

Located in close proximity to Jaipur’s key transit hubs, the hotel is approximately 8 kilometers from Jaipur International Airport and about 8.4 kilometers from the city’s main railway station. It will be part of the Pacific Mall complex, one of Jaipur’s most prominent lifestyle and retail destinations. The new hotel will offer 124 rooms along with an integrated set of amenities including a restaurant, a lounge, a meeting room, a swimming pool, and a fitness center, designed to offer a value-driven yet premium guest experience.

Why Lemon Tree Hotels is doubling down on Jaipur’s growing hospitality market

The strategic move to establish another property in Jaipur reinforces Lemon Tree Hotels Limited’s stronghold in Rajasthan, where it already operates 12 hotels and has 9 additional ones under development. With this newly signed asset, the group’s presence in the state grows to 22 properties. According to the company, Rajasthan’s unique blend of cultural tourism and business travel opportunities makes it an ideal location for midscale hotel expansion.

Speaking on the development, Vilas Pawar, Chief Executive Officer of Managed and Franchise Business at Lemon Tree Hotels Limited, stated that the new hotel in Jaipur would further enhance the company’s leisure and business portfolio in Rajasthan. He added that the expansion aligns with the group’s long-term goal of offering refreshing and comfortable stays across India’s tier I, II, and III cities, while meeting the expectations of value-conscious travelers as well as premium-seeking guests.

The Pink City of Jaipur, known for its rich heritage, palaces, forts, and vibrant bazaars, continues to attract both domestic and international tourists year-round. Additionally, the city has become an important hub for destination weddings, MICE (Meetings, Incentives, Conferences, Exhibitions) tourism, and small-scale conventions. Lemon Tree Hotels Limited appears to be positioning itself to capitalize on this hybrid travel segment by offering modern, centrally located properties that appeal to a wide range of guests.

How the Pacific Mall location adds value to Lemon Tree’s property portfolio

The decision to develop the new hotel adjacent to Pacific Mall reflects a deliberate strategy to capture high footfall, urban retail synergy, and lifestyle-driven lodging demand. Pacific Mall, Jaipur is a popular destination for shopping, dining, and entertainment and is frequented by both locals and tourists. By integrating the hotel into this setting, Lemon Tree Hotels Limited is not only ensuring year-round occupancy but also creating opportunities for cross-utilization of services across retail and hospitality.

This site selection also enhances accessibility. The hotel will be well-connected by road and serviced by public transportation, increasing convenience for both outstation travelers and Jaipur-based guests. For guests arriving by air or rail, the short commute reduces friction and maximizes usable stay time. This kind of location-centric positioning continues to be a key driver for Lemon Tree Hotels Limited as it selectively scales operations across urban centers and tourist cities.

What the new hotel signals about Lemon Tree’s national and international expansion strategy

Lemon Tree Hotels Limited continues to execute on its long-term plan of building an asset-light, pan-India hospitality platform. As of December 2025, the group has over 120 operational hotels across more than 80 cities and is actively developing an additional pipeline of 120-plus hotels. This expansion covers a wide range of travel formats including business travel, leisure tourism, wildlife experiences, pilgrimage routes, and international locations.

The group operates under seven distinct brands, including Aurika Hotels & Resorts (upper upscale), Lemon Tree Premier (upscale), Lemon Tree Hotels (midscale), Red Fox Hotels, Keys Prima, Keys Select, and Keys Lite. This tiered branding strategy allows Lemon Tree Hotels Limited to serve a broad spectrum of guests—from cost-conscious business travelers to affluent urban tourists—without diluting its brand equity.

Internationally, Lemon Tree has marked its footprint in regions like Dubai, Bhutan, and Nepal, further signaling its intent to grow beyond Indian borders while maintaining strong domestic momentum. The Jaipur hotel, managed under the Lemon Tree Hotels banner, fits squarely within the group’s midscale growth play and is likely to generate healthy returns through high average occupancy and strategic location advantage.

Investor sentiment and stock performance outlook for Lemon Tree Hotels

On December 4, 2025, the share price of Lemon Tree Hotels Limited stood at ₹161.80, reflecting a marginal dip of 0.64 percent compared to the previous close of ₹162.85. The stock opened the session at ₹163.20 and touched an intraday high of ₹164.70 before pulling back slightly. The volume-weighted average price (VWAP) for the session was recorded at ₹162.84, indicating relatively stable investor sentiment following the hotel announcement.

Over the past five trading days, the stock has remained largely range-bound with signs of mild accumulation. Market participants interpret this hotel signing as a positive development for the company’s earnings visibility, especially in the context of peak travel season and year-end bookings. Institutional investors have shown interest in the hospitality sector as a whole, driven by a return in travel demand and rising average room rates across India’s key hotel markets.

Analysts covering Lemon Tree Hotels Limited expect revenue per available room (RevPAR) to continue improving into the final quarter of FY26, supported by the commissioning of new managed properties like this one. The company’s focus on franchising and management contracts over capital-intensive development has been cited as a margin-friendly approach, giving it an edge over peers with asset-heavy models.

What Lemon Tree’s Rajasthan footprint reveals about the evolving Indian hotel landscape

With over 22 properties either operational or in the pipeline across Rajasthan, Lemon Tree Hotels Limited is emerging as one of the most active hotel operators in the state. This is particularly significant in the context of an Indian hospitality market that is witnessing increased demand in tier II and tier III cities. Travel patterns have shifted post-pandemic, with more Indians opting for regional travel, short-haul vacations, and experiential stays.

Other hospitality players such as ITC Hotels, Sarovar Hotels, and Marriott International have also expanded their presence in Rajasthan, reflecting the state’s rising appeal as a high-return hospitality zone. Lemon Tree’s advantage lies in its ability to deliver consistent quality and predictable guest experiences at a midscale price point, while leveraging location, branding, and efficient operations.

The Jaipur signing is expected to act as a template for future developments across similarly positioned cities, where footfall, heritage appeal, and connectivity align to create a viable business case. The ability to monetize such assets quickly and at scale will likely remain central to Lemon Tree Hotels Limited’s operating strategy.

Key takeaways from Lemon Tree Hotels’ new Jaipur property announcement

• Lemon Tree Hotels Limited has signed a licensing agreement for a new 124-room hotel located near Pacific Mall in Jaipur, Rajasthan.

• The hotel will be managed by Carnation Hotels Private Limited, a wholly-owned subsidiary of Lemon Tree Hotels Limited, under the midscale “Lemon Tree Hotel” brand.

• Amenities will include a restaurant, lounge, meeting room, swimming pool, and fitness center, catering to both business and leisure travelers.

• The property is strategically positioned approximately 8 kilometers from Jaipur International Airport and 8.4 kilometers from Jaipur Railway Station, ensuring high accessibility.

• This marks Lemon Tree Hotels’ 22nd property in Rajasthan, bringing its total to 12 operational and 10 upcoming hotels in the state.

• The hotel’s location within the Pacific Mall complex leverages high footfall and urban connectivity, offering cross-traffic benefits from retail and entertainment visitors.

• Analysts view the move as aligned with the group’s asset-light, pan-India expansion strategy and midscale market positioning.

• Lemon Tree Hotels Limited operates over 120 hotels across 80+ cities with a pipeline of more than 120 properties under various stages of development.

• As of December 4, 2025, Lemon Tree’s stock (NSE: LEMONTREE) traded around ₹161.80 with relatively stable investor sentiment amid sector-wide optimism.

• The Jaipur signing reinforces broader industry momentum in tier II hospitality markets, particularly those combining heritage tourism with business potential.