Lemon Tree’s Keswani to transition from dual role at top in succession planning
Patanjali G. Keswani, President and General Manager of Lemon Tree Hotels LTD, will be the executive chairman of both LTH and its subsidiary Fleur Hotels as part of a leadership change on October 1st.
Lemon Tree said on Friday that the management change is part of the long -term successor plan aimed at strengthening leadership.
The company announced that Nesendra Singh, General Manager of Adidas India, was appointed as General Manager of Lemon Tree Hotels.
Saurabh Sharatdal, General Manager of Cushman & Wakefield, will serve as General Manager and General Manager of Fleur Hotels, which is expected to be listed in public markets by the end of next year.
Kapil Sharma, Chief Finance Manager, will participate in the management of Lemon Tree’s board of directors while the hotel operator continues as the finance chairman.
Founded by Keswani, Lemon Tree Hotels opened its first hotel in 2004 and has more than 230 hotel portfolio. There are also 110 hotels in both India and the international pipeline.
In the hotel group with the owner of hotels, leasing, business and franchisees, Aurika Hotels and Holiday Villages have seven brands such as lemon trees premier, lemon tree hotels, Fleur hotels, Red Fox hotels and key brands.
Speaking with Mint in May, Keswani said that Lemon Tree Hotels expects a strong income increase in a rebound, higher room prices and the expansion of the hotel segments in this financial year.
Lemon Tree was giving priority to Fleur Hotels’s public market list without debt until December 2026, he said that the side organization is expected to produce more of the list. La700 crore for annual earnings before interest, tax, depreciation and fire department.
The company also aims to capture the insufficient market of 40 -room sub -properties in smaller cities. This is part of India’s wider strategy to touch the branded accommodation demand, which is currently expected to rise from 200,000 rooms to 300,000 by 2029-30.
Despite a short decline in demand in April-first quarter due to the terrorist attack and the revival of Covid, Keswani said he expects a mid-range income increase for the 26-fiscal year supported by the growing footprint of Lemon Tree.
A seasonal support
Elara Capital Corporate Equality Research Vice President Prashant Biyani said that the management changes in Lemon Tree clarity for the hotel company beyond Keswani.
“Having separate executive directors for each asset will help to ensure healthy growth for both,” he added that investors will be willing to see a clear growth strategy for Fleur hotels before 12-15 months.
Despite the softer demand for the hotel sector in the first quarter, Biyani expects to increase 1-1.5 percent in the second quarter compared to the previous year.
According to Elara Capital, hotels are expected to charge 10-12% more for the room, which is expected to increase the total income of the sector according to the current hotel room with increasing occupancy.
In June quarter, Lemon Tree’s income from operations La315.77 Crore La268.01 Crore in the same year. NET Snow made La48.10 CRORE La20.11 Crore a year ago.
While traveling to northern cities such as Chandigarh, Amritsar, Srinagar and Jodhpur, Air India Aircraft Accident triggered widespread flight cancellations in June.
This led to lower hotel reservations in cities such as Goa, Jaipur, Mumbai, Delhi and Bengaluru, which is largely dependent on the air connection.
Despite these setbacks, hands, seasonal demand, long weekends, corporate activities in Mumbai and Kerala’s Approach Festival continues to be optimistic about the expectations of the hotel industry in the second quarter.
Biyani said that Lemon Tree Hotels will be a tactical stock for the second quarter among the hotel players listed.
Lemon Tree Hotels ended on Friday at NSE 0.76% lower transactions La142.99 per share and Nifty 50 0.95%.
