Please find attach Disclosure regarding conversion of lemon tree mountain resort, kasauli (manchised hotel) to lemon tree premier, kasauli (managed hotel)
LEMONTREE · price
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Lemon Tree Hotels is converting its Kasauli property from a franchise (manchised) model to a directly managed hotel under its wholly owned subsidiary Carnation Hotels. The previous franchise agreement with Atithivan Hospitality Private Limited, signed in August 2023, has been terminated by mutual consent. The rebranded property, now called Lemon Tree Premier Kasauli, will offer 78 rooms — a 56% increase from the earlier disclosed 50 rooms — along with a restaurant, bar, banquet hall, pool, spa and fitness centre. The hotel is expected to open in FY 2027.
Managed hotels are more profitable than franchised ones as the company earns management and incentive fees on top of branding revenue, so this conversion should improve long-term earnings from this property once operational. However, with opening slated for FY 2027, there is no near-term revenue impact for shareholders.