PE-VC Fund Investments
Warburg Pincus acquires 41% stake in Fleur Hotels from APG; to invest Rs.450-Cr in primary capital
Warburg Pincus (through its unit Coastal Cedar Investment BV) has acquired a 41.09% stake in Jaipur-based Fleur Hotels , a subsidiary of publicly listed Lemon Tree Hotels, from fellow PE investor APG (held via APG Strategic Real Estate Pool NV). Warburg Pincus will also make a primary investment of INR 960 crore in tranches into Fleur Hotels. The deal involves the transfer of hotel assets from Lemon Tree to Fleur and the merger of four wholly owned subsidiaries of Lemon Tree with Fleur against the issuance of shares (by Fleur to Lemon Tree). Post deal, Lemon Tree Hotels will serve as an asset-light hotel management and brand platform, and Fleur Hotels as a hotel ownership and development platform. Morgan Stanley acted as the exclusive financial advisor for the transaction.Post deal, Fleur will become one of the largest owners of hospitality assets in India, with its owned portfolio increasing from 3,993 keys and 24 operating hotels to 5,813 keys across 41 hotels. Lemon Tree will continue to operate its existing leased hotels in Indore and Aurangabad, which are approaching the end of their respective lease terms. In addition, Lemon Tree will manage an additional 1,820 keys and 17 hotels transferred to Fleur alongside its existing portfolio of 3,993 keys and 24 hotels of Fleur operated by Lemon Tree. Lemon Tree will focus on managing and franchise its existing portfolio of third-party owned hotels, with 6,011 keys across 89 operational hotels and 9,414 keys across 127 hotels under various stages of development in India and internationally.
Warburg Pincus had previously invested in Lemon Tree Hotels between 2006 and 2019. Lemon Tree went public in 2018. APG had invested in both Lemon Tree and Fleur Hotels between 2012 and 2020.
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