Lemon Tree Hotels Ltd. saw its shares trade lower after the company announced the mutual termination of agreements related to the management of Red Fox by Lemon Tree Hotels, Neelkanth, Uttarakhand. The Hotel Operating Agreement (HOA) and its addendum, originally signed between Hotel Mahanand (Owner) and Carnation Hotels Pvt. Ltd. (Operator) on April 17, 2018, and February 17, 2022, respectively, along with the License Agreement executed between Lemon Tree Hotels, Carnation Hotels Pvt. Ltd., and Hotel Mahanand on April 17, 2018, have now been dissolved by mutual consent.
The company clarified that this termination does not significantly impact its net worth.
Meanwhile, Lemon Tree Hotels also announced the signing of a new License Agreement for a Red Fox by Lemon Tree Hotels in Bhopal, Madhya Pradesh. Managed by Carnation Hotels Private Limited, the property is set to open in FY 2027 and will feature 46 well-appointed rooms, a restaurant, a meeting room, a bar, and other public spaces. Strategically located in Bhopal, the “City of Lakes,” the hotel will offer excellent connectivity—17 km from Raja Bhoj Airport and 6 km from Bhopal Railway Station.
Lemon Tree shares were down 2.17% at ₹130.32 during early trading on February 20, reflecting investor reaction to the latest developments.
