Lemon Tree Hotels announced that its board has approved Warburg Pincus' investment in Fleur Hotels, a subsidiary of the company, through the acquisition of a 41.09 percent stake. 

The deal involves an investment of Rs 960 crore in tranches, to be made by Coastal Cedar Investment, an affiliate of Warburg Pincus, in Fleur to support its growth and expansion. The acquisition will be facilitated through a share purchase agreement. The strategic reorganization aims to create two distinct, high-growth platforms: Lemon Tree Hotels as an asset-light hotel management entity, and Fleur Hotels as a large-scale hotel ownership and development platform. 

Patanjali Govind Keswani, Founder of Lemon Tree Hotels, emphasized that, "This scheme will create a simplified, transparent, and growth-oriented structure for both companies," Keswani said. The changes are subject to regulatory and shareholder approval.