Warburg Pincus agreed on 9 January to acquire APG's 41.09% stake in Fleur Hotels, the asset-owning subsidiary of India's Lemon Tree Hotels, and to invest up to ₹960 crore of fresh equity in the business.
Why Warburg Pincus (Coastal Cedar Investment B.V.) is buying Fleur Hotels (41.09% stake)
Lemon Tree said the reorganisation would turn the listed company into a pure-play, asset-light hotel management and brand platform while Fleur becomes a growth-oriented hotel ownership and development vehicle. Fleur would hold 5,813 keys across 41 hotels after the restructuring, up from 3,993 keys across 24 hotels.
“This collaboration marks a defining moment as we enter the next phase of expansion for Fleur.”
Deal terms and financing
Coastal Cedar Investment, a Warburg Pincus affiliate, buys APG's full stake under a share purchase agreement; the price was not disclosed. Warburg will also invest up to ₹960 crore in tranches. Excluding dilution from that investment, Lemon Tree would hold 41.03% of Fleur directly, Lemon Tree shareholders 32.96% and Warburg 26.01% after the scheme.
Regulatory approvals and timing
The Competition Commission of India approved the acquisition and the related amalgamation and demerger, and the stake purchase closed on 22 May 2026, according to Lemon Tree's exchange filing. The composite scheme, with an appointed date of 1 April 2026, remained subject to NCLT, shareholder and creditor approvals.
Market context
APG had been invested in Fleur since 2012. Fleur is expected to list on the NSE and BSE within 12 to 15 months of the restructuring.
