Lemon Tree Hotels announces seventh property in Nepal, expanding footprint in South Asian market

Lemon Tree Hotels announced on April 2026 the signing of its seventh property in Nepal, as the Indian hotel chain continues its expansion in the South Asian market, the company said, citing growing travel demand and increasing opportunities in the country’s hospitality sector.

Seventh property signed in Nepal

The company confirmed that the new hotel will be developed in Nepal, though it did not disclose the exact city or project timeline. The signing marks a continued push by Lemon Tree Hotels to strengthen its international footprint, particularly in neighboring markets.

Officials said the property will be operated under one of the company’s existing brands, aligning with its strategy to expand through management agreements and partnerships.

The company did not provide details on the number of rooms, facilities or investment size associated with the project.

Expansion strategy in South Asia

Lemon Tree Hotels said the addition reflects its focus on scaling operations beyond India, targeting destinations with increasing tourism and business travel demand. Nepal has been identified as a key growth market due to its proximity and rising visitor inflows.

“Nepal remains an important market for our international expansion strategy,” a company spokesperson said.

The company added that it aims to build a diversified portfolio across segments, catering to both domestic and international travelers in the region.

Growing hospitality demand in Nepal

Industry stakeholders said Nepal has been witnessing steady growth in tourism, supported by improved connectivity, infrastructure development and government initiatives to promote travel. Hotel operators have been increasing their presence to meet demand across key destinations.

Branded hotel supply in Nepal has expanded in recent years, with both domestic and international operators entering the market. The new Lemon Tree property is expected to contribute to this pipeline.

The company said it will collaborate with local partners for the development and operation of the hotel.

Asset-light growth model

Lemon Tree Hotels continues to adopt an asset-light model, focusing on management contracts rather than direct ownership. This approach allows the company to scale its portfolio while optimizing capital deployment.

Officials noted that partnerships with local developers play a key role in facilitating market entry and project execution in international locations.

The company has been expanding its portfolio across multiple geographies, including India and neighboring countries.

Background and current status

Lemon Tree Hotels currently operates multiple properties across India and has been gradually expanding its presence overseas. Nepal remains one of its primary international markets in South Asia.

The newly signed hotel in Nepal is currently in the development phase as of April 2026, with further project details expected to be announced as the development progresses.