Lemon Tree Hotels Terminates 2024 Agartala Project Agreements with No Financial Impact

Lemon Tree Hotels Limited has mutually terminated agreements for a proposed hotel project in Agartala, Tripura, originally signed in March 2024. The company confirmed that the termination, disclosed on April 8, 2026 under SEBI regulations, carries no financial impact as the project had not yet become operational.

Hotel operating and license agreements terminated

The terminated arrangements include a Hotel Operating Agreement and a License Agreement executed on March 18, 2024. These agreements were part of a collaboration to develop a hotel under the Lemon Tree brand in Agartala.

The project involved M/s. PRM Tirupati Pvt. Ltd. as the owner and M/s. Carnation Hotels Pvt. Ltd., a subsidiary of Lemon Tree Hotels, as the operator. The agreements were formally terminated on April 8, 2026 through a mutual decision by all parties.

No financial impact due to non-operational status

Lemon Tree Hotels clarified that the termination does not have any financial implications for the company. This is primarily because the hotel project had not commenced operations or reached a stage involving capital deployment or revenue generation.

The mutual nature of the termination indicates an amicable resolution between the stakeholders, with no penalties or financial liabilities arising from the cancellation of the agreements.

Regulatory disclosure under SEBI norms

The company disclosed the development in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing was made to stock exchanges to ensure transparency and timely communication with investors.

The official communication was signed by Pawan Kumar Kumawat, Company Secretary and Compliance Officer, reaffirming adherence to regulatory requirements and governance standards.

Impact on expansion plans in Northeast India

The termination effectively removes a planned entry into Agartala, a key city in Tripura, from Lemon Tree Hotels’ development pipeline. While the move reduces the company’s immediate expansion footprint in the Northeast, the absence of financial exposure allows it to maintain operational stability.

The company continues to operate from its registered office in Gurugram, Haryana, and its corporate office in New Delhi’s Aerocity Hospitality District, focusing on its broader portfolio and pipeline developments across India.

Context within ongoing corporate developments

The termination comes amid other corporate developments for Lemon Tree Hotels, including recent regulatory approvals for restructuring initiatives involving stake acquisitions and internal reorganization. These measures are aimed at strengthening the company’s organizational framework and operational efficiency.

Despite the cancellation of the Agartala project, Lemon Tree Hotels remains active in pursuing its growth strategy through a mix of owned, managed, and franchised properties across multiple markets in India.

The Agartala project termination highlights the evolving nature of hotel development agreements, where strategic, operational, or market considerations can lead to changes in project execution without necessarily impacting financial performance.