Lemon Tree Hotels Limited has signed a licence agreement for a new hotel in Barog, Himachal Pradesh, with the property to be managed by Carnation Hotels Private Limited, a wholly owned subsidiary. The signing marks the company's 10th property in the state and forms part of a continued expansion into high-potential leisure destinations in North India. The development was disclosed to stock exchanges as the company seeks to strengthen its footprint in a dynamic travel market.

Barog is presented as a picturesque hill town known for lush landscapes, colonial heritage and a tranquil environment along the historic Kalka–Shimla route, attracting leisure travellers seeking weekend getaways and experiential stays within driving distance of major northern cities. The hotel is located approximately 64 km from Shaheed Bhagat Singh International Airport, Chandigarh, about 53 km from Chandigarh Railway Station and nearly 32 km from Kalka Railway Station, providing accessible connectivity for regional and interstate guests. Its proximity to Chandigarh is cited as a factor in the site's appeal.

The upcoming Lemon Tree Hotel, Barog, will feature 49 well-appointed rooms together with a restaurant, banquet hall, meeting room, spa, swimming pool and fitness centre. The property has been designed to cater to leisure visitors, destination events and intimate corporate offsites. Facilities are intended to deliver comfortable and quality experiences aligned with the group's mid-scale and premium positioning.

Company management described Himachal Pradesh as a strong leisure market with growing demand for branded hospitality in scenic destinations and said the signing aligns with a strategy of expanding into emerging leisure micro-markets while maintaining quality. Lemon Tree Hotels operates more than 120 hotels across over 80 cities with a pipeline of more than 130 upcoming properties and an international presence that includes Dubai, Bhutan and Nepal. The group traces its growth from a first 49-room hotel in 2004 to more than 260 properties operational and upcoming.