Lemon Tree Plans Overseas Expansion As Outbound Travel Rises

05 Mar 2026 CW Team

Lemon Tree Hotels plans to increase overseas expansion over the next three to five years as outbound leisure travel by Indian citizens grows. Capital Economics projects India will become the world's fourth-largest outbound tourism market by 2035, rising from tenth place. The move reflects expectations of stronger international leisure demand.

Managing Director and Chief Executive Officer Neelendra Singh said the group intends to follow Indian travellers to destinations such as Thailand, Vietnam and Singapore. He offered no further details on markets or timing. The strategy aims to align the brand with established outbound preferences.

The midscale chain operates five hotels outside India, with two in Nepal and Bhutan and one in the UAE, from a portfolio of more than 120 properties. Lemon Tree owns brands including Aurika, Red Fox and Keys Select and is the country's third-biggest homegrown hotel chain by number of rooms. India will remain the main focus for now.

Domestically the company is exploring bringing unbranded hotels into its system through a largely franchise-led model to tap the vast independent hotel market, which industry estimates place at about half unbranded. In January the group said it would transfer hotel ownership to subsidiary Fleur and become a fully asset-light operator, creating two publicly traded entities within 12 to 15 months. The change is expected to enable faster expansion and lower capital intensity.

Other Indian groups with luxury portfolios have limited overseas footprints, and Lemon Tree characterises international growth as a mid-term goal rather than an immediate strategic shift. The company indicated that rising geopolitical tensions would not materially alter its expansion intent but that timing would be adjusted to market conditions. The push is framed as a response to where Indian leisure travellers choose to go.

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