Lemon Tree Hotels expands into Aurangabad and Indore

Company Brief

New Delhi, October 15, 2007

The Lemon Tree Hotel Company announced the addition of Hotel President Park in Aurangabad and Hotel Planet in Indore, to the Lemon Tree Hotel network, today. Lemon Tree Hotels has acquired these hotels in Indore and Aurangabad effective 15th October 2007, on a long term lease.

Both hotels will continue with the existing names till the end of 2007 and will be shut down in the first half of calendar year 2008 for extensive renovation and refitment to meet Lemon Tree brand standards. The refurbished properties, aggregating over 180 rooms, will subsequently be re-launched as Lemon Tree Hotels before the end of calendar year 2008.

The transaction value amounts to approximately Rs.40 crores inclusive of deposit and renovation/refurbishment costs, and exclusive of revenue share over the term of the lease.

Mahajan & Aibara were the sole advisors to the transaction.

Patu Keswani, Chairman & Managing Director, Lemon Tree Hotels says “The addition of these two hotels to the company is value additive from two perspectives: it immediately extends the distribution of Lemon Tree Hotels into two key emerging cities and will also enable the company to test the validity of its business model via inorganic growth.”

For further information please contact

Ridhi Chowfla/ Regal Jayani

Hanmer & Partners

Tel: 46524000/03

Email: ridhi@hanmerpr.com/ regal@hanmerpr.com