Lemon Tree Hotels has announced the signing of Keys Prima by Lemon Tree Hotels, Jaipur in Rajasthan. According to reports from Business Standard, the property will be operated under a franchise agreement, further expanding the group's robust pipeline across the region. The hotel will feature 88 well-appointed rooms, positioning it as a mid-scale accommodation option in the Jaipur market. This acquisition demonstrates the scalability of Lemon Tree's brand ecosystem as the company approaches the 100-hotel milestone, with the franchise model allowing fee-based revenue generation without property maintenance or construction debt servicing costs.
The new property will feature comprehensive amenities including a restaurant, banquet and conference facilities, a fitness centre, and modern public spaces catering to both business and leisure travellers. Strategically located at Swarna Bhoomi, Sirsi Road, near Sirsi Mode, Khatipura, the hotel offers excellent connectivity to key transit hubs. It is situated approximately 20 km from Jaipur International Airport and around 11 km from Jaipur Junction Railway Station. This strategic positioning ensures steady domestic and international traveler flow while positioning the property as an upper-midscale lifestyle offering within Lemon Tree's portfolio.
This signing takes Lemon Tree Hotels' total portfolio in Rajasthan to 23 hotels, comprising 13 operational and 10 upcoming properties. The addition of this property brings Lemon Tree Hotels' city-wide presence in Jaipur to six hotels, including three operational and three upcoming properties. As reported by Business Standard, the franchise agreement structure provides significant financial advantages for the company, typically resulting in higher operating margins and improved free cash flow compared to traditional ownership models. The company reported 15% YoY revenue growth in its latest quarterly results, largely driven by improved Average Room Rate (ARR) across its managed portfolio.
Jaipur's hospitality market is highly competitive, but the addition of 88 rooms by a national player like Lemon Tree Hotels could consolidate the mid-market segment, potentially forcing smaller, unbranded hotels to upgrade or lower prices. The property's location in Jaipur, a critical node in the Golden Triangle tourist circuit, ensures steady domestic and international traveler flow. Lemon Tree's focus on the mid-scale segment (3-star and 4-star) protects it from luxury segment volatility while benefiting from strong domestic RevPAR growth. The company has been on an expansion spree over the last 90 days, signing a 50-room hotel in Udaipur in April 2026 and recently opening a flagship property in Mumbai.
Neelendra Singh, managing director of Lemon Tree Hotels, emphasized the strategic importance of this expansion, stating that scaling to six hotels in Jaipur reflects a deliberate strategy of building strong regional clusters in high-potential markets. The company's board has also approved the appointment of Kartikeya Kumar Singh as chief digital and transformation officer with effect from 8 June 2026. Lemon Tree Hotels reported strong financial performance with consolidated net profit rising 8.09% to ₹91.49 crore in Q4 FY26, compared with ₹84.64 crore in the corresponding quarter last year. Revenue from operations increased 10% year-on-year to ₹416.40 crore during the quarter ended 31 March 2026, as reported by Business Standard.
