Lemon Tree will buy Keys Hotels from Berggruen Hotels Pvt Ltd for an undisclosed sum.
Warburg Pincus-backed Lemon Tree Hotels Ltd has signed an agreement to acquire Keys Hotels in a bid to expand its business in the mid-market hotel category.
Lemon Tree, India's third-largest mid-market hotel operator, will buy Keys Hotels from Berggruen Hotels Pvt Ltd for an undisclosed sum.
Post acquisition, New Delhi-based Lemon Tree will expand its operating portfolio to 75 hotels with 7,322 rooms in 44 cities in India. The brand is also planning to open 33 hotels with 3,389 rooms in 26 cities by 2020-21.
Keys Hotels owns seven hotels with 936 rooms in six cities of the country. It is further operating 14 hotels with 975 rooms in 14 cities under management or franchise agreements. In total, Keys Hotels is managing 21 hotels with 1,911 rooms in 19 cities.
Lemon Tree is operating hotels under three categories in the mid-priced segment, including the upper-midscale category called ‘Lemon Tree Premier’, the midscale segment ‘Lemon Tree Hotels’ and economy hotels under ‘Red Fox’.