Lemon Tree Hotels Limited shares were trading 2% high during the early trading hours on 18 October after the company announced signing a franchise agreement for an upcoming hotel in Vadodara, Gujarat, under its brand name keys Select by Lemon Tree Hotels.

In its exchange filing, the company said that the hotel will feature 45 well-appointed rooms, a banquet hall, a restaurant, a fitness centre, a meeting room, a lounge, and other public amenities and areas. The hotel is said to be operational by FY26.

Kapil Sharma, Vice President of Lemon Tree, said, “We are pleased to expand our presence in Gujarat with our valued partner Gajananay Hospitality, a Partnership Firm. This will be in addition to our 6 existing and 5 upcoming hotels and resorts in the state, and we are planning to expand our footprint in Gujarat further.”

On 17 October, the hospitality major signed a licence deal for a 55-room property in Dehradun, Uttarakhand. The property is expected to be operational by FY27 and will be managed by Carnation Hotels Private Ltd, a wholly-owned subsidiary and management arm of Lemon Tree Hotels.

The company is one of the largest hotel chains in India on the basis of controlling interest in owned and leased rooms, the largest in the mid-market hotel sector, and the sixth largest by consolidated inventory.

At 12:47 pm, Lemon Tree Hotels shares have shredded all their earlier gains and are trading in the negative at Rs 120.65 or 1.15% below its previous close on NSE.