Lemon Tree Hotels Limited — Important, 20-02-2025: General Updates

The arbitration tribunal has issued an award favoring Fleur Hotels Limited, a material subsidiary of Lemon Tree Hotels, entitling it to receive a refundable security deposit of ₹11.47 crore along with interest at 9% per annum from the respondents, Hind Inns & Hotels Ltd. and Hind Motors. Additionally, Fleur Hotels is to receive ₹2.73 lakh for property tax expenses, also subject to the same interest rate.

The tribunal directed the respondents to settle these amounts within one month. Failure to do so will result in an increased interest rate of 11% on the owed amounts. While this award is a positive development for Fleur Hotels, it is expected to have no material impact on the overall financials or operations of Lemon Tree Hotels. Investors should watch closely for potential future implications from this award and payment timeline.