Lemon Tree Hotels is looking at diversifying into vacation ownership and affordable housing to broaden revenue streams and cushion its hospitality business. The company plans to invest about Rs 300 crore to acquire resorts in leisure destinations to aid its domestic business and the vacation ownership venture.
The Delhi-based company backed by Dutch pension fund APG and global private equity fund Warburg Pincus is looking at rolling out its two new offerings in the next three years. “The hotel business is a cyclical business and it has very high volatility. The last five years have seen the extended bottom-of-cycle condition in India.