Hospitality Deal
Omaxe Signs MoU with Lemon Tree's Carnation Hotels for 10 Hotels with 4,000 Keys
Omaxe Ltd has signed a memorandum of understanding with Carnation Hotels Private Limited, a wholly owned subsidiary of Lemon Tree Hotels, for 10 hotel projects with about 4,000 keys across several Indian cities. The MoU is an early-stage agreement, not a final binding contract, and was announced on 16 October 2026.
| Date announced | 16 October 2026 |
|---|---|
| Parties | Omaxe Ltd and Carnation Hotels Private Limited (wholly owned subsidiary of Lemon Tree Hotels) |
| Scope | 10 hotel projects with about 4,000 keys |
| Estimated investment | About ₹4,000 crore (reported as about $421 million) |
| Operator | Lemon Tree Hotels, through Carnation Hotels, under its own brands |
| Developer | Omaxe |
| Deal status | Memorandum of understanding, not a final contract |
| Part of | Omaxe's ₹6,200 crore hospitality expansion, announced June 2026 |
What was signed
On 16 October 2026, Omaxe Ltd signed a memorandum of understanding with Carnation Hotels Private Limited, the hotel management arm of Lemon Tree Hotels Limited. The MoU covers 10 hotel projects with about 4,000 keys across India. Reports put the estimated investment for the 10 projects at about ₹4,000 crore.
An MoU sets out the intent and broad terms of a deal. It is not a final, binding contract, and no date has been announced for converting it into a definitive agreement.
The 10 projects
The sites listed in the coverage are shown below. Keys are as reported.
| Project | Location | Keys |
|---|---|---|
| Bus Terminal, Jankipuram | Lucknow | 500 |
| Bus Terminal, Vrindavan Yojna | Lucknow | 330 |
| Omaxe BeTogether Centre Point | Amausi (near the airport) | 693 |
| Omaxe Eternity-II | Vrindavan | 501 |
| Omaxe BeTogether Courtyard | Vrindavan | 81 |
| Omaxe BeTogether Centre Point, Ambedkar Road | Ghaziabad | 215 |
| Omaxe Connaught Place | Greater Noida | 150 |
| Service Apartments | Amritsar | 745 |
| Omaxe BeTogether Centre Point, Tower 1 | Kaushambi | 350 |
| World Mall, Sector 79 | Faridabad | 435 |
| Total | 4,000 |
The Amausi site at 693 keys is the largest listed in Omaxe's own project names, and the Amritsar service apartments at 745 keys are the largest by key count in the list.
Who runs and who builds
Under the arrangement, Lemon Tree will operate the hotels under its portfolio of brands, which serve different hospitality segments. The coverage reviewed does not name a specific Lemon Tree brand for each site. Omaxe develops the properties, and its role is the real estate development side of the projects.
Lemon Tree's managing director, Neelendra Singh, said the tie-up lets the company scale its Tier-2 and Tier-3 city strategy faster, from transit hubs in Lucknow to temple towns such as Vrindavan. Omaxe's managing director, Mohit Goel, said the arrangement brings established operating expertise to Omaxe's strategy, while its sale-led development model supports disciplined capital use.
Funding model
Omaxe says the projects will follow a sale-led development model and expects to fund completion through sales proceeds, without relying on loan funding. How the ₹4,000 crore is split between Omaxe and Lemon Tree has not been stated in the coverage.
What it means for home buyers
The MoU concerns hotel operation, not residential flats or plots. The coverage reviewed reports no residential sales launch, pricing or possession date linked to these sites. Buyers looking at Omaxe residential projects should check the status of each project separately.
What it means for investors and the market
Lemon Tree describes the deal as supporting its asset-light growth plan, under which it runs hotels without owning the buildings. The company said the tie-up is its largest single operating agreement and takes its development pipeline to nearly 16,000 keys.
Lemon Tree Hotels shares rose about 2% at the day's high on Friday, 16 October 2026, after the announcement. Omaxe's role is that of developer with sale-led funding, and the deal adds operating know-how to its expansion plan.
Timelines and what comes next
Development and commissioning timelines are expected to range from nine months to five years, depending on the project. The projects are expected to open on a staggered basis.
Omaxe's wider ₹6,200 crore hospitality plan runs over the next four to five years. That investment is subject to project-specific and regulatory approvals and to market conditions. No dated next step for turning the MoU into a definitive agreement has been announced.
Background: Omaxe's hospitality plan
In June 2026, Omaxe announced a dedicated hospitality vertical with plans to invest ₹6,200 crore to develop 19 hotels across 13 cities in five states over four to five years. Of the 19 hotels, 12 are planned in Uttar Pradesh, including two each in Ayodhya, Kaushambi and Vrindavan, three in Lucknow, and one each in Prayagraj, Ghaziabad and Gorakhpur.
The same plan includes a 158-key Gateway Hotel by IHCL at The Omaxe State in Dwarka, New Delhi, a 50.4-acre mixed-use development being built under a public-private partnership with the Delhi Development Authority. Omaxe also plans transit-oriented hospitality in Uttar Pradesh through public-private partnership projects with the Uttar Pradesh State Road Transport Corporation. That work fits the bus-terminal sites in the Lemon Tree MoU.
Frequently asked questions
Is the Omaxe and Lemon Tree deal a binding contract?
No. It is a memorandum of understanding. It sets out the intent and broad terms of the arrangement, and no date has been announced for a definitive agreement.
How many hotel keys are covered, and where?
The 10 projects total about 4,000 keys. The listed sites are in Lucknow, Vrindavan, Amausi near Lucknow airport, Ghaziabad, Greater Noida, Amritsar, Kaushambi and Faridabad.
Who will run the hotels?
Lemon Tree Hotels will operate the properties through Carnation Hotels Private Limited under its own brands. Omaxe develops the projects.
Does this affect Omaxe flat buyers?
The MoU covers hotels, not residential units. The coverage reviewed reports no residential sales launch, pricing or possession date for these sites.
When will the hotels open?
Development and commissioning timelines are expected to range from nine months to five years, depending on the project, and openings are expected to be staggered.