Lemon Tree Hotels valued at over US$500 million

Shinsei Bank Limited and Kotak Realty Funds have jointly invested US$30 million in Indian hotel company Lemon Tree Hotels for an equity stake of 5.9%, thereby valuing Lemon Tree Hotels at over US$ 500 million.

Whilst Kotak Realty Fund is already an existing investor, Shinsei Bank joins as a strategic partner and investor in the company.

The company is working on establishing Lemon Tree Hotels as India's leading upscale hotel brand in the full-service, moderately priced category by 2010/2011. In line with its brand proposition, Lemon Tree Hotels promises it's customers a memorable experience that is "refreshingly different".

The hotels have been designed to be business and leisure friendly with fitness facilities, WiFi, a lounge bar and extensive entertainment and menu options. The first five hotels in India are already operating at over 80% year round occupancies, with over one quarter of the guests being repeat clientele, according to the company.