Lemon Tree and Warburg Pincus formed a Joint Venture.

Lemon Tree Hotels, India's largest hotel chain in the mid-priced sector has formed a JV with an affiliate of Warburg Pincus, Magnolia Grove. The JV marks Lemon Tree Hotel's entry into an adjacent but new business segment focusing on the development of institutional-grade rental housing accommodation serving both students and young working professionals across major educational clusters and key office markets in India. An affiliate of Warburg Pincus and Lemon Tree Hotels Limited will hold 68% and 30% stake, respectively in the JV, with the balance 2% to be held by Mr. Patanjali Keswani. ”We are delighted to once again partner with Warburg Pincus at an early stage of this exciting new business opportunity, which will allow Lemon Tree Hotels to move into a segment which is nascent but closely aligned to our existing target customers and which is expected to see tremendous growth, going forward. Driven by the lack of quality accommodation and high rental/capital costs across key Indian cities relative to salary levels, the rise of co-living spaces is a part of the evolution of the sharing economy that will continue to gain significant traction." Patanjali Keswani, Founder, Chairman, and Managing Director, Lemon Tree Hotels Limited.