Lemon Tree Hotels Ltd Terminates Agreement for Erode Property Due to Material Breach
Lemon Tree Hotels Limited has terminated the License Agreement and associated addendum regarding its property, Lemon Tree Hotel, located in Erode, Tamil Nadu. The termination follows a breach of terms within the Hotel Operating Agreement (HOA) between the property owner and the operator.The agreement dated September 08, 2022, involved the Company, Hotel Le Jardin as the Owner, and M/s. Carnation Hotels Private Limited as the Operator. The property in question consists of 65 rooms. The company issued a termination letter to the Owner on July 16, 2026, citing a material breach of the HOA terms.
The termination of these agreements is scheduled to become effective five business days from the date of the termination letter. According to the company, this action does not have any material financial impact on its operations.
Agreement Details
| Property Detail | Description |
|---|---|
| Property Name | Lemon Tree Hotel, Erode, Tamil Nadu |
| Room Count | 65 Rooms |
| Owner | Hotel Le Jardin |
| Operator | M/s. Carnation Hotels Private Limited |
| Original Agreement Date | September 08, 2022 |
| Termination Letter Date | July 16, 2026 |
LEMONTREE Stock Price Movement
Lemon Tree Hotels Limited shares rallied on Thursday to settle at ₹114.8, gaining 0.92% during the session. The stock climbed steadily from an intraday low of ₹113.52, with 1.42 million shares changing hands.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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