Athira Sethu
Kochi, 10 March 2026
Lemon Tree Hotels has announced that it is going to open a new hotel in the city of Gorakhpur, located in the state of Uttar Pradesh. The new hotel will add 76 rooms to the company’s portfolio. The company’s hotels in Uttar Pradesh now number 26, with 8 hotels operational and 18 hotels under development.
The new hotel will be managed by Carnation Hotels Private Limited, which is a fully owned subsidiary of Lemon Tree Hotels. This is part of the company’s strategy to expand its footprint in eastern Uttar Pradesh, which is known for its economic importance and transportation facilities.
The new hotel in the city of Gorakhpur is an important part of the company’s expansion strategy into regional cities that have significant growth potential. The region is witnessing economic activity and infrastructure development, making it an ideal destination for hospitality businesses.
Lemon Tree Hotels has been expanding its operations in India, specifically in regional markets. In February 2026, Lemon Tree Hotels announced a deal for a 100-room hotel in Najibabad in Uttar Pradesh. The hotel will be the company’s 25th property in Uttar Pradesh. In January 2026, Lemon Tree Hotels announced a hotel in Chitrakoot in Uttar Pradesh.
The strategy pursued by Lemon Tree Hotels is based on an asset-light model, where management contracts play a critical role in facilitating rapid expansion without incurring significant capital expenditure on property ownership.
The hotel in Gorakhpur will add 76 rooms to the company’s inventory and will help consolidate its presence in eastern Uttar Pradesh, which is a region that offers significant growth potential for the company in the coming years. The hotel will help Lemon Tree Hotels achieve its goal of having more properties in Uttar Pradesh.
The company has competitors in the form of other hotel chains such as the Indian Hotels Company Limited (IHCL) and the Radisson Hotel Group. Both companies are expanding at a rapid pace in India. IHCL plans to achieve the milestone of having more than 700 properties by the year 2030. Radisson plans to achieve the milestone of having 500 hotels by the year 2030. This is equivalent to opening almost two hotels every month.
Currently, as of the first quarter of the fiscal year 2026, the company has 226 hotels and 18,431 rooms in more than 50 locations. The company reported a 32.39% increase in revenue for the year ending March 31, 2025, compared to the previous year.
The next steps for the company are to keep track of the opening dates for the hotel in Gorakhpur and the performance of its existing hotels in the state of Uttar Pradesh and other areas.
