Lemon Tree Hotels is preparing to expand internationally, but with a highly targeted approach: it will only open locations where significant numbers of Indian travelers already go. This strategy, outlined by founder and chairman Patu Keswani during an earnings call, prioritizes capturing more spending from existing customers rather than attempting broader market penetration.
Existing International Presence
Currently, Lemon Tree operates hotels in Dubai, Nepal (two locations), and Bhutan. These initial moves demonstrate the company’s preference for established travel routes favored by Indian tourists. Keswani confirmed that Dubai is a prime target for further expansion, stating a “100%” chance of increased investment “sooner rather than later.”
Avoiding Market Risk
The decision to focus exclusively on Indian travelers is deliberate. By following the existing flow of tourism, Lemon Tree aims to minimize the risks associated with entering unfamiliar markets. New locations will be chosen based on current demand patterns, ensuring a built-in customer base.
Brand Recognition as Key
Keswani emphasized that the Lemon Tree brand now enjoys sufficient recognition, trust, and reliability among India’s mid-to-upper market travelers. This confidence allows the company to leverage its existing reputation rather than investing in costly brand-building efforts in new regions.
This approach is a calculated move to maximize return on investment by focusing on a well-defined, high-potential customer base. Lemon Tree will not attempt to compete with global chains in unfamiliar territory; instead, it will dominate the Indian travel segment wherever it goes.
