Lemon Tree Hotels Limited — Capital/Financing Update 2021

Mar 31, 2021

Date: March 31, 2021

To,

Listing Department, Department of Corporate Services, National Stock Exchange of India Limited, BSE Limited, Exchange Plaza, Plot no. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex Dalal Street, Bandra (E), Mumbai — 400051 Mumbai — 400001.

NSE Serip Symbol: LEMONTREE BSE Scrip Code: 541233

Dear Sirs/Ma'am,

Subject: Disclosure under Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

In terms of the provisions of Regulation 30 of the Securities and Exchange Board of India (Listing Obligation and Disclosures Requirements) Regulations, 2015 ("SEBI Listing Regulations"), we would like to inform that the Board of Lemon Tree Hotels Limited ("Company") has approved acquisition of 70% shareholding of Hamstede Living Private Limited (herein after as "Hamstede") on March 30, 2021 from other existing shareholders of the Hamstede subject to necessary formalities and execution of documentation in this regard. Consequent to acquisition, Hamstede shall become wholly owned subsidiary of the Company.

The Company had entered into a joint venture with Magnolia Grove Investment Ltd, an affiliate of Warburg Pincus ("Magnolia") in the month of December' 2018 in Hamstede to carry the business of student housing / co-living for working professionals. Hamstede which was initially incorporated as Wholly owned subsidiary of the Company, became a Subsidiary of Magnolia post joint venture with the following shareholding:

• e Company 30%
• © Magnolia 67.50%
• e Mr. Patanjali Govind Keswani (along with its affiliate) 2%
• @ Mr. Rahul Pandit-0.50%

The details required under Regulation 30 of the SEBI Listing Regulationsread with SEBI Circular No. CIR/CFD/CMD/4/2015 dated September 9, 2015 are given in Annexure A to this letter.

Lemon Tree Hotels Limited (CIN No, L74899DL1982PLC049022) Registered Office: Asset No. 6, Aerocity Hospitality District, New Delhi-110037 T +91 14 4605 0101, F +94 11 46050110. E hi@lemontreehotels.com www.lemontreehotels.com

Please take the above information on record and kindly acknowledge.

Thanking you,

For Lemon ;free Hotels Limited

\ Nl woe Nikhil Sethi

Groap Company Secretary & GM Legal and Compliance Officer

Lemon Tree Hotels Limited (CIN No, L74899DL1992PLC049022) Registered Office: Asset No. 6, Aerocity Hospitality District, New Delhi-110037 T +91 41 4605 0101, F +91 11 46050110. E hi@lemontreehotels.com www.lemontreehotels.com

Annexure A

	HOTELS—
Annexure A
8. No.	PARTICULARS	DETAILS
	Name of the target Company, detailsin brief such as size, turnover etc.	Target Company is Hamstede Living Private Limited(Hamstede)December,whichwasincorporatedinhowever Hamstedeturnover2018,doesn'thaveanyfrom its business since incorporation.
	Whetherwouldacquisitionthefallwithin related party transaction(s) andpromoterwhetherpromoterthe/companiesgroupgrouphaveany/interest in the entity being acquired?natureof interest anddetailsIf yes,	Transaction w.r.t acquisition of shares from MagnoliaGrove Investment Ltd, an affiliate of Warburg Pincus67.50%of Hamstede)of shareandMr.capital(ie.Rahul Pandit (i.e. 0.50% of share capital of Hamstede)would not fall under Related Party Transaction,
	thereof and whether the same is doneat "arm's length".	However,transactionacquisitionof sharesw.r.ttheGovindKeswanifrom(alongMr.Patanjaliwithitsaffiliate) — (i.e. 2% of share capital of Hamstede) is aGovindtransaction,Mr,Patanjalirelatedpartyaswell as the Chairman andKeswaniis a Promoter asManaging Director of the Company,
		The transactionis at arm'slengthshares areas thebeing acquired from other non-related shareholders atthe same price.
	whichIndustrybeingentitythetoacquired belongs	Hamstede main object is to construct, acquire, develop,operatelong-stayandandleaseshortestaterealprojects, with a primary focus on student housing, coworkingprofessionals/adultsandmulti-livingforfamily users.
	Objectacquisitionandeffectsof(includinglimitedbutnotto,disclosure of reasonsfor acquisitionbusinesstargetentity,ofifitsismainline of business ofoutside thethe listed entity)	Due to near term challenges in the co-living businessMagnolia and other shareholders intend to transfer theirrespective shareholding in Hamstede to the Company,as the Company being the Promoter of Hamstede.
	governmentBrief detailsof anyorregulatory approvals required for theacquisition	No government or regulatory approvals are required forReserve BankacquisitionexceptreportingtheoftoIndia for acquisition of shares from foreign entity.
	Indicative time period for completionof the acquisitions	30 days
	Natureconsiderationwhetherof—Lemon	Natureconsideration:Cashconsideration.ofTree HotelsLimited

(CIN No, L74899DL1992PLC049022)

Registered Office: Asset No. 6, Aerocity Hospitality District, New Delhi-110037

T +91 11 4605 0101, F +91 11 46050110. E hi@lemontreehotels.com www.lemontreehotels.com

	swapconsideration,cashshareanddetails of the same	For details see Column 8
8,	shares are acquired	Cost of acquisition or price at which The shares are being acquired at paisa per share fromother existing shareholders
9.	numberacquiredand/orofacquired	Percentage of shareholding / control The details of Percentage of shareholding / controlshares being acquired and/or number of shares being acquiredare given herein below:
		Name of the Noshareholders Equity	Shares	of %shareholding	of AcquisitionAmount
		MagnoliaGroveInvestmentLid	1,99, 12,500	67.50	1,99, 125
		Mr.PatanjaliGovindKeswanialong with itsaffiliate	5,90,000	2.00	5,900
		RahulMr.Pandit	1,47,500	0.50	1,475
		2,06,50,000Total2,06,50070.00HamstedebecomeacquisitionPostaforesaidshallWholly Owned Subsidiary of the Company
	10. Briefbackgroundabouttheacquired in terms of products/line ofbusinessacquired,dateofincorporation,historythreeoflastyears turnover, country in which theacquired entity has presence and anyother significant information (in brief)	entity HamstedeincorporatedbeenDelhi,IndiahasoninDecember 6, 2018 and its main object is to construct,acquire, develop, operate and lease short- and long-stayestate projects, with a primary focusstudentonrealhousing, co-living for working professionals/adults andmulti-family users.
		Hamstedehas NIL turnoverfrombusiness,sinceitsincorporation.

Lemon Tree Hotels Limited (CIN No. L74899DL1992PLC049022) Registered Office: Asset No. 6, Aerocity Hospitality District, New Delhi-110037 F +91 11 4605 0101, F +91 11 46050110. E hi@lemontreehotels.com www.lemontreehotels.com