India hotel investment jumps 58% to $185M in Q1 2026, led by Warburg's Lemon Tree bet

Hotel sector inflows hit USD 185 mn in Jan-Mar 2026, up 58% YoY, per JLL. Warburg Pincus's USD 107 mn buy of a 41% stake in Lemon Tree's Fleur Hotels anchored the quarter. CY2025 closed at USD 567 mn across 28 deals, with 424 hotels (51,647 keys) signed and 103 (8,990 keys) opened.

— Source publishedMon, 18 May, 2026, 14:38 IST·First seen Mon, 18 May, 2026, 14:55 IST·Source ET Small Business

What happened

Lemon Tree Hotels · India hotel sector investment jumped 58% to USD 185 mn in Jan-Mar, per JLL, led by Warburg Pincus's USD 107 mn bet on Lemon Tree's Fleur

Key facts

  • USD 185 mn Q1 2026
  • +58% YoY
  • USD 567 mn 2025
  • +67% YoY
  • USD 107 mn Warburg-Fleur
  • 41% stake
  • 28 deals 2025
  • 424 hotels signed
  • 51,647 keys
  • 103 hotels opened
  • 8,990 keys

Why this matters

With 424 hotels signed in CY2025 and PE majors anchoring platform deals, window is open for portfolio roll-ups and minority-stake sales at premium multiples.