Lemon Tree Hotels partners with RJ Corp to develop Aurika Shillong
Lemon Tree Hotels’ subsidiary Carnation Hotels has formed a joint venture with RJ Corp for Aurika Shillong. RJ Corp will acquire a 49% stake in project SPV Arum Hotels, while Carnation will retain 51% control.
What happened
Lemon Tree Hotels' subsidiary Carnation has formed a JV with RJ Corp to develop Aurika Shillong. RJ Corp will take a 49% stake in project SPV Arum Hotels, while
Key facts
- RJ Corp will acquire 49% of Arum Hotels
- Carnation Hotels will retain 51%
- RJ Corp will subscribe to 47,65,394 fresh equity shares
- Face value: ₹10 per share
- Subscription expected within seven days of JVA effective date
- Arum's net worth was negative ₹12.97 lakh in the last financial year
- Arum contributed nil turnover in the last financial year
Why this matters
The joint venture pairs RJ Corp’s capital with Lemon Tree’s brand and operating platform, using a majority-controlled SPV structure to preserve strategic control.
What to watch
- Completion and filing of RJ Corp's equity subscription and revised Arum Hotels shareholding.
- Disclosure of total project cost, debt financing, construction stage and targeted opening date.
- Updates on land, environmental, building and hospitality licenses in Shillong.
- Further Lemon Tree-RJ Corp transactions or additional JV/SPV investments.
- Shillong tourism arrivals, airport connectivity additions, MICE demand and premium-hotel room supply growth.
- RJ Corp completes subscription for 47.65 lakh fresh Arum Hotels shares within seven days of the agreement becoming effective.
- Arum Hotels finalizes project funding, construction milestones, statutory approvals and vendor contracts for Aurika Shillong.
- Carnation Hotels establishes hotel-management, sales, revenue-management and pre-opening operating plans while preserving majority control.
- Lemon Tree may market Aurika Shillong alongside its existing Northeast network to build destination and corporate-event demand before launch.