Lemon Tree Hotels forms JV for Aurika Shillong project

Lemon Tree Hotels Limited, through its wholly-owned subsidiary Carnation Hotels Private Limited, has entered into a Joint Venture Agreement (JVA) with RJ Corp Limited for the development of the Aurika Shillong project. RJ Corp will acquire a 49% stake in Arum Hotels Private Limited (Arum), a Special Purpose Vehicle, by subscribing to fresh equity shares. Carnation will retain a 51% stake. This transaction will result in Arum ceasing to be a step-down wholly-owned subsidiary and continuing as a step-down subsidiary of Lemon Tree Hotels. The JVA outlines significant terms including board representation and share transfer restrictions.