Omaxe plans to build ₹4,000 crore of hotels with buyers' money

Companies No. 81 20 October 2026 · 1 min read

On 16 October 2026, Omaxe said Lemon Tree Hotels will run 10 of its hotels with 4,000 rooms, costing about ₹4,000 crore, or ₹1 crore a room. They belong to a ₹6,200 crore plan for 19 hotels from June, 4.9x Omaxe's FY26 revenue of ₹1,253 crore.

Lemon Tree only runs them, which it calls asset-light growth: rooms it manages, not owns, taking its pipeline to nearly 16,000 rooms. The building cost is Omaxe's. It lost ₹697 crore in FY26 and ended March 2026 with a net worth of minus ₹902 crore: losses have wiped out its shareholders' equity.

So who pays? Buyers, says Omaxe: the projects are sale-led, funded from sales without loans. That is how it already runs. In March 2026 it held ₹12,905 crore of advances from customers and others, mostly money paid before handover, 10.3x its FY26 revenue. Its borrowings still nearly doubled in FY26, to ₹1,425 crore.

The filings leave a gap. In June Omaxe sold the hotels as recurring income, about ₹1,000 crore of revenue a year once settled. Neither filing says what a sale-led hotel sells, who will own it, or how much of that income stays with Omaxe. Either way, buyers' money, not Omaxe's, has to build them.

A bar of ₹6,200 crore split into ₹4,000 crore for the 10 hotels with 4,000 rooms that Lemon Tree will run and ₹2,200 crore for the other 9 hotels in Omaxe's plan.

Bars for March 2025 and March 2026: advances from customers and others rose from ₹11,312 crore to ₹12,905 crore, borrowings from ₹744 crore to ₹1,425 crore, and net worth fell from minus ₹205 crore to minus ₹902 crore.

3 bars: the ₹6,200 crore hotel plan, Omaxe's FY26 revenue of ₹1,253 crore, and the ₹1,000 crore a year of hotel revenue Omaxe hopes for.

Sources