Lemon Tree Hotels Expands Into Kasauli and Bhubaneswar

India’s hospitality network is expanding beyond established metropolitan markets as Lemon Tree Hotels adds two properties in Bhubaneswar and Kasauli. The planned hotels, with a combined 110 rooms, will extend branded accommodation into an eastern state capital and a Himalayan leisure destination, reflecting the growing role of smaller urban and tourism centres in India’s travel economy.

The Bhubaneswar property will have 60 rooms and is scheduled to become operational in the fourth quarter of FY2025, according to the project announcement. It is planned with a restaurant, banquet facilities, meeting spaces, swimming pool and fitness centre. Its location, around 12 km from Biju Patnaik International Airport and 10 km from Bhubaneswar railway station, places it within reach of the city’s principal transport gateways. The Kasauli development will comprise 50 rooms and cottages, with additional facilities including restaurants, banquet areas, a library, recreation space, swimming pool, spa and fitness centre. The property was originally expected to open in the third quarter of FY2026. Its location near Chandigarh and Kalka gives it potential access to both leisure visitors and travellers moving through the wider northern tourism corridor. For Lemon Tree Hotels expansion, the significance lies in the locations rather than the room count alone. Bhubaneswar combines government, education, manufacturing and services activity, while Kasauli is part of a hill-tourism belt serving visitors from northern cities. Branded hotels in such markets can support business travel, conferences and leisure tourism while creating jobs across hospitality, transport, food supply and local services.

The growth also brings a planning challenge. New hotels can increase pressure on water systems, waste collection, roads and energy networks, particularly in environmentally sensitive destinations. Hill towns face additional constraints from limited land, fragile slopes, seasonal water availability and road congestion. Sustainable construction and careful capacity planning are therefore important if tourism growth is to avoid undermining the destinations that attract visitors. The company’s wider strategy relies significantly on management and franchise arrangements rather than owning every hotel. Its operating model has enabled it to build a presence across metropolitan areas as well as Tier-II and Tier-III cities. By 2026, its official pipeline showed properties being added across locations including Maharashtra, Tamil Nadu, Haryana, Chhattisgarh and Andhra Pradesh.

That pattern points to a broader change in India’s hospitality market. Rising domestic travel, improved road and air connectivity and the growth of regional business centres are creating demand for organised accommodation outside traditional tourism hubs. Lemon Tree Hotels expansion is therefore also a marker of how smaller cities and leisure destinations are becoming increasingly connected to the national travel economy. The next test will be whether new hospitality capacity is matched by responsible resource management. For cities and tourism destinations alike, efficient water use, lower-energy buildings, local employment and stronger public transport links will determine whether hotel-led growth creates lasting economic value without placing excessive pressure on local infrastructure.

Also Read: Mumbai Luxury Housing Records Fresh Juhu Benchmark

Lemon Tree Hotels Expands Into Kasauli and Bhubaneswar