Listen to your heart… and forget the failures… These words belong to Patu Keshwani. He started his own company after recovering from his job in 2002 and today he has become the owner of more than 5000 crores. Let us tell you that Patu Keshwani is the owner of the famous hotel chain Lemon Tree. Hotel chain company Lemon Tree is raising money through the stock market. The company’s public issue (IPO) will open on 26 March. Lemon Tree runs a 2-4 star hotel. The company plans to raise Rs 1000 crore through an IPO. The price band of this issue has been fixed at 54 to 56 rupees per share. Let us know how Keshwani created the company

Patu Keshwani once revealed in an interview that when he started getting bored as an employee, he decided that he would no longer be an employee. Keshwani decided to do something different and started preparing to enter the hotel business. But his parents showed no interest in his idea. Whereas, his wife Sharanita (who was the marketing director at KFC at the time) fully supported him and later joined his company as well.

The initial problem gradually started to go away due to an increasing understanding of the hotel industries. The key model of Keshavani’s business was to eliminate the huge gap between the Five Star Hotel and the Guesthouse. He said in an interview that I want to build a hotel where 60 percent of the facilities of Five Star Hotel are available at half the price. The initial problem gradually started to go away due to an increasing understanding of the hotel industries. The key model of Keshavani’s business was to eliminate the huge gap between the Five Star Hotel and the Guesthouse. He said in an interview that I want to build a hotel where 60 percent of the facilities of Five Star Hotel are available at half the price.

Working on this model, Keshwani bought land in Gurugram, Haryana for Rs 1.5 crore. I chose Gurugram because most of the corporates come there. He added some of his old friends who used to work in the Taj group. Now the name of the company was needed, so everyone thought that the name should also be new youthful. That is why the company was named Lemon Tree.

As of May 2004, the company had 50 rooms with five-star portfolio facilities. The cost of one night in these was only 1600 rupees per person. His occupancy was 40 percent in the first month of the company. However, no advertisement was done. The company used to do direct marketing. This concept went on and within the first five years, the company turned profitable. The company’s profit was one crore rupees.

Keshwani says that it was not very easy, because his friends had left big jobs. However, a good management team knows how to do better. That’s why business started growing rapidly. After this, private equity firm Warburg Pincus invested Rs 210 crore in the company. After this, Kotak Mahindra Realty invested Rs 32 crore. By December 2006, the company had grown to 125 rooms. Occupancy had reached 90 percent.

Lemon Tree currently has four brands – Lemon Tree Premier (upper-class range), Lane Tree Resorts (luxury segment), Lemon Tree Hotels (middle-class range), and Red Fox Hotels (budget range). The company operates 40 hotels in 24 cities across the country, with 4,300 rooms. Lemon Tree currently has four brands – Lemon Tree Premier (upper-class range), Lane Tree Resorts (luxury segment), Lemon Tree Hotels (middle-class range), and Red Fox Hotels (budget range). The company operates 40 hotels in 24 cities across the country, with 4,300 rooms.

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