Joint Venture • Leisure

Warburg Pincus and Lemon Tree Hotels Acquire Hamstede Living

On December 27, 2018, private equity firm Warburg Pincus and Lemon Tree Hotels acquired leisure company Hamstede Living

Acquisition Context
  • This is Warburg Pincus’ 3rd and Lemon Tree Hotels’ 1st transaction in the Leisure sector.
  • This is Warburg Pincus’ 37th and Lemon Tree Hotels’ 1st transaction in India.

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M&A Deal Summary

Date December 27, 2018
Target Hamstede Living
Sector Leisure
Buyer(s) Warburg Pincus
Lemon Tree Hotels
Deal Type Joint Venture

Target Company

Hamstede Living

Delhi, India
Hamstede Living is a co-living platform offering affordable community-style housing geared towards young professionals and students.
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Buyers Overview 2

Buyer

Warburg Pincus

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1966
PE ASSETS 83.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Warburg Pincus is a mega-sized, global private equity firm focused on investment opportunities across North America, Asia, and Europe. Warburg will consider investing at various company stages, from early-stage opportunities to distressed situations. Warburg Pincus is organized by industry groups. Verticals include financial services, healthcare, technology, media & telecommunications, energy, consumer & industrial, and real estate. Within financial services, Warburg will consider asset/wealth managers, banks, exchanges, financial technology, insurance, transaction processing, private banking, and specialty/consumer finance. Within healthcare, specific areas of interest include medical devices, healthcare services, and biotech/pharmaceuticals. Within technology/media/communications, Warburg targets software, media/internet/information, financial technology, telecom, business services, and systems/semiconductors. Within energy, specific areas of interest include oil/gas exploration, power generation/transmission, and alternative energy. Warburg Pincus raised its first fund in 1966 and is based in New York City.


Deal Context for Buyer #
Overall 392 of 493
Sector: Leisure 3 of 3
Type: Joint Venture 4 of 4
Country: India 37 of 49
Year: 2018 41 of 41
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-12-25 Creater

Shanghai, China

Creater is an early urban renewal operator with a strong track record of converting old and underutilized buildings into modern office, retail and exhibition uses. The company provides its members with various value-add services, including office support services, and investment and financing services. Creater is based in Shanghai, China.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-01-01 Zhongyuan Consumer Finance

Zhengzhou, China

Zhongyuan Consumer Finance is a non-banking financial institution in China, providing consumer installment loans and credit loans products to consumers. Zhongyuan Consumer Finance is based in Zhengzhou, China.

Buy -
Buyer

Lemon Tree Hotels

New Delhi, India

Category Company
Founded 1992
Sector Leisure
Employees5,621
Revenue 12.0B INR (2025)
DESCRIPTION

Lemon Tree Hotels is a mid-market hotel company with two main hotel brands, Lemon Tree and Red Fox. The company primarily targets business travelers looking for a high-quality product and efficient service at a moderate price. Red Fox is a budget hotel company targeting budget-conscious business and leisure travelers by offering clean, comfortable and reliable limited-service hotel rooms. Lemon Tree Hotels was founded in 1992 and is based in New Delhi, India.


Deal Context for Buyer #
Overall 1 of 2
Sector: Leisure 1 of 2
Type: Joint Venture 1 of 1
Country: India 1 of 2
Year: 2018 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-11-11 Keys Hotels

Mumbai, India

Keys Hotels are present in 16 cities including Aurangabad, Bengaluru, Calicut, Chennai, Goa, Gurugram, Kochi, Kolhapur, Ludhiana, Mahabaleshwar, Manali, Mumbai, Pune, Port Blair, Trivandrum, and Vishakapatnam. Keys Hotels was founded in 2006 and is based in Mumbai, India.

Buy -

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