Lemon Tree Unit Bags DDA License to Develop 5-Star Hotel in Delhi’s Nehru Place — All You Need to Know

Outlook Business Desk

Landmark Hotel Project

The Delhi Development Authority (DDA) awarded a Special Licence Property (SLP) project to develop a five-star luxury hotel on a prime 2-acre plot in Nehru Place. The development, named Aurika, will be developed by Fleur Hotels, a subsidiary of Lemon Tree Hotels.

Photographer: Dinesh Khanna

Revenue Potential

Fleur Hotels won a bid of ₹27.19 crore per year, which is 50% above the reserve, marks the highest offer in the August 13 auction. The 55-year license is projected to generate around ₹10,000 crore in revenue for the Delhi Development Authority.

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Licensing Model Shift

The Special Licence Property framework replaces traditional freehold and perpetual leases, allowing DDA to retain land ownership while securing long-term income. This innovative model ensures revenue generation without compromising future land flexibility for strategic projects.

Hotel Features

Aurika will offer over 500 rooms, signature dining, extensive banqueting spaces, and premium leisure facilities. Positioned as one of Delhi’s largest luxury hotels, it aims to deliver a unique lifestyle experience, not just accommodation, for business and leisure guests.

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Strategic Location

Situated in Nehru Place, a key commercial hub, the project benefits from excellent connectivity and high demand for business and leisure travel. Its prime location reinforces Aurika’s potential to attract both domestic and international guests to Delhi.

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Aurika Brand Expansion

For Lemon Tree Hotels, securing this project strengthens the Aurika brand and its expansion strategy. Serving over 1.5 million guests annually across 110+ hotels in 75 cities, the company sees Nehru Place as a landmark addition to its portfolio.

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DDA’s Revenue Model

By keeping ownership of its prime land and using a licensing model, the Delhi Development Authority can earn long-term revenue while staying flexible. This approach lets the city generate significant funds from unused or encroached commercial plots without permanently giving up the land.

Upcoming Projects

Beyond Nehru Place, DDA has identified six prime plots for commercial development, including Gold Souk in Dwarka Sector 22, office complexes in Rohini, luxury hotels in Dwarka Sector 23, and a hospital in Dwarka Sector 9.

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Luxury Experience Promised

Patanjali Keswani, chairman and managing director of Lemon Tree Hotels, said, “Delhi has always been a strategic focus for us. Aurika’s entry will deliver a luxury experience that’s about living, not just staying, a landmark in style, comfort, and service for the region.”

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