Published Online:December 2025
Product Name:The IUP Journal of Business Strategy
Product Type:Article
Product Code:IJBS041225
DOI:10.71329/IUPJBS/2025.22.4.58-71
Author Name:Ishita Deb, Anindito Bhattacharya, Nisha Saha and Samarpita Roy
Availability:YES
Subject/Domain:Management
Download Format:PDF
Pages:58-71
Lemon Tree Hotels, one of India’s fastest-growing mid-market hospitality chains, has distinguished itself through a dual commitment to affordability and responsibility. Founded in 2002, the company has expanded to over 90 properties across India by 2023, offering value-driven accommodation while embedding inclusive hiring, energy efficiency, and water conservation into its business practices. The group’s unique employment model, which integrates persons with disabilities and marginalized communities into its workforce, has earned recognition for advancing social sustainability alongside environmental stewardship. These initiatives demonstrate that profitability and sustainability can coexist within a competitive industry known for high operating costs and thin margins. However, as Lemon Tree scales its portfolio nationwide, a strategic dilemma emerges: how can it institutionalize and communicate responsible practices across diverse geographies without compromising affordability, a cornerstone of its market positioning? The risk of “greenwashing” further complicates this challenge, as the hospitality industry increasingly markets sustainability initiatives without demonstrating substantive impact. For Lemon Tree, credibility hinges on transparent governance, measurable outcomes, and authentic communication strategies that go beyond slogans. This case situates Lemon Tree Hotels within the broader discourse on sustainable governance and responsible consumption in emerging markets. It challenges readers to consider how organizations can scale social and environmental responsibility within cost sensitive business models, while avoiding reputational risks in an era of heightened stakeholder scrutiny. The central question is strategic: What should Lemon Tree Hotels’ next move be to sustain affordability, scale responsibility, and safeguard trust in a rapidly evolving hospitality sector?
By 2025, Lemon Tree Hotels has successfully established itself as one of India’s most distinctive mid-market hospitality brands. The hotel is known for its affordable, comfortable, inclusive workforce model with a growing focus on sustainability.