The Delhi Development Authority (DDA) has awarded its first project under the new Special License Property (SLP) initiative to Fleur Hotels Pvt Ltd, a Lemon Tree Hotels subsidiary, marking a landmark shift in its land disposal policy.

The Rs 10,000-crore project will see the development of a 500-room luxury hotel, Aurika, on a 2-acre parcel in Nehru Place, with revenue to be generated over a 55-year term.

Under the awarded project, Fleur Hotels will develop “Aurika” at Nehru Place, envisioned as one of Delhi’s largest luxury hotels, featuring over 500 rooms. Lemon Tree Hotels currently operates more than 110 properties across over 75 cities in India and aims to bring its upscale brand experience to the Capital through this venture, said the hotel chain/.

“DDA had invited bids through a Request for Proposal (RFP) issued on May 2, 2025, for a 2-acre land parcel in Nehru Place earmarked for a five-star hotel. The bidding process, conducted on August 13, saw Fleur Hotels secure the project with an annual licence fee offer of Rs 27.19 crore—about 50% higher than the reserve price of Rs 18 crore,” DDA said in a statement.

The move signals a significant shift in DDA’s land disposal policy — from the conventional freehold and perpetual lease models to a long-term development model based on annual licencing.

“Reforms set into motion last year by Lt Governor VK Saxena have yielded spectacular results in terms of revenue generation for the DDA, even while facilitating much-needed developments in the Capital,” the statement added.

Officials said that the Rs 10,000 crore revenue projection includes annual fee escalations over the 55-year term.