While the promise of the U.S. market was undeniable, there were major challenges and risks associated with internationalization. For one, the market was crowded, with 16 hotels per 1,000 persons, as compared to only 1.2 in India.72 The U.S. market was also an expensive one in which to operate, with real estate, labor, and healthcare costs in major cities far exceeding those in India. Moreover, Lemon Tree had ambitious expansion plans at home that would stretch its resources thin. The company aimed to expand from its current 51 cities to 143 by 2025.73 It was also entering the fast-growing rental housing segment and rolling out an ambitious loyalty program involving partnerships with airlines and retailers.74 On top of that, it was exploring new overseas opportunities in the United Arab Emirates, Thailand, Sri Lanka, and Nepal.75 Could it realistically carry out all of these initiatives while entering the U.S. market, too? There were other reasons for caution. Lemon Tree had limited knowledge of the U.S. hotel sector and American labor laws, which were quite different than those in India. Now, in the aftermath of COVID-19, there were complicated new restrictions on domestic and international travel to contend with, virus safety protocols, testing mandates, and quarantine requirements for travelers. All of this would require tremendous resources, planning, and training. Lemon Tree also lacked non-governmental partners in the United States to help with worker recruitment and training. This was a serious concern as Lemon Tree relied on an extensive array of Indian NGOs, each specializing in assisting individuals with different physical or intellectual challenges. For example, the Noida Deaf Society, the Sai Swayam Society, and Youth4Jobs provided Lemon Tree with speech- and hearing-impaired job candidates; Efficor provided recruits with orthopedic disabilities; Dialogue in the Dark provided candidates with vision impairments; and Muskaan sourced recruits with intellectual disabilities. Organizations such as Dr. Reddy's Foundation and Vidya, meanwhile, provided Lemon Tree with job prospects from socially and economically marginalized communities. Beyond that, Lemon Tree had relationships with dozens of schools, colleges, and vocational centers across the country.76 Establishing a similar network of U.S. partner relationships could take months if not years. Then, of course, there was the issue of talent acquisition. If Lemon Tree were to replicate its Inclusion Program in the United States, it would need to hire and train dozens if not hundreds of disabled workers and non-disabled staff. Moreover, it would need to find a way to retain these workers given the high turnover rate in the U.S. hospitality sectorroughly 75% annually vs. about 40% for all industries.77 Furthermore, the company would need to bring on board a cadre of HR leaders who could oversee the various skilling, sensitization, and job mapping initiatives and transfer Lemon Tree's unique company culture to the new affiliate. All of this seemed quite daunting. There was also the question of where to launch the business. New York seemed like a natural choice given the large number of Indian business people and tourists it attracted. Presumably, many of these travelers would be familiar with the Lemon Tree brand. Some might even be loyalty program members. But the New York hotel market was very crowded and real estate and labor costs were among the highest in the country. Moreover, New York was a fast-paced city and its inhabitants had a reputation for being impatient and demanding. Would brusque New Yorkers embrace the idea of being served by PWDs if it meant sacrificing even a nanosecond of speed and efficiency? Finally, there was the issue of ownership and management structure. Lemon Tree could build a hotel from scratch to its own specifications, acquire an existing asset, or lease and manage a property without making a capital investment. Lemon Tree had employed the direct ownership model to establish itself as the leading mid-market hotel chain in India, but had been gravitating toward the lease-and-manage model in recent years in order to reduce debt and remain "asset light." Indeed, Keswani had told reporters in early 2019 that he envisioned selling off all of Lemon Tree's hotels within three to five years and leasing some of the properties back from the new owners under long-term management contracts.78 It was a strategy that Hyatt had employed with great success in the U.S. market, using the proceeds from asset sales to invest in new technology, branding, and product development.

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