Luxury hotels chain The Leela Palaces, Hotels and Resorts will soon announce its overseas foray with a deal in Dubai, a top company official said.
“We will soon foray into overseas market with the announcement of a landmark deal in Dubai. It will be an upscale and luxurious property with over 400 rooms under management contract. An announcement on this international project is likely to be made in a month,” The Leela President Rajiv Kaul said in Mumbai.
At present, The Leela manages eight properties in Mumbai, New Delhi, Gurgaon, Bangalore, Chennai, Goa, Udaipur (Rajasthan) and Kovalam (Kerala).
The company will only go for management contracts and has signed deals in Bangalore with 250 rooms, Jaipur with 60-70 rooms, Agra with 80-90 rooms, Kerala, Noida with 225 rooms, he said, adding that the Bangalore and Noida properties are likely to be operational in three-and-half years.
“Our next phase will be only through management contract. We are planning to double our portfolio of eight hotels in next five years,” he added.
The group has marketing alliances with Germany-based Kempinski hotels and US-based Preferred Hotels & Resorts.
The Leela, which is planning to remain confined in the luxury space, will divest non-core assets in Pune, Bangalore and Hyderabad, he said.
“We are yet to complete our pan-India journey, so for now we will stick to the luxury segment,” he said.
Talking about diluting stake, he said, under the Corporate Debt Restructuring, The Leela has to abide by certain norms, for which it will divest assets.
The Leela Palaces, Hotels and Resorts, owned by Hotel Leelaventure, is part of The Leela Group, whose portfolio includes hotel and resort properties, IT and business parks, as well as real estate development.