Leela ventures may sell Delhi & Chennai hotels
Hotel Leela venture is in talks with sovereign wealth funds of Abu Dhabi, Qatar and Malaysia to sell off its two main properties situated in Delhi and Chennai for around Rs 1,850 crore.
The two properties will be hive off into separate entities by the firm which owns, operates and manages hotels, palaces and resorts.
According to industry sources, Leela venture will retain 26% stake and continue to manage the five-star hotels whereas the foreign investor may pick up 74% interest in the hived-off entities.
They stated however the deal is to finalise yet.
No reply is received of the mails seeking comments from the Leela venture spokesperson.
The company informed the stock exchanges, when in February it was first reported that Leela venture is selling the two hotels. The company has to reduce its debts through sale of assets, In terms of Corporate Debt Restructuring (CDR) package being implemented.
It had declared that the company was in conversation with various investors and it is continuously evaluating proposals.
As part of discussions with the cash-rich sovereign wealth funds of Abu Dhabi, Qatar and Malaysia, sources said, for a fixed fee, Hotel Leela venture will still run and manage the Delhi and Chennai properties for 33 years.
For the past several quarters, ITC Hotels who owns 12% in Leela chain has been in the red.
Source: Financial Express
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