The Hindu Business Line : Hotel Leelaventure aims at doubling room capacity

Adding space
Six more hotels in Gurgaon, Udaipur, Chennai, Delhi, Pune and Hyderabad planned
Number of rooms to be increased from 1,086 to 2,750 in 3 years
Expansion likely to attract investment of Rs 2,000 crore

Somasroy Chakraborty

Kolkata, Aug. 25 Hotel Leelaventure Ltd plans to more than double its room capacity over the next three years. The company has acquired land in Udaipur, Chennai, Delhi, Hyderabad and Pune where it plans to develop five luxury hotels.

Besides, the company has entered into a management contract agreement with Ambiance Developers to manage a luxury hotel in Gurgaon.

“We currently have four hotels in India. By 2010, we plan to develop six more hotels in Gurgaon, Udaipur, Chennai, Delhi, Pune and Hyderabad. We will have nearly 2,750 rooms over the next three years from the current 1,086 rooms,” a senior official of Hotel Leelaventure Ltd said on condition of anonymity.

Funding plans

The proposed expansion is likely to attract investment of Rs 2,000 crore. The company plans to fund the investment through internal accruals, term loans and funds raised through the issue of Foreign Currency Convertible Bonds, the official said, adding that the company “currently does not have plans for follow-on public issue.”

In April 2007, the company secured a funding of $100 million (nearly Rs 400 crore) through a proposed FCCB issuance with an option to issue up to an additional $10 million (nearly Rs 40 crore).

Of the six proposed projects, the Gurgaon hotel is expected to be operational first followed by projects in Udaipur, Chennai, Delhi, Hyderabad and Pune.

On diversification plans, the official said, “we are currently focussing on luxury hotels and as of now do not have any plans for business and budget hotels.”

Hotel Leelaventure currently has four hotels in Bangalore, Mumbai, Goa and Kovalam. The company recently added 150 rooms to its Bangalore property and has completed refurbishment of its Mumbai hotel.

The company shares on Friday closed at Rs 39.75, up Re 0.75 or 1.92 per cent, on the BSE.