Hotel Leelaventure is evaluating options of entering the four and five star hotel category in tier-II cities in India under a different brand.
“The final proposal and concept will be rolled out in a month’s time. These hotels are planned in cities like Chandigarh, Raipur and Ahmedabad,” Vivek Nair, Vice-Chairman and Managing Director, Hotel Leelaventure, told Business Line.
The company, which has a debt of Rs 4,300 crore on its books, is also evaluating expansion in the overseas markets through the management contract route.
As part of its expansion plans, the hospitality major is planning to follow an asset light model in the medium term (that is, enter into more management contracts rather than owning and building hotel properties).
New properties would be taken up for Management Contracts by Leelaventures on the lines of its hotels in Gurgaon and Kovalam.
“We are planning to open 10 new hotels that will be managed by us. Such projects are planned in Jaipur, Bangalore, Noida, Agra and Lake Ashtamudi, close to its Kovalam Beach Resort,” Nair said.
Management contract for its Jaipur hotel has been signed and parts of the contract have been signed for its Bangalore hotel.
Its Chennai hotel is expected to be completed by September.
As part of its fund raising initiatives, Hotel Leelaventure has identified non-core real estate properties to be sold off. The Business Park constructed next to the Chennai Hotel with a total built-up area of 2.25 lakh sq. ft. will be sold immediately.
The hospitality firm is also planning to sell its 3.85 acres at Banjara Hills in Hyderabad.
The company shelved initial plans of building a luxury hotel after significant new supply came up in that area.