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Hotel Leelaventure Ltd has initiated the sale of hotels in Chennai and Goa and engaged the services of JM Financial for the same.
After running into a debt trap, the company has been trying to sell its hotels across cities. Last year, State Bank of India along with a consortium of banks had sold off its debts to JM Financial Asset Construction.
The hospitality major had outstanding debt of ₹5,000 core, of which almost ₹4,000 crore is with the lenders appointed by State Bank of India-led consortium of banks.
Apart from its hotel assets, Hotel Leela Venture has also been trying to sell its land parcels in places like Hyderabad and Agra to reduce its debt.
In Hyderabad, it had 3.85 acres in the prime locality of Banjara Hills where it had plans of setting up its luxury hotel which has now been shelved. Even in Agra it had invested ₹100 crore for the 6.5-acre land parcel, which was to be developed along with a JV partner and was to be managed by the Leela Hotels. In an earlier interaction with BusinessLine , Vivek Nair, Chairman & MD, Leela Hotels, said, “The RBI is not willing to give benefits to stressed hotels but only to new projects without the cost of land being financed.’’
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