In a recent development, Canadian investment firm Brookfield Asset Management bought various assets of leading hospitality chain Hotel Leela Venture. The Group has sold four hotels, including one in Delhi and another property in the different state.
Hotel Leela Venture has signed a binding agreement with the Canadian firm to sell these properties which are located in Bangalore, Chennai, Delhi, and Udaipur. The other property is located in Agra.
According to company sources, “The overall transaction cost is Rs 3950 crore. It also includes all the contracts which currently the hotels are undertaking as well as those which are under-development. The assignment of employees will also be undertaken by the owner company.”
Sources further informed that the promoters will also be transferring the Leela brand to Brookfield for all hospitality businesses.
Elaborating on the above deal, Vivek Nair, Hotel Leela Venture Chairman, and MD said,” “The Leela is rated amongst the top hospitality brands in the world and I am confident that the brand will receive a boost and be further strengthened and continue to be known for its world-class services.”
Brookfield Asset Management MD and Head-India Real Estate Ankur Gupta commented, “We are looking forward to this opportunity and will love to complete this transaction at the earliest while ensuring that all operations remain unaffected. We expect the Leela hotels to continue to be market leaders.”
In order to have a smooth transaction, JM Financial became the financial advisor to Hotel Leela Venture.