NEW DELHI: Hotel Leela Venture Limited on Monday announced the sale of its luxury hotels in Delhi, Chennai, Bengaluru and Udaipur as well as its stake in The Leela Palace Agra to a Canadian fund for Rs 3,950 crore.
The deal includes the transfer of all management contracts of existing hotels as well as those under construction to Brookfield Asset Management. All the intellectual property held by the company, including The Leela brand, would also be transferred to Brookfield.
The group will continue to operate its first hotel, The Leela Mumbai, set up in 1986. If it decides to sell the Mumbai hotel, Brookfield will have the right of first refusal, it said in a note to stock exchanges.
Attempt to repay debt
The Leela group has over Rs 6,000 crore debt. Proceeds from the transaction will be used to repay debt.
After completion of the transaction, “all borrowings from all banks and financial institutions would stand repaid,” it said in a statement