Leela sells assets to Brookfield
Canada-based Brookfield Asset Management (Brookfield) is set to acquire four hotels under Hotel Leela Venture (HLV) for ` 3,950 crore, in what would be the largest-ever hotel deal by value in India.
The board of Hotel Leela Venture approved the sale (by way of slump sale) and transfer of four of its hotel
properties in Delhi, Bengaluru, Udaipur and Chennai to an affiliate of BSREP III, Brookfield’s latest real estate fund. Commenting on the transaction, Vivek Nair, Chairman and Managing Director, HLVL 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 continue to be known for its world-class services.” Ankur Gupta, Managing Director and Head—India Management remarked, “The hospitality groups in India and over the years it has gained extraordinary recognition from some of the most prestigious authorities on travel and luxury in the world. We are excited with this opportunity and look forward to completing this transaction at the earliest, while ensuring that all operations remain unaffected. We expect the Leela hotels to continue to be market leaders.”
The deal brings an end to almost a year of talks between - holders of HLV, which has restructuring. Currently, the hotels, comprising more than 1,400 rooms in Delhi, Bengaluru, Chennai, Mumbai and Udaipur. While the Mumbai hotel will not be part of this deal but the land parcel in Agra will be included. The entail buying the Leela brand, existing and all upcoming management contracts of (HLV) whilst absorbing the employees of the four hotels, the two companies said in a joint statement.
The deal is subject to approvals from shareholders, lenders and other regulatory and statutory approvals, according to the statement. Leela will continue to run its hotel in Mumbai and own certain pieces of land in Hyderabad as well as a joint development project of residential apartments with Bengaluru-basedPrestige Developers.