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.

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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.

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