Chennai
It will sell hotels located in Bangalore, Chennai, Delhi and Udaipur as well as 100 per cent sharing holder of the company in Leela Palace and Resorts Ltd, which owns property and holds licenses for the development of a hotel in Agra, Hotel Leela Venture said in a regulatory filing.
Proceeds of the sale “will be paid to the lenders of the company towards repayment of dues,” it said. “After completion of the aforesaid transaction, all borrowings of the company from all the banks and financial institutions would stand repaid.”
Post sale, the company will continue to operate the hotel in Mumbai and own certain land in Hyderabad and the joint development project of residential apartments with Prestige Developers in Bangalore.
“Brookfield will have a right of first refusal over the company’s hotel in Mumbai, as a part of the transaction,” it said.
The illustrious history of a hospitality doyen
The late Capt CP Krishnan Nair, founder of Leela Hotels, was born into a poor agricultural family in Kannur, Kerala. Nair had joined the Free India Army in his mid-20s and later met Leela, the daughter of a successful handloom owner. She went on to become his life and business partner. After his marriage, he retired from the Army in 1945 and joined the handloom business.
Nair took over as the CEO of the Producers-cum-Consumers Cooperative Society in Malabar, where the handloom industry was going through tough times. He prioritised the revitalising of the dying handloom textile industry. In 1951, he started the Leela Lace, that pioneered the fabric ‘Bleeding Madras’, which went on to become one of the most sought-after materials in the US.
His list of clients included designers like Liz Claiborne, Tommy Hilfiger and Ralph Lauren. Soon, his business grew. As Nair’s travels increased, so did his exposure to luxurious hotels of the world.
In his 60s, he embarked upon a journey into the world of luxury hospitality. In Mumbai, he and Leela stumbled upon a 11-acre land parcel close to the airport. She prompted him to build a luxury hotel there.
Nair commissioned his first hotel, in less than three years - the Leela Penta in 1986. He tied up with the Penta group, a subsidiary of Lufthansa for a franchise. Since 2013, the hotel has been renamed The Leela Mumbai.
Visit news.dtnext.in to explore our interactive epaper!
Download the DT Next app for more exciting features!
Click here for iOS
Click here for Android