New Delhi, March 17 -- Leela Palaces Hotels and Resorts Ltd, the luxury hospitality chain majority owned by Canadian alternative investment firm Brookfield, has acquired an ultra-luxury resort in Karnataka's Coorg for Rs 560 crore ($60.8 million), marking its entry into nature-led hospitality.
Mumbai-listed Leela Palaces, earlier known as Schloss Bangalore Ltd, bought the property from Pai Vista Hotels Pvt Ltd, it said in a statement.
The 71-villa property, spread across 76 acres near Madikeri, will be launched as The Leela Coorg Forest Sanctuary later this year. Situated in the Western Ghats, within proximity of both Bengaluru and Mangaluru, Coorg is known for its rolling coffee estates, mist-laden hills, scenic waterfalls and storied Kodava heritage.
The property also has significant land reserves that support phased densification, with a first phase adding 19 keys to bring total inventory to 90 villas, per a press note.
"We invest in destinations with cultural and ecological value, and Coorg strengthens our presence in South India while advancing our strategy of building a balanced portfolio across India's most iconic landscapes," said Leela CEO Anuraag Bhatnagar.
Separately, Leela said its board approved an investment of Rs 231 crore in Leela Luxe Hotels & Resorts Pvt Ltd, a wholly owned subsidiary. The proceeds will be used for acquisitions, development, expansion, refurbishments, capital expenditure, and working capital requirements of the subsidiary.
The Coorg acquisition increases the Leela portfolio to 15 properties with over 4,160 keys across 13 cities globally, including seven owned, seven managed and one franchised hotel. With nine hotels in the pipeline, the brand remains on track to expand to 24 properties over the next three years, it said.
Leela competes with the likes of Taj hotels operator Indian Hotels Co., ITC Hotels, Oberoi hotels owner EIH Ltd, Chalet Hotels and Blackstone-backed Ventive Hospitality Ltd.
Brookfield acquired Leela in 2019. It scored spectacular returns through a partial exit when the hotel company floated its initial public offering last year, VCCircle reported at the time. The IPO comprised a fresh issue of shares by Leela to raise Rs 2,500 crore and an offer for sale by Brookfield to mop up Rs 1,000 crore.
Brookfield manages a portfolio of nearly $30 billion in India across real estate, infrastructure, renewable energy, private equity and credit. The firm said last year it aimed to expand its local portfolio to $100 billion by 2030.
Published by HT Digital Content Services with permission from VC Circle.