Hotel Leelaventure has announced the completion of its transaction with Canada-based Brookfield Asset Management for the sale of the former’s hotel undertakings in Delhi, Bengaluru, Chennai and Udaipur. The deal also includes hotel operations business, and 100 per cent shareholding in Leela Palaces and Resorts.
A total consideration of ₹ 3950 crores was given by Brookfield. As per an official release, “the entire consideration, net of transaction-related costs of ₹70 crores were used to repay the banks and financial institutions who were lenders to the company, in full and final settlement, as one-time settlement.”
The transfer of the Leela brand and trademarks in the hotels and hospitality space to Brookfield have also been carried out. In addition to this, Hotel Leelaventure has also conducted the shift of all the employees of the hotel undertakings in Delhi, Bengaluru, Chennai and Udaipur, and the identified employees in the corporate office, to Brookfield.
However, the hospitality company will continue to own and operate the hotel in Mumbai, under the Leela Brand licensed to it by Brookfield. Besides, it will also continue to own the land in Hyderabad and the share of apartments under the joint development project of residential apartments with Prestige Developers in Bengaluru, adjoining The Leela Palace Hotel.
