According to hospitality industry sources, the group is looking at an operational management contract for their second foray into India’s IT capital.
KOLKATA: Hotel Leelaventure, the holding company for Leela Palaces & Resorts, is now looking at a second property in Bangalore, where it already owns and runs the Leela Palace Kempinski.
According to hospitality industry sources, the group is looking at an operational management contract for their second foray into India’s IT capital.
It was also learnt that one of the site locations the group is weighing for the new hotel is Devanahalli, where the second Bangalore airport is slated to come up, by April 2008. Logically, the property should not be less than 250 rooms, sources added.
A Leela spokesperson, however, said: “We do not have such plans at this stage but are always open to projects in high growth markets.”
Sources also indicated that the group is now scouting for property in Kolkata. It seems that this eastern city too, along with Bangalore, is being considered for a potential management contract project. In fact, the Gurgaon model could be looked at in Jaipur as well.
There are currently five upcoming projects on Leela’s platter - at Gurgaon, Udaipur, Chennai, Hyderabad and Pune.
While the Gurgaon property (409-rooms plus 50 serviced apartment), will be on management contract, the other four will be owned and run by Leela but all five will come under the Kempinski marketing and distribution agreement.
The Leela Palace Kempinski in Bangalore has retained its position as the best performing hotel in the country in financial year 2006 with an average room revenue (ARR) of Rs 15,493 and an occupancy rate of 79%. The ARR of the property registered a compounded annual growth rate of 40% during financial years 2004-06. The Leela Goa hotel posted an ARR of Rs 8,591 in FY06 and an occupancy rate of 70%.
The Leela Mumbai’s Rs 104 crore refurbishment programme has reached its final phase. Leela properties will make their entry in locations like Adyar Beach in Chennai, Banjara Hills in Hyderabad, and Yerwada in Pune.
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