NEW DELHI: Luxury hotel chain Hotel Leela venture plans to sell its five-star property in Chennai for reportedly around Rs 800 crore, according to Business Standard.
The company has appointed JM Financial Institutional Securities as financial advisor for the sale. The report said the quoted price is not in line with the market valuations.
The property, opened in September 2012, comprises 326 rooms and is built on 4.8 acres.
Hotel Leela venture in December last year sold its Goa property for Rs 725 crore to Ceres Hotels Private Limited, by way of business transfer agreement to reduce debt.
The Goa and Chennai properties were taken over by JM Financial Asset Reconstruction Co. in July 2014 from a consortium of banks, led by SBI, after the lenders restructured Hotel Leela’s debt.
As of March 2015, Hotel Leela venture total debt stood at Rs 5,033.81 crore.
Credits ET Realty