In a bid to increase its capacities, Hotel Leelaventure, a luxury hotel chain operator, will spend Rs 2,500 crore to set up three new luxury hotels in different cities over the course of 18 months.
With the addition of new capacities, the company aims to double its turnover to Rs 1,000 crore by end of FY10 from Rs 514 crore posted during the last financial year ended March 31, 2008. New hotel properties will come up in Chennai, New Delhi and Udaipur. This will increase its room inventory to almost 2,000 rooms from 1,125 rooms.
The firm plans to tap into funds raised through the issue of FCCBs for the expansion. The New Delhi property will be located in the Chanakyapuri area, which will serve the Commonwealth Games also to be hosted by the national capital in 2010.
V L Ganesh, director (finance) and CFO, Hotel Leelaventure, said, “Our (New) Delhi hotel will be the most important property as it will serve the guests for the Commonwealth Games. It will contribute significant revenues to our top line as we are looking to reduce our dependence on our Bangalore property, which contributes 47 per cent our total revenues.”