Leela drops Bekal resort project in Kerala

Hotel Leela Ventures has dropped plans of developing a beach resort at Bekal in Kerala citing infrastructure reasons.

Peter J Leitgeb, president, Leela Palaces and Resorts, said the group was reviewing the prospects of investing in Bekal. "Right now our priority is to develop hotels in Udaipur, Hyderabad, Chennai, Bangalore and Thiruvananthapuram. Bekal does not fit into our focus area at the moment," he said.

"The road infrastructure to Bekal is quite poor. The Kerala government has to invest significantly in infrastructure if it has to promote tourism in the region," sources in the company added.

The Leela group had shown interest in the Kerala government's Bekal project, which involved constructing and running six resort properties in a total land spread of 189 acre in Bekal, a beach destination in the Kasargod district in north Kerala.

The group is in the process of acquiring Ashok beach resort in Kovalam as part of its strategy to develop resorts.

The group is on a promotional drive in European countries such as UK, Germany, Austria and Switzerland about its Indian resorts. The group is keen on tapping leisure travellers from these countries for its hotels and resorts in India.

The company is currently involved in partnership talks with numerous 'super deluxe companies' in Europe for sales, marketing and reservation tie-ups, said Leitgeb.

Leela currently owns two five-star hotels in Mumbai and Bangalore and a resort in Goa.

"Nearly 50 per cent of tourists come to India on leisure holiday. With adequate awareness, the country has the potential to attract many more tourists. We would like to make Leela, a well known destination for Europeans," said Leitgeb.

The group plans to invest over Rs 900 crore on its expansion plans in Bangalore, Udaipur, Hyderabad, Chennai and Delhi over the next 3-4 years.