Hotel Leelaventure today said it is exploring opportunities to partner with real estate firms on a revenue sharing basis to develop its land bank in Hyderabad and Bangalore.
The hospitality chain, which is looking to raise around Rs 1,950 crore through sale of equity and assets and foreign currency convertible bonds, has shelved earlier plans to build hotels in Hyderabad and is instead looking at building upmarket residential complexes.
"In Hyderabad, the company shelved initial plans of building a luxury hotel (on 3.85 acres of land) after significant new supply came up in the area," the company said in a corporate presentation filed on the Bombay Stock Exchange (BSE).
It is now evaluating various revenue sharing opportunities to maximise value as in case of Pune, it added.
Similarly in Bangalore, there is a surplus land of over 8,000 square meters next to its Leela Palace hotel property and similar project could be taken up.
The company has already shelved initial plans of building a luxury hotel in Pune. Instead, it is developing a high-end residential-cum-commercial property in association with Sky Realty Projects on a 50:50 gross revenue sharing basis.
In Chennai, the hospitality chain has an office space with some saleable area which it proposes to sell and lease.
In April this year, the company had said it will raise Rs 1,950 crore through sale of equity and assets, and foreign currency convertible bonds to partly repay its debt of Rs 3,800 crore.
The promoters are looking to sell about 14.95% stake to private equity players for about Rs 600 crore.
Hotel Leelaventure, which currently operates seven luxury hotels in India with a total capacity of 1,869 rooms, is also building another property in Chennai (329 rooms), besides expanding its existing property in Goa (additional 20 rooms).
The Chennai property is likely to be completed by FY12, it said.
Going ahead, the company also has plans to expand its footprint into markets outside India and focus on management contracts than owning properties.
It also intends to evaluate expanding in overseas markets through the management contract route, it said without specifying details. Besides, the firm is also evaluating the option to set up four or five star hotels in Tier-II cities in India, under a different brand.
The company's scrips closed at Rs 37.60, down 1.83% from the previous close on the BSE.
