Brookfield-backed Leela Palaces, Hotels and Resorts on Thursday announced that its wholly owned overseas subsidiary, Aries Holdings, through its subsidiary Boron Holdings, has acquired 25 per cent of Sofitel The Palm FZE, a major luxury beachfront property on Palm Jumeirah, Dubai.
“As the company (Leela Palaces, Hotels and Resorts) owns 25 per cent of Argon through Aries, it has effectively made an investment in Sofitel The Palm FZE,” it said in its stock exchange filing. This comes after its board of directors approved its international foray in October. It will require upfront capital of Rs 437 crore for the 25 per cent stake, while private funds managed by Brookfield will acquire the balance 75 per cent stake.
What does the Sofitel The Palm acquisition include?
How will the investment support Leela’s global expansion?
The company added that this investment will mark its expansion into Dubai, one of India’s most significant international feeder markets, and is expected to deliver substantial financial value. It also expects to recover its equity investment within three years through the sale of branded residences.
“With the planned rebranding of the hotel to ‘The Leela, the property will become the brand’s first international flagship, representing a major milestone in its global expansion,” the company added.
Where does Leela’s India portfolio stand today?
The Leela Palaces, Hotels and Resorts currently operates 13 properties with more than 3,500 keys across 11 cities in India, which include five owned, seven managed, and one franchised hotel.
