Brookfield to invest Rs 1.5k cr more in Leela
Leela Palaces, Hotels and Resorts business, after the initial deal, which involved an investment of ₹4,500 crore, Ankur Gupta managing partner and head of real estate for the APAC region at Brookfield Asset Management told ET in an exclusive interview. This is the largest ever foreign investment in the Indian hospitality sector.
Gupta said the hotel chain is expected to post its best performance in the last three decades in the current year with 'strong' profit margins.
Ebitda margins are also higher than ever in the history of the brand, he added. The Leela Palaces, Hotels and Resorts currently operates 12 hotels spanning 3,400 rooms.
«In the hospitality industry, achieving robust margins is a significant achievement, and this success can be attributed to the alignment of incentives between the business owner and the management, which is very much the case with Leela.
At Leela, our objectives are two-fold: to increase both revenue and margins,» Gupta said.
«Regarding our top-line performance, we are poised to achieve significant revenue this year, reaching the four-digit mark. And most of it is from our own hotels.
With the quality and appeal of our properties, there's every reason to expect that our hotels can surpass this double-digit growth rate on a year-over-year basis. This trajectory aligns with the broader economic context of India's growth story,» he added.
He said Brookfield is one of the largest investors globally in the real estate space and the company can easily commit more capital as required in large transactions.
«We're looking at an addition of more than 300 rooms in CBD and other districts in Mumbai itself.
We will be bringing in the Leela Palace brand to CBD Mumbai. We are also looking at managed
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