Hotel Leelaventure's Q1 profit rises 786%

Hotel Leelaventure Ltd, a premium luxury brand hotel group, has posted 786 per cent rise in net profit at Rs 9.24 crore for the first quarter ended June 30, 2010 as against Rs 1.04 crore in the corresponding period last year.

The company’s income increased 25 per cent at Rs 105.81 crore in Q1, 2011 from Rs 84.71 crore in the comparable quarter of the previous year.

Vivek Nair, vice chairman and managing director termed the income and net profit growth as a “turnaround in the fortunes” of the hotel industry.

Meanwhile, the promoters of the company have agreed to subscribe to the preferential allotment of one crore shares at pricing determined by Sebi regulations.

With a view to capitalise on the existing land parcel in Pune and due to the lagging Pune Hotel scenario, the company has also decided to enter into a joint development agreement with a reputed local builder for the development of the said land into high-end residential commercial property.

The Leela Group has a pan-India presence with six hotels, namely Mumbai, Bangalore, Goa, Kovalam, Udaipur and Gurgaon with over 1600 guest rooms.

The company’s hotel at Chanakyapuri in New Delhi with 260 guest rooms and suites is in an advanced stage of completion and will commence well before Commonwealth Games.

The hotel at the seafront facing Adyar Beach in Chennai with 332 guest rooms is likely to commence operation by mid 2011. Apart from this, the company owns plots of land in Agra, and Hyderabad and the projects in these locations will be taken up in due course.