Hotel Leelaventure's five-star property in Chennai up for sale

Hotel Leelaventure Ltd wishes to sell its five-star property in this city. The company has appointed JM Financial Institutional Securities as financial advisor to facilitate the sale.

According to sources, the quoted price is around Rs 800 crore, not in line with the market.

“This is part of our restructuring plan and asset-light approach. Hence, like the disinvestment in The Leela Goa, where The Leela continues to manage the resort under its brand name, the Chennai proposal is for a similar purpose,” said a company spokesperson.

The company did not comment on valuation.

The 326-room property is built on 4.8 acres owned by the company. A majority of the rooms and suites overlook the sea.

Sectoral observers say the hospitality sector here, especially five- star ones, face the heat for various reasons. There is a boom in a new model of online booking for home stays.

And, serviced apartments, thanks to new age start-ups, are also affecting the conventional hospitality segment in the city, they add.