Leela Hotels, Kempinski end 25-year alliance

The Leela Palaces, Hotels and Resorts, the Mumbai-based luxury hotel chain operator, and Geneva-headquartered Kempinski Hotels have decided to end their 25-year relationship, with effect from October 1.

Following a progressive phase-out, which began in 2012, the agreement will allow The Leela to consolidate its sales and marketing network, while facilitating Kempinski Hotels’ direct penetration of the Indian market.

C P Krishnan Nair, founder and chairman emeritus of The Leela, said: “The strong cooperation enjoyed by the two luxury brands over more than two decades has immensely benefited both and helped significantly rise brand awareness, globally and in Indian market.” The Leela has opened its own marketing and sales channels and more than half its guests are international travellers, with the percentage as high as 90 per cent during peak seasons in properties such as Goa. Leela has stopped using the Kempinski branding on its property and introduced its own marketing code, ‘LR’, against the ‘KI’ code of Kempinski,  in operation earlier. Leela has also opened new sales offices in New York and London.     

Kempinski opened its first India hotel in Delhi this February, in the luxury segment. The 480-room Kempinski Ambience Delhi is located in the eastern part of the city, close to Shahdara. The Leela owns and operates eight properties across the country, at Mumbai, New Delhi, Bangalore, Chennai, Udaipur, Goa, Kovalam (Kerala) and Gurgaon.