Shares of Hotel Leela Venture Ltd hit an upper circuit of 5 percent to Rs 11.55 per share on the NSE after the company said it has sold certain assets to Brookfield Asset Management for Rs 3,950 crore.
Hotel Leela Venture has entered into a binding agreement with a fund sponsored by Canada's Brookfield Asset Management to sell four hotels owned by the group in Bengaluru, Chennai, Delhi and Udaipur and a property that it owns in Agra for Rs 3,950 crore, the company said in an exchange filing on Monday.
However, the company will continue to operate the hotel in Mumbai along with the joint development project of residential apartments with Prestige Developers in Bengaluru and hold land in Hyderabad.
"Simultaneously, the promoters who own the Leela brand would also be transferring the Leela brand to Brookfield for all hospitality businesses," the press filing said.
“The Leela is rated amongst the top hospitality brands in the world and I am confident that the brand will receive a boost and be further strengthened and continue to be known for its world-class services," said Vivek Nair, chairman, and managing director, HLVL.
“We are excited with this opportunity and look forward to completing this transaction at the earliest while ensuring that all operations remain unaffected. We expect the Leela hotels to continue to be market leaders," said Ankur Gupta, managing director, and Head-India Real Estate, Brookfield Asset Management.
