Home / Business and Economy / Leela Hotels Expands to Dubai with Palm Jumeirah Acquisition
Leela Hotels Expands to Dubai with Palm Jumeirah Acquisition
27 Nov
Summary
- Leela acquired a 25% stake in Dubai's Sofitel The Palm FZE.
- The acquisition cost for Leela's stake was Rs 437 crore.
- The hotel will be rebranded as 'The Leela' and become its international flagship.
Leela Palaces, Hotels and Resorts has made a significant international expansion by acquiring a 25% stake in Sofitel The Palm FZE, a luxury beachfront property situated on Dubai's Palm Jumeirah. This strategic move, facilitated through its subsidiary Aries Holdings, involved an investment of Rs 437 crore for the stake. Private funds managed by Brookfield will hold the remaining 75% of the property.
The acquisition marks a pivotal moment for Leela, as the hotel will be rebranded to 'The Leela,' establishing it as the brand's premier international flagship. This venture is expected to yield substantial financial returns, with the company anticipating the recovery of its equity investment within three years through the sale of branded residences.
This expansion into Dubai, a key international market for Indian travelers, supports Leela's broader global growth ambitions. The company currently operates 13 properties across 11 Indian cities, and this Dubai property will be its first international base, underscoring its commitment to establishing a global presence.
