Hotel Leela set to sell Kerala property for Rs 500 crore

Hotel Leelaventure, five-star hotel chain is ready to sell its property in Kovalam in Kerala for Rs 500 crore to cut its debt. The property, Leela Resorts Kovalam, is being sold to non-resident Indian industrialist Ravi Pillai. The entity will subsequently enter into a management pact with Pillai to handle the property for 30 years.

The company has a debt of Rs 3,830 crore at the end of FY11 and has an ongoing capital expenditure plan of more than Rs 4,000. The entity reported a net loss for the quarter ended June on higher interest and depreciation costs due to the opening of the New Delhi property.