NRI to buy Leela Hotel Goa for Rs.725 crore

INVleelaLondon businessman Raj Bagri is buying the marquee Leela Hotel in Goa for Rs.725 crore, marking the biggest single property deal in the Indian hospitality sector.

While the ownership of the hotel is changing hands from the Nairs-owned Hotel Leela venture to Bagris’ Metdist, the former will continue to manage and operate the hotel that will keep the name The Leela.

Per the arrangement Ceres Hotels, a local unit created by the Metdist Group will acquire the Leela, Goa, marking the enterprises’ foray into hotel ownership in Asia. The transaction is expected to be completed by the end of the year.

Bagri is the promoter of the Metdist Group that owns metal assets in Malaysia and other parts of the world, after the acquisition of denim brand Spykar last year. Raj Bagri was the first non-British chairman of the London Metal Exchange and a former Conservative member of the House of Lords. His son Anup Bagri manages the group.

Vivek Nair, chairman and managing director of Hotel Leelaventure said the divestment of the Goa hotel and retaining the management of the hotel under the Leela brand is in line with their strategy to restructure their debt, follow an asset-light strategy and manage more hotels.