The Leela Palaces, Hotels and Resorts is all set to enter newer markets through management contracts. The Company currently owns and operates nine properties in India. Now the company is aggressively focusing to expand through the asset light model, with immediate plans to expand in the Middle-East.
Speaking about the recent developments, Rajiv Kaul, President, The Leela Palaces, Hotels and Resorts said, “The Leela brand currently owns and operates nine properties across India.Our next cycle of growth will be through an asset light strategy with management contracts. Our plan is to continue to operate in the bespoke luxury hospitality space and be very selective with the destinations we choose for expansion. The upcoming projects are all through management contracts, including, a Palace hotel in the historic city of Agra, where every room will have a sweeping vista of The Taj Mahal; a Palace resort in Jaipur; a business hotel at Bhartiya City, Bangalore; internationally – we are in active discussions for hotels in Maldives, Mauritius, Seychelles, Abu Dhabi and Fujairah.”
Leisure and FIT segment has been the major contributor to the overall business. Last year, the group has also witnessed a sizeable growth in the MICE sector. The e Visa facility has helped to boost this segment.
Kaul added, “Both Occupancy and ADRs have contributed to our current revenue growth. This has largely come from a healthy upside in the FIT segment, followed by MICE segment, which has clearly benefited from the 72 hour e-Visa facility. Also F&B continues to have growth potential, mainly banquets. Occupancy and room rate gains have helped us achieve a high single digit revenue growth, which has yielded a double digit growth in our EBITDA earnings. Overall, we expect a stronger year-end closing than the corresponding period last year. Backed by the assumption that the Indian economy shall grow at seven per cent annually, we anticipate increase in ARR in 2017, which shall deliver double-digit EBITDA growth.”
In 2016, the brand has won several accolades, the group also ranked fifth amongst Top 15 brands in the world in 2016. “Our commitment to providing unforgettable experiences is receiving growing appreciation from our guests. Having achieved a strong presence in India with nine properties in key cities and leisure destinations, we now plan to expand to newer markets outside India. Our beach resorts in Goa and Kovalam have received much global appreciation and acclaim, so it is only logical that we continue our Indian Ocean journey with presence in Maldives, Mauritius and Seychelles. Also, our immediate expansion plans include the Middle-East, which is a growing source market for our hotels and offers rich opportunities for growth.”
