Luxury hotel chain Hotel Leelaventure has chalked out plans to increase its footprint across the country by developing new properties in New Delhi, Agra, Hyderabad, Pune and Chennai. The company plans to invest around Rs 1,350 crore by 2015 for the development of new hotels.
“We will raise around $120 million (Rs 550 crore) through foreign currency convertible bonds (FCCB) by April 2010,” Vivek Nair, vice-chairman and managing director, Hotel Leelaventure told Hindustan Times. An FCCB allows a firm to raise debt in foreign currency with an option to convert bonds into stocks.
The company might also raise around $40 million (180 crore) through qualified institutional placement (QIP) of shares, Nair said. “The company will opt for the QIP only if there is a need.” He ruled out any plans of buying out existing hotel chains. “The company will expand only through the development of new hotels. We are in possession of land at Agra, Hyderabad, Chennai, Pune and Delhi.”
The group’s 260-room Delhi hotel is expected to be operational before the Commonwealth Games in October.