Introduce the hotel

Hotel Leela Venture Ltd is one of the leading players in the Indian hospitality
industry. The company operates in both, the leisure and business sectors. The
Leela palaces and resorts include a chain of five star luxury hotels and resorts.
The company properties include The Leela Kempinski in Mumbai, The Leela
Palace in Goa, The Leela Palace Kempinski in Bangalore and The Leela Kovalam
in Kerala. The company became a popular name in the hospitality industry in
India due to their high quality of service to their customers. The Leela Kempinski
in Mumbai is one of the best deluxe hotels of 5-star rating in India. The Hotel is
spread over an area of 11 acres and has 396 rooms. The Leela Palace in Goa is a
luxury resort and has around 152 rooms. The Hotel is spread over an area of 75
acres and boasts of a 12- hole golf course. The Leela Palace Kempinski in
Bangalore is located near shopping, cultural, and business centers. The Hotel has
358 rooms, a business center, a royal club, and a fitness and pool center. The
Leela Kovalam in Kerala is the biggest beach side resort in the state. Hotel Leela
Venture Ltd was incorporated in the year 1981. The company entered into
collaboration with Penta Hotels in UK to set up and operate 5-star hotels, which
was subsequently transferred to Kempinski Hotels, a European chain of 5-star
deluxe hotels, owned by Lufthansa, the German Airline. In the year 1986, the
company set up their first 5-star deluxe hotel namely Leela Penta, in Mumbai.
The hotel was renamed as Leela Kempinski in the year 1988, following the
change in their marketing and sales tie-up. During the year 1993-94, the
company commissioned 60 new rooms at the Leela Beach Resort and set up a
mini golf course of 6 holes. During the year 1995-96, the company entered into
management agreements with Four Seasons Hotel, Canada, for the management
of the company's hotels and resorts at Mumbai, Goa and Bangalore. The Leela
Palace in Goa started 21 their operation in September 1998. During the year
1998-99, the company entered into sales and marketing agreement with the
Kempinski Group for The Leela Palace, Goa. During the year 2002-03, Leela
Hotels Ltd, a wholly owned subsidiary company merged with the company and
during the year 2004-05, another wholly owned subsidiary company, Vision
Hotels & resorts Ltd merged with the company. During the year 2005-06, the
company acquired the Kovalam Beach Resort Hotel located in the pristine and
scenic Kovalam Beach with 194 rooms. The Hotel after acquisition was renamed
as The Leela Kovalam Beach, Kerala. During the year 2006-07, the company sold
Leela Business Park to their associate company Rockfort Estate Developers Pvt
Ltd for an aggregate amount of Rs 139.7 crore. Also, they acquired land at Adyar
Beach, Chennai, Banjara Hills, Hyderabad and Yerwada, Pune for setting up new
hotels. Kovalam Hotels Ltd, a subsidiary company was amalgamated with the
company with effect from December 4, 2007. During the year 2007-08, the
company entered into strategic relationship with Global Hotel Alliance to
enhance the global reach of sales and marketing network. Also, they made a tied
up with ESPA of London, one of the leading SPA management companies in the
world, to manage their SPAs across all their properties. The company entered
into an alliance with Preferred Hotels during the year. This will give the company

a greater recognition in USA and other parts of the world as Preferred Hotels are
renowned for up market and luxury hotels in the world.The project in Gurgaon,
Delhi with 319 rooms and 9 service residences is under progress and the project
is expected to de ready for operation during the financial year 2008-09. The
Leela Business Park, a world class Business Park at MRC Nagar in Chennai is
under construction and is expected to be operational during the year financial
year 2008-09. The company is constructing The Leela Palace at Udaipur in order
to enter the Rajasthan market is at an advanced stage of completion. The resort
is expected to open in January 2009. The Leela Palace hotel at MRC Nagar in
Chennai is under construction and is expected to have a soft opening by
September 2009. The Leela Palace at New Delhi, is located in the prestigious
diplomatic enclave of Chanakyapuri, New Delhi is under construction6 . 6
http://www.theleela.com 22 2.4 INDIAN HOTELS CO LTD INDUSTRY
Hotel Leela, one of the leading players in premium hotel business, has capex
planned to the tune of Rs 2,400 crore to increase its room capacity by 63% to
1,600 by FY10 from the current 985 and push it up by 168% to 2,644 rooms
across all major cities by FY11. Tardy expansion plans Hotel Leela has
expansion plans for all its hotels. Leela Bangalore is expected to add 105 rooms
to its existing 252 rooms not before FY08 while expansion plans for Goa,
management contract for hotel in Gurgaon would come on stream by FY09 and
new hotel at Udaipur to come by FY10. Expansion project at its Mumbai hotel has
been awaiting approvals from concerned authorities since FY05. The expansions
have been tardy and we foresee them getting delayed. The hotel will lose the
opportunity to maximize gains from the demand bounty. Undiversified market
presence till 2011 The hotel sector is seeing demand-driven by business as well
as leisure segment in metros and other major cities. Hotel Leela has a dominant
presence in Mumbai, Bangalore, Goa and Kovalam. Leelas long absence from
major markets like Delhi, Hyderabad, Chennai, Kolkatta, Pune, Jaipur, Agra, etc
leaves a lacunae for competitors to score. Rooms to come with competition
Although Hotel Leela has undertaken expansion plans to New Delhi, Pune,
Chennai and Hyderabad, the company is not expecting any of the fresh
capacities to be operational before FY11. By 2010, the hotel sector should
witness huge supplies coming in at major cities resulting in rationalisation of
average room rates (ARRs) and cooling down of the occupancies. Valuations We
believe that Hotel Leela is expensively valued and would continue to
underperform the sector and advise clients to switch to better performing stocks
in the sector. Given the delayed expansion plans and absence in major markets
till 2010, we feel Leelas current valuations have factored in the business growth
till FY09. At the current price of Rs 44, the stock trades at P/E of 16.2x FY08E EPS
of Rs 2.7 and 16.8x FY09E EPS of Rs 2.6. We rate the stock as HOLD with a price
target of Rs 42, 16x FY09E.

Company Background Hotel Leela, incorporated in 1981, entered into

collaboration with Kempinski Hotels, to set up and operate 5-star hotels. The
company set up its first 5-star deluxe hotel, Leela Penta, in Bombay in 1986. It

was renamed Leela Kempinski in 1988, following the change in its marketing and
sales tie-up. The Leela Palace, Goa, started its operation in Sept 1998. The hotel
has been upgraded to a world-class beach resort and has been acclaimed as one
of the finest resorts in the world. The 300-room Bangalore five-star hotel had a
soft launch on July 15, 2001. In July 2005, the company acquired majority stake
in Kovalam Hotels Ltd. Consequently Kovalam Hotels Ltd became a subsidiary of
the company and now is known as 'Leela Kovalam Beach, Kerala'. The company
operates four hotels with 985 rooms under the Leela brand.

INVESTMENT RATIONALE Tardy expansion plans Hotel Leela has expansion plans
for all its hotels. Leela Bangalore is expected to add 105 rooms to its existing 252
rooms but this addition is expected to commission by third quarter of FY08.
Expansion plans for Goa to add 29 luxury rooms is expected to get functional by
FY09. Hotel Leela has been planning to launch its new hotel at Udaipur since
FY05. The company is expecting the hotel to be operational in FY10. Expansion
project at its Mumbai hotel has been awaiting approvals from concerned
authorities. Hotel Leela has entered into management contract for a 409 rooms
luxury hotel in Gurgaon which is expected to get commissioned by 2009. The
expansions have been tardy and seem missing to maximize gains from the
demand bounty.

Analyse the business

environment
Company Analysis Diverse presence with higher revenue share of business
destinations The company has a diverse presence across business and leisure
destinations with over 78% of rooms located in business destinations post the
major expansion in Delhi and Chennai. The remaining 22% is contributed by
leisure destinations such as Goa, Kovalam and Udaipur. In line with the subdued
performance of the Indian hotels industry, Hotel Leela has also witnessed a
considerable moderation in performance since the peak of FY08. While business
destinations recorded growth in RevPAR led by improved growth in foreign tourist
arrivals, RevPAR of business destinations remained flattish over the last three or
four years. Between FY08 and FY14, the company reported moderate revenue
CAGR of 6%. The growth was mainly driven by opening of new hotels in
Chanakyapuri Delhi (2011) and Chennai (2013) while these led to a sharp
increase in fixed overheads, which, in turn, led to a sharp contraction in margins
(i.e. down from 44% in FY08 to 19.9% in FY14). However, with an improved
economic outlook, we expect business destinations to perform well and aid in
margin expansion, going forward. Exhibit 1: Revenue growth trend 514.6 452.2
449.2 525.8 570.4 653.9 731.2 - 100.0 200.0 300.0 400.0 500.0 600.0 700.0
800.0 FY08 FY09 FY10 FY11 FY12 FY13 FY14 (15.0) (5.0) 5.0 15.0 25.0 35.0
Revenues (| crore) - LHS Growth (%) - RHS Source: Company, ICICIdirect.com,

Research Exhibit 2: Hotel details Hotel Name Location RBusiness destination

takes major hit in RevPAR growth in past three years Revenue growth over the
past two years moderated led by the weak performance of business destinations.
While average occupancy levels of business destinations declined 300-500 bps
over the past three years, leisure destinations witnessed an improvement during
the same period. As a result, ARR growth of the leisure segment also remained
healthy. However, with an improved business outlook and expected revival in the
economy, we expect growth of business destination to come into the positive
territory over the next two or three years. Exhibit 3: Occupancy trend Occupancy
(%) FY11 FY12 FY13 FY14 Change in 'bps (FY11-14) Business destinations
Mumbai 72.0 76.0 73.0 69.0 -300 Bangalore 69.0 67.0 67.0 64.0 -500 New Delhi
35.0 51.0 58.0 NA Chennai 24 33 NA Leisure destination Goa 71.0 73.0 71.0 71.0
0 Udaipur 24.0 30.0 34.0 39.0 1500 Source: Company, ICICIdirect.com, Research
Exhibit 4: Trend of average room rates (ARR) across properties ARR (|/night) FY11
FY12 FY13 FY14 FY11Expect revenue CAGR of 12.9% during FY14-16E The
company has managed to stay ahead of the industry in terms of revenue growth
led by two major expansions (Delhi and Chennai). In FY08-14, its revenues grew
at a CAGR of 6.0% while it has grown at 11.6% CAGR during FY11-14 led by room
expansion. Going forward, with the expected economy revival, we expect
occupancy and ARR levels of business destinations to improve leading to healthy
growth. Taking this into account, we expect revenue CAGR of 12.9% during FY1416E. Margin improvement during quarter came in as positive surprise The
moderate revenue growth coupled with a sharp fall in power & fuel cost led to an
improvement in margins (i.e. down from 44% in FY08 to 19.9% in FY14).
However, in the past year, stabilisation of new property and cost control have led
to margin expansion. We expect it to improve further led by an expected pick-up
in demand from business locations. During FY14-16E, we expect margins to
expand 250 bps to 22.4% in FY16E. Exhibit 7: Quarterly trend in margins 7.5 27.7
18.0 8.3 9.8 24.8 30.1 8.3 14.1 0 5 10 15 20 25 30 35 Q2FY13 Q3FY13 Q4FY13
Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q1FY15 (%) EBITDA Margin (%) Source:
Company, ICICIdirect.com, Research Exhibit 8: Annual trend in margins 44.6 34.5
28.5 29.7 3.1 17.2 19.9 20.2 22.4 0.0 10.0 20.0 30.0 4

Weakness
expect net worth to turn negative unless steps taken to reduce debt We
expect Hotel Leelas net worth to turn negative by FY16E unless step are taken
to reduce debt drastically. We expect the company to report a net loss of | 519.0
crore and | 512.3 crore in FY15E and FY16E, respectively, mainly on account of
high interest commitment while the margin is expected to improve over 250 bps
to 22.4% in FY16E from 19.9% reported in FY15. ICICI Securities Ltd | Retail
Equity Research Page 5 Outlook and valuations Although the business
environment is expected to improve with an economic recovery in sight, we

remain negative on the company due to concerns over the heavy debt pile. Due
to the absence of any development on fund raising efforts, we are dropping
coverage on the company. Exhibit 9: EV/sales trend 2000 3000 4000 5000 6000
7000 8000 Nov-06 Jul-07 Mar-08 Nov-08 Jul-09 Mar-10 Nov-10
Net worth erosion to continue Hotel Leela posted a net loss of | 160.2 crore
for Q2FY15 on account of higher interest burden. The company reported net
revenues of | 157.5 crore (vs. I-direct estimate: | 166.5 crore), up 2.2% YoY. The
growth continued to remain muted on account of a moderate pick-up in demand
and continued high supply of rooms EBITDA margins improved to 14.1% (Idirect estimate: 9.8%), mainly on account of lower fuel & power costs. However,
net losses remained higher than our estimates on account of high interest costs
Going forward, we expect net worth erosion to continue unless steps are taken
to reduce the substantial debt quickly. With annual interest commitment of over |
500 crore and moderate revenue growth, the going is getting tough for the
company Trapped under high debt; fund infusion must!!! Hotel Leela, which owns
six hotel properties across key business & leisure destinations, has gone into a
high debt pile post the Delhi Chanakyapuri and Chennai expansion. High capex
on these new properties averaging ~| 5.0 crore/room (i.e. ~| 1400 crore for
Chanakyapuri and ~| 1500 crore on Chennai property) coupled with moderation
in growth have led to heavy losses in the past two years with combined net loss
of over | 875 crore. To pare its debt, the company sold the Kovalam (Kerala)
property, raising | 500 crore. Last year, they also sold their Chennai IT Park to RIL
for | 170 crore, which is still insufficient. With annual interest commitment of over
| 500 crore and estimated turnover of | 822 crore, the going will get tough for the
company unless debt is reduced significantly (i.e. at least by 50%) either through
asset sale or through fund raising. Strategic location of hotels and strong brand
name key positive area The company owns properties in key strategic
destinations like Mumbai, Bangalore, Delhi and Chennai among business
locations and Goa, Udaipur and Kovalam among leisure destinations. Over the
past three years, leisure destinations have performed better than business
destinations with average RevPAR growth of 11-14% during FY11-14. Although
the performance of business destinations remained muted (declining 5-7% in the
same period) it remained better than the industry. With an improved business
outlook, we expect growth of business destination to come into positive territory
over next two or three years. Expect net worth to turn negative unless steps
taken to reduce debt We expect Hotel Leelas net worth to turn negative by
FY16E unless steps are taken to reduce the debt drastically. We expect the
company to report a net loss of | 519 crore and | 527 crore in FY15E and FY16E,
respectively, mainly due to high interest commitment while the margin is
expected to improve over 220 bps to 22.4% in FY16E from 19.9% reported in
FY14. Sale of property at premium valuation only key trigger Although the
business environment is expected to improve with an economic recovery in sight,
we remain negative on the company due to concerns over the heavy debt pile.
Due to absence of any development on the fund raising efforts, we are dropping
coverage on the company. Rating matrix Rating : Drop Coverage Target : NA
Target Period : NA Potential Upside : NA Whats Changed? Target NA EPS FY15E

Unchanged EPS FY16E Unchanged Rating Changed from Sell to Drop Coverage
Quarterly Performance Q2FY15 Q2FY14 YoY (%) Q1FY15 QoQ (%) Revenue 157.5
154.1 2.2 155.4 1.4 EBITDA 22.2 15.2 46.4 12.8 73.3 EBITDA (%) 14.1 9.8 426
bps 8.3 586 bps PAT -160.2 -135.2 18.5 -174.6 -8.3 Key Financials | Crore FY13
FY14 FY15E FY16E Net Sales 653.9 731.2 821.9 932.8 EBITDA 112.6 145.2 176.2
217.1 Net Profit -433.5 -441.5 -519.0 -512.3 EPS (|) -10.4 -9.8 -11.5 -11.3
Valuation summary FY13 FY14 FY15E FY16E PE (x) -2.0 -2.1 -1.8 -1.9 Target PE
(x) NA NA NA NA EV/EBITDA (x) 52.1 42.6 37.0 32.2 Price to book (x) 0.8 1.1 3.9
NA RoNW (%) -35.5 NA NA NA RoCE (%) -0.4 -0.6 -0.2 0.5 Stock data Particular
Amount Market Cap | 963 crore Debt (FY14) | 5254 crore Cash (FY14) | 28 crore
EV | 6189 crore 52 week H/L 31/14 Equity capital | 84 crore Face value | 2 Price
performance (%) 1M 3M 6M 12M Indian Hotels 9.4 12.0 61.5 120.4 Taj GVK -10.4
2.9 52.3 79.4 Hotel Leela 7.8 -4.9 30.9 48.3 EIH 4.0 3.4 35.6 78.6 Hotel Leela
(HOTLEE) | 22 Analyst Rashesh Shah rashes.shah@icicisecurities.com ICICI
Securities Ltd | Retail Equity Research Page 2 Variance analysis Q2FY15 Q2FY15E
Q2FY14 YoY (%) Q1FY15 QoQ (%) Comments Total Operating Income 157.5 166.5
154.1 2.2 155.4 1.4 The revenue growth continued to remain subdued led by low
Premium brand image enables it to command high ARRs Market leadership
position in Bangalore territory Weaknesses Excess dependence of revenue on
Mumbai and Bangalore No presence in mid segment could lead to missing the
spurt in Indian tourist interests Opportunities Boom in hotel industry
Commonwealth games to propel demand Threats Upcoming huge room supply
in all major cities Civic unrest or acts of terror
Risks to our call Hotel Leelas is subject to very high dependence on the
business generated from the Bangalore (43% FY07) and Mumbai (38% FY07)
properties. In case of delays in execution of the announced projects of these
cities, ARRs, which are forecast to taper off and the occupancies to dip from the
peak might continue to be strong. This would turn out to be a positive for the
company. The two major revenue drivers in Leelas portfolio of porperties are
business hotels. Cases of economic slowdown in competitor countries / cities,
shifting of business interest towards the cities where Leela operates, medical
hazard or terrorist activities in other geographies, would lead to an inflow of
guests and would eventually benefit the companys earnings. Strengths
Premium brand image enables it to command high ARRs Market leadership
position in Bangalore territory Weaknesses Excess dependence of revenue on
Mumbai and Bangalore No presence in mid segment could lead to missing the
spurt in Indian tourist interests Opportunities Boom in hotel industry
Commonwealth games to propel demand Threats Upcoming huge room supply
in all major cities Civic unrest or acts of terror 10 | Page Financials The year
that was Hotel Leela saw its top line expanding by 16% to Rs 380 crore in FY07
against a 27% rise to Rs 327 crore in FY06. The reduction in the growth rate can
be accounted on the reduced growth rate of room revenues, which slowed from
Rs 214 crore, a 31% growth rate y-o-y in FY06, to Rs 256 crore, a 19% y-o-y
growth in FY07. Company also made a nonrecurring income through the sale of
its business park in Mumbai for Rs 40.93 crore. EBIDTA saw a y-o-y growth of
14.5% to Rs 182 crores while EBIDTA margins took a hit of 81 basis points to

settle at 47.8%. Leelas bottom line showed a growth of 72.8% y-o-y to Rs 126.4
crore while net profit margin witnessed a jump of 1082 basis points to 33.2% on
the back of the non recurring sale. Exhibit 14: Revenue breakup (in Rs crore)
76.30 118.69 163.31 214.57 256.15 285.83 281.70 39.76 55.73 71.82 83.32
95.70 110.60 116.56 18.36 20.99 21.56 29.06 29.01 32.20 32.50 0% 20% 40%
60% 80% 100% FY03 FY04 FY05 FY06 FY07 FY08E FY09E Room Revenue Food &
Beverage Other Services Food & Beverage support top line growth In the period
FY07-09E, revenue from food & beverages is expected to grow at a CAGR of 10%,
greater than the revenue growth of CAGR 6%. We foresee revenue generated
from food & beverage to increase its contribution towards the top line to 27% at
Rs 110 crore in FY08E and Rs 116 crore in FY09E. Room revenue is expected to
grow at a CAGR of 5% to Rs 286 crore in FY08E and Rs 282 crore in FY09E.
Exhibit 15: Food & beverage to grow at greater pace than top line (in Rs crore) 0
100 200 300 400 500 FY03 FY04 FY05 FY06 FY07 FY08E FY09E 0 20 40 60 80
100 120 140 Revenue Food & Beverage Source: Company, ICICIdirect Research
Source: Company, ICICIdirect Research 11 | Page Pressure on EBIDTA margins
The management contract for the Gurgaon hotel is expected to contribute 10%
of revenue to the companys top line. We expect Hotel Leela to encounter margin
pressure in FY09. We forecast the Food & Beverage cost to grow at a CAGR of
10.78% during FY07-09E to Rs 39.3 crore in FY09E impacting the total
expenditure to grow at CAGR 6.16% to Rs 288 crore in FY09E. While operating
profits should witness a CAGR 6.56% growth in FY07-09E, we fear operating
profit margins would be flat at 48% in FY08E-09E post a 47 basis point increase
in FY08E to 48.3% from 47.8% in FY07. Exhibit 16: Margins lose strength 43%
44% 45% 46% 47% 48% 49% FY05 FY06 FY07 FY08E FY09E OPM 0% 5% 10%
15% 20% 25% 30% 35% NPM Operating Margin (%) Net Profit Margin (%)
Return expectations fall short Hotel Leelas return ratios seem to be strained due
to slower bottom line growth. Due to the non-recurring income in FY07, return on
net worth showed a bounce of 515 basis points to record 14%. If we exclude the
sale proceeds of Business Park then FY07 would have registered an increase of
54 basis points in RONW to 9.4%. Going forward we expect RONW to increase by
63 basis points (ex non recurring income) to 10% in FY08E. But in FY09E, due to
pressures on ARR and occupancy we forecast the RONW to retrace to 8.8%.
Company could see its returns on capital employed slip below the 9% mark
during the period FY07-08E settling at 7.5% in FY09E post recording 8.4% in
FY08E from 9.7% in FY07. Exhibit 17: Reducing returns 0% 2% 4% 6% 8% 10%
12% 14% 16% FY05 FY06 FY07 FY08E FY09E RONW ROCE Source: Company,
ICICIdirect Research Source: Company, ICICIdirect Research 12 | Page Revenue
Model Number of Rooms FY06 FY07 FY08E FY09E Mumbai 400 400 400 400
Bangalore 252 252 357 357 Goa 152 152 152 181 Kovalam 125 181 181 181
Occupancy Mumbai 75% 80% 78% 78% Bangalore 71% 75% 75% 75% Goa 71%
74% 74% 74% Kovalam 50% 70% 70% ARR Mumbai 6000 8000 8000 8000
Bangalore 13000 15500 13000 12000 Goa 5500 7200 7200 7200 Kovalam 5000
5000 5000 RevPAR Mumbai 4500 6400 6240 6240 Bangalore 9230 11650 9750
9000 Goa 3905 5328 5328 5328 Kovalam 2500 3500 3500 Source: Company,
ICICIdirect Research 13 | Page Valuation We believe that Hotel Leela is richly
valued and would

Impact of Demand Supply mismatch Although demand for premium rooms in key
destinations is increasing at a whopping rate of 33% over FY07-FY10, but the
supply growth at 45% in the same period dwarfs it, eventually leading to a slip in
occupancy rates. Exhibit 23: Supply outstrips demand 0 5,000 10,000 15,000
20,000 25,000 30,000 35,000 40,000 45,000 FY03 FY04 FY05 FY06 FY07P FY08E
FY09E FY10E 0 10 20 30 40 50 60 70 80 Room demand Room availability
Occupancy rate (%) With added available rooms in the premium segment, we
expect the average room rates to lose steam post FY08 when supply starts to
kick in.

strengths
Valuation We believe that Hotel Leela is richly valued and would continue to
underperform the sector. We feel Leelas current valuations have factored in the
business growth till FY09. At the current price of Rs 44, the stock trades at P/E of
16.2x FY08E EPS of Rs 2.7 and 16.8x FY09E EPS of Rs 2.6. We dont find much
upside to these valuations for a company that is expecting most of its expansion
plans to roll out post FY10. Moreover with an EV/EBIDTA at 14.75x in FY09E,
current valuations seem to be rich in comparison to its peers. Exhibit 18: Peer
Comparison Company Year EPS P/E (x) EV/EBIDTA Indian Hotels FY06 30.5 44.5
21.5 FY07 5.2 27.8 14.2 FY08E 7.6 16.7 10.2 FY09E 9.0 14.1 9.1 EIH FY06 34.6
20.6 11.3 FY07 4.9 19.3 10.2 FY08E 5.5 19.8 12.5 FY09E 6.4 17.0 12.4 Hotel
Leela FY06 9.9 22.1 15.8 FY07 3.4 12.8 14.1 FY08E 2.7 16.2 13.7 FY09E 2.6 16.8
14.7

Core capability of the hotel

Surging tourist arrivals Indian hospitality sector has been booming with doubledigit growth in tourist arrivals. Number of guest arrivals in India increased by
12.4% in CY06 to 4.4 million vis--vis 3.9 million in CY05. The first six months of
CY07 saw an increase of 11.9% in tourist arrival to 2.34 million over 2.08 million
in CY06 for the same period. Another positive trend witnessed by the hospitality
sector is the shrinking off seasonality as can bee seen in the chart below. Exhibit
21: Surge in tourist arrivals 100,000 150,000 200,000 250,000 300,000 350,000
400,000 450,000 500,000 550,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Dec 2003 2004 2005 2006 2007 Augmenting Supply In the wake of the
increasing tourist arrivals and growth in business opportunity in bigger cities
apart from metros, companies are flexing their muscle to expand. Going forward
organic growth is expected to be the driver of revenues since ARRs and
occupancy growth rate are forecasted to rationalise. By 2010, as per the
announcements by major players, the key tourist interest cities would witness a
45% increase in their five star category room base from 27000 rooms in 2007 to

40000 rooms in 2010E. Exhibit 22: Room inventory forecast Prospective locations
2007 2008 2009 2010 Additional rooms North Mumbai 4613 4649 5858 6282
1669 South Mumbai 2134 2369 2369 2369 235 Delhi & NCR 7307 7467 8176
9081 1774 Chennai 1541 1801 2439 3294 1753 Kolkata 1248 1311 1498 2331
1083 Bangalore 1815 2085 2960 4330 2515 Hyderabad 1365 1709 2488 2683
1318 Pune 508 538 756 1538 1030 Jaipur 1168 1208 1208 1208 40 Goa 2565
2565 2665 2665 100 Ahmedabad 264 264 300 461 197 Agra 1354 1384 1384
1384 30 Kerala 1160 1375 1475 1495 335 Total expected additions in room
capacity between 2007 and 2010 12079

The Leela Palaces, Hotels and

Resorts, Introduces in-room
iPads
By adding iPads as a standard feature to every room, The
Leela created a competitive edge and made customers
go 'wow'!
By Debarati Roy
A case study on Mobility in Services
Feb 13th 2013
The Organization: Theres one thing common to most of the thousands
of guests The Leela Palaces, Hotels and Resorts serves annually: They 've
tasted world-class amenities in hotels around the world. Which is why, The
Leela constantly ensures its properties in eight Indian cities keep raising
the bar.
The Project: One of the ways it wanted to do that was to make in-room
iPads a standard feature in every room. In The Leelas vision, guests would
use the iPad as a single console to change the temperature and the
lighting in their rooms, control devices like the TV and other appliances,
and order for food and on-demand movies, among other things. The idea
was to create competitive edge by making this a first-of-its-kind
implementation in India and create a wow factor for our guests, says
Ravish Jhala, corporate head-IT, The Leela Palaces.
The Challenge: For the idea to work, Jhala needed apps on the iPad to
give commands, and devices on each appliance to receive commands.
One app, for example, allowed guests to see who was knocking on their
doors and allow them in. That required cameras outside each door to talk
to the iPad, and a controller on each door to open it.
Building each app in-house and finding controllers for each appliance (TV,
lights, doors, etcetera), would take his team too much time. So Jhala
partnered with an Apple-certified app developer, DigiValet. The company
supplies a controller unit in each room that acts as an intermediary

between the iPad and the controllers on the appliances, which it also
provides.
The DigiValet controller unit is also linked to other enterprise applications
allowing for the hospitality industrys version of straight-through
processing. If, for example, a guest orders for food using the iPad, the cost
of his order is sent to the revenue management system. Integrating the
DigiValet controller and the iPad application with core information
management system was easy. A standard interface that integrates the
two different applications was built by DigiValet and our PMSI partner,
says Jhala.
Another key element of the project was creating an intuitive UI. Even the
slightest confusion in navigating the device would build negative
credibility. We had to ensure the icons were large enough for even older
people to use with ease, while keeping the design sleek and aesthetic,
Jhala says.
The Benefits: One of the outcomes of integrating the iPad solution with
core management systems is real-time information. It ensures, for
instance, that when the kitchen cant serve up a dish, guests cant order
for it, so guests arent told 15 minutes after theyve placed an order that
they cant have it.
The digital medium offers several advantages over the paper medium.
These include easy revisions for price fluctuations, and the ability to track
inventory so customers cant order items that are out of stock, Jhala
says.
Another benefit is increased customer satisfaction. Since the project,
guest satisfaction levels have increased by 15 to 20 percent, although not
all of that stems from the iPad project.

Trade experts also view it as an indication that business traffic from the West did not falter much, despite the
uncertain global climate. Domestic commerce and tourism traffic also contributed its bit to the month's turnout.

In keeping with this trend, the Oberoi in Mumbai has taken the top honours for average room revenues (ARR)
notched during the month, followed by the old Taj (heritage building) from the same city. Leela Palace in
Bangalore has staked its claim to third place in the ARR chain. In sharp contrast, star hotels in Delhi, seem to
have lost its appetite, possibly because of the heat, recording lack lustre numbers during this month.
According to trade estimates, the Oberoi, Mumbai has recorded an ARR of Rs 8,389 with heritage Taj second at
Rs 7,690. If the revenues for the new rooms in the Taj are considered along with the older building, its ARR drops
considerably, to push Leela, Bangalore up into the second place. However, the Taj group treats the old and new
sections as different brands after the renovations, and pegs the room rates accordingly. The Leela Palace
touched Rs 6,900 in May, which makes it the top grosser with a large margin over competition in the Bangalore
star hotel charts. The Oberoi occupies the second slot in the city, inching ahead of the Taj Westend, which
otherwise comes next to the Leela.

Kempinski, Bangalore is set in lush green gardens and beautifulwaterfalls; The Leela is an
enclave of tranquillity in what is perhaps one of the busiest cities inthe world.Located 5 min
from international airport, the Leela Bangalore features 256 rooms; apartfrom this it also has

5 meeting rooms, a grand ball room that can hold up to 800 guests. It hasspecially
restaurants, state of the art health spa and exclusive nightspot.The Leela Palace, Bangalore
is the third property of the Leela Hotels and Resorts
has begun operation and already promises to be a landmark in the Garden City. Located on t
heAirport Road on a plot of about seven acres, the Leela Palace recreates the architectural
beautyof the Grand Mysore palace in an art

deco form.The tricking feature of the hotel is its majestic airy coheres at the entrance. With
256oversized rooms and suites, all connected with high speed broad band connections.
Citrus the 24hour coffee shop, Jamavar the signature restaurant featuring Indian cuisine,
Zen the orientalrestaurant and the Library bar. It has also a state of the art Business Centre
25,000 square feet of banqueting and conferencing facility, the hotel also maintain the
highest service standard. Also aspa centre measuring of 12,000 square feet offers 13
Ayurvedic and Western treatment rooms.This hotel offers the travellers and the in
house guest a new feel of luxury.The Leela Galleria has rented out a part of the building to
their prestigious clients likeDeutsche Software Limited; Swiss Re shared Services (India)
Private Limited, HuaweiTechnologies India Private Limited and Natsem India Design Private
Limited. The Galleria alsofeatures a boutique plaza over 3 floors and contains exclusive
world-class boutiques and salons. This Hotel is affiliated to the specialized hotel booking and
marketing company LeadingHotels of the World which has world wide representation and
provides instant access to theGlobal Distribution System (G.D.S).Our strategy to develop
The Leela brand in all major metropolitan cities and a leadingleisure destination in India.
Opening the most luxurious hotel in Bangalore will fill an importantneed for our hotel group to
have presence in the south of India.The Bangalore hotel is a result of our constant to be an
innovative leader in the hotelindustry by constantly improving our products and services, In
fact, the only way to remain being a market leader would be not only to anticipate our guest

needs but also to exceed their expectations. With the trained service personnel and team
work prevalent in our Hotels, we areconfident to do so in Bangalore as well.

THE LEELA GROUP:-Founded in 1957 by Capt. C.P. Krishnan Nair, the Rs.450 crore Leela
Group was engaged in the business of ready- made garments and luxury hotels and
resorts.Background
Behind every institutional lies the vision of an individual. In Capt. Nairs case, this vision was
flowered, given his unshakeable belief in I
ndias ability to complete with the best in the world asan equal. This belief, forced to a large
extent during Capt. Nairs early years as a freedomfighter in Indias fight for Independence,
finds expression in each of the groups endeavours.
Leela lace Ltd
It was in 1957 when Capt.Nair, after completing his stint in the army, set up a smallhandloom
unit in suburban Mumbai. Inspired by the handloom weaving industry in cannanore inkerala,
this was the Leela Scottish lace Ltd. India

s first and only lace manufacturing unit inIndia

he Leela Kempinski, Mumbai, The Leela Kempinski, Kovalam The Leela Kempinski,Goa and
Leela Palace Kempinski, Bangalore are three of the hotels in India ,and have also
wonconsiderable international acclaim .For this to have been achieved in 17 short years is
nothingshort of remarkable. The Leela Kempinski, Mumbai and Leela Kempinski, Goa are

the membersof The LEADING Hotels of the world.In fact, the Leela Kempinski, Mumbai has
received many awards for being the best 5 star deluxe hotels in India, and Leela Kempinski,
Goa was voted the best luxury beach resort inIndia. It is also only resort in India to be a
member of

The Leading Hotels of the World

.S trategically located in its NCR regions are The Leela Kempinski, Gurgaon, Delhi NCR and
TheLeela Residences Kempinski Gurgaon that bring the finest living for business travellers
to Indiawithin a short of her capital. Offering 322 specious rooms and suites and 90 service
apartmentsrespectively, these are the environs in which you will discover the perfect staying
option,whatever the duration of the stay is
ARMY INSTITUTE OF HOTEL MANAGEMENT & CATERING TECHNOLOGY53
2012-2013
2009:
The Leela Palace Bangalore wins Indias Leading Business Hotel for the Third Year in a
row at WTA London
KEMPINSKI HOTELS AND RESORTS
Founded in Germany 111 years ago, Kempinski Hotels has long reflected the finest traditions
of European hospitality. Today, as ever, Kempinski is synonymous with distinctive luxury.
Located in many of the worlds most well known cities and resorts, the Kempinski collection
Includes hotels in the grand manner, pace-setting modern establishments and older hotels
of Individual charm. All blend gracefully into their surroundings and offer
luxuriousaccommodation, superb cuisines and unrivalled facilities- complemented by
impeccable
LEELA

S OBJECTIVES
Hoteliering starts with innovation, continues the search for the excellence, and
finallycelebrates perfection. These are precisely the three pillars on which The Leela group
has built itsreputation.1
INNOVATION ,EXCELLENCE ,PERFECTION
HOTEL

S PHILOSOPHY
Atithi Devo BhavaOur Guiding EmotionService from the Heart
MISSION STATEMENT

ARMY INSTITUTE OF HOTEL MANAGEMENT & CATERING TECHNOLOGY54

2012-2013
1.
The Leela Palace, Bangalore will be the first choice hotel within India for the
discerning business and leisure traveller.2.
We will achieve market dominance by providing the finest in personal service3.
And facilities to one guest.4.

One food & beverage & spa concept will reflect innovative and creativity.5.
We recognize one

s responsibility to conscience the environment& support6.

Local community.7.
One philosophy & core values provide the platform upon which employees8.
Will excel & grow personally & professionally.
VISION OF LEELA
1
Our hotel with be the best employer in the industry having zero tolerance for 2
Deviation from our core values.3
We will be the leader in developing new products and services4
We will be the landmark hotel in Asia by 2006
CORE VALUES
1
People2
Team work 3
Product quality4
Innovation & continuous improvement5
Customer satisfaction6
Profitability

COMPANY INFORMATION
The Leela Palaces, Hotels and Resorts is owned and managed by Hotel Leelaventure Limited. The
company was established in Mumbai, India in 1983 and was founded by Late Capt. C. P. Krishnan
Nair, Chairman Emeritus and Founder Chairman, who envisioned the hotel group to be amongst the
finest luxury hospitality brands in the world. Today, a little more than 30 years since Capt. Nair
began work on putting India on the luxury map of the world, The Leela Palaces, Hotels and Resorts
has grown from one hotel, on the outskirts of Mumbai, to nine award-winning properties across the
country, celebrating Indias diverse geography and architectural history. All the while, The Leela
has remained true to its objective of redefining standards of luxury hospitality, the world over.

On February 17, 2013, the leadership of the group was handed over to the sons of Late Capt. C. P.
Krishnan Nair Mr. Vivek Nair, Chairman and Managing Director and Mr. Dinesh Nair, Co-Chairman
and Managing Director, Hotel Leelaventure Limited.

On May 17, 2014, the Founder Chairman and Chairman Emeritus of The Leela Palaces, Hotels and
Resorts, passed away peacefully at the age of 92, with his family standing beside him.

Overview
The Leela Palaces, Hotels and Resorts, from the very start, has been on a continuous journey to
delight every guest offering memorable and magical stays that reflect the essence of India. The
signature promise that binds the groups underlying philosophy is Atithi Devo Bhava, or Guest is
God, as laid down in the ancient Indian scriptures. And the commitment to stay true to this guiding
principle has resulted in outstanding experiences for our guests. Over the years, The Leela has
been recognized with numerous prestigious awards and accolades.
Currently, The Leela Palaces, Hotels and Resorts owns and operates five properties and the others
are managed. These properties are located in prime urban cities of Bangalore, Chennai, Delhi,
Gurgaon, Mumbai and New Delhi as well as Indias magical holiday destinations of Goa, Kovalam
and Udaipur. Our forthcoming launches in India will be - The Leela Palace Jaipur, The Leela Palace
Agra, The Leela Hotel and Residences Bhartiya City Bengaluru and The Leela Lake Asthamudi
Kerala.
The group has an alliance with Global Hotel Alliance to offer The Leela DISCOVERY to over 6
million customers and an International Sales & Marketing alliance with the Preferred Hotels &
Resorts group to help push our products to international global procurement heads in
multinational corporations / travel companies. The Leela Palace New Delhi, The Leela Palace
Udaipur, The Leela Palace Bengaluru, The Leela Palace Chennai and The Leela Goa are under the
Ultra Travel Collection brand. The Leela Palace New Delhi & The Leela Palace Udaipur are also
Virtuoso hotels.
Even before Corporate Social Responsibility took centre stage in every major companys annals,
The Leela, under the guidance of its visionary, Late Capt. C.P. Krishnan Nair, had set its mark on
responsible growth. To begin with, The Leela Mumbai, the first hotel of our group, was chosen to be
set-up in an area close to the slums. The group landscaped wide swathes of urban property with
over 6000 coconut palms and thousands of trees to beautify and cleanse the air. Even before the
Sahar Elevated Access Road to the international terminus (T2) was built from the Western Express
Highway, the group took it upon themselves to clear-up and transform the uneven access roads to
the airport with dense organically grown foliage trees, thereby easing the commute of thousands
that accessed the international airport.

The ecological consciousness of the hotel group goes beyond simple aestheticsit uses
biodegradable detergents in its properties, avoids plastic and exercises strict controls on the usage
of electricity, water, heating and lighting, while maintaining high standards of sparkling cleanliness
that is essential for opulence. Late Capt. C.P. Krishnan Nair has received much acclaim and
numerous international and national awards for his initiatives towards environment conservation.

Each of our properties is mandated to implement state-of-the-art waste management practices

with the emphasis on conserving all possible natural resources and complying with every
applicable legislative and regulatory strictures and procedures. It also imparts training and
education to various stakeholders, including employees, suppliers, vendors, and customers.

FUTURE PLAN AND OPENINGS

he Leela Palace Agra
Experience a world of grandeur and splendour at The Leela Palace Agra. It will be located at 200
km driving distance from New Delhi.

All 140 rooms enjoy the view of the magnificent and historical Taj Mahal. It will have an array of
multi-cuisine speciality restaurants, a Technogym, several conference and meeting room facilities
and a Spa by the world renowned ESPA. Agra Airport is about 12.5 Km from city center.

The Leela Lake Asthamudi Kerala

The Ashtamudi Lake, so named because of its eight 'arms' or channels is the gateway to the
backwaters. Located in Kollam district, Ashtamudi is famed for its panoramic and scenic views.

The Leela, Lake Ashtamudi (Kerala) is situated amidst the serene beauty of the coconut groves and
palm trees along the banks of the lake. All rooms will enjoy a view of the Lake Ashtamudi. It is in
close proximity to the house boats which are located in the lake.

he Leela Hotel and Residences Bhartiya City Bengaluru

The upcoming hotel, The Leela Hotel & Residences, Bhartiya City, Bengaluru will be located on 126
acres of vast green landscape. With the advantage of being in one of the largest townships planned
within the city, guests staying at the hotel can avail of an array of integrated services and facilities
that will be a part of this luxurious complex.

With proximity to luxury retail outlets, a centre for performing arts, commercial complexes and
other entertainment options, the hotel will undoubtedly be the most preferred destination in
Bengaluru. Strategically located, the hotel will be about a 25-minute drive from the International
Airport and less than a 30-minute drive from MG Road.

The Leela Palace Jaipur

The Leela Palace Jaipur has luxurious villas which are a perfect balance of old world charm and
modern in room guest facilities. Multiple dining options, exquisite banquet facilities, a state - of the art health club, temperature controlled swimming pool and an indulgent spa make it an ideal
royal retreat for couples, families or for business meetings.

Located amidst tranquil settings near the Amber fort on Delhi-Jaipur highway on 10 acres, this
newly built heritage style palace pays tribute to the historical architectural style. The hotel is within

easy driving distance to the other historical places of interest, to the walled city and to the famous
markets sell

Hotel Leelaventure plans five new properties

PTI Sep 9, 2012, 12.47PM IST

Tags:

Leela Group|
Hotel Leelaventure|
Bharatiya Group

NEW DELHI: Hospitality chain Hotel Leelaventure is considering to open five new properties to strengthen its
presence across the country.
The company, which currently has seven hotels across India, is considering new properties at Agra, Ashtamudi,
Jaipur, Bangalore and Noida. Besides, its 326-room new property in Chennai is expected to be completed by the
third quarter of the current financial year.

In an investor presentation, the company said it is considering expansion through a mix of company-owned and
managed properties.
It, however, did not specify the investments required for the new properties nor the time line for their
operationalisation.
Elaborating its plans, Hotel Leelaventure said it is considering to build a 5-Star deluxe hotel at Agra with a coinvestor with a room capacity of 110, all of which will face the Taj Mahal.
The hospitality chain is also considering to set up a luxury resort of 15 floating villas and 25 other villas totalling to
40 rooms with a co-investor at Ashtamudi in Kerala.
The company said for the new Jaipur property, it has signed a management contract. It will be a a 58 villa resort
and development of the project is being undertaken.
It further said that for Bangalore, a letter of intent (LoI) has been signed with Bharatiya Group which is developing
a multi-use complex in a SEZ of 120 acres.
The project envisages a Leela Hotel with 250 guest rooms, Leela Residences with 150 residences and a
convention centre admeasuring about 45,000 square feet, all to be managed by the Leela Group, it said.
"For Noida an LOI has been signed with one of the leading developers in Noida, who are setting up a mixed use
complex admeasuring about 70,000 sq mtrs. The project envisages the Leela Palace Hotel with 250 guest-rooms
and the Leela residences with 100 units," it added.

The company's current properties are located in Mumbai, Goa, Bangalore, Udaipur, New Delhi, Gurgaon, and
Kovlam. While some of these are company owned others are under through management contracts.

We plan to bring down the debt substantially in the next 3

years: Vivek Nair, Hotel Leela
Divya Sathyanarayanan, ET Bureau Sep 21, 2015, 09.11AM IST

Tags:

Vivek Nair|
Hotel Leela

("Debt can be brought down)

MUMBAI: Hotel Leelaventure, which owns the luxury brand The Leela, does not plan to sell any more assets
after announcing the Rs 725 crore sale of its Goa property to a Malaysian company in the biggest single asset
acquisition in India's hospitality sector.
Vivek Nair, chairman and managing director of Hotel Leelaventure, tells ET's Divya Sathyanarayanan in an
interview that the company plans to reduce its debt substantially over the next three years through restructuring
at the corporate level. Edited excerpts:

How do you view the deal market in the hospitality industry?

The market is slowly picking up and the best performing asset gets the best value. That's how we selected Goa
to show that we are serious in our plan to pursue the road map to pare down debts. The main issue in the
industry is that we get short-term loan, that too at a very high rate of interest.
We can't put up projects at 12-14% interest and then repay the debt in a period of eight years, out of which three
to four years go into construction and then we are left with just four years to repay the debt. This is the reason
why 99% of the hotels that were put up in the market over the last five years are in a bad state. Almost 230 hotels
are on the block. So, by far, there is not much optimism in the market.
After the sale of the Goa property, what is the way forward for The Leela group?
We will find an overall solution at the corporate level, both in terms of equity and debt reduction. We can wipe off
a substantial portion of the debt by having a foreign currency loan with low rate of interest over 15 years. There
are a lot of options we are considering. If we keep disinvesting, then where will we get the cash flow from? In
fact, Goa property is one of the highest contributors to the EBITDA and about 45-50% of our gross operating
profits come from this property.
So it's best to keep the properties and find a solution at a macro level to restructure the company. We will look at
an overall solution by not selling any more asset because the more we sell each asset, the profitability comes
down at a macro level. The company will work with JM Financial to script a restructuring plan at the corporate
level and this plan should be ready over the next six months.
By when do you plan to be debt-free?

Once you have to pare down debt fully, then you have to compromise on the equity. Debt can be brought down
substantially and then we can avail of an investor who will bring in foreign currency loan. So we plan to bring
down the debt substantially in the next three years by a mixture of equity infusion and reduction of debt.
How does The Leela group's growth map look over the next three to five years?
We are looking to add about 3,500 guest rooms, suites and serviced residences by 2020. Going forward, the
strategy will be to remain asset-light and grow through management contracts. We already have projects under
implementation in Bengaluru, Jaipur, Agra, Chandigarh, Ashtamudi and Lucknow. Overseas destinations under
advanced stage of discussions include Seychelles, Abu Dhabi, Kathmandu, Dubai and Maldives.
In Agra, the seven-acre property facing the Taj has a 100-room Leela Palace and a 150-room Aiana which is
owned partly by the Qatar royal family. They have bought the land and they are putting up the entire expenditure
of about Rs 500 crore for both the properties.
Do you see any synergies with your daughter's brand Aiana?
It is complimentary. Hers is an entry-level five-star brand and ours is the luxury brand Leela Palace. In future, if
we get synergy opportunities then we will look at it.

August 18, 2014:

Hotel Leelaventure (Hotel Leela), one of Indias best known luxury hotel chains with eight marquee
properties across the country, has had its back to the wall for some time now. This is primarily because of
the high debt on its books, which has made interest costs balloon. The company hopes to tackle this
through property sales and an asset-light strategy involving management contracts.
Its been nine quarters now since Hotel Leela last posted a profit. Its debt has risen sharply from less than
1,000 crore in March 2007 to nearly 5,000 crore now. The interest cost of 502 crore in 2013-14 was
more than twice the operating profit for the year. With its net worth shrinking on account of heavy losses
over the past two years, Hotel Leelas debt-to-equity ratio has worsened to six times from just about one
time in March 2007.
How did this happen? Two factors went against the company debt-fuelled expansion, and the slowdown
after the 2008 financial crisis which took a toll on demand. Explaining the reasons for the debt squeeze,
Vivek Nair, Chairman and Managing Director, Hotel Leelaventure, said: It was after the Lehman Brothers
crisis, when the stock market crashed, that the debt problem started for us. Buying land during the
Commonwealth Games to build hotels also added to debt levels.
Bad timing
The last few years after the global financial crisis in 2008-09 have been forgettable for the Indian
hospitality industry. Buoyed by the good run prior to the crisis, many players including Hotel Leela went
into expansion mode. Of the six properties it owns and manages, three Udaipur (2009), New Delhi
(2011), and Chennai (2013) started operations after 2008. Expansion at Hotel Leelas Bangalore property
also happened in 2008. So, of the companys current capacity of 1,619-owned rooms, about half came into
operation in the last five-six years. While this helped Hotel Leela establish a wider presence across the
country, the timing went bad.
Along with the supply of rooms, depreciation and interest cost rose fast. On the other hand, an insipid
economy meant that demand in the hospitality industry did not keep pace. Ergo: Occupancy levels,
especially in the business segment, slipped and average room rentals dropped. Caught in the pincer of
rapidly rising costs and slow revenue growth, Hotel Leela started floundering.
Fighting back
As part of its fight-back strategy, Hotel Leela sold its Kovalam property for 500 crore in August 2011. But
it continues to operate the property under a management contract through this asset light model, the
company does not own/only partly owns the hospitality properties, but manages them under its brand
name for a fee. This helps avoid big-ticket capital expenditure. The management contract approach was
first adopted by Hotel Leela in 2009 for a property in Gurgaon, and it plans to walk this path for future
growth.

Hotel Leela was referred for corporate debt restructuring (CDR) in early 2012; as part of this, the promoters
infused 165 crore. The company also sold its IT park in Chennai for about 170 crore in February 2013,
and shelved plans to open new hotels in Pune and Hyderabad. The companys plans to raise about 1,000
crore through qualified institutional placement (QIP) have not materialised so far. Also, talks earlier this
year to obtain a bridge loan from PE firm KKR fell through.
Almost 4,000 crore of the nearly 5,000 crore debt on Hotel Leelas books as on June this year was under
CDR with 17 lenders. Of these, 14 lenders with exposure of nearly 3,850 crore have assigned their dues to
JM Financial Asset Reconstruction Company recently. With this, Hotel Leela has exited from the CDR.
What next?
Going forward, the company intends to deleverage through monetisation of its non-core assets. These
include sale of office space next to its Chennai property, joint development of real estate on its Pune and
Bangalore lands, and sale of land in Hyderabad.
Also, Hotel Leela is reportedly looking to sell majority stake in its Delhi and Chennai hotel properties for
about 1,850 crore, and could tie-up with sovereign wealth funds. In the past, we had raised funds through
the QIP and foreign currency convertible bonds and now we will be tapping sovereign wealth investors to
bring equity, said Vivek Nair.
All said, the company needs to get its act together and fast. The recent June quarter loss of 175 crore, up
from 149 crore in the same period last year, highlights the urgency of the situation. A silver lining is that if
the economy improves, as expected, room occupancy levels could increase and tariffs could head higher
this will provide the company more leg-room.
(With inputs from
Purvita Chatterjee)

Company to sell its non-core assets to pare debt

The Indian hospitality sector has been reeling under the effect of the economic downturn in Europe and in
the US as well as the economic slowdown domestically. Costs have gone up while occupancy levels havent.
Debt-laden hospitality company Hotel Leelaventure has begun charting a turnaround. As part of its strategy
to pare its debt of around Rs 4,750 crore, the company plans to sell many of its non-core assets and enter
into management contracts for its hotel projects.
The company sold its IT park in Chennai last fortnight for Rs 170 crore to Reliance Industries Ltd. The
group had earlier sold its luxury hotel Leela Kovalam to Travancore Enterprises, owned by B. Ravindran
Pillai, for Rs 500 crore, but had continued to manage the five-star property with its own-brand name.
Vivek Nair, Chairman and Managing Director of Hotel Leelaventure, spoke to Business Line about the
future plans of the hospitality group.
What has been the impact of the slowdown on the sector?
During the boom phase between 2006 and 2008, we had around 6,000 rooms being added in a year. Now,
we have 20,000 rooms coming in. But because it is coming up at a time when there is a global economic
downturn, there is a demand-supply imbalance. Like for instance, in Delhi, after the Asian Games, eight or
nine hotels sprung up. And thus, occupancy levels came down to 50 per cent.
The city once saw 80 per cent occupancy levels. But the occupancy levels came back to 70 per cent in two
years time. We expect that trend to continue. In the long-term, there should be a correction.
Every room which is unsold is like an airline seat. Now, the hotels are trying to keep the occupancy levels
high at the expense of the room rates till the market picks up. At the macro level, rate of demand is less
than the rate of supply.

For instance, in Bangalore during the last two years, the rate of growth of supply has been 38 per cent. But
the rate of growth of demand has been only 19 per cent in the five-star hotel category.
For The Leela, the average room rate (ARR) in 2008 in Bangalore was Rs 20,000 which has now come
down to Rs 12,000. In Goa, the quantum of fresh supply of rooms has been restricted compared to other
places. And this has helped us to remain the market leaders there.
In Goa, we renovated the hotel in the last one year. Our occupancy levels in Goa are 72 per cent at an ARR
of Rs 14,000 for the whole year. In Kovalam, our occupancy levels are little less than 70 per cent at ARR of
Rs 9,000.
How is the Corporate Debt Restructuring (CDR) progressing?
CDR is well on track. We have put road maps for attaining the goals. These included disinvestments from
our non-core assets. We had sold the commercial building (IT Park) next to our Chennai hotel to Reliance
Industries Ltd for Rs 170 crore recently. We are selling plots of lands in Hyderabad and Pune. In Pune, we
have a joint venture with a local developer for a residential complex. We are expecting Rs 150 crore from
this development.
We will get another Rs 150 crore from the joint development for a residential development with Prestige
Estates in Bangalore. Also, we will be raising Rs 1,000 crore through QIP or FCCB when the market
improves.
What are your expansion plans in India?
Our next cycle of expansion will be through management contracts. We want to grow the Leela Palace
brand as much as possible. Right now, we have eight properties, out of which Gurgaon and Kovalam are
managed by us.
Going forward, we have inked the management contract for our Noida hotel with Supertech Real Estate
Developer. This will be a 250-room hotel. Our hotel in Jaipur will also be under management contract while
the hotel in Agra will be through a joint venture. In the case of the management contract, 100 per cent
ownership is with the developer and in a joint venture, we have a stake in the project.
Our Delhi property is, however, 100 per cent owned and we dont plan to go the management contract route
for that. We are building a second hotel in Bangalore (235-room) strategically closer to the airport. This will
be under management contract with the Bharatiya Group. We recently opened our 326-room Chennai
hotel, which is the only sea-facing luxury hotel in the city. We have opened Udaipur in 2009, Delhi in 2011,
and Chennai in 2013.
You were evaluating options of entering into the entry-level five-star category. What is the progress?
We are still formulating the plan. We will have an announcement on that once we sign the first deal. We
perceive a demand for that segment which will have much lower room rates. For this segment, we are
exploring through the management contract route.
Why havent you spread your footprint overseas? Any plans for overseas expansion?
We plan to go abroad. But we want to consolidate our position in India first. The gross operating profit
margins in India are at least 30 to 40 per cent higher than abroad. And the market is so buoyant here.
People are asking us to look at projects abroad. But our aim was to cover the entire country by spreading
our presence in the major metro cities.
What is the groups hiring strategy?
Staff attrition ratio is climbing and is above 25 per cent. There is a paucity of talent and it is a very porous
arena. People keep crossing from one brand to another. It is a bit of a revolving door. But, we have our own
training schools and customised training modules. Majority of the development of talent is done in-house.
(This article was published on April 7, 2013)

Shares of Hotel Leela Venture surged nearly 13 per cent to an intraday

high of Rs 24.20 on Tuesday after the company outlined a debt-reduction
plan through sale of assets.
"In accordance with the powers delegated by the company's board, the
Assets Sale Committee, in its meeting held on March 02, 2015 has decided
to commence the process for sale of its hotels in Goa and Chennai," the
company said in a release to exchanges yesterday.
Hotel Leela has engaged JM Financial Securities for sale of its Chennai
and Goa hotels.
The company had long term borrowings of Rs 2,580 crore as of March 31,
2014. Interest cost has been weighing on its profitability. Hotel Leela had
paid a total interest of Rs 502 crore in the last financial year.
Analysts say reduction of debt will help the company achieve profitability in
coming quarters. The company had reported a net loss of Rs 125 crore for
the quarter ending December 31, 2014.
Shares in Hotel Leela closed 8.2 per cent higher at Rs 23.20 apiece,
outperforming the broader Nifty, which closed 0.44 per cent higher.
Story first published on: March 03, 2015 16:37 (IST)
Tags: Hotel Leela Ventures, Hotel Leela Venture asset sale plan, Hotel Leela

New Delhi: Hotel Leelaventure on Wednesday reported net profit of Rs

162.19 crore for the third quarter ended December 31, 2015-16, on account
of an exceptional gain from the sale of Goa hotel.
The hospitality major had posted net loss of Rs 125.04 crore in the same
period last fiscal.
Its net sales during the period under review stood at Rs 184.31 crore as
against Rs 180.59 crore in the same quarter a year-ago, Hotel
Leelaventure said in a filing to the BSE.
The company reported exceptional gain of Rs 181.69 crore from sale of its
'Goa Hotel Undertaking'.
Its overall expenses during the third quarter of the current fiscal rose
marginally to Rs 189.87 crore as compared to Rs 187.95 crore in the same
period last fiscal.

Hotel Leelaventure's stock was trading 2.53 per cent down at Rs 18.25 on
the BSE.
Story first published on: February 10, 2016 15:13 (IST)
Tags: Hotel Leelaventure, Hotel Leela, Goa hotel

shares of Hotel Leelaventure rose 12 percent intraday on Tuesday as it firms up

plans to cut debt. The hospitality chain is planning to sell its properties in Goa and
Chennai. "In accordance with the powers delegated by the company's board, the
Assets Sale Committee, in its meeting held on March 2 has decided to commence
the process for sale of its hotels in Goa and Chennai," the company said in a filing to
the BSE. The company said it has engaged JM Financial Institutional Securities for
sale of its Chennai and Goa hotels. "Accordingly, an advertisement is being released
inviting interested parties to submit their expressions of interest to JM Financial," it
added. Commenting on the development, Hotel Leelaventure Chairman and
Managing Director Vivek Nair said, "As part of the restructuring programme, the
company has embarked on an asset light strategy to pare down its debt and has
appointed JM Investment Banking as its financial advisor. As part of this process,
expressions of interest are being invited for The Leela Goa and The Leela Palace
Chennai." The company plans to divest in select hotels while continuing to grow
through managing and operating new hotels under The Leela brand, he added. The
company reportedly had a debt of around Rs 4,500 crore as of last year. As per the
terms of a Corporate Debt Restructuring (CDR) package, the company had to
reduce its debts through sale of assets. Last year, the company had failed to avail of
a bridge loan from Kohlberg Kravis Roberts (KKR) as the company, its lenders and
the global investment firm could not agree on terms. In 2011, Hotel Leelaventure
sold off its luxury hotel Leela Kovalam in Kerala for Rs 500 crore to Travancore
Enterprises. At 09:49 hrs the stock was at Rs 23.95, up Rs 2.40, or 11.14 percent on
the BSE. (With inputs from PTI)

Read more at: THE LEELA PALACES, HOTELS AND RESORTS

UNVEILS NEW BRAND IDENTITY AND EXPANSION PLANS
umbai - 05 April 2013 - For the first time since its inception, The Leela Palaces, Hotels and Resorts has unveiled a new brand
identity, including a new logo and a revamped website, designed to express the brand's transformation over the last 25 years. A
comprehensive plan will guide the transition of the new identity at existing and upcoming properties which also includes
signages, advertising creatives, guest facing materials, sales and marketing collaterals, stationery and amenities.
The new brand identity is a result of a great collaboration with internationally renowned branding experts, Landor Associates,
Paris; an acclaimed digital firm for Fortune 500 companies, Rare Medium, Atlanta, US; and a master Indian calligrapher, Satya
Rajpurohit.
The innovative change marks a highpoint for the Group, which in a short span of time, has evolved from one hotel on the
outskirts of Mumbai, into a network of eight award-winning properties in prime destinations across the country. The Group plans
to double its portfolio in the next four years, adding four new luxury hotels and two branded Leela Residences to its portfolio.
Commenting on the initiative, Vivek Nair, Chairman and Managing Director of The Leela Palaces, Hotels and Resorts said, The
Leela Group's new brand identity is a tribute to The Leela's past and future, and articulates the brand's promise to offer only the
finest luxury experiences, in settings that are the essence of India. Now is the time to not only continue redefining luxury which

the Group is known for, but also to reflect it in everything that bears our name.
The new logo, designed by Landor Associates, Paris, is a monogram - the timeless quality seal of luxury expressed in
traditional Indian calligraphy. The singular L stands for Leela, Luxury, Legendary, Lavish and Lyrical. Indian calligrapher Satya
Rajpurohit gives a true Indian character to the logo, which is further enhanced by a copper hue as seen in a tail of a peacock,
the national bird of India. The symbol of infinity at the bottom is a salute to the future of the new optimistic India - boundless,
limitless, everlasting.
The new highly experiential website - www.leela.com - designed by Rare Medium, Atlanta, US, captures The Leela's range of
properties that celebrate India's diversity with cutting-edge lifestyle imagery and world-class features. Its luxurious, elegant
design allows guests to experience the true look and feel of The Leela, along with complete ease of booking. The website will
also be fully optimised for iPads, iPhones and other mobile applications. Social media and sharing tools featured on the website
include Facebook, Youtube, Twitter and Tumblr, whereas Instagram and Pinterest feed the company's Facebook page.
The new identity is designed to reflect the brand's philosophy and commitment towards its four pillars: grace, luxury, nature and
India. The project was based on an 18-month analysis of guest feedback and satisfaction surveys as well as in-depth
interactions with key market influencers to identify brand perceptions and expectations.
The Leela will undergo the change across its award-winning network of eight luxury hotels located in prime destinations across
India and new properties currently under development. In addition to the magnificent Leela Palace Chennai, the city's first seafacing hotel, which opened its doors in February 2013 with rave reviews, new upcoming projects include a resort in Jaipur; a
business hotel at Bhartiya City, Bangalore, strategically located near the airport; a palace hotel at Supertech's largest mixeduse development at Noida; a palace hotel at Agra, where every room will face The Taj Mahal; and Lake Ashtamudi in Kerala.
The Group is also introducing ultra-luxury residences in North and South India. The Leela is developing The Leela residences
in Bangalore at Bhartiya City and at Supertech's largest mixed-use development at Noida. These ultra-luxury branded
residences will be owned by individuals who will be able to avail of a multitude of services offered by The Leela such as 24
doorman, concierge services, housekeeping, turn-down service, laundry pick-up and drop-off and organising personalised and
intimate banquet functions.
About The Leela Palaces, Hotels and Resorts
The Leela Palaces, Hotels and Resorts, headquartered in Mumbai, India, is owned by Hotel Leelaventure Ltd. The ultra-luxury
hotel group owns and manages eight award-winning properties in prime urban locations and magical holiday destinations
across India including Mumbai, New Delhi, Gurgaon, Bangalore, Chennai, Goa, Udaipur and Kovalam. New properties under
development include Jaipur, Bangalore, Noida, Agra and Lake Ashtamudi, Kerala. The Leela Palaces, Hotels and Resorts is
committed to providing warm, gracious and anticipatory service in settings that capture the essence of India. The group has
marketing alliances with Germany-based Kempinski hotels, US-based Preferred Hotels & Resorts and is a member of the
Global Hotel Alliance based in Geneva, Switzerland. For further information, please contact your travel counselor or visit our
website at www.theleela.com .
PrevNext

THE LEELA PALACE KEMPINSKI BANGALORE

Launched on 13
th
August, 2001
Built in an art-deco form drawing inspiration from the architectural style of the Royal Palace of Mysore
and the palaces of Vijayanagar Empire, its copper domes, arches and ornate ceilingsreflect the
grandeur of palaces of a bygone era
Total Area of the hotel: 7 acresDesigned by:
Address 23 Kodihalli Road, Bangalore 500 008Telephone Number 080 2521 1234Fax Number 080 25
21 2222Fax Number

Royal Club 080 2521 4444Fax Number - Resv 080 2521 7234To dial Room no 2 and the room roomE
-mail address reservations.bangalore@theleela.comWeb Address www.theleela.comF.O Email Ad
ddm.bangalore@theleela.com/royalclub.bangalore@theleela.com

WOT Analysis of The Leela with USP, Competition, STP (Segmentation, Targeting, Positioning) Marketing Analysis

The Leela

Parent Company

Hotel Leelaventure Ltd.

Category

Hotels and Resorts

Sector

Tourism and Hospitality

Tagline/ Slogan

The Essence Of India

USP

Hotels that really deliver

STP

Segment

Luxury Segment

Target Group

Leisure travelers, business travelers, corporate, honeymooners, wedding

parties, foreigners who want to experience India

Positioning

Extending warm, gracious and anticipatory services in settings that capture

the essence of India

SWOT Analysis

1. High brand recall

2. One of the key players in the luxury hotel segment
3. More than 7 five star hotels, 2128 rooms in the country
4. Alliance with Kempinski Group of Hotels, ESPA, Global Hotel Alliance and
the Preferred Hotel Group
Strengths

5. All hotels are located in premium areas of the cities

1.High interest expenses are hampering net income

2.Limited market share due to tough competition from international and
domestic players

Weaknesses

3. Overseas expansion will be difficult since Leela is known for ethnicity in

offerings

Opportunities

1.Domestic and Foreign Travel Spending is growing

2.Indian hotels have a low occupancy rate as compared to other hotels
3.There is a shortage of 150000 rooms in India

Threats

1. Political turbulence due to the economic conditions

2. Due to shortage of rooms and increasing tourist influx, ARR is expected
to rise by 25%. This will affect mostly the upscale and luxury hotel segment

Competition

Competitors

Director Report
Mar2013 Mar 2014
Dear Members,

1. ITC Hotels
2. Taj Hotels
3. Oberoi Group

The Directors hereby present the 33rd Annual Report of the Company,
along with Audited Accounts for the financial year ended 31st March,
2014.
1. Financial Results
The financial performance during the year under review is summarised
below:
Rs.Lakhs

Financial Year

Financial Year

2013-14

2012-13

Revenue from operations and other

76,817.62

65,140.65

income
Operating and other Expenses

57,323.95

53,790.07

Earnings before interest,

Depreciation,
Taxes and
Amortisation (EBIDTA)

19,493.67

Interest

50,163.00

Depreciation

12,264.68

40,534.25

18,065.31

Profit/(Loss) before tax

13,867.33

(48,734.64)

(42,136.90)

Provision for taxes / deferred tax (4,587.45)

1,208.91

Profit/(Loss) after tax for the

year

(44,147,19)

Balance brought forward

(43,345.81)

(10,694.46)

Amount available for appropriation (54,841.65)

32,651.35
(10,694.46)

Appropriations
Balance carried to Balance Sheet

(54,841.65)

EPS - basic and diluted (in Rs.)

(10.15)

(10,694.46)

(10.82)

2. Dividend and Transfer of amounts to Investor Education and

Protection Fund
In view of losses, the directors do not recommend any dividend for the
financial year ended 31st March, 2014.
During the year under review, the Company has credited Rs. 7.02 lakhs,
lying in the unpaid / unclaimed dividend accounts for the financial
year 2005-06, to the Investor Education and Protection Fund (IEPF)
pursuant to Section 205C of the Companies Act, 1956 read with the
Investor Education and Protection Fund (Awareness and Protection of

Investors) Rules, 2001.

Pursuant to the provisions of Investor Education and Protection Fund
(Uploading of information regarding unpaid and unclaimed amounts lying
with companies) Rules, 2012, the Company has uploaded the details of
unpaid and unclaimed amounts lying with the Company on the website of
the Ministry of Corporate Affairs.
3. Corporate Debt Restructuring
The Company had restructured its debts under the Corporate Debt
Restructuring (CDR) mechanism. The status of implementation is
explained in the relevant section in the Management''s Discussion and
Analysis Report.
4. Credit Rating

The last Credit Rating issued to the Company by CARE Limited was on
25th April, 2012. However, the credit rating is under suspension at
present, as the Company is under Corporate Debt Restructuring.
5. Changes in Paid up Capital
In terms of the approval accorded by the shareholders of the Company at
the last Annual General Meeting held on 20th September, 2013, the
Company has allotted 329,61,460 fully paid up equity shares of Rs. 2
each, at a price of Rs. 19.72 per equity share (including premium of Rs.
17.72 per equity share) aggregating to Rs. 65 crores to a promoter group
company during the year under review.
With the aforesaid allotment, the paid up share capital of the Company
stands increased from Rs. 83,73,02,264 divided into 41,86,51,132 equity
shares of the face value of Rs. 2 each to Rs. 90,32,25,184 divided into
45,16,12,592 equity shares of the face value Rs. 2 each.
6. Expansion / up-gradation Plans
Your Company owns and operates six hotels in Mumbai, Goa, Bangalore,
Udaipur, New Delhi and Chennai, besides operating two hotels in Gurgaon
and Kovalam under Management Contract. The total room inventory stands
at 2,213 guest rooms including those under Management.
7. Monetisation of non-core Assets
The status of sale / monetization of non-core assets is as follows:
The joint development project on 4.21 acres of land in Pune for
construction of high end residential flats has received the requisite
approvals and the work has commenced.
The joint development project on 2 acres of land next to The Leela
Palace, Bangalore for developing high-end residences is in the process
of getting the requisite approvals.
The Company has entered into an agreement for sale of Chennai I. T.
Park. The sale is expected to be completed during the current
financial year.
The Company has entered into an MOU to sell its land in Hyderabad andthe deal is expected to be concluded by December
2014.
8. Management''s Discussion and Analysis (MDA)
As required by Clause 49 of the Listing Agreements with the Stock

Exchanges, Management''s Discussion and Analysis Report for the year

under review is appended herewith and forms part of this report.
9. Report on Corporate Governance
As required by Clause 49 of the Listing Agreements, a separate section
containing the Report on Corporate Governance together with the
Certificate on compliance with the conditions of Corporate Governance,
issued by a Practising Company Secretary, is appended hereto and forms
part of this Annual Report.
As part of good Corporate Governance practice, the Company has
voluntarily obtained Secretarial Audit Report from a Practising Company
Secretary with regard to compliance of rules and regulations under the
applicable provisions of the Companies Act and the Listing Agreements
entered into with the Stock Exchanges. A copy of the said report is
appended to this report.
10. Changes in Directorate
Mr. M. Narasimham, Director, resigned from the Board with effect from
13th February, 2014 due to health reasons. The Board places on record
its deep sense of appreciation for the valuable contributions during
his long tenure with the Company.
Mr. Indur Kirpalani, who retires by rotation, has conveyed that he is
not seeking re-appointment at the ensuing Annual General Meeting. The
Board has decided not to fill the vacancy. The Board places on record
their appreciation of the valuable contributions made by him.
In terms of Section 149 of the Companies Act, 2013, it is proposed to
appoint Mrs. Anna Malhotra, Dr. K. U. Mada, Mr. Vijay Amritraj, Mr.
Anil Harish and Mr. M. Madhavan Nambiar as Independent Directors for a
term of five consecutive years, upto 31st March, 2019. Details of the
proposal for their appointment are mentioned in the Explanatory
Statement under Section 102 of the Companies Act, 2013 of the Notice of
the 33rd Annual General Meeting.
Mrs. Madhu Nair, Non-Executive Director, retires by rotation at the
forthcoming Annual General Meeting and has offered herself for
re-appointment.
The Board recommends the above appointments / re-appointments.

11. Auditors and Auditors'' Report

M/s. Picardo & Co., Chartered Accountants, Statutory Auditors of the
Company, retire at the ensuing Annual General Meeting. They have
confirmed their eligibility and willingness to accept office, if
re-appointed. The Company has received a certificate from the Statutory
Auditors to the effect that their re-appointment, if made, would be
within the limits prescribed and that they are not disqualified for
re-appointment. Pursuant to the provisions of Section 139 of the
Companies Act, 2013 and the rules framed thereunder, it is proposed to
re-appoint M/s. Picardo & Co. as the Statutory Auditors of the Company
from the conclusion of the forthcoming Annual General Meeting till the
conclusion of the next Annual General Meeting of the Company.
Without qualifying their report, the Auditors have observed in their
report that (a) the impairment loss, if any, on sale of assets to be
disposed of for deleveraging the Balance Sheet cannot be ascertained in
the absence of binding offers and (b) impairment loss relating to a
project in Mumbai held up for a substantial period amounting to Rs.
13,805 lakhs, has not been recognised.

Management''s Response on their observations is as follows:

The Management is confident of successfully implementing the asset
disposal plans and meeting its liabilities. Regarding the impairment
loss, if any, on sale of assets, the Management is confident that while
there could be loss on sale of some assets, there would be profit on
sale of other assets and hence no impairment is expected on the sale as
a whole. Regarding the property in Mumbai, the Management is confident
of an amicable settlement and implementation of the Project.
The notes on Financial Statements referred to in the Auditors'' Report
are self-explanatory and do not call for any further comments.
12. Particulars of Employees

The particulars of employees required to be furnished under Section

217(2A) of the Companies Act, 1956, read with the Rules thereunder,
form part of this Report.
However, as per the provisions of Section 219(1)(b)(iv) of the
Companies Act, 1956, the Annual Report is being sent to the members of
the Company excluding the statement of particulars of employees. Any
Shareholder interested in obtaining such particulars may write to the
Company Secretary of the Company.
13. Subsidiary Companies and Consolidated Financial Statements
The Company has two non-operative subsidiary companies, Leela Realty
Limited and Leela Palaces and Resorts Limited.
The Company has not attached the Balance Sheet, Profit and Loss Account
and other documents of the above subsidiary companies with the Annual
Report of the Company in terms of general exemption circular notified
by the Ministry of Corporate Affairs, Government of India.
However, the Company will make available these documents upon request
by any member of the Company interested in obtaining the same. Further,
these documents will also be available at the Registered Office of the
Company and its subsidiaries for inspection by any member of the
Company. As required under the aforesaid circular, a summarized
statement of financial position of the subsidiaries has been appended
to this Annual Report. The audited financial statements and related
information of subsidiaries are also available on our
website,www.theleela.com .
The Audited Consolidated Financial Statements, prepared in accordance
with the Accounting Standard 21 and Clause 32 of the Listing Agreement,
form part of this Annual Report.
14. Fixed Deposits
During the year, the Company has not accepted any deposits from the
public or from the shareholders.
15. Directors'' Responsibility Statement
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956, the Directors, based on the information and representations
received from the operating management, hereby confirm that:
(a) in the preparation of the Annual Accounts for the year ended March
31, 2014, the applicable accounting standards read with requirements
set out under Schedule VI to the Companies Act, 1956, have been
followed and there are no material departures from the same;

(b) the Directors had selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company as at March 31, 2014 and of the loss of the Company for
the year ended on that date;
(c) the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities; and
(d) the Directors had prepared the Annual Accounts of the Company on a
''going concern basis''.
16. Energy Conservation, Technology Absorption and Foreign Exchange
Earnings and Outgo
The particulars as required to be disclosed under Section 217(1)(e) of
the Companies Act, 1956 read with the Companies (Disclosure of
Particulars in the report of Board of Directors) Rules, 1988, are as
follows:
(a) Conservation of Energy and Water:

Energy Conservation, sustainability and efforts to make the properties

more "Green" have been the main drive throughout the year. Major
efforts / steps taken towards this are:
Energy efficient lighting and high efficiency HVAC systems used /
retrofitted extensively in all hotels, has reduced electrical
consumption.
Computerized Power Monitoring is implemented in all properties on
gradual basis to monitor and control power consumption.
Main chiller plants and steam boilers have been tuned for best
efficiency to conserve energy.
Building management system installation and electricity distribution
systems equipped with power factor correction panel monitors that
controls energy wastage of equipment.
Hotels are equipped with solar geysers for generating hot water and the
rooms are equipped with energy saving devices during non-occupancy.
STP treated water and Rain Water Harvesting has been implemented at
four hotels.
The Company has installed 23 windmills with a capacity to generate 13.5
MW power, a renewable energy source in the State of Maharashtra
(4.5MW), Karnataka (5 MW) and Tamil Nadu (4 MW). Windmills continue to
produce renewable energy for use in own hotels.
(b) Technology Absorption:
In the opinion of the Board, the required particulars pertaining to

technology absorption in terms of Rule 2 of the Companies (Disclosure

of Particulars in the Report of Board of Directors) Rules, 1988 are not
applicable, as hotel is service industry and the Company does not have
any significant manufacturing operations.
(c) Foreign Exchange Earnings and Outgo:

The foreign exchange earnings of the Company during the year stood at Rs.
27,525.59 lakhs (previous year Rs. 29,370.54 lakhs) and foreign exchange
outgo during the year stood at Rs. 3,962.63 lakhs (previous year Rs.
5,216.88 lakhs).
17. Acknowledgements
The Board wishes to place on record its appreciation for the assistance
and support received from all the lenders, Government and regulatory
authorities, customers, business associates and vendors.
Your directors take this opportunity to express their sincere thanks to
all the shareholders and stakeholders for the faith and confidence they
have reposed in the Company and the management.
Your directors attribute immense importance to the contribution of the
family of staff and sincerely thank "The Leela" team for sharing the
Company''s vision and philosophy and for the dedication and commitment
in ensuring that the Company remains in the forefront of competitive
industry as one of the finest Hotel Groups in India.
For and on behalf of the Board of Directors

s you may be aware, our Founder Chairman, Capt. C. P. Krishnan Nair passed away on 17th May this year at the age of 92. He
has left a vacuum at The Leela which will be impossible to fill. He was an inspirational leader who continued to guide us even
after retiring as Chairman. His vision, dedication, dynamism and guidance will be sadly missed by all of us who have worked
with him. His endearing relationship with the shareholders would surely be missed.

The year gone by has been challenging in many ways ranging from political uncertainty in India to challenges in the
improvement of both the Indian and Global economy. A surfeit of hotel rooms added over the years which coincided with the
slowdown in the economy affected the demand for rooms, as a result of which there was no significant improvement either in
occupancy or in average room rates. The segment most affected was the one relating to the business traveller both from India
and abroad in our business hotels. However, our resort in Goa recorded all-time highs in revenues and profitability ratios.
The high level of quality of our properties and brand has helped us to maintain our competitive edge and sustainable earnings.
We constantly strive to improve our brand image with personalised services extended by our associates and our knowledge on
the evolving needs of our guests which help us to deliver unique guest experiences.
In June 2014,14 out of our 18 lenders assigned their debts in favour of JM Financial Asset Reconstruction Company Private
Limited (JMF-ARC). We are now in discussions with JMF-ARC for a revised restructuring package. Our plan is to divest a
significant stake in some of our hotels and continue to operate these hotels under the Leela brand name, under a long term
management contract.
Outlook
The Indian economy is expected to continue to see challenges in the immediate future. However, I remain confident in the longterm growth prospects of the Indian economy especially with the several initiatives demonstrated by the new Union
Government. The Indian tourism and hospitality industry has emerged as one of the key drivers of growth in the economy.
Tourism is the highest employment generator at 53 million and a significant source of foreign exchange for the country at US$
20 billion. With the revival of business sentiment and the active support of the Government to boost Travel & Tourism, a
significant increase is expected in the arrival of foreign tourists and also a greater number of Indians are expected to be
travelling to domestic destinations than before. This will have a positive impact on the occupancies and rates and hence the
business over the next few years.
In a major move, the Government has decided to include Hotels in the Infrastructure Funding List of the Reserve Bank of India,
thus giving the much needed relief to most of the new hotels who have been under stress due to the mismatch of the tenure of

the loans (restricted to io years only) and the cash flows generated by hotels which have become very capital intensive. With
this, hotels with a capital expenditure of over INR 200 crores, (excluding the cost of land) would be eligible to borrow from
banks for a tenure of upto 25 years (opposed to 10 years) as recently announced in the 5/25 scheme of the Reserve Bank of
India. Also, the rate of interest charged for new projects by banks would be lower as they can now lend without the Statutory
Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR) being maintained.
the following announcements by the Government in the Union Budget for 2014-15 would benefit the Tourism Sector:

1. Funds for the Buddhist circuit allocated by the Government in the Union Budget would help in providing world-class tourist
amenities including all necessary infrastructure such as hotels, last mile connectivity, roads, facilitation centres, wayside
amenities, etc. The Buddhist circuit envisaged is Bodhgaya, Varanasi, Nalanda and Sarnath.
2. The Government has committed to implement GST at the earliest which would bring down the present heavy levies of
multiple taxation.
3. 31 new tourism circuits in the country have been identified and funds for infrastructure improvement will be allocated.
4. The Government has also taken the initiative to issue mandatory e-visas to citizens of several countries from October 2014
which would ease the process to obtain visas for foreign tourists at 9 important international airports in the country.
The foreign tourist arrivals are projected by the Government of India and the Planning Commission to be doubled from 6.5
million to 13 million in the 12th Five Year Plan (2012-2017). The employment generated in the Tourism sector would then go up
from 53 million at present to 87 million. However, for this to happen, accommodation infrastructure is to be created. The number
of hotel guestrooms need to go up from the present 120,000 to 300,000 guestrooms; an increase of 180,000 guestrooms and
the capital expenditure of about INR 200,000 crores would have to be incurred for these additional rooms to be constructed and
make operational. This itself is a monumental task.
The prospects, therefore, for the Tourism Sector look promising and we are certain that it would be able to realize its true
potential soon.
I would like to thank you, all our shareholders, for your trust and your wholehearted support.
Best Regards,
vivek Nair

1981
- Incorporated in 1981 to set up and operate 5-star hotels, Hotel Leela Venture entered
into a collaboration with Penta Hotels, UK, which was subsequently transferred to
Kempinski Hotels, a European chain of 5-star deluxe hotels, owned by Lufthansa, the
German airline. - The Company entered into collaboration agreement with Penta Hotels
Ltd. (Penta) for a period of 10 years for sales, marketing & technical know-how.
- Penta also agreed to provide full marketing support to the hotel including selling of the
hotel by the 3 airline partners of Penta viz. Lufthansa, Swissair & British Airways.
- 20,02,939 shares to promoters, etc. and 4,27,580 shares without payment in cash to
Lela Scotish Lace Pvt. Ltd. in January/February 1985, 20,69,481 shares were issued at
par out of which 70,000 shares to NRI promoters for cash and 99,481 shares to C.K.
Kutty (NRI) without payment in cash were reserved and allotted.
- Out of the remaining 19,00,000 shares, 6,50,000 shares to NRIs on repatriation basis
and 38,000 shares to business associates of the Company were reserved and allotted
on a preferential basis. The balance 12,12,000 shares were offered for public
subscription during February 1985 (all were taken up).

1986
- The company set up its first 5-star deluxe hotel, Leela Penta, in Bombay in 1986. It
was renamed Leela Kempinski in 1988, following the change in its marketing and sales
tie-up. It undertook an expansion of its hotel in Bombay by constructing a tower block
comprising an additional 172 rooms, including suites. Simultaneously, it also undertook
the construction of a new 5-star deluxe resort at Goa which was part-financed by a
rights issue in Sep.'91. Consequent on the enhancement of facilities and upgradation of
standards, aggregate cost escalated and the financing for the project had to be revised
due to which the company came out with a rights NCDs issue with detachable warrants
aggregating Rs 49.09 crores in 1995.
- 45,00,000 rights equity shares issued at par in prop. 1:1 during July/August.
1987
- The hotel de-linked itself with Penta & entered into technical, Sales, and Marketing
agreement with Kempinski, hotel S-A Switzerland, a part of the Lufthanas Chains of
hotel.
- The Company undertook to set up a 5-star Deluxe Airport Hotel of international
standards.
- In view of the large scope for occupancy at the International Airport and in view of the
acute shortage of hotel guest room, it was decided to increase the number of guest
rooms from 205 to 282. It was also decided to add a large banquet hall and conference
rooms to the facilities.
- The hotel was assigned a 5 star deluxe status during the year. In recognition of this
rating, the collaborators, Penta Hotels, Ltd. assigned the technical sales and marketing
agreement in favour of Kempinski hotels, S.A., Switzerland, both groups being in the
Lufthansa system of hotels.
- The Leela Bombay, was conferred by the Government of India, Department of
Tourism, the highest honour in the hospitality industry viz. the National Tourism Award
for 1997-98 for outstanding performance in the five star deluxe category hotels in India.
1988
- It was proposed to expand the existing capacity by addition of another 192 rooms.
- With effect from 15th October, the name of the hotel was changed to `The Leela
Kempinski Bombay' in view of the assignment of the franchise agreement to Kempinski
hotels from Penta hotels.
- 28,00,000 No. of equity shares issued at par to Lela Scottish Lace Ltd. in conversion

of their unsecured loans.

- The Leela Palace, Goa has started its operation in Sep, 1998. The hotel has been
upgraded to a world class beach resort and has been acclaimed as one of the finest
resorts in the world.
1989
- During August, the Company offered 9,00,000-14% secured redeemable nonconvertible debentures of Rs 100 each on `rights basis' in the proportion 1 deb.: 10
equity shares held. Only 10,429 debentures were taken up. The remaining 8,89,571
debentures devolved on the underwriters.
- These debentures were to be redeemed at a premium of Rs 5 per debenture in three
equal annual instalments of Rs 35 each on the expiry of 7th, 8th and 9th year from the
date of allotment of debentures.
- During August, 59,00,000 Rights shares issued at par in prop. 1:2. Additional 8,85,000
shares were allotted to retain oversubscription. Simultaneously, another 2,95,000
shares were issued at par to employees but only 500 shares taken up. The balance
2,94,500 shares were allowed to lapse.
1991
- In Sept. 92,92,750 rights shares issued at par in prop. 1:2. Additional 13,93,912
shares were allotted to retain oversubscription. Another 4,64,630 shares offered at par
to employees but only 7,650 shares taken up. Out of the remaining 4,56,980 shares
4,50,000 shares taken up by financial institutions and the balance allowed to lapse.
1992
- The Company proposed to add 43 guest rooms at the Leela Beach, Goa. During the
year, the Company concluded negotiations for purchase of a plot of land adjoining the
hotel property at Mumbai for the construction of a new deluxe all suite hotel consisting
of about 200 suites.
1993
- The Company commissioned 60 new rooms at the Leela Beach, Goa and set up a
mini golf course of 9 holes.
- The Hotel has opened a spectacular entertainment outlet, viz., `Cyclone-The Club'.
1994
- The Company had issued Warrants to its promoters including friends and associates
on preferential basis. On conversion of the said Warrants, on 9th November, 30 lakh

equity share were allotted at a premium of Rs 128.14 per share.

- A MOU was entered into with Four Seasons Hotels & Resorts a international chain of
hotels to operate the Leela Palace Bombay at Andheri Kurla Road.
1995
- The company proposed to enter into business of full fledged money changers and
allied activities.
1996
- The Company allotted 30,00,000 CCP of Rs 100 each.
- The Leela Beach Goa underwent upgradation and refurbishment as per
recommendations of Four Season Hotels & Resorts which would be marketing and
operating the resort.
- The Company also initiated steps to set up a `5' star deluxe hotel at Bangalore with
Four Seasons Hotels & Resorts.
- The Company entered into a management agreement with Four Season Hotels,
Canada, for management of Company's hotels and resorts at Mumbai, Goa and
Bangalore.
- The Company proposed to change its object clause which, the Company was
authorised to carry on the business of power generation and allied activities and dealing
in foreign Exchange and to act as money changers.
- 1,00,000 - 16% CCP of Rs 100 and 29,00,000 - 17% CCP of Rs 100 issued on private
placement basis.
1997
- The company undertook to set up a beach resort consisting of 300 villas at Goa.
Technical services and sales and marketing agreement was signed with Kempinski
hotels S.A. for the project.
- Hotel Leela Venture Limited, incorporated in 1981, to set up and operate 5-star hotels,
entered into a collaboration with Penta Hotels of UK which was subsequently
transferred to Kempinski Hotels, a European chain of 5-star deluxe hotels, owned by
Lufthansa, the German airline.
- The company set up its first 5-star deluxe hotel, Leela Penta, in Mumbai in 1986.
- Hotel Leelaventure had signed a 30 year lease agreement with AAI in February 1996
for 11,000 sq mts of land for expansion of its hotel by 150 rooms.

- HLV will be setting up hotels in the five star deluxe category at Bangalore, Delhi,
Mumbai and Goa.
- The company has also set up a subsidiary company, Leela Hotels Ltd., which will
promote two greenfield projects.
1998
- Investment Information and Credit Rating Agency (ICRA) has placed the nonconvertible debenture and fixed deposit programmes of Hotel Leelaventure Ltd. under
rating watch.
- The company's Rs 49.1-crore fixed deposit (FD) programme with a current rating of
MAA minus has also suffered the same fate.
1999
- The five star hotel project has been undertaken by the 100 per cent subsidiary of
Leela Hotels Ltd (LHL) on a controversial plot the same plot was allotted earlier to MS
Shoes East Ltd.
- Leela Hotels Ltd, a subsidiary of Hotel Leelventure Ltd, was awarded an interim relief
the Delhi High Court after Leela sought legal redressal.
- Leelaventure is spreading its wings and has set eyes to build a hotel in the scenic
backwaters of Kerala.
- The lease agreement with LSLL makes it paramount for the company to get a
commercial complex built on the land with an area of 15,000 square meters.
2000
- The Company has allotted balance 80,47,4000 No. of equity shares to the promoters
of the company viz., Leela Scottish Lace Ltd.
- The Company appointed a Dr. K. U. Mada as the Director and Mr Venu Krishnana as
an Executive Director effective from 29th January.
- Mr. M. Narasimhan has resigned as the Director effective from September 20.
- The Company issued 15630000 Equity shares of Rs 10/- each at a premium of Rs 21
per share to the promoters of the Company, M/s Leela Scottish Lace Limited on 6th
April, 2000 on fully paid basis.
2001

- Hotel Leelaventure is setting up a five-star deluxe resort property in the Kannur district
of Kerala state. The 100-room property would be developed by its wholly-owned
subsidiary, Vision Hotels, and would be completed by the end of 2001. The 300-room
Bangalore five-star hotel had a soft launch on 15th July, 2001. In the first phase , 77
guest rooms are expected to be in commercial operation from August, 2001 and the
rest of the rooms with full compliment of facilities are expected to be progressively
completed by the end of 2001.
- During the year 2001, the company also formed an arrangement for a joint venture to
develop a large commercial complex on the land of Andheri-Kurla road, Mumbai.
2002
-Dr. Gunter resigns as director of the company
-Board approves the proposal for amalgamation/merger of Leela Hotels witn Hotel
Leelaventure
2003
-Ties up with General Hotel Management (GHM) Singapore, the holding company of
Aman Resorts, for its Goa property
-Board approves voluntary delisting from Ahmedabad, Bangalore, Cochin, Delhi and
Mangalore Stock Exchanges
-Board approves allotment of Non Cumulative Redeemable Preference Shares
(NCRPS) of Rs 317.50 million to the Holding Company, Leela Scottish Lace Pvt Ltd.
2004
- Delisting of the equity shares of the Company from Ahmedabad, Bangalore, Cochin,
Delhi and Mangalore Stock Exchanges.
2006 -Hotel Leela Venture Ltd. has appointed Mr. V.L. Ganesh as the Chief Financial
Officer of the Company with effect from November 01, 2006.
-Company has splits its Face value of Shares from Rs 10 to Rs 2
2007
- Hotel Leelaventure - Issue of Foreign Currency Convertible Bonds.
- Hotel Leelaventure wins Bid for Hotel plot in South Delhi for Rs 611 Crores.
2008

- Mr. V L Ganesh, Chief Financial Officer of the Company has been inducted in the
Board as Director Finance and Chief Financial Officer.
- "The Company had issued Foreign Currency Convertible Bonds (FCCB) aggregating
US $ 100,000,000.
2010
- Hotel Leela - Board recommends Dividend.
2011
- Mr. Krishna Deshika, who had joined the Company as Chief Financial Officer, has now
been appointed as an Additional Director and elevated to the position of Director Finance & CFO.
- Company has executed a Joint Development Agreement with Prestige Estates
Projects Ltd.
2012 -The Indian Association of Tour Operators (IATO) - Capt. C.P. Krishnan Nair
conferred Hall of Fame award. -Indian Hotel Academy - Nawab Dilaweez Hasan, Senior
Training Manager awarded Outstanding Training Manager of the year, December 2012.
-CNBC AWAAZ Travel Awards - MEGU awarded Best International Cuisine Restaurant,
November 2012. -Robb Report USA - Best of the Best Hotel in the World, June 2012.
2013 -Hotelier India Awards 2013 - Rajesh Namby named F&B Manager of the Year
Award, December 2013. -Robb Report, India - one of Best Hotels in the World, August
2013. -Delhi Gourmet Club - The Qube awarded Best Burger in Delhi, July 2013.
-MEGU awarded Best Restro-Bar in Delhi and NCR, February 2013. -World Spa &
Travel Magazine - Best City Hotel Worldwide, January 2013.
2014 -7th India Sommelier Championship 2014- Title of Remy-Martin Spirits
Championship conferred upon Atul Tiwari from The Leela Palace New Delhi. -The Leela
Palace New Delhi voted and featured among Best Overseas Business Hotels. -Smart
Travel Asia 2014 named The Leela Palace New Delhi amongst Top 25 Business Hotels
in Asia, by, September 2014. -The Leela Palace New Delhi voted and featured among
Best Overseas Business Hotels by Conde Nast Traveller UK Readers, October 2014.
2015 -The Leela Palaces, Hotels and Resorts has been internationally applauded for
the fifth year running in UKs Cond Nast Traveller Readers Travel Awards 2015
-Travel and Hospitality Awards Rajiv Kaul awarded Most Outstanding Professional
Award
112.90

Nine Monthly annalysis

Rs (in Crores)

Dec'15

Dec'14

Dec'13

Dec'12

Dec'11

467.03

526.58

509.09

453.23

431.08

2.02

5.52

53.94

3.60

4.98

469.05

532.10

563.03

456.83

436.06

.00

.00

.00

.00

.00

Raw Material Consumed

44.22

49.29

44.38

35.63

33.06

Power and Fuel

38.90

47.71

61.33

42.58

41.53

137.78

155.67

155.46

129.64

124.71

Administration and Selling Expenses

.00

.00

.00

.00

.00

Research and Development Expenses

.00

.00

.00

.00

.00

Expenses Capitalised

.00

.00

.00

.00

.00

Other Expenses

150.38

173.60

169.62

168.86

165.05

Provisions Made

.00

.00

.00

.00

.00

371.28

426.27

430.79

376.71

364.35

Operating Profit

95.75

100.31

78.30

76.52

66.73

EBITDA

97.77

105.83

132.24

80.12

71.71

Depreciation

178.88

172.64

140.96

93.98

65.95

EBIT

-81.11

-66.81

-8.72

-13.86

5.76

63.91

393.03

375.61

282.32

206.29

-145.02

-459.84

-384.33

-296.18

-200.53

INCOME

Net Sales Turnover

Other Income

Total Income

EXPENSES

Stock Adjustments

Employee Expenses

TOTAL EXPENSES

Interest

EBT

Taxes

.00

.00

.00

.00

-9.50

-145.02

-459.84

-384.33

-296.18

-191.03

Extraordinary Items

.00

.00

.00

.00

.00

Prior Year Adjustment

.00

.00

.00

.00

.00

Other Adjustment

.00

.00

.00

.00

.00

48.71

-459.84

-384.33

-291.29

-191.03

.00

.00

.00

.00

.00

93.32

93.32

90.32

83.73

77.56

Reserves and Surplus

.00

.00

.00

.00

.00

Equity Dividend Rate

.00

.00

.00

.00

.00

Agg. Non-Promoter Share(Lakhs)

.00

1684.28

1684.28

1684.28

1684.28

Agg. Non-Promoter Holding(%)

.00

36.10

37.29

40.23

43.43

Government Share

.00

.00

.00

.00

.00

Capital Adequacy Ratio

.00

.00

.00

.00

.00

NaN

-9.86

-8.51

-6.96

-4.93

Profit and Loss for the Year

Reported PAT

KEY ITEMS

Reserves Written Back

Equity Capital

EPS(Rs.)
Rs (in Crores)

2012-2013

2012-2013
2009:
The Leela Palace Bangalore wins Indias Leading Business Hotel for the Third Year in a
row at WTA London
KEMPINSKI HOTELS AND RESORTS
Founded in Germany 111 years ago, Kempinski Hotels has long reflected the finest traditions
of European hospitality. Today, as ever, Kempinski is synonymous with distinctive luxury.
Located in many of the worlds most well known cities and resorts, the Kempinski collection

Includes hotels in the grand manner, pace-setting modern establishments and older hotels
of Individual charm. All blend gracefully into their surroundings and offer luxuriousaccommodation,
superb cuisines and unrivalled facilities- complemented by impeccable
LEELA

S OBJECTIVES
Hoteliering starts with innovation, continues the search for the excellence, and finallycelebrates
perfection. These are precisely the three pillars on which The Leela group has built itsreputation.1
INNOVATION ,EXCELLENCE ,PERFECTION
HOTEL

S PHILOSOPHY
Atithi Devo BhavaOur Guiding EmotionService from the Heart
MISSION STATEMENT

ARMY INSTITUTE OF HOTEL MANAGEMENT & CATERING TECHNOLOGY54

2012-2013
1.
The Leela Palace, Bangalore will be the first choice hotel within India for the discerning business and
leisure traveller.2.
We will achieve market dominance by providing the finest in personal service3.
And facilities to one guest.4.
One food & beverage & spa concept will reflect innovative and creativity.5.
We recognize one

s responsibility to conscience the environment& support6.

Local community.7.
One philosophy & core values provide the platform upon which employees8.
Will excel & grow personally & professionally.
VISION OF LEELA
1
Our hotel with be the best employer in the industry having zero tolerance for 2
Deviation from our core values.3
We will be the leader in developing new products and services4
We will be the landmark hotel in Asia by 2006
CORE VALUES
1
People2
Team work 3
Product quality4
Innovation & continuous improvement5

Customer satisfaction6
Profitability

ARMY INSTITUTE OF HOTEL MANAGEMENT & CATERING TECHNOLOGY55

2012-2013
THE LEELA PALACE KEMPINSKI BANGALORE
Launched on 13
th
August, 2001
Built in an art-deco form drawing inspiration from the architectural style of the Royal Palace of Mysore
and the palaces of Vijayanagar Empire, its copper domes, arches and ornate ceilingsreflect the
grandeur of palaces of a bygone era
Total Area of the hotel: 7 acresDesigned by:
Address 23 Kodihalli Road, Bangalore 500 008Telephone Number 080 2521 1234Fax Number 080 25
21 2222Fax Number

Royal Club 080 2521 4444Fax Number - Resv 080 2521 7234To dial Room no 2 and the room roomE
-mail address reservations.bangalore@theleela.comWeb Address www.theleela.comF.O Email Ad
ddm.bangalore@theleela.com/royalclub.bangalore@theleela.com