The Leela Palaces acquires ultra-luxury resort in Coorg for Rs 560 crore

The Leela Palaces, Hotels and Resorts has announced the acquisition of an ultra-luxury resort in Coorg for a purchase consideration of Rs 560 crore. The luxury hospitality chain said in a statement that this acquisition marks the brand’s entry into 'immersive, nature-led and wellness anchored hospitality.'

The 71 all-villa property, set within 76 acres near Madikeri and surrounded by coffee and spice plantations, will be unveiled as The Leela Coorg Forest Sanctuary later this year.

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The chain said the acquisition, which coincides with The Leela’s 40th anniversary, extends its portfolio into one of South India’s most 'compelling' leisure destinations.

Anuraag Bhatnagar, chief executive officer, The Leela Palaces, Hotels and Resorts, said the acquisition represents both a milestone and an evolution of the brand into nature-immersive, wellness-focused hospitality.

"We invest in destinations with cultural and ecological value, and Coorg strengthens our presence in South India while advancing our strategy of building a balanced portfolio across India’s most iconic landscapes. The Leela Coorg Forest Sanctuary offers a rare synthesis of wilderness, wellness and warmth of true Indian luxury for travellers who seek space, stillness and a genuine connection to nature," he added. The chain said the property benefits from 'significant land reserves' that support 'thoughtful' densification, with the first phase adding 19 keys to bring the total inventory to 90 villas. The IGBC platinum certified resort will also offer a 27,000 square feet wellness centre besides a private helipad.

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In a seperate notification to the BSE, the chain said the Capital Investment Committee of th Board of Directors of the Company has approved an investment in Leela Luxe Hotels & Resorts Private Limited (LLHRPL), awholly owned subsidiary of the company.

The chain said the shares are allotted on a rights basis, at a price of Rs 100 per equity share, including a premium of Rs 90 per equity share.

2,31,20,000 equity shares of LLHRPL are allotted for an aggregateconsideration of Rs 231,20,00,000 in theaforesaid rights issue, the chain stated in the notification.