Hotel Leela shares jump on Goa property sale

MUMBAI: Shares of Hotel Leelaventure closed 0.47 per cent up at 21.50 after surging 7.5 per cent intraday as the company has entered into a pact with Malaysia-based MetTube to sell Goa property for Rs 725 crore as part of its debt restructuring process.

The property will be acquired by Ceres Hotels Private, a wholly-owned Indian subsidiary of MetTube. However, Leelaventure will continue to operate the hotel under Leela brand.

Leelaventure's board at a meeting on Saturday decided the sale of entire undertaking of the company pertaining to the hotel in Goa, The Leela Goa, on slump sale basis for Rs 725 crore.

The hotel would be transferred through business transfer agreement to Ceres Hotels.

The company reportedly had a debt of around Rs 5,000 crore as of March this year. As per the terms of a Corporate Debt Restructuring (CDR) package, the company had to reduce its debt through sale of assets.