Hotel Leela to Build Luxury Hotel in Agra

May 1, 2008	(Be the first to rate this story!)  Loading ...
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Taj Mahal is one of the most popular of the Seven Wonders of the World and the management of Hotel Leela Venture Ltd now wants to build its own wonder to capitalize on this.

Leela has already bought land just 1 km away from the Taj Mahal and will be building a high-end luxury hotel. It will be only the second hotel after Oberoi’s Amar Villas to be at such close proximity to Shah Jahan’s labour of love. Leela has secured almost 7 acres close to the Taj Mahal and will be building a hotel with 100-150 rooms.

Sources suggest that each room is going to cost the company a whopping Rs 4-4.5 crore, which would translate into a room rate of $350 - $400 per night.

This would be Leela’s fifth luxury hotel, in addition to the ones built in Mumbai, Bangalore, Goa and Kovalam. The company is also constructing its Rs 900 crore hotel in the NCR region, which will be ready in time for the commonwealth games.

The new hotel plans would be financed from the two foreign currency convertible bonds (FCCB) issues, which closed a few months ago. The management was tight lipped on confirming the details of the Agra acquisition but did admit there’s going to be a new hotel there.

“We have bought land in Agra and there will be a hotel there but this is a very recent development,” said Rajiv Kaul, Senior VP, Hotel Leela Venture Ltd.

With 5 million tourists coming into the country, there seems to be tremendous scope for Leela’s new hotel. The management is focusing on the premium luxury segment and creating a pan-India presence. But the hospitality industry is facing challenges in terms of average room rates and cost effective growth that could hinder ambitious expansion plans for the future.

News Published Under:   Real Estate India, Hotel Industry in India |

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