Hotel Leelaventure shares gain over 3% on selling its Goa hotel for Rs 725 crore

Hotel Leelaventure shares gained over 3 per cent in the early trade on Monday after the company on Saturday said that it has agreed to sell a hotel in Goa to a Malaysian company (Express Photo)

Hotel Leelaventure shares gained over 3 per cent in the early trade on Monday after the company on Saturday said that it has agreed to sell a hotel in Goa to a Malaysian company MetTube Sdn for Rs 725 crore as the luxury hotels operator looks to cut its debt.

At 9.40 am, Hotel Leelaventures shares were trading 3.27 per cent higher at Rs 22.10 apiece. The scrip opened at Rs 23 and had touched a high and low of Rs 23 and Rs 21.75, in trade so far.

The deal which is the biggest single-asset acquisition in India’s hospitality sector is expected to close by December 31, 2015. During the financial year ended March 31, 2015, the Goa Hotel Undertaking contributed Rs 119 crore (15 per cent of the total income) to the company’s total income of Rs 762 crore.

For the quarter ended June 2015, the company posted net loss of Rs 57.67 crore, up 66.97 per cent against net loss of Rs 174.62 crore in the corresponding quarter a year ago.

Hotel Leelaventure operates hotels and resorts in India. It also operates spas; and offers facilities for meetings and events, weddings, and social celebrations. The company’s portfolio includes luxury hotels and resorts primarily in Mumbai, Bangalore, Goa, Kovalam, Gurgaon, and Udaipur.