Hotel Leela net up 173% at Rs. 84.84 crores in H-1

Hospitality major Hotel Leelaventure Limited has clocked a whopping 173% increase in its net profit for the first half of this year ended 30th September, 2006 at Rs. 84.84 crores (unaudited) as against Rs 31.04 crores in the corresponding period in the previous year. The sharp rise in profit was supported by an extraordinary income of Rs.40.58 crores from the sale of Leela Business Park, Mumbai.

The company's revenues for the first half ended 30th September 2006 rose to Rs.208.81 crores, up 54% from Rs.135.65 crores recorded in the corresponding period in the previous year.

The second quarter (Q2) of this fiscal saw revenues growing by 19% from Rs 67.42 crore in the corresponding quarter last year to Rs 80.05 crore this fiscal. Net profit jumped 50% from Rs 14.71 crore to Rs 22.06 crore this quarter.

Hotel Leelaventure Limited's properties in Bangalore (The Leela Palace,
Kempinski Bangalore), Goa (The Leela Kempinski Goa) and Kovalam (The Leela, Kempinski Kovalam Beach, Kerala) continued to sustain their market leadership position with the highest Rev-PAR (revenue per available room) in the respective locations. The average room rate of the Bangalore hotel saw an increase from Rs.13,666/- to Rs. 17,790/- an appreciation of 30% in Q2 over last year.
The expansion of the room capacity of The Leela Palace Kempinski, Bangalore is on course and guestrooms are expected to be open from December 2006. The third phase of up gradation of rooms in The Leela Kempinski, Mumbai is close to completion.

This quarter (Q2 2006) has improved tremendously over last year on the back of continued buoyancy in the tourism sector, increase in foreign visitors and increased airline seat capacity. The company is hoping to replicate its success with hotel projects under implementation in Gurgaon-Delhi (NCR), Udaipur, Chennai, Hyderabad and Pune.

Issued by
Mithu Basu
Group Head Corporate Communications
The Leela Palaces~Hotels~Resorts
Sahar, Mumbai 400 059
Tel: +91 (22) 66911052
Fax: +91 (22) 66911455
Cell: +91 9820414732
mithu.basu@theleela.com