LEELA TAKES KEMPINSKI ALLIANCE TO NEW HEIGHTS.

Indian Luxury Group to invest USD 270 Million to grow inventory by over 100%

The Leela Palaces-Hotels-Resorts has embarked on an aggressive three year expansion plan which will see it more than doubling its room capacity and introducing few new world class properties in Gurgaon – Delhi, Udaipur, Chennai, Hyderabad and Pune.at an investment of over US$ 270 million.

Leela’s appetite for growth is driving it to explore operating management contracts in source markets like Dubai and Abu Dhabi. It is also strengthening its international marketing and distribution infrastructure in UK, Middle East and North America by opening up its own offices in London, Dubai and New York.

Infact the India story is so hot that Kempinski, its international marketing and distribution partner, held its first ever global sales and strategy conference outside Europe at Leela hotels in Mumbai, Bangalore and Kovalam.

Earlier the Leela Palaces-Hotels-Resorts with Kempinski Hotels announced the extension of its exclusive business partnership in India. In addition to The Leela Kempinski hotels in Mumbai, Bangalore and Kovalam, the five new hotels in New Delhi - Gurgaon, Udaipur, Chennai, Hyderabad and Pune will be included in the agreement in the next four years. This exclusive agreement covering (current and proposed) Leela Hotels in India was signed by the heads of the two groups, Reto Wittwer, President & CEO of Kempinski and Captain C.P. Krishnan Nair, the visionary Chairman of The Leela Palaces & Resorts.

According to Peter J. Leitgeb, President, Leela Palaces-Hotels-Resorts, the new agreement offers Kempinski a great business opportunity to spread its footprints in a dynamic and rapidly growing market like India. The Indian hospitality industry is experiencing a boom and most international brands are constantly looking for entry opportunities in this market. As part of this enhanced sales & marketing agreement between the two,the Leela Palaces & Resorts will help Kempinski set up its maiden sales offices in India, in Delhi and Mumbai.

The first of the new hotels under this agreement which opened in 2005 has been rechristened as The Leela, Kempinski Kovalam Beach Kerala. This five star deluxe resort, the largest in Kerala is spread across 64 acres and offers 187 exclusive rooms and suites, of which 57 in the Sea-View Wing are designed according to The Leela’s new Club concept. Guests can enjoy a selection of superlative restaurants and lounges as well as a library and a traditional Ayurveda centre. Designed by Carl Ettensberger, The Club at The Leela Kovalam is targeted at the discerning high end luxury traveller. Built on a rock-face and cradled between two wide sweeping beaches, the resort has a panoramic view of the famous Kovalam coastline and two stunning infinity pools overlooking the Arabian Sea.

In the North of the country, India’s capital, New Delhi, will see the opening of a new landmark hotel The Leela, Kempinski Gurgaon, Delhi. This is Leela’s first operations and management contract. The hotel will feature 319 rooms and suites and 90 apartments which will constitute The Leela Residences. This upscale mixed used development on a plot of five acres includes a premium shopping centre spread over 15000 sq.m.

A new palace hotel in Udaipur overlooking the picturesque Lake Pichola , The Leela Palace, Kempinski Udaipur is under construction, and scheduled to open in December 2007 with 82 oversized guest rooms and Royal Suites evoking the life and times of the royal past.

In the harbour city of Chennai, formerly Madras, a 15-storey hotel, The Leela Palace, Kempinski Chennai with over 300 rooms is being constructed and will open by end 2008. This will not only be the largest and the first beach front business hotel in the city, but it’s 1600 sq.m Convention Centre, will be the most contemporary and well laid out meeting area in Chennai. The Leela Palaces & Resorts is investing USD 75 million in this new premium development which will be sprawled across seven acres of pristine beach front.

The Chennai project will coincide with a further investment of USD 70 million to be made in a luxury hotel in Hyderabad, strategically located in the Deccan plains. The 325 room property, The Leela Palace, Kempinski Hyderabad will welcome guests to a very upmarket central location in Banjara Hills in 2009.

Pune, the new IT hub, is the fastest growing second tier city of India. Infact, urban experts see Pune developing as an extension of Mumbai. The Leela Palaces & Resorts and a business park is part of this development . The group will invest USD 30 million into building a 250 room luxury hotel by late 2008 on a 5 acre plot close to the airport.

The Leela Kempinski Mumbai, has completed a USD 25 million renovation. It has refurbished all its 400 rooms to give them a very contemporary look and feel but with an underlying theme of Essence of India.

The Leela Palaces and Resorts and Kumarakom Lake Resort of Kerala have a strategic partnership which promises a “ Distinctive Experience Alliance”, that includes a range of benefits to travel planners and consumers. This strategic marketing alliance will help market Kovalam and Kumarakom together as an integrated Ayurvda, Beach and Backwater experience through its Luxury @ Kerala offers. Located on the banks of the serene banks of the Vembanad Lake, Kumarakom Lake Resort has over 50 traditionally styled luxurious villas, a much acclaimed Ayurveda Spa and a fleet of luxury houseboats.