India’s premier hotel group, The Leela Palaces, Hotels and Resorts, To grow inventory by 100%: The Leela, Kempinski Gurgaon Delhi NCR to open in winter 2008

MUMBAI, INDIA – Sept, 2007 -- The Leela Palaces, Hotels and Resorts, the finest group of deluxe hotels in India, has embarked on an aggressive three year expansion plan which will double its room capacity by introducing six new world class properties to bring the total to ten. The new properties will be in Gurgaon Delhi NCR (to open Jully 2008), Udaipur (Winter 2008), Chennai (Winter 2009), South Delhi (2010), Hyderabad (2010) and Pune (2010). The total investment is $300 million.

Most recently, Leela successfully acquired three acres for a hotel in the Indian capital city of Delhi which will open in 2010. The property was purchased for $150 million, the highest price ever paid per acre for property to date in Dehli. The land, which is located in the South of the city, will house a 250 room luxury hotel comprised of oversized guestrooms and elegant serviced apartments catering to the extensive and increasing business travel market to India. This announcement confirms The Leela Palaces, Hotels and Resorts position as the leading Indian owned hotel group, an industry leader in every market it operates in currently the hotel company has award winning, five star properties in Mumbai, Bangalore, Kovalam and Goa. Each hotel is individually designed and the group boasts the most spacious hotel rooms in India. Most international brands are constantly looking for entry opportunities into India as the country is in the midst of an economic boom. Leela is well situated for growth in prime markets and remains the market leader in the locations it currently operates.

The Vice Chairman and Managing Director Mr. Vivek Nair stated with the successful bid for this site in a prime location in South Delhi, The Leela Group will realize a long-felt desire to have a hotel in the nation’s capital to service its growing international clientele. Leela maintains an association with Kempinski, which serves as a Sales and Marketing franchise, and in this context it was deemed necessary to have a presence in Delhi.

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

Leela’s flagship hotel in Bangalore, located in the heart of the corporate hi-tech district, has the highest average room rate in the country at $450 per night, and maintains 70 % occupancy.

Details On the New Hotels

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. The hotel will feature 319 rooms and suites and
90 apartments constituting The Leela Residences. This upscale mixed used development on a plot of five acres includes a premium shopping center.

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 2008 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-story hotel, The Leela Palace, Kempinski Chennai with over 300 rooms is being constructed and will open by 2009. This will not only be the largest and the first beach front business hotel in the city, but its 1600 square meter Convention Centre, will be the most contemporary and well laid out meeting area in Chennai. The Leela Palaces and Resorts is investing $75 million in this new premium development which will be sprawled across seven acres of pristine beachfront.

The South Delhi hotel will be built on three prime acres. The site, which was acquired at a cost of $152.75 million, is strategically located on Vinay Marg/Africa Avenue in the Central Business District and close to the Consulate Avenue. The hotel will be another upmarket “trophy” hotel with 250 oversized guestrooms and service apartments, in keeping with the other hotels in the Leela portfolio.

The Chennai project will coincide with a further investment of $70 million for 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 2010.

Pune, the new technology hub, is the fastest growing second tier city of India. In fact, urban experts see Pune developing as an extension of Mumbai. The Leela Palaces and Resorts and a business park is part of this development. The group will invest $30 million into building a 250 room luxury hotel by late 2010 on a five acre site close to the airport.

Contact:
Lorraine Abelow
LAPR
Lorraine@abelowpr.com
203-226-5390