Leela Palaces Hotels & Resorts Limited announced that its wholly-owned subsidiary, Leela Luxe Hotels & Resorts Private Limited (LLHRPL), has approved the acquisition of a luxury resort/hotel business undertaking in Coorg, Karnataka. The deal, valued up to INR 560 Crores, is structured as a slump sale under a Business Transfer Agreement (BTA). The transaction also includes acquiring ancillary land parcels and assets from Pai Vista Hotels Private Limited and its promoters, effective March 16, 2026.
Acquisition of Coorg Resort Business
Leela Palaces Hotels & Resorts Limited (the Company) has disclosed a significant strategic move through its wholly owned subsidiary, Leela Luxe Hotels & Resorts Private Limited (LLHRPL). LLHRPL has approved the acquisition of the Business Undertaking related to a luxury resort/hotel situated in the Coorg (Kodagu) district of Karnataka.
The seller in the main agreement (BTA) is Pai Vista Hotels Private Limited, along with its promoters, including Mr. Jagannath Pai and Ms. Shantha Pai. The acquisition of the Business Undertaking will be executed on a going concern basis via a slump sale.
Transaction Value and Structure
The total consideration for the aggregate acquisition, which includes the Business Undertaking, ancillary land parcels, and identified assets/liabilities, is set at up to INR 560,00,00,000/- (Five Hundred Sixty Crores), subject to post-closing adjustments.
LLHRPL has secured the necessary funding for this Transaction through an equity infusion and a debt facility provided by the parent Company.
Key Terms of the Agreements
The significant terms of the Business Transfer Agreement (BTA) include the acquisition by LLHRPL of all rights, title, and interest in the Business Undertaking via slump sale. Other associated transaction documents cover the transfer of additional land parcels and ancillary assets.
The transaction was deemed effective on March 16, 2026. It is important to note that the Company itself is not a direct party to the Transaction Agreements, as the deals are executed entirely by the subsidiary, LLHRPL.
Related Parties Status
The document confirms that while LLHRPL is a wholly owned subsidiary of the Company, the other parties involved in the Transaction Agreements (Sellers/affiliates) are not related to the Company’s promoter group.
Source: BSE
