Leela Palaces Hotels & Resorts Ltd's arm invests in Sofitel the Palm FZE

Aries Holdings (DIFC) Limited ("Aries"), a wholly owned subsidiary of Leela Palaces Hotels & Resorts Limited (the "Company") incorporated outside India, had invested in Argon Holdings (DIFC) Limited to explore business opportunities in the UAE.

Argon has acquired Sofitel the Palm FZE through its wholly owned subsidiary, Boron Holdings (DIFC) Limited. As the Company owns 25% of Argon through Aries, it has effectively made an investment in Sofitel The Palm FZE.

Sofitel The Palm FZE owns one of the largest beachfront hospitality properties on Palm Jumeirah, Dubai. The 23-acre freehold property comprises 546 keys, including a 361-key luxury hotel, 182 branded residences, and 3 exclusive villas. Palm Jumeirah is a globally established luxury tourism hub, attracting over 5 million visitors annually and featuring the highest concentration of USD 1 million-plus residences in Dubai.

This investment marks a strategic expansion into Dubai, one of India's most significant international feeder markets, and is expected to deliver substantial financial value. The Company currently expects to recover its equity investment within 3 years through the sale of branded residences. With the planned rebranding of the hotel to "The Leela" the property will become the brand's first international flagship, representing a major milestone in its global expansion.

Shares of Leela Palaces Hotels and Resorts Limited was last trading in BSE at Rs. 414.25 as compared to the previous close of Rs. 409.80. The total number of shares traded during the day was 8383 in over 892 trades.

The stock hit an intraday high of Rs. 416.65 and intraday low of 400.05. The net turnover during the day was Rs. 3443259.00.

Source : Equity Bulls

Keywords

LeelaPalacesHotelsandResorts INE0AQ201015 AriesHoldingsDIFC investment ArgonHoldingsDIFC UAE SofitelthePalmFZE