Kohlberg Kravis Roberts & Co, the renowned buyout firm will widen its money-lending activity in India, possibly lending as much as Rs 2,000 crore to Hotel Leelaventure Ltd, against two prime properties, as per a report in TOI. 

The hospitality chain promoted by Captain CP Krishnan Nair and partly owned by ITC, has reached out to the buyout firm as it has been unable to raise resources as stipulated during its previous loan restructuring package, said the bankers who did not want to be identified. Its debt is more than Rs 4,700 crore. Any deal, if consummated, could be a structured one which may provide an upside for the private equity firm. In December last year, Hilton Worldwide Holdings Inc, the world's largest hotel operator, raised $2.35 billion in an IPO, the largest by a hotel company. The nominal gains of the Blackstone group, Hilton's owner, is among the largest for a private equity company, according to international media reports. 

KKR's India head Sanjay Nayar said, "No comments", while Hotel Leelaventure did not respond to an email seeking comment. Leela faces the same plight as other corporates that took on too much debt during the economic boom before the 2008 credit crisis. The economic slowdown, accentuated by government's indecision, led to fall in revenue growth and losses as occupancy fell and room rate declined .

The deal is crucial for Leela as well as for the consortium of banks that has been traditionally doing business with the the hospitality group. Leela Plans to Sell Hyderabad Land 

(You need to login first to read complete news).
New User? Register for FREE!
» Back to Travel News