The promoters of UK-based Lebara Group have acquired a property in Chennai, which will be managed as a four-star hotel by the Indian Hotels Company. The 190-room under-construction hotel would be managed by the Taj Group of hotels under the Gateway brand as per a report by Meenakshi Verma Ambwani in ET.

Located on the Old Mahabalipuram Road, in the south of Chennai, the hotel was owned by RAS Adyar Hotel Limited, which is promoted by former Justice Ramaswami's family. An executive from a hotel consultancy firm said the deal size is pegged at Rs 100-110 crore, but the buyers refused to give details.

A spokeswoman for Lebara Group said, "Lebara can confirm that its shareholders have bought a hotel in Chennai and have personally invested in this hotel project. Once complete, the hotel will be operated under the Gateway brand of Taj Hotels." The spokeswoman said the owners of Lebara are keen on other investment opportunities in the sector. Lebara Mobile is owned by Yoganathan Ratheesan.

An advisor for the hotel transaction, who did not want to be named, said, "The hotel is being constructed and is expected to be open by 2013." Jones Lang LaSalle Hotels was involved in the contract negotiation and signing of management agreement with the Taj Group on behalf of Lebara Hotels. Sudeep Jain, executive vice-president of JLL Hotels India, said several hotel assets are on the block across the country as the owners want to exit.

Lebara is one of Europe's leading mobile virtual network operators, providing low-cost international mobile products and services to customers across seven European countries and Australia. A person in the know of developments said the owners have Indian ties, which led them to buy this property. "The group might look at other assets in future," he added.