Hotel Leelaventure on Thursday said the company expects to announce its entry into mid-segment with the launch of a new brand by the next quarter of this fiscal. The company that operates seven luxury hotels and resorts across India, is working on a diversification plan to set up a chain of three star hotels under ‘Leela Gardens’ brand that will target religious destinations as per PTI reports.

“We should be able to make an announcement (on the new brand) in the coming quarter,” said Hotel Leelaventure Area Vice- President Shashank Warty. He said the new venture would be launched under a separate company which is currently at an initial stage of formation. With the new brand, the company will focus on religious destinations across the country, he added.

The initiative is being led by Samyukta Nair, the grand daughter of 90-year-old founder of the Hotel Leelaventure C P Krishnan Nair. Earlier this year, C P Krishnan Nair had said the first ‘Leela Garden’ property was likely to be launched by 2013 and there is a plan to open around 30-40 such hotels.

In the meantime, Hotel Leelaventure’s promoters are looking to divest around 15% equity. The company is holding talks with 2-3 private equity players to raise upto Rs.600 crore. In May this year, the company’s board has also approved fund raising of up to Rs. 1,000 crore by way of qualified institutional placement, FCCB and others. The fund raising and stake sale is aimed at reducing the company’s debt which is currently estimated at Rs. 3,950 crore.