The Leela Palaces, Hotels and Resorts has acquired an ultra-luxury resort in Coorg for up to ₹560 crore to expand its wellness portfolio. The acquisition is a slump sale of the Coorg undertaking of Pai Vista Hotels Pvt. Ltd, including all assets, land, and liabilities as a going concern, according to an exchange filing on Monday.
The move aligns with the company’s stated strategy to remain a ‘niche, pure-play luxury’ brand even as it scales. In an earlier interaction in 2025, chief executive Anuraag Bhatnagar had told Mint the company would continue to focus on high-end hospitality without diluting its positioning. “Ours will be a niche, complete luxury hotel offering.”
The 71-villa property, spread across 76 acres near Madikeri in the Western Ghats, will be launched later this year as The Leela Coorg Forest Sanctuary. The company plans to expand the inventory to 90 villas in phases.
In its January earnings call, the company’s top executive said it started FY25 with 3,500 rooms and added 250 rooms through its Mumbai acquisition in the first quarter of FY26. In the second quarter, it added 546 rooms in Dubai and, in the third quarter, a further 80 keys in Jaisalmer.
This growth reflected a strong pipeline and ongoing deal activity, with the company saying it remains on track to meet its FY30 Ebitda guidance of ₹2,000 crore.
He had earlier also told Mint that the brand commands a premium over peers in the segment. The Leela has been increasing its focus on experiential, destination-led travel, particularly in locations accessible from key urban centres such as Bengaluru and Mangaluru, the company said in a statement. Rising incomes and better connectivity are driving a structural shift toward experience-led luxury consumption.
With the addition of the Coorg asset, The Leela will now operate 15 properties with over 4,100 rooms. It has a pipeline of nine hotels and is targeting expansion to 24 properties over the next three years across markets such as Agra, Ayodhya, Bandhavgarh, Mumbai, Ranthambore, Sikkim, Srinagar and Jaisalmer.
