Now, with the demand in several cities outstripping supply, Hotel Leela is likely to be more aggressive in its expansion plans. The hotel has only three properties now and plans to foray into Chennai, Hyderabad, Delhi and Udaipur. It is already in the midst of renovating its Mumbai property and adding more rooms to Leela Kempinski, Bangalore. The Udaipur project is already underway, and is likely to be commissioned in 2006. Meanwhile, it has decided to set up a five-star deluxe hotel in Chennai.
These cities are rapidly emerging as key tourist and business destinations. While many hotels are now expanding aggressively, additional supply in these cities is likely to be absorbed by the growing demand for rooms.
Expansion to other cities would allow the hotel to capitalise on the boom in these markets and expand its revenue base.
