Leela Palaces, Hotels and Resorts has bought a 25% stake in Sofitel The Palm FZE, a large beachfront property on Dubai’s Palm Jumeirah. The investment was made through its overseas subsidiaries, Aries Holdings and Boron Holdings.
Private funds managed by Brookfield will take the remaining 75% stake in the asset. Tis follows the company’s approval in October to begin expanding outside India.
As per news reports, Leela will put in ₹437 crore as upfront capital for the acquisition. The company already owns 25% of Argon Holdings through Aries, and the filing noted that the structure results in an indirect investment into Sofitel The Palm FZE as well. This is one of Leela’s first major international additions to its hospitality portfolio.
Sofitel The Palm FZE owns a 23-acre freehold site on Palm Jumeirah, one of Dubai’s busiest tourism zones. The property includes 546 keys, made up of a 361-key hotel, 182 branded residences, and three villas.
Palm Jumeirah receives more than five million visitors every year and has one of the highest concentrations of homes priced above $1 million, placing the property in a high-value location.
The company said the Dubai property will be renovated and later operate under The Leela name. Once reopened, it will become Leela’s first international hotel under its own branding.
The filing added that the group expects to recover its equity investment within three years, supported by the planned sale of branded residences within the development.
Leela Palaces, Hotels and Resorts run 13 properties across 11 Indian cities, with a total of more than 3,500 keys. This includes 5 owned hotels, seven managed hotels and one franchised property. The Dubai acquisition adds a foreign asset to its otherwise domestic network.
Read More: Oyo Assets Raises ₹125 Crore Led by InCred to Boost Hotel Acquisitions Across India!
As of November 28, 2025, 11:36 am, Leela Palaces Hotels and Resorts share price was trading at ₹410.15, a 1.47% decline from the previous closing price.
The transaction brings a large international property into Leela’s fold, backed by a defined investment structure and a clear plan for redevelopment and cost recovery.
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Published on: Nov 28, 2025, 11:41 AM IST
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