Hotel Leelaventure posts loss of Rs 26cr

Hospitality company Hotel Leelaventure on Wednesday posted net loss of Rs 26.49 crore for the first quarter ended June 30,2011. During the three-months ended June 30,2010,the company8217;s net profit was Rs 9.24 crore.

8220;The company has incurred a loss mainly due to the impact of interest and depreciation on account of opening of The Leela Palace,New Delhi,8221; it said in a statement. The firm8217;s net sales for the first quarter of the current fiscal increased 14.18 per cent at Rs 124.72 crore,compared to Rs 109.23 crore in the same quarter last fiscal. Commenting on the results,Hotel Leelaventure Vice-Chairman and MD Vivek Nair said : 8220;The Leela Palace,New Delhi is expected to stabilise its operations with the opening of its new restaurants 8216;Le Cirque8217; and 8216;Megu8217; and when the ensuing peak season sets in8221;. Also,a part of The Leela Goa is under renovation and hence,the overall profitability of the company has been affected,he said.

8220;The revenues would substantially improve with the stabilisation of the Delhi hotel in the second half of the year and the re-opening of the Goa resort in November,2011,8221; he added.

After the close of the quarter,a promoter group company has acquired 33,14,725 0.85 per cent of the paid up capital shares through open market purchases,it said in a filing to the Bombay Stock Exchange. Hence,the promoters holding as on date stands at 21,77,85,345 shares constituting 56.16 per cent of the paid up capital of the company. The company8217;s scrips closed at Rs 45.95,up 8.50 per cent from the previous close on the BSE