Leela Palaces Hotels & Resorts to Invest Up to ₹185 Crore in Ayodhya 5-Star Hotel Project
Leela Palaces Hotels & Resorts Limited, formerly known as Schloss Bangalore Limited, has announced a proposed investment of up to ₹185 crore in its subsidiary Buildminds Real Estate Private Limited to support the development of an upcoming five-star hotel in Ayodhya.
The company disclosed the proposed investment on August 10, 2026, under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations.
The investment will be made through subscription to Compulsorily Convertible Preference Shares (CCPS) in one or more tranches, depending on the funding requirements of the project.
Leela Palaces Hotels & Resorts is listed on the stock exchanges under BSE Scrip Code: 544408 and NSE Symbol: THELEELA.
₹185 Crore Investment Planned for Ayodhya Project
Leela Palaces Hotels & Resorts plans to invest up to:
₹185 crore
in Buildminds Real Estate Private Limited.
Buildminds is a subsidiary of Leela Palaces Hotels & Resorts and is responsible for the development of the company’s upcoming five-star hotel in Ayodhya.
The proposed investment is intended to meet the capital requirements of the subsidiary and support the project’s development and long-term growth.
The investment will be made in one or more tranches over one or more years.
The company expects the investment to be completed on or before FY2028-29, depending on Buildminds’ funding requirements.
Investment Through Compulsorily Convertible Preference Shares
The proposed funding will be provided by subscribing to Compulsorily Convertible Preference Shares (CCPS) issued by Buildminds.
The consideration will be entirely in cash.
The total investment is expected to be up to ₹185 crore.
The company said the investment forms part of its overall commitment to fund Buildminds’ capital requirements.
The funds will be used for:
- Construction of the upcoming five-star hotel
- Project-related expenditure
- Working capital requirements
- Other general corporate purposes
- Supporting ongoing business operations and project development
Leela Already Holds 76% in Buildminds
Leela Palaces Hotels & Resorts currently holds 76% of the equity share capital of Buildminds.
The proposed investment is not expected to result in any change in the company’s management control over the subsidiary.
The company also stated that there will be no change in its economic interest in Buildminds as a result of the proposed transaction.
Ayodhya Hotel to Strengthen Leela’s Presence
The investment is particularly significant because it supports Leela’s expansion into Ayodhya, one of India’s prominent religious and tourism destinations.
The proposed property will be a five-star hotel, positioning the company to participate in the premium hospitality opportunity emerging in the city.
The project is being developed through Buildminds Real Estate Private Limited, which operates in the hotel and resorts industry.
The company said the investment is intended to support the project’s construction and long-term development.
Buildminds Is a Relatively New Subsidiary
Buildminds Real Estate Private Limited was incorporated on April 23, 2024, under the Companies Act, 2013.
The company was incorporated with the Registrar of Companies, Mumbai.
Its registered office is located at Tower 4, Third Floor, Equinox Business Park, Kurla West, Mumbai, Maharashtra.
Buildminds’ corporate identification number is U55101MH2024PTC423912.
The subsidiary currently has no reported turnover.
| Financial Year | Turnover |
|---|---|
| FY24 | Nil |
| FY25 | Nil |
| FY26 | Nil |
The absence of revenue is consistent with the subsidiary being primarily involved in the development phase of the upcoming hotel project.
Related-Party Transaction
Since Buildminds is an existing subsidiary of Leela Palaces Hotels & Resorts, the proposed investment is classified as a related-party transaction under the applicable SEBI regulations.
The company stated that the transaction is being undertaken at arm’s length and in compliance with applicable provisions of the SEBI LODR Regulations.
Apart from their interest arising through the company’s ownership of Buildminds, the company said that none of its promoters, promoter group or group companies have any separate interest in the proposed transaction.
No Government or Regulatory Approval Required
According to the company’s disclosure, no specific governmental or regulatory approvals are applicable for the proposed investment.
The investment is expected to be completed through one or more tranches depending on the capital requirements of Buildminds.
The company has indicated that the investment can be made up to FY2028-29.
Why the Ayodhya Project Matters
The planned Ayodhya hotel represents an opportunity for Leela to expand its premium hospitality footprint into an important religious tourism destination.
Ayodhya has emerged as a major destination for religious tourism and is attracting increasing interest from hospitality operators.
A five-star hotel project can potentially cater to:
- Premium religious tourists
- Domestic leisure travellers
- International visitors
- Business travellers
- Weddings and events
- Corporate and institutional guests
For Leela, the project also fits within its broader hotel and resort business rather than representing an unrelated diversification.
Potential Long-Term Strategic Benefits
The proposed ₹185 crore investment could help Leela strengthen its presence in India’s growing hospitality market.
The project could provide the company with an additional premium property once construction is completed and the hotel becomes operational.
However, because Buildminds currently has no reported turnover and the project is still under development, the immediate financial contribution from the property is expected to be limited.
The investment should therefore be viewed primarily as a long-term expansion and asset-development initiative rather than an immediate earnings driver.
Key Details at a Glance
| Particular | Details |
| Company | Leela Palaces Hotels & Resorts Ltd |
| Subsidiary | Buildminds Real Estate Pvt Ltd |
| Proposed Investment | Up to ₹185 crore |
| Instrument | Compulsorily Convertible Preference Shares |
| Consideration | Cash |
| Existing Equity Holding | 76% |
| Project | Upcoming 5-star hotel |
| Location | Ayodhya |
| Industry | Hotels & Resorts |
| Investment Timeline | Up to FY2028-29 |
| Purpose | Project construction, working capital and corporate purposes |
| Buildminds FY26 Turnover | Nil |
| Change in Control | Not expected |
| Regulatory Approval | Not applicable |
Leela Palaces Hotels & Resorts’ decision to invest up to ₹185 crore in Buildminds Real Estate Private Limited marks another step in the company’s expansion of its premium hotel portfolio.
The funds will primarily support the development of an upcoming five-star hotel in Ayodhya, with the investment to be made through compulsorily convertible preference shares.
With Leela already holding 76% of Buildminds, the transaction is not expected to change management control or the company’s economic interest in the subsidiary.
While the project is unlikely to have an immediate impact on earnings because Buildminds currently has no operating revenue, its successful execution could create a new premium hospitality asset in Ayodhya over the longer term.
For investors, the key focus will be on project execution, capital deployment, completion timelines and the eventual operating performance of the Ayodhya hotel.
This article is based on the regulatory disclosure made by Leela Palaces Hotels & Resorts Limited on August 10, 2026. It is for informational purposes only and should not be considered investment advice.