Leela Palaces' subsidiary buys 546-key Sofitel The Palm in UAE
This story was originally published at 10:54 IST on 27 November 2025
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MUMBAI – Leela Palaces Hotels & Resorts Ltd. Thursday said Argon Holdings (DIIFC) Ltd., an associate company, has acquired Sofitel The Palm FZE hospitality property in the UAE. Sofitel The Palm FZE owns one of the largest beachfront hospitality properties on Palm Jumeirah, Dubai. The freehold property features 546 keys, including a 361-key luxury hotel, 182 branded residences, and three exclusive villas, the company said. Palm Jumeirah is a globally established tourism hub with 5 million visitors annually, the company said in an exchange filing.
The company said it expects to recover its equity investment within three years through the sale of branded residences. It said it plans to rebrand the hotel as 'The Leela' and the property will become the brand's first international flagship.
Aries Holdings (DIFC) Ltd., a wholly-owned subsidiary of the company, had invested in Argon Holdings earlier to explore business opportunities in the UAE. Argon has now acquired the property through its subsidiary Boron Holdings (DIFC) Ltd. Leela Palaces owns 25% stake in Argon through Aries Holdings.
"This investment marks a strategic expansion into Dubai, one of India's most significant international feeder markets, and is expected to deliver substantial financial value," the company said in the filing.
For the September quarter, Leela Palaces reported a consolidated net profit of INR 747.17 million on revenue of INR 3.11 billion. At 1044 IST, shares of the company were 0.6% lower at INR 411.80 on the National Stock Exchange. End
Reported by Adhithya Aji
Edited by Subhojit Sarkar
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