Hotel Leela gains; property sale to reduce debt

Last Updated: Tue, Feb 19, 2013 06:20 hrs

Hotel Leelaventure Ltd shares rise 9 percent, a day after the company sold its IT park building in the city of Chennai for 1.7 billion rupees ($31.38 million) to Reliance Industries, according to an exchange filing.

Traders say the hotel operator will be able to reduce debt, a critical factor given higher interest costs led Hotel Leelaventure to post a net loss of 970 million rupees in the October-December quarter, despite what analysts called a better-than-expected top line performance.

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