Hotel Leelaventure, that runs The Leela Palaces Hotels and Resorts, will launch its mid-market brand by the end of this financial year. The company also plans to take its current luxury brand overseas. To begin with, the company has identified Maldives and Mauritius markets for the luxury brand. Moreover, Leela is also looking at setting up a second luxury hotel in Mumbai.

Rajiv Kaul, president, Hotel Leelaventure, said, ?We will be announcing our mid-market brand by the end of this financial year.? He, however, did not divulge any details.

Hotel Leelaventure?s shares were up 4.56% on the BSE on Thursday to close at Rs 42.40. The company had reported a 23.63% dip in net profit for the quarter ended December 31, 2010, to Rs 22.04 crore, compared to Rs 28.86 crore a year ago. Its total income, however, grew to Rs 142.25 crore in the third quarter, from R127.74 crore in the year-ago period.

It may be recalled that FE, in an earlier report, had mentioned the company?s plan to enter mid-market hotel segment with the brand Leela Garden. CP Krishnan Nair, chairman of the company, had expressed his interest to have its mid-market brand across pilgrimage hotspots. However, sources say that it may be more than just pilgrimages and one could see the company eyeing tier II cities like Pune, for instance, with the brand.

Kaul said, ?We want to be a tier II brand as well (with mid-market brand) and would look at aggressively expanding our mid-market brand.?

Speaking about the second property in Mumbai (south Mumbai area) Kaul said, ?It will be a greenfield property and we are in early discussions.? Indicating that the property will be a luxury one, he added that the site has been identified and the recent increase in floor space index (FSI) would prove beneficial. The company will be managing the South Mumbai property.

?The success of our sole managed property in the country at Gurgaon in Haryana has made us actively scout for more management contracts,? he said. Even the overseas properties looked at by the hospitality chain will be management contracts. Leela is looking at around 1,000 rooms under management contract.

In financial year 2011-12, Leela is aiming at 40-45% growth in its revenues and hopes to close it at R1,000 crore.