This, however, has not affected the group's overall financial performance as other properties, specially the one in Mumbai did a good business, said company official.

The resort will now have 165 oversized rooms, compared with 220 rooms earlier, and the increased tariff will more than make up for the long period of inactivity. "With the help of Four Seasons' market expertise, we expect to generate good business," sources said.

The potential loss of revenue due to the one-year closure will soon be recouped with the resport's status elevation. "It will be one of the most expensive and luxurious resorts in the country," said company officials, adding that its clientele would only comprise elite tourists, who generally prefer Bali andHawaii to India for leisure travel.

In association with Four Seasons, Leelaventure has embarked on a host of expansion and upgradation plans. This includes a luxurious resort in Udaipur, Rajasthan, and five-star hotels in Bangalore and Delhi.The Leela Palace Four Seasons resort at Udaipur and the five-star hotel at Bangalore will be operational next year while the hotels in Delhi and Mumbai are scheduled to be launched in the year 2000.

To part fund its expansion programme, the group had earlier raised Rs 260 crore through non-convertible debentures and term loans. It was also planning to raise $45 million (Rs 180 crore) through an euro issue. This, however, has been put on hold owing to unfavourable market conditions.

Leelaventure is now examining the possibility of raising $15 million through external commercial borrowings during the course of this financial.Despite the general fall in fortunes in the hotel industry, Leelaventure hopes to post good results for 1997-98, officials said, adding thataverage occupancy rate hovered around 78 per cent during the year.