Rs 3,500 cr Leela IPO Points To India’S Great Potential
Rs 3,500 cr Leela IPO Points To India’S Great Potential
Schloss Bangalore, the parent company of the Leela brand of luxury hotels, plans to raise ₹3,500 crore through its upcoming IPO underlines the growing status of the luxury hospitality industry. The offering will comprise a fresh issue of ₹2,500 crore and an offer for sale (OFS) worth ₹1,000 crore.
The Leela brand currently operates a total of 3,553 keys across 13 hotels including 5 owned properties, 7 hotels under its managed portfolio and 1 franchised hotel operated by a third-party owner.
Promoters, Brookfield, is a global alternative asset manager with over $1 trillion assets under management, operations in over 30 countries and approximately 2,50,000 operating employees as of March 31, 2025. As of March 31, 2025, Brookfield manages $272 billion real estate assets, and has a strong global track record in hospitality, with a global portfolio comprising around 44,000 keys across 181 owned hotels and significant experience in owning and managing luxury hospitality assets. As of March 31, 2025, they are one of the largest luxury hospitality companies by number of keys in India, comprising of 3,553 keys across 13 operational hotels. Our Portfolio includes The Leela Palaces, The Leela Hotels and The Leela Resorts.
Further, they plan to expand our Portfolio with seven new hotels in Srinagar, Agra, Ayodhya, Ranthambore, Bandhavgarh, and Sikkim. These locations shall add approximately 678 keys or 19.08% of existing keys through 2028. India’s hospitality industry has an inventory of approximately 3.4 million keys as of March 31, 2024. The stock of luxury hospitality remains constrained – constituting only 17% of the branded hotel market i.e., approximately 29,000 keys.
The luxury hospitality segment is witnessing high growth, driven by the sharp increase in affluence globally and a large and expanding base of travelers willing to spend on luxury travel options. Luxury spends are expected to grow at a CAGR of nearly 5% over 2023 to 2026E, reaching $1.6 trillion. in value.
