Brookfield-backed Schloss Bangalore Ltd, which owns the luxury hospitality brand ‘The Leela’ Palaces, Hotels and Resorts, is allocating Rs 1,131 crore to establish five company-owned hospitality properties, featuring a total of 475 rooms, in Agra, Srinagar, Bandhavgarh, Ranthambore, and Ayodhya.
Schloss Bangalore is set to launch its Rs 3,500 crore Initial Public Offer (IPO) on Monday and operates the Leela Palaces Hotels & Resorts brand. Currently, the company manages 13 hotels, of which 5 are owned by the company while the remaining 8 are under its management. Ravi Shankar, Head of Asset Management and Chief Financial Officer at The Leela Palaces, Hotels and Resorts, informed , “We are investing Rs 1,131 crore into the five upcoming owned hotels in Agra, Srinagar, Bandhavgarh, Ranthambore, and Ayodhya, which will have a total of 475 keys.” The five owned hotels are anticipated to begin operations by 2028, as indicated in the company’s red herring prospectus (RHP).
Shankar also mentioned that the company will be debt-free after raising Rs 3,500 crore through the IPO, with the primary proceeds of approximately Rs 2,500 crore designated for debt repayment.
The luxury hospitality brand was acquired by the Canada-based investment management firm Brookfield in 2019, which plans to reduce its stake by 24 percent following the Rs 3,500-crore initial public offering (IPO), which is being promoted as the largest IPO in the hospitality sector, reducing its ownership to 76 percent. Ankur Gupta, Head of Asia Pacific and Middle East for Brookfield’s Real Estate Group, stated, “At the upper end of the price, our ownership will be approximately 76 percent post-IPO, reflecting a 24 percent dilution, including the offer for sale at the price at which I acquired it.” Shankar added, “We have 20 hotels, of which 13 are operational. We own five hotels, representing 35 percent of our total portfolio. We have 678 keys in various stages of active development. Nearly 65 percent of our portfolio consists of managed hotels.”
The Rs 3,500-crore IPO is set to commence on Monday, with a price range of Rs 413-435 per share. This offering consists of a fresh equity share issue valued at Rs 2,500 crore, alongside an offer for sale (OFS) of stocks worth Rs 1,000 crore by the promoter, Project Ballet Bangalore Holdings (DIFC) Pvt Ltd.
According to the red herring prospectus, as of March 2025, the company had total borrowings exceeding Rs 3,900 crore. Schloss Bangalore, which manages opulent hotels and resorts under the “The Leela” brand, boasted a portfolio of 3,382 keys across 12 operational hotels as of May 31, 2024.
This portfolio encompasses The Leela Palaces, The Leela Hotels, and The Leela Resorts, situated in 10 prominent Indian locations. From a financial perspective, the company has experienced remarkable growth, with operating profit, or EBITDA, rising from Rs 87.72 crore in FY22 to Rs 600.03 crore in FY24.
