The Leela is well capitalised to leverage emerging opportunities: Anurag Bhatnagar, ET HospitalityWorld
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Addressing a press conference organised to announce the details of the forthcoming Initial Public Offering (IPO) of Schloss Bangalore , the owning company of The Leela brand of hotels, Anurag Bhatnagar, CEO of the hotel company said that they are well capitalised to leverage the emerging opportunities for luxury hospitality in the country considering the current and ensuing demand-supply gap in the luxury market.He said that the target audience for luxury products in India, which is currently sitting at 70 million families, is poised to grow to 200 million families over the next five years, throwing huge business opportunities for luxury market players in coming years.Schloss Bangalore Limited's IPO with an offer size of Rs 3,500 crore is set to open on May 26 and close on May 28, 2025. The issue includes a fresh issue of shares aggregating to Rs 2,500 crore and an offer for sale (OFS) of up to Rs 1,000 crore. The price band of the issue is between Rs 413 and Rs 435 per equity share.As per the issue summary, no less than 75 percent of the allotment will be for Qualified Institutional Buyers (QIBs), 15 percent for non-institutional investors and up to 10 percent for retail investors.Talking about the Leela portfolio of hotels and their performance, Bhatnagar said that they were the only institutionally owned and managed pure-play luxury hospitality company in the country and their singular differentiating element is the service culture embedded on Atiti Devo Bhava.He said that in terms of all performance metrics of EBITDA margins, RevPAR premium and net promoter score, The Leela properties were far ahead of the market competition. The Leela Hotels enjoyed a RevPAR premium of 1.4X in the luxury hospitality market and an EBITDA margin of 49.78 percent for FY25, he said, which is highest in the market. The hotel company had a net promoter score of 85.11 which is unmatched in the industry, he informed.Drawing a comparative analysis of other global economies of the world, Bhatnagar said that the luxury hospitality industry grew double the respective economy growth rate and therefore the Indian luxury hospitality industry is also poised for a major push off as the Indian economy is set to become the third largest soon.'India is quite underserved in terms of luxury hospitality products and therefore there is a long run way available for exclusive players like The Leela,' said Bhatnagar.The Leela owns, manages and operates 13 hotels with a combined inventory of 3,553 rooms currently and 678 keys are in the pipeline.Talking about the growth strategies, Bhatnagar said that they had identified a few sub-segments of luxury hospitality for future growth and expansion. These sub-segments include business (serviced apartments/residences); hill stations; heritage properties; spiritual and wildlife.In the pipeline are serviced apartments in Mumbai; hotels in Sikkim and Srinagar; a hotel in Agra; a heritage hotel in Ranthambore; a 100-room hotel in Ayodhya (spiritual) and Bandhavgarh (30-key wildlife retreat). Out of the upcoming hotels, five will be company owned assets, Bhatnagar said.Another major announcement Bhatnagar made was the soon to be launched 'ARQ Club', a members only club in 3 select properties of The Leela.Speaking on the occasion Ankur Gupta , managing partner - real estate, Brookfield said that The Leela business has a special place in the Brookfield portfolio ever since they acquired the Indian luxury hospitality company in 2019 and has been consistently investing in the brand development. From 8 properties in 2019, the portfolio has grown to 20 operational and under development today, he said.As per the public issue summary, the proceeds of the public issue will be used for repayment, prepayment, redemption of outstanding borrowings and general corporate purposes.
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