Latest news with #AnuraagBhatnagar
Mint
10 hours ago
- Business
- Mint
Schloss Bangalore to build 250-room ‘Leela' luxury hotel in Mumbai's Bandra-Kurla Complex
Bengaluru: Brookfield-backed Schloss Bangalore will build a mixed-use project, including a 250-room 'Leela' luxury palace hotel, a 700,000 sq ft office tower and the Arq Club, in Mumbai's premium business district, Bandra-Kurla Complex (BKC). A consortium led by Schloss Bangalore has been allotted 2.1 acres in BKC by Mumbai Metropolitan Region Development Authority (MMRDA) for a ₹ 1,302 crore lease premium, the newly-listed company said in a regulatory filing on Tuesday. The land parcel in BKC's prime G block has a total permissible built-up area of over 3.62 lakh sq ft. Of the total payable premium for the 80-year lease, 25% is payable within two months of the offer of allotment, and the remaining 75% within 10 months thereafter. The Schloss Bangalore-led consortium that includes Arliga Ecospace Business Park and Schloss Chanakya had submitted its bid for the land parcel in February. Schloss Bangalore and subsidiary Schloss Chanakya will hold 50% in the consortium, while Arliga Ecospace Business Park will hold the remaining 50% stake along with its affiliates. 'The possession of the aforesaid plot shall be handed over after the payment of the total lease premium,' the filing said. Schloss, which operates 'The Leela' brand of hotels across cities, plans to open seven new 'Leela' branded luxury hotels in spiritual, hill stations, wildlife, heritage and grandeur, and business categories in the next three years. The new hotels will be built in Ayodhya, Ranthambore, Gangtok, Srinagar, Bandhavgarh, Agra, and Mumbai, as Schloss plans to expand its portfolio to 20 from 13 hotels, catering to the luxury traveller. Schloss has 13 hotels with 3,353 keys, and the seven new hotel projects will add another 678 keys. Five of the seven new hotels will be owned, and the remaining two will be managed or franchised. 'Our focus is on luxury, which is where demand is being generated. In comparison, the supply of luxury hotels is limited," Anuraag Bhatnagar, CEO, The Leela, said in an interview with Mint in May. In 2019, Hotel Leelaventure Ltd completed the sale of its hotel properties to New York-headquartered Brookfield Asset Management for ₹ 3,950 crore. C.P. Krishnan Nair set up the hotel chain in 1986.
Time of India
26-05-2025
- Business
- Time of India
Leela Leadership Development Programme: The Leela Hotels Launches Leadership Development Programme for Class of 2026, ET HospitalityWorld
Advt By , ETHospitalityWorld Join the community of 2M+ industry professionals Subscribe to our newsletter to get latest insights & analysis. Download ETHospitalityWorld App Get Realtime updates Save your favourite articles Scan to download App The Leela Palaces, Hotels and Resorts announced the commencement of the class of 2026 for the Leela Leadership Development Programme (LLDP), the brand's flagship initiative to shape the future leaders of luxury an overwhelming response, The Leela Leadership Development Programme received over 1,400 applications from across the country. After a rigorous multi-stage selection process, 36 exceptional young professionals have been chosen to embark on this transformative 15-month journey that combines immersive real-world experience with world-class academic programme, designed in collaboration with the Indian School of Hospitality (ISH) in alliance with Les Roches , offers a unique platform for participants to accelerate their careers in luxury hospitality through a dynamic blend of on-the-job training, functional immersion, and global classroom at the launch of the new cohort, Anuraag Bhatnagar, chief executive officer, The Leela Palaces, Hotels and Resorts, said: "At The Leela, we put our guests at the centre of everything we do, and it is our people who make us who we are. The Leela Leadership Development Programme is our commitment to investing in future-ready talent who will carry forward our legacy of Indian luxury. We are thrilled to welcome the Class of 2026 and proud to partner with ISH and Les Roches in shaping tomorrow's hospitality leaders."The commencement ceremony for the new batch was held at The Leela Palace New Delhi and unfolded as a memorable evening filled with warmth, inspiration, and celebration. The evening featured a special Ganesh Vandana performance by the talented girls of the Sarvam Shakti NGO, impactful sessions from senior leadership, and heartfelt stories from programme alumni. A key highlight was a lively rapid-fire session with the new participants that offered a glimpse into their aspirations, motivations, and passion for The Leela way of in attendance were Dilip Puri, founder & CEO, Indian School of Hospitality, who shared his vision for the programme, and Joy Dev Chatterjee, programme director, LLDP, who led a fun, engaging interaction with the incoming Leela Leadership Development Programme is available to both internal and external candidates who hold a bachelor's degree in hospitality and at least one year of experience in a luxury hotel. The programme aims to fast-track their growth into managerial roles and ultimately into future general managers within The Leela.
Skift
23-05-2025
- Business
- Skift
The Leela's $400 Million IPO to Fund Luxury Expansion in India
The Leela plans to pay down debt and expand its luxury footprint across spiritual, heritage, and wildlife destinations. No new brands. Niche luxury segments. That is what The Leela is planning post its IPO – $400 million (INR 35 billion) offering set for Monday. Parent company Schloss Bangalore aims to use proceeds to pay down debt, said Ankur Gupta, managing partner at Brookfield Asset Management, which acquired The Leela in 2019. The remaining IPO proceeds are meant to be used for acquisitions, marketing, and other initiatives at the company, which has 13 properties, including five owned hotels. In a press conference Friday, the company shared more on its future plans. Here's what we learned: Sticking with luxury: Schloss Bangalore is not planning to move away from luxury and ultra-luxury. 'There is a lot of opportunity in this space,' said CEO Anuraag Bhatnagar. No new brands: Unlike its competitors, it will not be adding brands. It will open hospitality assets under The Leela brand, further segmented into Palaces, Hotels, and Resorts. The pipeline: In its Red Herring Prospectus, the company said it has a pipeline of seven hotels with 678 keys in development. They are expected to be operational by 2028. Niche luxury segments: It is planning to enter spiritual luxury accommodation segment with an upcoming property in Ayodhya, the hill station leisure space in Srinagar and Gangtok, wildlife offerings in Bandhavgarh, and heritage space in Agra and Ranthambore. New business segment: It is also entering the business segment with serviced apartments in Mumbai. Staying domestic: The Leela currently has no plans for international expansion, but it is considering options, and noted that locations such as Maldives and Dubai are under-penetrated by Indian luxury brands. Pipeline Details By 2028, The Leela's inventory will reach 4,200 keys, about 18% of the total luxury rooms in the country, Bhatnagar said. Currently, the company accounts for over 10% of the rooms in the luxury hotels space in India, according to The Leela's estimates. The pipeline is a part of The Leela's efforts to diversify its luxury offerings in different niche segments. In its prospectus, The Leela said that it will focus on gateway cities such as Mumbai, wildlife destinations, heritage spaces, wellness destinations, and spiritual tourism destinations for expansion. Most of the properties in its current pipeline have a low room inventory to maintain the luxury experience. For instance, the upcoming property in Ranthambore is expected to have only 76 rooms, while the Bandhavgarh resort is currently slated to have 30 keys. Diversifying in the Luxury Space 'We have refined and perfected ourselves in the luxury space,' Bhatanagar said, when asked about why the company is choosing to remain in the luxury segment and not diversify. He also cited examples of global companies such as Four Seasons and Mandarin Oriental, which continue to operate in the luxury space without getting 'distracted by any other brand or any other sub-segment.' Chief financial officer Ravi Shankar claims The Leela commands a 40% premium in its revenue per available room (RevPAR) and non-room revenue over the average in the luxury space. The company is also planning to launch a members-only club called Arq in its New Delhi, Bangalore, and Chennai properties to offer exclusive experiences. In October last year, The Leela announced the launch of Arq by The Leela - its collection of 'ultra-luxury villas,' which debuted at The Leela Palace Udaipur. The offering is meant for ultra high-net worth individuals and elite guests and more of these villas are expected to be added in the company's portfolio. While it is currently open to all, The Leela is hoping for this segment to reach a stage in terms of demand where members of the Arq club will get preference over non-members in booking the villas.
Mint
23-05-2025
- Business
- Mint
Leela to retain its 'niche, complete luxury' hotel identity even after IPO: CEO
The Leela Palaces, Hotels and Resorts, which is set to launch the largest initial public offering (IPO) in India's hospitality space to fund its expansion, is clear that it won't allow scale to dilute its core identity. The luxury hotel chain, operated by Brookfield-backed Schloss Bangalore Ltd, says it will remain a distinct, pure-play luxury brand with a sharp focus on high-end hospitality, as it prepares to raise ₹3,500 via the public offer that opens on Monday. "Ours will be a niche, complete luxury hotel offering," Anuraag Bhatnagar, chief executive officer, Schloss Bangalore Ltd, told Mint. Also Read | IPO-bound Schloss to spread Leela hotels in India, explore new luxury ventures The Leela Palaces IPO price band has been set at ₹413- ₹435 per share. The company's vision is clear, and will be focused on luxury hotels, continuing with its 40-year legacy. "This is a very nuanced and a very niche space we have created. We are the only institutionally managed pure-play luxury hotel company in India and it has taken us years to reach here. It's not easy to perfect this kind of an ecosystem of luxury and we have refined our vision and this will be our moat going forward too," Bhatnagar said. The company has 13 hotels that are currently operational and another 700-odd rooms are in active development across different cities. Leela owns over 10%, or 3,500 of India's luxury hotel inventory of nearly 30,000 rooms. "When we look at industry data, we are charging on an average, 40% premium (or 1.4 times) on our luxury hotel rooms than any other luxury player in the country and luxury rooms themselves charge two-and-a-half times higher in terms of revenue per available room than the regular industry average. This number is ₹15,300, which is higher than the industry average of ₹11,000. We have a long runway ahead" he said. Revenue per available room, or RevPAR, is a metric by which hoteliers measure performance of the total hotel rooms they have. It is calculated by dividing the total room revenue by the total number of rooms available. Also Read | 'Leela deal worth the price; such assets not built quickly' Average daily rates, or the rates that hotels charge per day per room, in the luxury segment are far lower in India than their overseas counterparts, including hotels in the Middle East and Asia Pacific, giving companies like The Leela Palaces more room for growth, Bhatnagar said. According to hospitality consultancy firm Hotelivate's October 2024 report, India had a total branded hotel inventory of approximately 180,000 rooms as of FY24, with around 39% of these falling into the upscale and luxury segments. India now has about 200,000 or more branded hotel rooms, with the number expected to shoot past 300,000 rooms by FY30, according to another hospitality consultancy Horwath HTL. Also Read | Leela, Hyatt or Radisson? Summer brings out India's best hotel deals Bhatnagar said that the hotel sector has experienced a sustained recovery and growth over the past five years, following the pandemic-induced downturn. This resurgence is characterized by a permanent shift towards prioritizing travel and experience-driven consumption. 'There is also now an overlap with the India growth story and the phenomenal rate at which our GDP is growing along with the increase in purchasing power. There were about 70 million-odd households in India a few years ago, which were potentially consuming luxury goods and services. This is expected to triple in the next five years to 200 million households. That's where a huge opportunity lies," he said. Hospitality, traditionally shaped by global consumption trends, has long been central to the luxury goods and services space. Bhatnagar further noted that the country's expanding infrastructure, including the development of new airports and the rising popularity of destinations easily accessible by road from major cities, is significantly contributing to business growth. 'The addressable luxury market is going to increase year on year," he added. While the current number of pure-play inbound international travellers lags, projections indicate a significant increase to 15 million in the coming years, which is expected to substantially boost the business. Leela at present has a near 50-50 split of Indian versus international travellers, which gives it balanced future growth prospects, he added. Earlier, prior to the pandemic, this figure was 65% international travellers versus 35% Indians. The company is reinvesting strategically in its existing hotel portfolio and exploring emerging luxury sub-categories to enhance average daily rates. This includes developing premium offerings such as high-end villas within current properties and establishing exclusive members-only clubs. 'These will all be value drivers that we have built into a system which will play out in the next few years," he said. This will also include its luxury residences which will come up in the next 18 months in Mumbai. Hotels will open in a phased manner till 2028. Schloss Bangalore Ltd earlier this week said it will open its ₹3,500 crore initial public offering on 26 May, making it the largest IPO in the country's hospitality sector to date. The company has scaled down the issue from an earlier ₹5,000 crore plan, citing robust cash flows in recent quarters, and will use the proceeds to fully repay its ₹2,500 crore debt, making it a debt-free business. "We see it as a very positive spin because our primary need of the IPO proceeds was to pay our debt and we had to pay ₹2,500 crore of debt. Our need for capital has gone down. And the size of reduction of the offer for sale (OFS) shows a promoter confidence in the brand and the company," he said. The IPO also comes amid a wave of listings in India's hospitality sector, as rising disposable incomes and a surge in premium travel drive investor interest in hotel chains. The Leela's earnings before interest, taxes, depreciation, and amortization (Ebitda) have grown from ₹600 crore to ₹700 crore from FY24 to FY25. Brookfield had also infused over ₹1,200 crore cash into the business which is sitting on the balance sheet. For the next phase of growth, it will utilize that and the capital on its balance sheets including internal accruals. "We've seen a balance growth across our portfolio and not just from one set of hotels. Food and beverages is a very large part of our business and about 37% comes from it," Bhatnagar added. More than a third, or 35%, of its current inventory of about 1,220 rooms are managed while the remainder are owned. By the end of FY28, the company will have 10 owned hotels, from five now. Along with the listing, Schloss is ramping up expansion with seven new hotels planned over the next three years in cities like Ayodhya, Ranthambore, Gangtok, Srinagar, Bandhavgarh, Agra and Mumbai—targeting demand across spiritual, heritage, wildlife and business travel segments. "The trend of multi-generational travel and spiritual luxury travellers is here to stay. This is where our moat is. The average age of the consumer of luxury is getting younger. Earlier, one associated luxury with a particular age group, but now as we move forward, we find it is getting more democratic and more inclusive," he added. Five of these seven hotels will be owned, while two will be operated through management or franchise agreements, making the company grow from 13 to 20 properties to scale the luxury portfolio in underpenetrated markets. The hotel industry has seen a lot of formalization in the last few yeas, with several players listing themselves while others are still in the process. Prestige Hospitality Ventures Ltd has filed draft papers for a ₹2,700 crore public issue. Ventive Hospitality—a joint venture between Panchshil Realty and Blackstone, filed its preliminary papers with the Sebi in December last year, while Juniper Hotels and Park Hotels last February. Next will be Brigade Hotel Ventures Ltd, which filed its DRHP last December and received approval for a ₹900 crore IPO. Brookfield is a 100% owner of the Leela Hotels. Ankur Gupta, head of Asia Pacific and Middle East for Brookfield's real estate business, said that the company will look to hold about 76% of its ownership post-IPO and will dilute just 24%. Brookfield finalized its $500 million or ₹3,900 crore acquisition of Hotel Leelaventure—the company behind the iconic Leela luxury hotel chain, in 2019.
&w=3840&q=100)
Business Standard
21-05-2025
- Business
- Business Standard
Leela hotels-owner Schloss cuts IPO size by 30% as debt burden eases
Schloss Bangalore [ the owner of Indian luxury hotel chain 'The Leela', is seeking a valuation of up to $1.7 billion after cutting its initial public offering (IPO) size by 30% due, in part, to a smaller debt load, it said on Wednesday. Schloss set a price band of 413 rupees to 435 rupees per share for the downsized $409 million IPO, valuing the company at about 145 billion rupees ($1.7 billion) at the upper end of the band. Schloss is selling shares worth 25 billion rupees in the IPO, about 17% less than originally planned, while Brookfield Asset Management is selling shares worth 10 billion rupees, or about 8% of its overall stake, the IPO prospectus showed. The main reason Schloss filed for an IPO in September last year was to service its debt, but since then, it has been able to lower its debt obligations, CEO Anuraag Bhatnagar told Reuters. The company's adjusted net debt declined 32% on-year to 25.68 billion rupees in the fiscal year ended March 2025. It swung to a profit last fiscal, from a year-ago loss, helped by an 11% increase in revenue. Brookfield, however, said it was selling fewer shares than the originally planned 20 billion rupees worth as the equity markets have declined since hitting record highs in late September, around the time Schloss filed its IPO papers. "It (the market) may have become more volatile. Certainly a lot of things have happened geopolitically," said Ankur Gupta, managing partner and head of Asia Pacific and Middle East at Brookfield Asset Management. Indeed, several IPO hopefuls have either delayed or downsized their IPO plans as global trade worries and a domestic border conflict pressured markets. The blue-chip Nifty 50 is roughly 6% down from the record-highs of September, despite a 5% gain this year. Schloss' IPO will open for bids from May 26 to May 28, and its shares are expected to start trading on June 2. ($1 = 85.5230 Indian rupees)
