All you need to know about the upcoming IPO of Schloss Bangalore, owner of The Leela hotel chain

Amid strong demand seen in the hospitality industry, one of India's largest luxury hotel chains, The Leela, is set to go public in a ₹3,500 crore offering.

 

The public issue of Schloss Bangalore, which owns the luxury hotel brand The Leela, will open on May 26 and close on May 28. A price band of ₹413-435 per share has been set for the IPO.

 

Notably, the issue size has been trimmed by around 30 per cent from its earlier plans. The issue will see Schloss sell fresh shares worth ₹2,500 crore, while investor Brookfield plans to sell shares worth around ₹1,000 crore.

 

The company intends to utilise the funds raised from the fresh issue for repayment/ prepayment/ redemption of certain outstanding borrowings, interest accrued and prepayment penalties as applicable and availed by the company and some of its subsidiaries.

 

The Leela is one of the largest luxury hotel chains in the country. Its portfolio as of March 31, 2025, consisted of 3,553 keys across 13 operational hotels, including The Leela Palaces, The Leela Hotels and The Leela Resorts. It has five owned hotels and seven, where it has hotel management agreements. One hotel is under a franchise arrangement.

 

For the year ended March 2025, its average room rate at its owned properties was ₹22,545, while revenue per available room stood at ₹15,306, both 1.4 times the luxury hospitality segment average in India, it said.

 

Schloss has plans to expand the business with seven new hotels, adding about 678 keys through 2028, that it will develop, own or manage.

 

"Our growth pipeline comprises modern palaces, hotels and resorts including expansion in new segments such as wildlife, spiritual and heritage tourism, diversifying our geographical footprint across additional cities and tourist destinations. This includes modern palace hotels in Agra (Uttar Pradesh) and Srinagar (Jammu and Kashmir), resorts in Ranthambore (Rajasthan) and Bandhavgarh (Madhya Pradesh) and serviced apartments in Mumbai’s international airport," it said.

 

For the year ended March 31, 2025, the company reported a revenue of ₹1,406 crore, while net profit stood at around ₹48 crore.

 

In comparison, Tata-owned Indian Hotels, which operates across luxury, mid-market and budget segments, reported consolidated revenue from operations of ₹8,335 crore, while profit after tax stood at ₹1,961 crore.

 

IHCL currently has 247 operational hotels across its various brands, including Taj, Seleqtions, Vivanta, Gateway, Ginger, Claridges and Tree of Life. The company will open around 134 additional hotels.

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