Schloss Bangalore Files ₹5,000 Cr IPO, Leela Hotel Brand Set for Public Debut

New Delhi | 23April 2025 — In a move that could redefine India’s hospitality IPO landscape, Schloss Bangalore, the parent company behind the iconic Leela Hotel, Palaces, and Resorts, has officially filed its Draft Red Herring Prospectus (DRHP) with SEBI. The proposed initial public offering (IPO) aims to raise ₹5,000 crore, potentially making it the largest IPO ever in India’s hotel sector.

What’s the IPO Plan?

The offering includes the issuance of fresh shares worth ₹3,000 crore, while existing shareholder Project Ballet Bangalore Holdings (DIFC)—an affiliate of Brookfield Asset Management—plans to offload shares worth ₹2,000 crore.

This comes at a time when India’s stock market is experiencing a strong bull run, and companies from various sectors are capitalizing on favorable conditions through IPOs. For Schloss, this offering isn’t just about fundraising—it’s a strategic step in expanding its luxury hospitality footprint across India.

The Legacy Behind the Leela Hotel

Founded in 1986 by Captain C.P. Krishnan Nair, Leela Palaces has become synonymous with luxury in Indian hospitality. The brand was acquired by Brookfield Asset Management in March 2019, when the Canadian investment firm picked up four key Leela properties—located in Delhi, Bengaluru, Udaipur, and Chennai—for ₹3,950 crore from JM Financial Asset Reconstruction Company.

Today, Schloss operates 12 hotels in 10 Indian cities and has ambitious plans to expand by adding eight more properties by 2028.

Financials and Growth Outlook

Schloss has shown significant financial recovery. Its consolidated losses dropped dramatically—from ₹61.68 crore in FY23 to just ₹2.13 crore in FY24. A strong performance was also reflected in the Revenue per Available Room (RevPAR), which surged nearly 23% year-on-year to ₹9,592 as of March 2024.

The outlook for the hospitality sector in India remains bullish. Industry analysts project the market to grow from $24.6 billion in 2024 to $31 billion by 2029, supported by rising domestic tourism, luxury travel trends, and expanding business travel.

Backed by Big Banks

This massive IPO is being handled by a team of 11 investment banks, showcasing the confidence investors and financial institutions have in the brand. The roster includes:

• Kotak Mahindra Capital

• JM Financial

• BofA Securities

• Morgan Stanley

• JP Morgan

• Axis Capital

• Citi

• ICICI Securities

• IIFL Capital

• Motilal Oswal

• SBI Capital Markets

Why It Matters

If successful, the Schloss IPO could open doors for other hotel brands to go public. More importantly, it underlines the ongoing investor confidence in the Leela Hotel name, especially in a post-pandemic world rediscovering luxury travel.

This IPO isn’t just about raising capital—it’s about reaffirming the Leela Hotel brand’s status as a symbol of excellence in Indian hospitality. With Brookfield’s backing and strategic market timing, Schloss Bangalore is setting the stage for the next chapter in India’s luxury hotel story.