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Schloss Bangalore Ltd, the parent company of The Leela Palaces, Hotels & Resorts, is launching one of India’s largest hospitality IPOs. Schloss Bangalore | Leela Hotels IPO aims to raise ₹3,500.00 crores. The issue is a combination of fresh issue of aggregating to ₹2,500.00 crores and offer for sale of 2.30 crore shares aggregating to ₹1,000.00 crores.

About Schloss Bangalore | Leela Hotels IPO:

• The Company was incorporated as “Schloss Bangalore Pvt. Ltd” on March 20, 2019, at New Delhi.
• The company owns, operates, manages and develops luxury hotels and resorts under “The Leela” brand.
• The leela group was founded in 1986
• Current Portfolio: 13 hotels (5 owned, 8 managed), totaling 3,382 keys as of May 31, 2024.
• Expansion: Investing ₹1,131 crore to develop five new properties in Agra, Srinagar, Bandhavgarh, Ranthambore, and Ayodhya (totaling 475 rooms).
• Ownership: Brookfield Asset Management is the controlling shareholder, having acquired the business in 2019.
• The company undertakes its business primarily through direct ownership of hotels and hotel management agreements with third-party hotel owners.

Financials : Schloss Bangalore | Leela Hotels IPO

Anchors: Belrise Industries IPO

Schloss Bangalore Limited’s IPO, raised ₹1,575 crore from 47 institutional investors at ₹435 per share.

Salient Points: Schloss Bangalore | Leela Hotels IPO

• The luxury hotel segment in India is expected to grow at a CAGR of 10.6% from FY24 to FY28, driven by increased demand for premium accommodations2.
• The company has a strategic footprint across 10 key Indian business and leisure destinations, covering 80% of international air traffic and 59% of domestic air traffic in India in FY 2025
• The company’s service excellence luxury hospitality is reflected through its net promoter score called NPS across its Portfolio which was 84.00 and is the highest amongst key hospitality peers, in FY2024.
• The company’s NPS across its Portfolio was 85.11 in FY2025.
• The company’s the average room rate (“ARR”) across its Owned Portfolio amounted to ₹22,545 which was 1.4 times the luxury hospitality segment average in India.
• EBITDA Growth: Operating profit increased from ₹87.72 crore in FY22 to ₹600.03 crore in FY243.
• Debt Reduction: IPO proceeds (₹2,300 crore) will be used to repay/prepay company and subsidiary borrowings..
• Largest pure-play luxury hospitality company in India by number of rooms, focusing exclusively on the luxury segment, unlike peers who operate across segments4.
• Performance Metrics: Average occupancy stabilized at 67-68% for FY23–FY25; industry-leading average room rates and EBITDA margins (~49%)
• Peers

• The company benefits from the backing of Brookfield Asset Management, a global leader in real estate investments.
• Growth Potential: With plans to expand its portfolio by 833 keys by 2028, Schloss Bangalore is poised for growth in the luxury hospitality sector. Execution risks exist for new projects, especially in sensitive locations like Srinagar..
• Improved Financials: The company has shown a turnaround in profitability, reporting a profit of ₹47.66 crore in FY 2024. This is likely to go up with saving in interest cost Post the IPO.
• The company is promoted by private equity funds which are managed and/or advised Brookfield, one of the world’s largest alternative asset managers and investors with over US$1 trillion of AUM as of March 31, 2025, across real estate.
• Brookfield has substantial investments in India and has aggressive plans to ramp them up.
• I intend to apply in Schloss Bangalore | Leela Hotels IPO subject to a reasonable market response. This will be in Day. Despite very hefty valuation there could be some scope for minor gains due to its presence in Luxury hotel segments, backing of brook field and improvement over the last few years. While PE may still be 100+ after debt reduction benefits, there is some comfort on EV/EBIDTA multiple. Anchor response has been good. I may be borne in mind that even in present good market conditions a small gao down listing cannot be ruled out due to high pricing.
• GMP as per social media is in single digits.
• This post is exploratory and educational purposes only.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.