Brookfield-backed Schloss Bangalore Ltd, which owns the luxury hospitality brand ‘The Leela’ Palaces, Hotels and Resorts, is allocating Rs 1,131 crore to establish five company-owned hospitality properties, featuring a total of 475 rooms, in Agra, Srinagar, Bandhavgarh, Ranthambore, and Ayodhya.
Currently, the company manages 13 hotels, of which 5 are owned by the company while the remaining 8 are under its management.
Ravi Shankar, Head of Asset Management and Chief Financial Officer at The Leela Palaces, Hotels and Resorts, informed, “We are investing Rs 1,131 crore into the five upcoming owned hotels in Agra, Srinagar, Bandhavgarh, Ranthambore, and Ayodhya, which will have a total of 475 keys.” The five owned hotels are anticipated to begin operations by 2028, as indicated in the company’s red herring prospectus (RHP). The company will be debt-free after raising Rs 3,500 crore through the IPO, with the primary proceeds of approximately Rs 2,500 crore designated for debt repayment.”
The luxury hospitality brand was acquired by the Canada-based investment management firm Brookfield in 2019, which plans to reduce its stake by 24 percent following the Rs 3,500-crore initial public offering (IPO), which is being promoted as the largest IPO in the hospitality sector, reducing its ownership to 76 percent.
