Brookfield's Bold Strategy: The Leela's Billion-Dollar Expansion Plan

Schloss Bangalore Ltd, owner of 'The Leela' brand, is investing Rs 1,131 crore in five new hotels. The company, launching a Rs 3,500 crore IPO, aims to be debt-free post-IPO. Brookfield, the investment firm, plans to dilute its stake by 24 percent. The expansion includes 475 keys across India.

Brookfield-backed Schloss Bangalore Ltd, the owner of the luxury hospitality brand 'The Leela,' is making a significant investment of Rs 1,131 crore to expand its portfolio. The developments include five new company-owned properties in Agra, Srinagar, Bandhavgarh, Ranthambore, and Ayodhya, adding 475 rooms to their luxurious offerings.

The company is set to launch an Initial Public Offering (IPO) worth Rs 3,500 crore, scheduled to open on Monday. This strategic move is aimed at ensuring the company becomes debt-free, using approximately Rs 2,500 crore of the raised capital to clear existing debts. Currently operating 13 hotels and managing another eight, Schloss Bangalore aims to significantly boost its market presence.

Brookfield, which acquired the luxury brand in 2019, plans to reduce its stake by 24 percent following the IPO. This will bring their ownership down to 76 percent, marking it as one of the largest IPOs in the hospitality sector to date. The luxury brand continues to witness robust financial growth, with operating profits soaring to Rs 600.03 crore in FY24.

(With inputs from agencies.)