India’s luxury hospitality brand Leela Hotels is heading to the bourses with a ₹3,500 crore IPO. Backed by Brookfield and known for its premium hotel chain under "The Leela" brand, the company aims to strengthen its financial position and capitalise on India's booming tourism and luxury travel market.
Table of Content:
- Leela Hotels IPO 2025: Key Offer Details
- About Leela Hotels: India's Premium Luxury Hospitality Chain
- IPO Objectives: Deleveraging and Growth-Focused Expansion
- Leela Hotels Financial Performance: From Loss to Profitability
- How Leela Hotels Stacks Up Against Luxury Hospitality Peers
- Key Financial Metrics to Note Before the IPO
- Should You Consider Investing in the Leela Hotels IPO?
- Final Outlook: A High-Potential Bet on India's Luxury Hospitality Boom
Schloss Bangalore Limited, the operator of Leela Hotels, is set to launch its IPO on 26 May 2025. The offer includes both a fresh issue and an offer for sale (OFS).
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- Face Value: ₹10 per share
- Lot Size: 34 shares
- Minimum Investment (Retail): ₹14,042
- Maximum Retail Investment: ₹1,92,270
Wrap-up: A concise three-day bidding window offering investors exposure to a marquee luxury hospitality brand with a sharp deleveraging focus.
Founded in 2019, Schloss Bangalore Limited operates the prestigious "The Leela" brand, one of India's largest luxury hotel chains by room inventory.
- Operates 13 properties with 3,553 keys as of 31 March 2025
- Runs on a hybrid model of five owned hotels and others under hotel management agreements (HMAs)
- Hosts 67 fine-dining restaurants and bars, alongside 12 wellness centres
- Backed by Brookfield Asset Management, adding financial stability and strategic support
- Regularly ranked among top Indian hospitality brands by global travel publications
Wrap-up: With a strong brand reputation, diversified portfolio, and powerful backing, Leela Hotels remains a formidable name in India’s luxury hospitality sector.
Leela Hotels plans to channel the IPO proceeds towards reducing debt and funding expansion opportunities in emerging hospitality destinations.
- Debt Repayment: ₹2,300 crore earmarked to repay existing loans
- Asset Optimisation: Plans to enhance room yields, food & beverage operations, and renovate wellness centres
- Geographic Expansion: Targets new domestic (Agra, Srinagar, Ayodhya) and international markets (Maldives, Dubai)
- General Corporate Purposes: To support working capital, product innovation, and brand extensions into serviced residences and private clubs
Wrap-up: This IPO will significantly improve Leela Hotels' balance sheet and fuel its next phase of growth in the luxury travel market.
After years of losses, Leela Hotels turned the corner in FY25, marking a remarkable financial recovery.
A snapshot of Leela Hotels' financial performance:
| Metric |
FY25 |
| Revenue |
₹1,406.56 crore (up from ₹415.95 crore in FY22) |
| PAT |
₹47.66 crore (vs ₹319.83 crore loss in FY22) |
| EBITDA Margin |
49.78% |
| PAT Margin |
3.39% |
| Debt Position |
₹3,908.7 crore (as of March 2025) |
| Debt-to-Equity Ratio |
1.07 |
Wrap-up: The company has planned a significant reduction in its debt burden through upcoming IPO proceeds, further strengthening its balance sheet. Overall, Leela Hotels' FY25 performance underscores a robust turnaround story, with improving profitability and debt metrics, laying a stronger foundation for sustained future growth.
Leela Hotels competes directly with some of India’s most established luxury hospitality brands such as Indian Hotels Company (Taj), EIH Limited (Oberoi), Chalet Hotels, Juniper Hotels, and ITC Hotels. While it has made notable financial progress, some performance indicators still trail larger, mature players.
- Leela Hotels (Post-IPO) is expected to post a revenue of ₹1,406.56 crore in FY25, with a Return on Net Worth (RoNW) of 1.32% and an Earnings Per Share (EPS) of ₹1.97.
- In comparison, Indian Hotels Company Limited (Taj) - a dominant player in the Indian hospitality market - recorded an EPS of ₹13.4 and an RoNW of 16.42% in its recent fiscal, reflecting stronger profitability and operational efficiency.
- Performance metrics for other listed peers like EIH Limited (Oberoi Hotels), Chalet Hotels, Juniper Hotels, and ITC Hotels were not specifically detailed in the available data, but these brands generally command higher profitability and return ratios owing to their longer operational history and larger asset bases.
Wrap-up: While Leela Hotels' financial turnaround is commendable, it currently lags behind some of its better-established peers on profitability and return metrics. However, the company's strong brand presence, deleveraging plan, and aggressive growth strategy position it for meaningful catch-up in the coming years.
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Ahead of its market debut, Leela Hotels' financials reflect a business on the recovery path with improving profitability and reduced leverage.
- Estimated Market Cap: ₹10,155.36 crore
- Return on Net Worth (RoNW): 1.32%
- Debt/Equity Ratio: 1.07
- PAT Margin: 3.39%
- Price to Book Value (P/BV): 2.92x
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Wrap-up: The company's improving metrics and strategic debt reduction are expected to boost its financial standing post-listing.
Reasons to Invest:
- Impressive financial turnaround in FY25
- Significant deleveraging through IPO proceeds
- Strong brand recall in the Indian luxury hospitality space
- Backed by Brookfield Asset Management
- Attractive opportunities in under-penetrated luxury hotel markets
- Diversified income streams across F&B, wellness, and hospitality management
Risks to Watch:
- Historically negative cash flows, requiring sustained profitability
- Elevated debt levels even post-IPO
- High operational costs and risks associated with hospitality projects
- Vulnerability to regulatory changes and macroeconomic cycles
Wrap-up: The IPO offers a promising opportunity for long-term investors betting on India's growing luxury hospitality and tourism sectors. However, mindful consideration of operational and financial risks is advised.
Also, watch this video by Livemint, in which they explain why Leela Hotels' IPO will be a gateway to opportunities for the luxury tourism industry.
Leela Hotels' IPO positions it well to tap into India's expanding luxury travel market. With a strong brand, Brookfield's backing, and a clear deleveraging strategy, the company is poised for scalable growth. While sector-specific risks persist, the business turnaround, planned geographic expansion, and favourable demand dynamics make this a compelling listing to watch in 2025.
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Leela Hotels IPO 2025: Your Essential FAQs Answered
1. What is the Leela Hotels IPO, and when is it happening?
The Leela Hotels IPO is an Initial Public Offering by Schloss Bangalore Limited, the operator of "The Leela" luxury hotel brand. It aims to raise ₹3,500 crore through a combination of fresh issue and Offer for Sale (OFS). The IPO opens on 26 May 2025 and closes on 28 May 2025, with listing expected on 2 June 2025.
2. What is Schloss Bangalore Limited, and what is "The Leela" brand?
Schloss Bangalore Limited operates "The Leela," a leading luxury hotel chain in India. It manages 13 properties (3,553 keys) and is backed by Brookfield Asset Management.
3. What are the objectives of the Leela Hotels IPO?
The IPO aims to repay ₹2,300 crore in debt, fund expansion in new domestic and international markets, and support general corporate purposes.
4. Should I consider investing in the Leela Hotels IPO?
Pros: Strong financial turnaround, significant debt reduction, powerful brand, Brookfield backing, growth potential. Cons: Historically negative cash flows, high debt even post-IPO, operational risks, macroeconomic vulnerability. Consider for long-term investment in India's luxury tourism.
5. What is the final outlook for the Leela Hotels IPO?
The IPO positions Leela Hotels well for growth in India's luxury travel market. Its strong brand, financial backing, and debt reduction strategy make it a compelling listing despite sector risks.