Copyright © HT Digital Streams Limit all rights reserved. Anuraag Bhatnagar is CEO Schloss Bangalore Limited, who runs the Leela Palaceous, hotels and resorts of the luxury hotel chain, managed by Brookfield-supported Schloss Bangalore Ltd, says it will remain a niche, a pure luxury brand, with a sharp focus on Monday. The Leela Palaces, hotels and resorts, which will start the largest initial public offer (IPO) in India’s hospitality space to finance its expansion, is clear that it will not allow the scale to dilute its nuclear identity. The luxury hotel chain, run by the Brookfield-backed Schloss Bangalore Ltd, says it will remain a clear, pure play-luxurious brand with a sharp focus on high-end gas freedom as it prepares to raise £ 3,500 through the public offering opening on Monday. “Ours will be a niche, a complete luxury hotel offer,” Anuraag Bhatnagar, CEO Schloss Bangalore Ltd, told Mint. Read also | The IPO-bound Schloss to distribute Leela hotels in India explores new luxury businesses. The Leela Palaces IPO price band was set at £ 413 £ 435 per share. The company’s vision is clear and will be focused on luxury hotels, which continue with the legacy of 40 years. “It is a very nuanced and a lot of niche space we created. We are the only institutionally managed pure-played hotel business in India and it took us years to reach here. The company has 13 hotels currently in effect, and another 700 rooms are active in different cities. Leela owns more than 10%, or 3,500 of India’s luxury hotel supply of nearly 30,000 rooms. “When we look at operational data, we charge on an average, 40% premium (or 1.4 times) on our luxury hotel rooms than any other luxury player in the country, and luxury rooms ask for two-and-a-half times in terms of income per available room available than the usual average in the industry. This number is £ 15,300, which is higher than the average of £ 11,000. metrics by which hotelers measure the performance of the total hotel rooms. Asia -Pacific, which gives companies like the Leela Palaces more room for growth, Bhatnagar said. Brands, with the number expected to shoot over 300,000 rooms against FY30, according to another hospitality consultant Horwath HTL. Characterized by a permanent shift to the prioritization of travel and experiential consumption. Triple. Hospitality, traditionally formed by global consumption trends, has long been central to the luxury goods and services space. Bhatnagar further noted that the country’s expanding infrastructure, including the development of new airports and the increasing popularity of destinations that are easily accessible by the road from major cities, contribute significantly to the growth of business. “The liable luxury market will increase year on year,” he added. While the current number of pure playing inbound international travelers is delaying, projections indicate a significant increase to 15 million in the coming years, which is expected to significantly increase the business. Leela currently has a nearly 50-50 separation of Indian to international travelers, giving it balanced future growth prospects, he added. Earlier, before the pandemic, this figure was 65% international travelers versus 35% Indians. The company is strategically investing in its existing hotel portfolio and investigating emerging luxury subcategories to increase the average daily rates. This includes the development of premium offers such as high-end villas within current properties and the establishment of exclusive clubs that are members only. “It will all be value managers who have built us into a system that will play out in the next few years,” he said. It will also include its luxury residences that will come up in Mumbai within the next 18 months. Hotels will open up to 2028 in a phased way. Schloss Bangalore Ltd said earlier this week that it will open its initial public offer of £ 3.500 on May 26, which will make it the biggest bursary trading in the country’s hospitality sector so far. The company has scaled down the issue of an £ 5,000 crore plan, citing robust cash flow in recent quarters, and will use the returns to fully repay its £ 2500 debt, making it a debt-free enterprise. “We see it as a very positive turn because our primary need for the return of the bursary trading was to pay our debts and we had to pay £ 2500 debt. Our need for capital has decreased. And the reduction of the offer for sale (OFS) shows a promoter confidence in the brand and the company,” he said. The IPO also comes amid a wave of lists in the hospitality sector in India, as rising disposable income and an increase in the interest of investors in the hotel chains in the trip. The Leela’s earnings before interest, tax, depreciation and amortization (ebitda) grew from £ 600 to £ 700 from FY24 to FY25. Brookfield has also put more than 1,200 crore cash in the business sitting on the balance sheet. For the next phase of growth, it will be used and the capital on its balance sheets, including internal growth. “We’ve seen a balance growth in our portfolio and not just one set of hotels. Food and drink are a very big part of our business and about 37% come out of it,” Bhatnagar added. More than a third, or 35%, of its current stock of about 1,220 rooms, are managed while the rest is owned. At the end of FY28, the company will own ten hotels, from now on. Along with the listing, Schloss is setting up the expansion with seven new hotels that are planned in cities such as Ayodhya, Ranthambore, Gangtok, Srinagar, Bandhavgarh, Agra and Mumbai over the next three years – which can dispute the question of spiritual, heritage, wildlife and business segments. “The tendency of multi-generational journey and spiritual luxury travelers is here to stay. This is where our ditch is. The average age of luxury consumer becomes younger. Earlier, an associated luxury with a specific age group, but now, as we move forward, we find it becomes more democratic and more inclusive,” he added. Five of these seven hotels will be owned, while two operate through management or franchise agreements, which allow the company to grow from 13 to 20 properties to scale the luxury portfolio in underested markets. The hotel industry has seen a lot of formalization in the last few years, with several players listing themselves, while others are still in the process. Prestige Hospitality Ventures Ltd has submitted draft papers for a public edition of £ 2,700. Ventive Hospitality – A joint venture between Panchshil Realty and Blackstone, in December last year submitted its preliminary newspapers to the Sebi, while Juniper Hotels and Park hotels last February last year. Next is Brigade Hotel Ventures Ltd, who submitted his DRHP last December and received approval for a £ 900 crore scholarship. Brookfield is a 100% owner of the Leela Hotels. Ankur Gupta, head of Asia-Pacific and the Middle East for Brookfield’s real estate industry, said the company would want to keep about 76% of its ownership to the IPO and only diluted 24%. Brookfield finished its $ 500m or £ 3,900 crore acquisition of Hotel Leelaventure – the company behind the iconic Leela Luxury Hotel Chain, in 2019. Catch all the corporate news and updates on live mint. Download the Mint News app to get daily market updates and live business news. 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