The Leela launches IPO on May 26
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Schloss Bangalore Limited eyes expansion and enhanced brand positioning with proposed equity offering across owned and managed luxury properties.
Schloss Bangalore Limited, operating under the brand name “The Leela,” is set to launch its initial public offering (IPO) of equity shares on Monday, May 26 2025. The offering will comprise shares with a face value of INR 10 each, aggregating up to INR 35,000 million.
At an exclusive press conference held in Mumbai, Anuraag Bhatnagar (Chief Executive Officer, Schloss Bangalore Limited – The Leela Palaces, Hotels and Resorts); Ankur Gupta (Managing Partner and Head of Real Estate for Asia Pacific & Middle East, Brookfield), and Ravi Shankar (Head of Asset Management and Chief Financial Officer, Schloss Bangalore Limited – The Leela Palaces, Hotels and Resorts) addressed the media regarding the company’s forthcoming initial public offering (IPO).
Kicking off the discussion, Bhatnagar presented a ‘Leela Snapshot’ and highlighted that the brand’s current portfolio of luxury palaces, hotels, and resorts comprises 3,553 keys, with an additional pipeline of 678 keys. This includes five owned hotels (1,224 keys), eight managed or franchised hotels (2,329 keys), five hotels under development (476 keys), and two hotel management agreements (203 keys). Bhatnagar also noted that The Leela achieved a 1.4x higher RevPAR compared to the Indian luxury hospitality segment and recorded an EBITDA margin of approximately 49.78% for FY25.
Adding to the discussion, Ravi Shankar emphasised the brand’s strong commitment to operational efficiency. “We have a very strong focus on cost, which drives our robust GOP margins of 54%, 8% above the luxury industry average and 10% above the overall hospitality industry,” he said.
He attributed this achievement to a three-pronged asset management strategy. “Firstly, we have the best revenue teams in place, both at the corporate level and across our hotels. We have also invested in top-tier revenue management technology,” he explained.
“Secondly, in terms of cost control, we have made strategic investments, such as in solar energy, and have the right leadership at our properties, resulting in a highly efficient cost structure. Thirdly, we continue to invest in our hotels in ways that not only enhance the guest experience but also contribute to additional revenue and EBITDA, thereby further strengthening our EBITDA margins,” Shankar added.
Reflecting on the company’s financial performance, Shankar shared, “Over the past 12 months, we have generated total revenue of 14 crore, marking a 15% increase over last year. Our EBITDA stands at 700 crore, reflecting a 17% increase.” Over a two-year period, the company has achieved a CAGR of 25% in total revenue, while EBITDA has grown at a CAGR of 29%.
Shankar further noted, “We began with eight hotels and 2,500 keys. Today, we operate 13 hotels with a total of 3,500 keys.” He shared plans for expansion: “With our contracted pipeline, we are set to grow to 20 hotels - an even split between 10 owned and 10 managed properties.”
Bhatnagar also highlighted the company’s sustained financial growth. “Over the last five years, from 2019 to 2025, we have successfully tripled our EBITDA,” he stated.
He further explained that the brand is strategically expanding within distinct sub-segments of the luxury ecosystem. “We have identified several key areas of opportunity: Business – 63 serviced apartments & 250 keys in Mumbai; Hill Station- 310 keys in Srinagar & Gangtok; Heritage & Grandeur – 175 keys in Agra & Ranthambore; Spiritual – 100 keys in Ayodhya; and Wildlife – 30 keys in Bandhavgarh.”
Another key initiative Bhatnagar highlighted was Earth Club by Leela. “This is something India is truly ready for,” he remarked. “We are launching the Earth Club, a members-only concept designed to foster a community of thought leaders, trailblazers, and distinguished business guests. And there’s much more to come, which we look forward to sharing with you soon.”