Wednesday, September 25, 2024 Leela Hotels plans to expand with eight new properties by 2028, adding 833 rooms and launching a ₹5,000 crore IPO to fund debt reduction and fuel growth. Leela Hotels is gearing up for significant expansion, with plans to add eight new properties, boosting its room count by approximately 833 rooms, or 24.63% of its current capacity, by 2028.
Brookfield Asset Management, which oversees the luxury hotel chain, recently filed a draft for a ₹5,000 crore initial public offering (IPO), aimed at raising ₹3,000 crore to reduce debt. As part of this process, Brookfield will also divest shares worth ₹2,000 crore, marking the second public listing for a Brookfield-managed company in India. As of May 31, 2024, Leela’s portfolio spans 3,382 rooms across 12 hotels, encompassing The Leela Palaces, The Leela Hotels, and The Leela Resorts brands.
The upcoming expansion will see new hotels in Agra, Srinagar, Sikkim, and resorts at wildlife havens such as Ranthambore and Bandhavgarh. In addition to these emerging tourism segments, Leela plans to venture into the serviced apartment market with a project near Mumbai’s international airport. Brookfield acquired Leela Hotels in October 2019 for ₹3,950 crore, purchasing properties in New Delhi, Bengaluru, Chennai, Udaipur, and a land parcel in Agra, excluding the Mumbai hotel.
Since the acquisition, Brookfield has expanded Leela’s footprint, increasing the number of rooms by 35.55%, from 2,495 rooms in M.