**Luxury Hotel Chain Schloss Bangalore Ltd to Launch IPO Focused on High-End Hospitality**
Schloss Bangalore Ltd, a luxury hotel chain backed by Brookfield, is set to maintain its identity as a pure-play luxury brand with a strong emphasis on high-end hospitality. The company is preparing to raise ₹3,500 crore through a public offering that opens on Monday. Anuraag Bhatnagar, CEO of Schloss Bangalore Ltd, emphasized the brand’s commitment to providing a niche luxury hotel experience, stating, “Ours will be a niche, complete luxury hotel offering.”
The IPO price band for The Leela Palaces has been established at ₹413-₹435 per share. With a legacy spanning 40 years, the company aims to continue its focus on luxury hotels. Bhatnagar noted, “This is a very nuanced and niche space we have created. We are the only institutionally managed pure-play luxury hotel company in India, and it has taken us years to reach here. Perfecting this ecosystem of luxury is challenging, and we have refined our vision, which will serve as our competitive advantage moving forward.”
Currently, Schloss operates 13 hotels and is actively developing around 700 additional rooms across various cities. The Leela brand accounts for over 10% of India’s luxury hotel inventory, which totals nearly 30,000 rooms. Bhatnagar highlighted that the company charges, on average, a 40% premium for its luxury hotel rooms compared to other players in the market. The revenue per available room (RevPAR) for luxury rooms is significantly higher, with an average of ₹15,300, surpassing the industry average of ₹11,000.
The luxury hotel segment in India has room for growth, as average daily rates remain lower than those in international markets, including the Middle East and Asia Pacific. According to a report by hospitality consultancy Hotelivate, India had approximately 180,000 branded hotel rooms as of FY24, with around 39% classified as upscale or luxury. Projections indicate that the total number of branded hotel rooms in India could exceed 300,000 by FY30.
Bhatnagar noted that the hotel sector has seen a sustained recovery and growth over the past five years, following the downturn caused by the pandemic. This recovery reflects a permanent shift in consumer priorities towards travel and luxury experiences.
**FAQ**
**What is the focus of Schloss Bangalore Ltd’s upcoming IPO?**
The IPO aims to raise ₹3,500 crore and will maintain the company’s focus on high-end luxury hospitality, continuing its legacy in the luxury hotel sector.
