**Schloss to Launch Major IPO and Expand Luxury Hotel Portfolio**
**Meta Description:** Schloss plans to raise ₹3,500 crore through its IPO on May 26, aiming to expand its luxury hotel portfolio across India.
**URL Slug:** schloss-ipo-luxury-hotels-expansion
**Schloss to Launch Major IPO and Expand Luxury Hotel Portfolio**
In a significant move for the Indian hospitality sector, Schloss Bangalore Ltd, backed by Brookfield, is set to launch the country’s largest hospitality initial public offering (IPO) on May 26, 2025. The company aims to raise ₹3,500 crore, which includes a fresh issue of ₹2,500 crore and an offer for sale (OFS) of ₹1,000 crore. The IPO will remain open for three days, concluding on May 28.
Schloss, which operates the prestigious ‘The Leela’ brand, plans to enhance its portfolio from 13 to 20 luxury hotels over the next three years. The new properties will be strategically located in Ayodhya, Ranthambore, Gangtok, Srinagar, Bandhavgarh, Agra, and Mumbai, catering to the growing demand for luxury accommodations in spiritual, wildlife, heritage, and business destinations.
Ankur Gupta, managing partner and head of real estate for Asia Pacific & Middle East at Brookfield, noted that the company has experienced robust business growth in recent months, generating substantial internal cash flow. This success has allowed Schloss to reduce its initial IPO target from ₹5,000 crore to ₹3,500 crore. Currently, the company’s net debt stands at approximately ₹2,500 crore, which is expected to be eliminated post-IPO.
The Leela brand, established by C.P. Krishnan Nair in 1986, was acquired by Brookfield Asset Management in 2019 for ₹3,950 crore. This upcoming IPO marks Brookfield’s second public listing in India, following the successful launch of Brookfield India Real Estate Trust (Brookfield India REIT) in 2021, which focuses on Grade-A office assets.
With 13 existing hotels comprising 3,353 keys, the addition of seven new hotels will introduce another 678 keys to the portfolio. Of these new properties, five will be owned by Schloss, while the remaining two will be managed or franchised. The company emphasizes its commitment to luxury, noting that while demand for high-end accommodations is on the rise, the supply remains limited. Additionally, Schloss plans to launch an exclusive, members-only club in key cities such as Delhi, Bengaluru, and Chennai.
As Schloss prepares for its IPO and expansion, the hospitality industry is poised for a transformative phase, catering to the evolving needs of luxury travelers across India.
**FAQ**
**What is the purpose of Schloss’s IPO?**
Schloss’s IPO aims to raise ₹3,500 crore to fund the expansion of its luxury hotel portfolio, increasing its number of hotels from 13 to 20 over the next three years.
