Brigade Hotel Ventures Plans 5 New Hotels & Expands Footprint

Brigade Hotel Ventures Ltd (BHVL), the hotel wing of real estate leader Brigade Group, is ready to raise Rs. 760 crore through an initial public offering (IPO) to finance its growth, settle debt, and fund acquisitions.

The IPO, including a fresh issue of equity shares, will be open from July 24 to 28 at a price band of Rs. 85-90 a share. JM Financial Ltd and ICICI Securities Ltd are the Book Running Lead Managers.

The group will introduce five new hotels to its portfolio, such as a luxury beach resort in Chennai and two upper midscale hotels in Bengaluru. 

Key Highlights:

• BHVL to raise Rs. 760 crore via IPO opening July 24 to 28 at Rs. 85 to 90 per share
• Five new hotels planned, including a luxury beach resort in Chennai
• Strong FY performance driven by banqueting, catering, and corporate F&B demand

"We have already committed both land and brand for five hotels with three of them falling under the Marriott umbrella. In one instance, land acquisition is completed but brand finalization and key count are awaited," said Nirupa Shankar, Joint Managing Director of Brigade Group.

Also Read: IHCL & Ambuja Neotia to Launch 15 Hotels Across the East

As per the red herring prospectus, Rs. 90 crore of IPO proceeds will go to an opportunistic asset whose name is not disclosed. "When we build from the ground up, we are able to customize the hotel for the micro market, banquet size, room distribution, F&B outlets, in close consultation with the operator to ensure the product," Shankar said.

Shunning an asset-light approach, she said, "Owned hotels become big cash cows once the payback is done."

BHVL runs nine hotels with 1,604 keys in Bengaluru, Chennai, Kochi, Mysuru, and GIFT City. The company saw 16 to 17 percent topline growth in the previous fiscal, while EBITDA was up 15 percent and F&B revenue increased 20 percent on the back of higher banqueting and catering demand.