Brookfield-Backed Schloss Bangalore to Launch Five Hotels Nationwide

Key Highlights

• Rs 1,131 Crore Investment: Knightsbridge Investments, led by Brookfield, will invest ₹1,131 crore to develop five new hotels in Agra, Srinagar, Bandhavgarh, Ranthambore, and Ayodhya with a total of 475 rooms.
• Debt-Free Plan via IPO: The company plans to raise ₹3,500 crore through an IPO, with ₹2,500 crore allocated for debt repayment, aiming to become debt-free.
• Brookfield Stake Reduction: Brookfield, which acquired The Leela brand in 2019, intends to reduce its stake by 24% post-IPO.

Knightsbridge Investments, led by Brookfield which owns The Leela luxury brand, will invest Rs. 1,131 crore to open five of its own hotels with 475 rooms, in Agra, Srinagar, Bandhavgarh, Ranthambore and Ayodhya.

At present, the company oversees 13 different hotels, with 5 being owned by the company and 8 being managed for someone else.

Read More: The Leela Gurugram Unveils Courtyard Garden - A Serene Open-Air Cafe & Lounge

Ravi Shankar, Head of Asset Management and Chief Financial Officer at The Leela Palaces, Hotels and Resorts, informed, “We are investing Rs. 1,131 crore into the five upcoming owned hotels in Agra, Srinagar, Bandhavgarh, Ranthambore, and Ayodhya, which will have a total of 475 keys.” The five owned hotels are anticipated to begin operations by 2028, as indicated in the company’s red herring prospectus (RHP). The company will be debt-free after raising Rs. 3,500 crore through the IPO, with the primary proceeds of approximately Rs 2,500 crore designated for debt repayment.”

In 2019, the Canada-based investor Brookfield took over the luxury hospitality brand, aiming to reduce its holding by 24 percent after the Rs. 3,500-crore IPO.