Leela Hotels, a leading name in luxury hospitality, is poised for significant growth. The company, managed by Brookfield Asset Management, has announced plans to expand its portfolio by adding eight new properties by 2028, bolstering its room count by approximately 833 rooms, a substantial 24.63% increase over its current capacity. This ambitious expansion strategy is fueled by a ₹5,000 crore initial public offering (IPO) that Brookfield has filed. The IPO aims to raise ₹3,000 crore to reduce debt and channel the remaining ₹2,000 crore towards further expansion. This marks the second public listing for a Brookfield-managed company in India.
As of May 31, 2024, Leela’s portfolio encompasses 3,382 rooms across 12 hotels, including The Leela Palaces, The Leela Hotels, and The Leela Resorts. The upcoming expansion will introduce new hotels in Agra, Srinagar, Sikkim, and resorts at wildlife havens like Ranthambore and Bandhavgarh. Leela is also venturing into the serviced apartment market with a project near Mumbai’s international airport, tapping into a growing segment of the travel industry.
Brookfield acquired Leela Hotels in October 2019 for ₹3,950 crore, acquiring properties in New Delhi, Bengaluru, Chennai, Udaipur, and a land parcel in Agra, excluding the Mumbai hotel. Since then, Brookfield has expanded Leela’s footprint, increasing the number of rooms by 35.55% – from 2,495 rooms in March 2019 to 3,382 rooms as of March 2024. The number of operating hotels has also grown from eight in seven cities to 12 in 10 cities over the same period.
Leela’s ambitious expansion strategy signifies the company’s commitment to strengthening its presence in the Indian hospitality market. The upcoming IPO and the introduction of new properties across diverse locations are expected to further solidify Leela’s position as a leading player in the luxury hospitality segment. The expansion into new segments, such as serviced apartments, demonstrates the company’s forward-thinking approach to catering to evolving traveler preferences.
