Important Points
- Leela’s $400 million IPO is the largest IPO in India’s hospitality sector, but it debuted below its original issue price and received a muted reaction from investors.
- The company plans on using the proceeds from its IPO to pay down debt and expand it luxury hotel portfolio. It will include properties in the wildlife tourism, heritage tourism, and spirituality segments.
- The Leela, despite its financial struggles in the past, now boasts a 40% increase in revenue per available hotel room compared to competitors. The Leela also plans aggressive expansion across India.
The following is a summary of the information that you will find on this website:
The Leela (operated by Schloss Bangalore) launched India’s biggest hospitality IPO raising $400 million, despite a subdued debut on the market. The Leela plans to use the new capital to consolidate debt and expand their luxury hotel offering, focusing on high-growth areas such as wildlife, heritage and spiritual tourism. The company has been able to overcome major financial obstacles in the past few years and now enjoys a revenue premium over competitors. It is positioning itself for future expansion across India.
