Leela Hotels IPO SWOT Analysis: Schloss Bangalore Limited IPO Dates, Issue Size

Leela Hotels IPO​ will open on May 26, 2025, and close on May 28, 2025. Incorporated in 2019, Schloss Bangalore Limited is a company that owns, operates, and develops Leela Hotels, Leela Palaces, and Leela Resorts. The journey of this company actually started in 1986 when it opened the first hotel, The Leela Mumbai. Today, it is backed by Brookfield Asset Management and has a portfolio of 13 operational hotels having 3,553 keys. In this blog, we’ll break down the Leela Hotels IPO SWOT Analysis, and know its key dates, price band, and issue size.

Leela Hotels IPO​ Date

The key pointers for the Leela Hotels IPO dates are:

• Bidding Opening Date: May 26, 2025
• Bidding Closing Date: May 28, 2025
• Basis of Allotment Date: May 29, 2025
• Initiation of Refunds (in case of less or no allotment): May 30, 2025
• Shares Credited to Your Demat Account: May 30, 2025
• IPO Listing Date: June 2, 2025
• Listing on Exchange: BSE and NSE

Leela Hotels: IPO​ Issue Size

Leela Hotels IPO valuation, as denoted by the market capitalization, stood at ₹10,155.36 crores.

Here are the important Leela Hotels IPO details:

• Leela Hotels IPO Price Band: ₹413 – ₹435 per share
• Face Value: ₹10 per share
• Lot Size: 34 Shares
• Issue Size and Amount: 8,04,59,769 shares (amounting to ₹3,500 crores)
• Fresh Issue Size and Amount: 5,74,71,264 shares (amounting to ₹2,500 crores)
• OFS Size and Amount: 2,29,88,505 shares (amounting to ₹1,000 crores)

Leela Hotels IPO​ Proceeds Usage

Leela Hotels IPO proceeds will be used for the following purposes:

• Loan Repayment: Repayment or pre-payment of loans taken by the parent company and subsidiaries, such as Schloss Chanakya, Schloss Udaipur, Schloss Chennai, and TPRPL.
• Others: For other corporate requirements.
• OFS Component: The offer for sale component of the issue goes to the promoter selling shareholder.

Leela Hotels IPO​ Reservations

Leela Hotels IPO​ reservations to different investors are:

• For QIBs: Not less than 75% of the offer
• For NIIs: Not more than 15% of the offer
• For Retail Investors: Not more than 10% of the issue
• Leela Hotels IPO Shareholder Quota​: There is no provision for shareholder quota in this IPO.

Leela Hotels IPO​ Lot Size

Leela Hotels IPO​ lot size is 34 shares, wherein bidding can be done in further multiples. The minimum and maximum of the lot size that each category of investor can apply for in this IPO are:

Schloss Bangalore Limited IPO: Promoter Holding

Project Ballet Bangalore Holdings (DIFC), BSREP III Tadoba Holdings (DIFC), and Project Ballet Udaipur Holdings (DIFC) are some of the promoters of Schloss Bangalore Limited.

Project Ballet Bangalore Holdings (DIFC) Pvt Ltd is the selling shareholder in the Leela Hotels IPO.

Leela Hotels IPO: Financial Performance

Here is the financial performance of the Leela Hotels IPO over the financial years 2023-24 and 2024-25:

• Schloss Bangalore Limited has reversed its last two years’ losses trend to net profit and made ₹47.66 crores in the financial year 2024-25.
• The revenue is constantly increasing from ₹903.27 crores in FY23, ₹1,226.50 crores in FY24, and ₹1,406.56 crores in FY25.
• EBITDA rose by 17% YoY to ₹700.17 crores in the financial year 2025.
• The assets have increased by 17% YoY to ₹8,266.16 crores, while total borrowings decreased by 8% YoY to ₹3,908.75 crores in FY25.
• The cash flow from operations remained healthy with a 3% YoY rise to ₹552.88 crores in FY25.

Leela Hotels IPO SWOT Analysis

Here are the key strengths, weaknesses, opportunities, and threats of the Leela Hotels IPO (Schloss Bangalore Limited IPO):

Leela Hotels IPO: Strengths

1. Top Ranking: In 2020 and 2021, the Leela brand got the first ranking among hospitality brands in the world. In 2023 and 2024, it ranked among the top 3 global hospitality brands.
2. Wide Footprints: In FY25, it has a wide footprint across India’s 10 leading business and leisure destinations, while covering almost 80% of international air traffic and 59% of domestic air traffic.
3. Owned Portfolio: The owned portfolio of 5 hotels has 1,224 keys, which are present in top business and leisure locations such as Karnataka, Tamil Nadu, and Delhi.
4. Restaurant Business: As of FY25, it operates 72 restaurants and cafes in hotels such as Jamavar, Library Bar, Le Cirque, and Sheesh Mahal.
5. Keys Expansion: The company has increased the number of keys by 42.40% from 2,495 keys in FY19 to 3,553 keys in FY25.
6. Rise in Hotel Count: The number of hotels has also increased from 8 operating hotels (in seven cities) in FY19 to 13 operating hotels (in eleven cities) in FY25.
7. High ARR: In FY25, its ARR (Average Room Rate) of the owned portfolio/ hotels was ₹22,545, which was 1.4 times the average ARR of the luxury hospitality segment in India.
8. High RevPAR: Between FY19 and FY24, the owned portfolio’s RevPAR (revenue per available room) increased by a CAGR of 11.8%, higher than the 8.6% CAGR of the luxury hospitality segment in India.
9. High Revenue: Strong revenue growth over the last three years and reversed its losses into profits in the financial year 2025.
10. Healthy Revenue Mix: In FY25, the revenue mix from international and domestic travelers was 46.8% and 53.2%, respectively.
11. Better EBITDA: From FY23 to FY25, the EBITDA improved from ₹423.62 crores to ₹700.17 crores. Also, the EBITDA margin increased from 46.90% to 49.78% in the same period.
12. Capex: By keeping the strong operational efficiency, the company renovated almost all the owned portfolio and kept the capex plan of ₹654.58 crores since April 1, 2021.
13. Fastest Growing Brand: In terms of revenue growth between FY22 and FY24, Leela Hotels is the fastest-growing brand in India as compared to the listed peers.

Leela Hotels IPO: Weaknesses (Risk Factors)

• Revenue Concentration: Over 90% of the revenue was generated from the five owned hotels, and any decrease in demand can impact the financial performance.
• Losses: Schloss Bangalore Limited and its subsidiaries have made losses in the past, which can continue in the future as well.
• Negative Cash Flow: The company had made a negative operating cash flow in the investing activities, which can affect the financial condition in the long term.
• Financial Obligations: If the company is not able to meet the obligations of secured borrowings, then it can lead to the forced sale or forfeiture of assets.
• High Finance Cost: As of March 31, 2025, its finance costs as a percentage of total income was quite high at 32.57%.
• Subsidiary Impact: Reliance on the subsidiary (Schloss HMA) for operations and management services for the owned and managed portfolio.
• Delay in Payments: The delay in meeting the statutory obligations can lead to the levying of penalties and affect the business as well.

Leela Hotels IPO: Opportunities

• Industry Growth: India’s travel and tourism industry has revived from the COVID-19 shock. From 2024 to 2030, it is expected that foreign tourist visits and domestic travel are expected to grow at a CAGR of 7.1% and 13.4%, respectively.
• Luxury Rooms High Demand: The demand for luxury rooms in India is expected to grow at a CAGR of 10.6% from FY24 to FY28, against the supply growth of only 5.9%. It presents a great opportunity for pure-play luxury hotel players like Leela to expand their business.
• Global Tourism: Globally, the demand for luxury tourism is predicted to grow at a CAGR of 6.6% from FY23 to FY28.
• Expansion Plans: Leela Hotels is working on improving same-store growth and profit margin through asset management. It is also working on expanding its portfolio through acquisitions, development, and hotel management agreements. By 2028, the company is planning to expand its portfolio with 7 new hotels (approximately 678 keys).

Leela Hotels IPO: Threats

• Reputation: The Leela brand is famous for its range of luxury hotel brands and great hospitality. Any negative publicity can erode its goodwill or damage its reputation.
• Economic Lows: The economic downturn can directly impact the demand for luxury hotels and the demand for business travel.
• Govt Policies: Changes in government policies and regulations can affect business operations.
• Regional Disruptions: The delay or regional disruptions can hamper the construction of new assets such as The Leela Ayodhya, The Leela Palace Srinagar, etc.
• Lower Occupancy Rate: In FY24, Leela Hotels’ average occupancy rate was 63%, which was lower compared to that of peers such as The Indian Hotels Company (77%), Chalet Hotels (72%), and ITC Hotel (69%).
• Land Ownership: The company does not own the land and buildings on which the managed portfolio and the franchised hotel are located.

Leela Hotels​ IPO Details: Contact Details

Here are details of the registered address and registrar name of Leela Hotels (Schloss Bangalore Limited):

• Registered Office Address: The Leela Palace, Diplomatic Enclave, Africa Avenue, Netaji Nagar, South Delhi, New Delhi, Delhi, 110 023, India
• Email: cs@theleela.com
• Company Website: http://www.theleela.com/
• Registrar Name: KFin Technologies Limited

For all the insights on Leela Hotels IPO​ and detailed expert advice, you can download the SMC ACE App or visit the SMC telegram channels. Take smart decisions and apply for this IPO easily on the SMC ACE App by opening free demat account now.

Frequently Asked Questions – FAQs

1. Is Leela a listed company?

Leela Hotels is going to list on the NSE and BSE on June 2 (Monday) and is coming up with a mainboard IPO of an issue size of ₹3,500 crores.

2. Who bought Leela Hotels?

Project Ballet Bangalore Holdings (63.65%) and BSREP III Tadoba Holdings (15.81%) are the top two shareholders of Leela Hotels (Schloss Bangalore Limited).

3. Which is the parent company of Leela IPO?

Schloss Bangalore Limited is the parent company of Leela that owns, operates, and develops Leela Hotels, resorts, and palaces through direct ownership or third-party agreements.

Reference:
https://nsearchives.nseindia.com/content/equities/IPO_RHP_LEELA.pdf

Author: All Content is verified by SMC Global Securities.