Luxury hotel chain Leela is set to make headlines with a significant move in the stock market. The company is preparing to launch an IPO worth Rs 5,000 crore, with the draft already submitted to the Securities and Exchange Board of India (SEBI). But that’s not the only major development. Leela is also diversifying into wildlife and spiritual tourism, tapping into growing demand in these niche travel sectors. Furthermore, it plans to step into the serviced apartment business, reflecting its ambition to expand into new hospitality segments.
Details of the IPO and Expansion Plans
Leela Hotels, backed by Canadian investment giant Brookfield, is planning to issue new shares worth Rs 3,000 crore as part of its IPO. The remaining Rs 2,000 crore will be raised via an Offer for Sale (OFS) from its promoter Brookfield. This IPO will make Leela the second Brookfield-invested company to go public, underlining Brookfield’s growing footprint in India’s hospitality sector.
The funds raised from the IPO will be pivotal in supporting Leela’s ambitious growth strategy. The company aims to launch new properties in emerging tourism segments, including wildlife tourism and spiritual tourism. Leela is positioning itself to tap into the rising interest in spiritual destinations like Ayodhya and Tirupati. According to Leela, spiritual tourism is expected to grow at a 16% CAGR between FY 2024 and FY 2030, driven by improved infrastructure and increased connectivity to key pilgrimage sites.
Expanding Presence in the Wildlife and Heritage Sectors
Along with spiritual tourism, Leela is also venturing into wildlife and heritage tourism. The company is planning to open luxury resorts in Ranthambore and Bandhavgarh, two of India’s most famous wildlife sanctuaries. These new properties will add to Leela’s growing list of premium hotels and resorts, strengthening its presence in diverse travel segments.
Leela’s Growing Portfolio and Future Projects
As of May 2024, Leela operates 12 luxury hotels, including The Leela Palaces, The Leela Hotels, and The Leela Resorts. Together, these properties offer 3,382 rooms across 10 cities. The company is now set to expand further by adding eight new hotels with around 833 rooms. The new destinations include Agra, Srinagar, and Sikkim, among others, providing travelers with more choices for luxury stays.
In addition to traditional hotel projects, Leela is also entering the serviced apartment market, with a new project near Mumbai’s international airport. This move is aimed at catering to the growing demand for extended-stay accommodations in India’s business hubs.
Leela’s Growth Under Brookfield’s Ownership
Brookfield acquired Leela Hotels in October 2019, and since then, it has significantly expanded the hotel chain’s operations. Under Brookfield’s leadership, the number of rooms increased from 2,495 in March 2019 to 3,382 by March 2024, reflecting a 35.55% growth. The number of hotels also increased from eight properties in seven cities to 12 properties across 10 cities during the same period.
Leela’s ambitious plans, combined with Brookfield’s financial backing, have positioned it as a key player in India’s luxury hospitality market, with a growing portfolio in wildlife, spiritual tourism, and serviced apartments.
