Leela Hotels

About the Company

Incorporated in 2019, Schloss Bangalore operates as India’s only institutionally owned and managed pure-play luxury hospitality company under “The Leela” brand. Renowned globally, “The Leela” ranked among the top three hospitality brands in 2023 and 2024, following consecutive #1 rankings in 2020 and 2021 by Travel + Leisure World’s Best Awards. Established in 1986, the brand has a strong legacy in Indian luxury hospitality, with over 250 awards earned since January 2021. The portfolio includes 12 operational hotels with 3,382 keys, making it one of India’s largest luxury hospitality entities by key count. Strategically positioned across 10 key Indian business and leisure destinations, it represents 18% of luxury keys in these markets. Plans are underway to expand with eight new properties, adding 833 keys by 2028. This growth includes modern palaces, resorts, and ventures into wildlife, spiritual, and heritage tourism, broadening its geographic reach and diversifying its offerings.

Strengths

• Leading luxury brand with global appeal and rich heritage
• Iconic-owned hotels in high-barrier-to-entry luxury markets
• Comprehensive luxury ecosystem diversifying revenue across hospitality services
• Proven operational efficiency through an active asset management approach
• Strong focus on sustainability and renewable energy initiatives
• Experienced senior management and a well-diversified distinguished board
• Supported by Brookfield, a global investor with local expertise

Risks

• Deterioration in brand quality can adversely affect operations and reputation.
• Heavy revenue dependence on five flagship hotels affects financial stability.
• Persistent losses from prior years risk future financial health sustainability.
• Negative cash flow history challenges future operations and business continuity.
• Substantial debts require significant cash flows for servicing and growth.
• Exposure to risks from hotel renovations and delayed new constructions.
• Regulatory complexities may impact compliance, operations, and market positioning.
• Cyclical and seasonal industry fluctuations significantly affect financial performance.