HBI Staff | Hyderabad 
India’s hospitality industry is poised for a major expansion in its listed universe as Schloss Bengaluru, Ventive Hospitality, and Brigade Hotels prepare to collectively raise INR 8,000 crore through Initial Public Offerings (IPOs), according to a Jefferies report. Additionally, ITC Hotels is set to complete its demerger in Q4 FY25, marking a strategic shift to focus on standalone hotel operations. While the ITC demerger will not involve fresh fundraising, it will further diversify the sector’s public representation.
Recent hotel IPOs have delivered mixed results, with stock prices trading between 0% and 52% above their issue price. Despite sideways post-listing movement, the long-term outlook for the hospitality sector remains strong, driven by high travel demand, rising Average Room Rates (ARRs), and robust occupancy levels.
Each IPO-bound company brings a unique strategy to the table:
- Schloss Bengaluru: Operating under the Leela brand, Schloss is an owner-operator with a portfolio of owned and managed properties in major metros, focusing on the luxury segment.
- Ventive Hospitality: A unit of Pune-based Panchshil Realty, Ventive follows a development and acquisition model, with operations in Pune, Bangalore, and the Maldives.
- Brigade Hotels: An offshoot of Brigade Group, it targets South Indian cities, with plans to add 996 keys to its existing 1,604 keys, making it a mid-tier player with the largest growth pipeline.
However, challenges loom. All three companies report either small profits or marginal losses at the PAT level and carry leveraged balance sheets, with Net Debt-to-EBITDA ratios ranging between 4x and 7x in FY24.
Schloss and Ventive lead in Revenue Per Available Room (RevPAR) due to their luxury segment focus, while Brigade positions itself as a mid-tier growth player. The broader hospitality industry continues to thrive, supported by resilient travel demand and a supply-demand imbalance that sustains ARR growth.
The IPO wave has sparked interest from real estate developers. Companies like DB Realty and Prestige Estates are reportedly exploring public listings, following the lead of asset-heavy players like Chalet Hotels and Juniper Hotels. These firms often collaborate with global operators such as Marriott, Hilton, and IHG, enhancing their operational expertise and market appeal.
source ANI
