HBI Staff | Hyderabad 
The Leela Palaces, Hotels and Resorts is poised to go public, targeting a valuation of at least USD 2.5 billion (approximately Rs 21,000 crore) within the next nine months. This marks a significant turnaround for the luxury chain, which faced severe financial challenges and heavy debt just five years ago.
Canadian investor Brookfield, the promoter of The Leela, has enlisted JM Financial and Bank of America as investment bankers for the IPO. According to Mint, Brookfield plans to offer an initial 15% stake to the public, with the option to add another 10% over the next three years. The IPO could be valued at around Rs 3,150 crore, making it the largest in India’s hospitality sector.
The Leela’s revival is remarkable, overcoming past financial turmoil and debt issues. Improved margins and rising valuations have bolstered its position. “The Leela has not only emerged stronger from its debt issues but is also seeing a steady year-on-year rise in valuations on the back of higher margins,” said a source close to the proceedings.
This successful turnaround is driven by Brookfield’s strategic investments and management, positioning The Leela for a promising future in the hospitality industry.
