Schloss Bangalore Limited

Details of Business:

We are the only institutionally owned and managed pure-play luxury hospitality company in India (Source: HVS Report). We own, operate, manage and develop luxury hotels and resorts under “The Leela” brand. The Leela brand was ranked as #1 among the world’s best hospitality brands in 2020 and 2021, and among the world’s top three hospitality brands in 2023 and 2024, by Travel + Leisure World’s Best Awards Surveys. In 1986, the Late Captain C.P. Krishnan Nair laid the foundation of The Leela brand, and we have since then focused on building a luxury brand specializing in Indian hospitality. The Leela brand and properties have won over 250 awards since January 2021, which demonstrates our contribution to India’s luxury hospitality landscape. Our mission is deeply rooted in the traditional Indian hospitality belief of “Atithi Devo Bhava” (Guest is God). Our goal is to offer our guests luxury experiences with premier accommodation, exclusivity and personalized service, inspired by the ethos of Indian hospitality. We aim to maintain our position as a world-class luxury hospitality brand.

As of May 31, 2024, we are one of the largest luxury hospitality companies by number of keys in India (Source: HVS Report), comprising of 3,382 keys across 12 operational hotels (collectively, our “Portfolio”). Our Portfolio includes The Leela Palaces, The Leela Hotels and The Leela Resorts. We undertake our business primarily through direct ownership of hotels and hotel management agreements with third-party hotel owners. Our Portfolio includes five owned hotels (our “Owned Portfolio”), six hotels that are managed by us pursuant to hotel management agreements (our “Managed Portfolio”) and one hotel which is owned and operated by a third-party owner under a franchise arrangement with us. We have a strategic footprint across 10 key Indian business and leisure destinations, covering 79% of international air traffic and 54% of domestic air traffic in India in the Financial Year 2024 (Source: HVS Report). Further, according to the HVS Report, our Portfolio is present in six of the top seven business markets and three of the top five leisure markets of India. We account for nearly 18% of the total existing luxury keys across these markets that we are present in as of May 31, 2024 (Source: HVS Report).

We endeavor for The Leela brand to be the preferred brand for travelers seeking premier luxury hospitality, exclusivity and personalized services. Our service excellence is reflected by our industry leading net promoter scores and guest satisfaction ratings. Our net promoter score (“NPS”) across our Portfolio was 84.00 in the Financial Year 2024 – the highest amongst key hospitality peers (Source: HVS Report).

Our Owned Portfolio includes five iconic hotels located in the top luxury hospitality destinations in India (Source: HVS Report). Built at attractive locations, these hotels are designed as “modern palaces” and aim to blend traditional Indian architecture with contemporary world-class amenities and services. Our modern palace hotels in Bengaluru (Karnataka), Chennai (Tamil Nadu) and New Delhi (Delhi) are recognized hospitality landmarks and benefit from high barriers to entry. Our properties are a luxury ecosystem, comprising of luxurious accommodations, curated experiences, wellness programs and award-winning food and beverage (“F&B”) options. This ecosystem caters to the evolving travel preferences of consumers towards differentiated experiential journeys, which has allowed us to drive superior total revenue per available room, in comparison to the luxury hospitality segment in India. For example, during the Financial Year 2024, the average room rate (“ARR”) and revenue per available room (“RevPAR”) across our Owned Portfolio amounted to ₹20,966 and ₹14,030, respectively, both 1.4 times the luxury hospitality segment average in India (Source: HVS Report). For the Financial Year 2024, our total revenue per available room (“TRevPAR”) for our Owned Portfolio was ₹26,218, which was 1.4 times the luxury hospitality segment in India (Source: HVS Report). Moreover, between the Financial Year 2019 and the Financial Year 2024, our Owned Portfolio demonstrated a 11.7% CAGR in RevPAR, higher than the 8.6% CAGR of the luxury hospitality segment in India (Source: HVS Report).

In addition to our Owned Portfolio, our Portfolio also includes six operational luxury hotels and resorts managed under hotel management agreements with third-party owners and one operational luxury hotel which is owned and operated by a third-party owner under a franchise arrangement. These properties offer us an asset-light business model with minimal capital investment and enhance our total income and our brand’s reach. The hotels in our Managed Portfolio are strategically located in key urban centers seeking to cater to high-demand group business, retail and corporate business, while the resorts in our Managed Portfolio are in leisure destinations. Our ability to deliver The Leela experience and our operational expertise has allowed us to command higher RevPAR compared to comparable hotels across the respective micro-markets (Source: HVS Report). For example, for the Financial Year 2024, the ARR and RevPAR of our Managed Portfolio, in comparison to comparable hotels across their micro-markets, was 1.4 times and 1.3 times respectively (Source: HVS Report). Further, our Managed Portfolio generated performance-based incentive fees for us (except for a managed hotel which was rebranded in the Financial Year 2024) and had an average NPS of 83.52 for the Financial Year 2024, demonstrating robust performance and underscoring our commitment to guest satisfaction and brand reputation. We believe this operational excellence and ethos of Indian hospitality positions us as an attractive choice for future owners and developers of luxury hotels, resorts and other hospitality properties.

Further, we plan to expand our Portfolio with eight new hotels, aggregating approximately 833 keys or 24.63% of existing keys through 2028 that will be either developed, owned or managed by us. These are currently in various stages of acquisition and development. Our growth pipeline comprises of modern palaces, hotels and resorts including expansion in new segments such as wildlife, spiritual and heritage tourism, diversifying our geographical footprint across additional cities and tourist destinations. This includes a modern palace hotels in Agra (Uttar Pradesh) and Srinagar (Union Territory of Jammu and Kashmir), resorts in Ranthambore (Rajasthan) and Bandhavgarh (Madhya Pradesh), a hotel in Hyderabad (Telangana) and serviced apartments in Mumbai’s (Maharashtra) international airport district. Going forward, we intend to continue to strategically undertake future expansion across the luxury hospitality sector within India and internationally. We intend to pursue this by developing our existing land assets, pursuing accretive asset acquisition opportunities, hotel management agreements with third-party hotel owners, and optimization of under-utilized space in our operating hotels. We will also pursue selective partnerships, acquisitions and development of brands that complement our Portfolio.

We seek to capitalize on the strength of our well recognized luxury brand through complementary business extensions. We currently manage a residential club in one of Mumbai’s luxury residential buildings and are looking to further expand this business. We are also looking to expand into The Leela-branded residential offerings for sale adjacent to The Leela branded hotels that we will develop in the future. Further, we aim to launch exclusive ‘members only’ clubs across select hotels in our Owned Portfolio, further diversifying our hospitality offerings.

Our strategic initiatives and expansion plans are greatly enhanced by the support of our Promoters, that are advised and managed by affiliates of Brookfield, a global alternative asset manager with US$925 billion of assets under management, operations in over 30 countries and more than 240,000 operating employees as of March 31, 2024. As of March 31, 2024, Brookfield manages US$267 billion of real estate assets, and has a strong global track record in hospitality, with a global portfolio comprising over 41,000 keys across 179 owned hotels and significant experience in owning and managing luxury hospitality assets. Brookfield also has significant experience in acquiring, operating and managing assets in India, with US$27 billion of assets under management, experience of developing large scale mixed-use real estate projects of more than 10 msf, and a longstanding presence in India for around 15 years, as of March 31, 2024. In order to further accelerate our growth and leverage Brookfield’s expertise, we have entered into a right of first offer agreement, dated September 17, 2024, with an affiliate of Brookfield, granting us the right of first offer to acquire hospitality assets from them.

Overview of Indian Hospitality Industry

India’s hospitality industry has an inventory of approximately 3.4 million keys as of March 31, 2024, of which the organized sector, which includes branded, aggregators, and quality independent hotels, represents only approximately 11% or approximately 375,000 keys. The organized hotel stock is further segmented into branded and independent hotels, of which branded hotels constitute approximately 45% of the keys, i.e., approximately 170,000 keys. The stock of luxury hospitality remains constrained – constituting only 17% of the branded hotel market i.e., approximately 29,000 keys.

Hospitality in India is typically undertaken through Owner, Manager and Franchiser business models and any combinations of these. The business model of an Owner-Manager combines asset ownership and management and provides alignment with an optimal focus on asset level profitability, brand progression and management fee growth. The hospitality industry comprises luxury, premium (upper upscale and upscale), economy and midscale segments, which provide a wide range of offerings, services, and experiences. Luxury hospitality segment has larger room sizes, high-quality amenities with best-in-class services and are typically characterized by multiple banquets, restaurants and meeting rooms depending on the target segment and thus are able to command higher ARRs compared to other segments.

Industry Reports: Click here

Key Awards, Accreditations and Recognitions:

• Our Company
  Travel + Leisure World’s Best Awards – No.1 World’s Best Hotel Brand in 2020 and 2021, No.3 World’s Best Hotel Brand in 2023 and 2024
  Travel + Leisure India, India’s Best Awards 2020, 2021, 2022, 2023 - Best Hotel Group in India
  Travel + Leisure India, India’s Best Awards 2023 – Best Service
• The Leela Palace Bengaluru
  ZLB23 – Asia’s 50 Best Bars - #40 and the only Indian Bar featured on the list in 2024
  Condé Nast Traveller, The Gold List 2023
• The Leela Palace Chennai
  Condé Nast Traveller, The Gold List 2024
• The Leela Palace New Delhi
  MEGU – World’s 50 Discovery, Asia’s 50 Best Restaurants 2022
  Condé Nast Traveller, The Gold List 2022
• The Leela Palace Jaipur
  Travel + Leisure India’s Best Awards 2022 – Best Family Hotel
• The Leela Palace Udaipur
  Travel + Leisure World’s Best Awards 2019 – #1 Resort in India

Registered Office Address: The Leela Palace, Diplomatic Enclave, Africa Avenue, Netaji Nagar, South Delhi, New Delhi, Delhi, 110 023, India.
Tel: +91 22 6901 5454 | Email: cs@theleela.com

CIN Number: U55209DL2019PLC347492

GST Number: 29ABBCS7760A1ZC

Corporate Office Address: Tower 4, Third Floor, Equinox Business Park, Kurla West, Mumbai 400 070, Maharashtra, India.
Tel: ++91 22 6901 5454 | Email: cs@theleela.com