The Leela Has Soft Debut, but Now Has IPO Cash

Key Points

• The Leela's $400 million IPO was the largest in India's hospitality sector but debuted below its issue price with a muted investor response.
• The company plans to use the IPO proceeds to reduce debt and expand its luxury hotel portfolio, including properties in wildlife, heritage, and spiritual tourism segments.
• Despite previous financial challenges, The Leela now claims a 40% premium in revenue per available room over competitors and aims for aggressive growth across India.

Summary

The Leela, operated by Schloss Bangalore, launched India's largest hospitality IPO, raising $400 million despite a subdued market debut. With the new capital, The Leela intends to pay down debt and expand its luxury hotel offerings, targeting high-growth areas like wildlife, heritage, and spiritual tourism. The company, which has overcome major financial hurdles in recent years, now boasts a significant revenue premium over its competitors and is positioning itself for further expansion throughout India.