The Leela Palaces, Hotels and Resorts, a luxury hotel chain, is targeting a valuation of $2.5 billion (approximately ₹21,000 crore) in its upcoming public listing, marking a significant comeback for the company that was once heavily in debt.

What Happened: Brookfield, the promoter of Leela Hotels, has enlisted the services of JM Financial and Bank of America as investment bankers for the forthcoming IPO, reported Mint. The Canadian investor is planning to initially sell 15% of its stake to the public, followed by an additional 10% over the next three years.

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The IPO, which is expected to take place within the next nine months, could be worth around ₹3,150 crore, positioning it as the largest in India’s hospitality sector. This development follows the Leela Hotels’ impressive recovery from a bankruptcy situation a few years ago.

Why It Matters: The resurgence of The Leela Hotels is noteworthy, considering the company’s previous debt issues. The hotel chain was bought by Brookfield from JM Financial Asset Reconstruction Co. for ₹3,950 crore in 2019. Since the acquisition, Brookfield has made substantial investments in the company, increasing the number of The Leela properties in India to 15, with plans to expand this to 20 in the near future.

Leela’s revival can be partially credited to the swift recovery of the hospitality industry following the conclusion of the COVID-19 pandemic. Brookfield’s managing partner Ankur Gupta told CNBCTV18 that the company’s assets typically operate at 95-97% occupancy, but currently, they are in the mid-80s, providing a 10% room for growth in terms of occupancy levels.

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